1、Hong Kong Travelers in Mainland China:Scale,Destinations,and Expenditure PatternsXijie Gao1,Jing Han2,and Zheng(Michael)Song31Nangyang Technological University2,3The Chinese University of Hong KongMarch,2025AbstractThis report presents evidence on the scale,destinations,and expenditure patterns of H

2、ongKong travelers in Mainland China.Official statistics indicate that the number of trips by HongKongresidentstoMainlandChina,aswellastheirexpendituresoutsideHongKong,havemerelyreturned to pre-COVID levels.We then use aggregate statistics from AlipayHK for a more de-tailedinvestigationofconsumptionp

3、atterns.Ouranalysisrevealsagrowingintegrationofcross-border consumption markets,reflected in the increasing number of trips to Mainland China,abroader range of destinations,and a more balanced distribution of expenditures across Main-land cities.Furthermore,aggregate statistics from AlipayHK users h

4、ighlight distinct differencesin consumption patterns between Mainland China and Hong Kong.Notably,among AlipayHKusers who have made transactions in Mainland China,services account for approximately halfoftotalexpenditures,whereasretailwhichdominatesspendinginHongKongrepresentsonly26%.Usingasimplemod

5、el,weconstructarelativecompetitivenessindexfromtheperspectiveofHong Kong residents.The results indicate that life services in Mainland China hold the greatestcompetitive advantage over Hong Kong,while Hong Kong remains more competitive in retailand the food and beverage sectors.We thank Tony Te KE a

6、nd Matthew Ce SHI for helpful comments.1IntroductionHong Kongs retail sector is experiencing a decline.Despite a notable recovery in 2023 followingthe end of COVID restrictions,the sector remains sluggish.Retail sales in 2023 increased by 14%compared to 2022,but they are still 16%below their 2018 le