Hong Kong has experienced strong growth in inbound tourism in the last decade. Being the hub of many Asian airlines, Hong Kong has been one of the most popular travel destinations in Asia. The change in sovereignty on July 1, 1997 has drawn tremendous attention from the whole world to Hong Kong on one hand and raised concerns about its future on the other. Since March 1997, four months before the handover, total tourist arrivals to Hong Kong began to decline. Japan, which is the biggest inbound market for Hong Kong experienced the greatest drop. This paper aims to discuss the political, economical, social and environmental challenges that Hong Kong is facing after the handover and make recommendations for future marketing strategies.
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Mok et al. (1999) studied this question.
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