what HK is experiencing in their F&B shutdown is worse than Sg.
HK consumers r flocking to Shenzhen for their marketing, restaurant, shopping, even car maintenance.
imagine China co setting up shops in JB serving cheaper than what JB shops charge... when RTS is ready.
Behind the Boom in Hong Kongers ‘Heading North’
More and more Hong Kongers are heading to Shenzhen on the mainland for shopping and dining – to the detriment of Hong Kong’s local businesses.
Hong Kong, one of the world’s most crowded cities, was eerily quiet over the four-day Easter holiday. Local news headlines during the weekend were all about Hong Kongers “heading north,” with massive crowds and traffic jams reported on border control points such as Lo Wu and Shenzhen Bay Port and cross-border bridges. This is hardly a new phenomenon – Hong Kongers began flocking to the mainland en masse in early 2023, after the border reopening and relaxation of COVID-19 restrictions. Today, many regularly head to Shenzhen (and other neighboring cities) on weekends, strolling around the megacity’s numerous upscale shopping malls, which offer a dazzling array of stores, restaurants, and entertainment venues, as well as its warehouse-style supermarkets including Sam’s Club and Costco.
Data from the Immigration Department revealed a dramatic 48 percent year-over-year increase in Hong Kong residents making trips across the border (using all checkpoints except the airport), which
reached more than 93 million in 2024. This far outnumbered the 34 million inbound trips by mainland Chinese visitors in the same period.
Why are Hong Kongers traveling to the mainland in larger numbers than ever before? After all, traffic used to be predominantly in the opposite direction, with thousands and millions of mainland Chinese visitors coming into the city each year and filling up their suitcases with everything from daily necessities like baby formula, medicines, cosmetics, and luxury goods. While Hong Kongers have long been known as avid travelers, mainland China was (and is still) a much less sought-after destination when compared with Japan, South Korea, and Taiwan.
In
a 2024 survey of 1,594 Hong Kong and Macau respondents by the Asia Tourism Exchange Center, when asked about the key factors making mainland China attractive as a tourist destination, over one-third (35.8 percent) of respondents from Hong Kong selected cost-effectiveness of dining and shopping, followed by richness of cultural and tourism resources (30.8 percent) and geographical proximity (23.9 percent).
A closer look at the cost of living in Hong Kong and Shenzhen – a frequent destination for Hong Kongers heading north – certainly sheds some light on the issue. Hong Kong has always been among the world’s most expensive cities, evidenced by its high rankings on multiple cost-of-living indices: fifth on the Economist Intelligence Unit’s
Worldwide Cost of Living Index 2023 and 22nd on
Numbeo’s Cost of Living Index by City 2025. The crowdsourced database Numbeo estimates that Shenzhen has an overall cost of living about
50 percent lower than Hong Kong, which includes substantially lower restaurant and grocery prices.
Let’s take coffee as an example: China’s largest coffee chain, Luckin Coffee,
recently expanded to Hong Kong and set its signature coconut milk latte at HK$42. That’s as much as 60 percent higher than in Shenzhen (depending on store locations, the availability of discounts, etc.). In essence, Hong Kongers can enjoy a diverse range of shopping, dining, and entertainment options in Shenzhen, often at a fraction of the price that they would have to pay in their home city. This stark price difference gives Shenzhen a competitive edge, especially in light of the
continuing sluggishness of Hong Kong’s economy, which has prompted local consumers to spend more conservatively.
The appeal of heading north seems to be crystal clear; some Hong Kongers are now
pursuing a “cross-border lifestyle,” leveraging the higher wages in Hong Kong to rent and spend in Shenzhen. The potential ripple effects are, however, often neglected. Local restaurants reportedly
expected a 20 percent drop in business over the Easter holiday break due to the enormous number of residents traveling and the continued reduction in tourist spending. The bitter reality is that many restaurant operators are scaling down or even on the verge of closing amid a deteriorating business environment.
Last year, Hong Kong Federation of Restaurants and Related Trades’ president, Simon Wong Ka-wo,
revealed a wave of restaurant closures attributable to the surge of Hong Kong residents heading north to spend their cash. According to Wong, about 300 eateries shut down each month, while fewer than 200 open to replace them. While small- and medium-sized restaurants are
particularly vulnerable, chains and franchises are also being severely affected. In 2024 along, the city’s renowned cha chaan teng Kam Kee Catering Group closed 11 branches, while American chain Outback Steakhouse
shut down nine of its 19 outlets. Another vital component of Hong Kong’s food and beverage industry, bars and nightclubs, have also been struggling to revive ever since the pandemic, with many
closing their doors at earlier hours owing to a lack of customers.
https://thediplomat.com/2025/05/behind-the-boom-in-hong-kongers-heading-north/