In 2023, the hotel industry had seen some recovery with monthly occupancy rate of between 66 per cent and 87 per cent, higher than the monthly occupancy rate of between 55 per cent and 75 per cent in 2022, according to data compiled by Colliers. However, they remained below the 82 per cent to 94 per cent monthly occupancy rate in 2018, the year before Hong Kong was rocked by social unrest.

This year, the Hong Kong Tourism Board anticipates 46 million visitors to the city, 35 per cent more than last year but still just 70 per cent of the 65 million tourists who came in 2018. Meanwhile, estimated spending per overnight visitor is expected to shrink by as much as 16.4 per cent to HK$5,800 (US$741) this year from HK$6,939 in 2023.

Hong Kong overnight visitor spending falls 37%, set to return to 2019 levels

“Globally, we have seen the impact these acts and mega-events can bring to the host city, with concepts such as ‘Swiftonomics’ – or the Super Bowl or Formula One’s influence on hotel rates and inbound tourism in Las Vegas for example,” he added.

Singapore and Japan were the only Asian stops of Swift’s sold-out concert tour.

The Singapore government had confirmed that it paid Swift a grant to be the exclusive Southeast Asian venue of her concert, which had become the highest-grossing tour of all time. The grant reportedly amounted to US$3 million per show for the six-night performance.

Officials defended the deal by citing its tourism benefits. Flights to the city state from March 1 to 9, when Swift was in town, had soared by 186 per cent, while demand for accommodation had surged by five times, according to local reports.

The “Swiftonomics” effect was also felt in Japan where her four days of shows in Tokyo are estimated to trigger an economic ripple effect of around 34.1 billion yen (US$230 million), according to a report compiled by the Economic Impact Research Laboratory. According to a June 2023 data report from research company QuestionPro, the Eras Tour has the potential to generate US$4.6 billion in consumer spending in the US alone.

“This month, we are still maintaining 90 per cent occupancy rates but the room rates are very low, just about 50 per cent of 2018 rates,” said William Cheng, chairman of Magnificent Hotel, which has eight hotels with a combined 3,000 rooms in the city. “I also saw very nice hotels in Causeway Bay charging HK$500 a night and that is not a moneymaking rate. The mid-tier hotels must be suffering.”

The hotelier believed that a Taylor Swift concert would have not only improved hotel business in the city but would have also lifted Hong Kong’s profile as an international travel destination.

Cheng estimated that for the rest of the year, only a third could be considered “good days” for hotels in the city, the bright spots being the public holidays in mainland China.

Besides events like the Hong Kong Rugby Sevens, tourism could receive a lift next month from an electronics exposition, a fashion fair and a gifts exhibition.

“In between these events and fairs, there will be gaps and on those days business will be terrible. Also, not all the fairs will be good for us, some are mediocre,” Cheng said. “So there will be high demand dates but in between these dates, business will be weak.”

The periods immediately before and after national holidays in China, would also be particularly poor as very few would travel, he added.

The Park Lane Hong Kong, one of the largest hotels in the shopping district of Causeway Bay, is counting on the 80 events that the city is set to host this year to tap the flow of high -value-added visitors, said Luc Bollen, its general manager.

“We have been collaborating as an official hotel for major events such as Clockenflap, Tennis Open, Hong Kong Snooker All-Star Challenge and many more,” Bollen said. “It has proven that these events provide a unique appeal to the millennial and Generation Z demographics who are in pursuit of new and immersive experiences.”

The hotel, which celebrates its 50th anniversary this year, has refurbished some of its guest rooms, function spaces, executive lounge, restaurants and hotel exterior in recent years.

“Our team is crafting an array of exciting F&B offerings, room packages, event offerings focusing on art and wellness, together with the digital guide book ‘Wonder Trails: Guide to the Best 50’ for guests to discover the local gems and to enrich their experiences, ensuring their stay is both memorable and enjoyable,” Bollen said.