Commentary: 500,000 free air tickets won’t be enough to revive Hong Kong’s battered tourism sector

SERVICE STANDARDS AT RISK

Hong Kong – dubbed the city that never sleeps – has long been an attractive tourist location for many reasons. The city is a shopping and food paradise with numerous international brands and 71 Michelin-star restaurants. The quality of service and the cross-culture from East and West are also attractive to many.

However, the strong Hong Kong dollar – which has been linked to the US dollar since 1983 – has yet to provide tourists with a warm welcome.

Hong Kong has always been costly to visit – before the pandemic, a three-star hotel room went for about HK$1,000 a night. And it is even more expensive for mainlanders and tourists worldwide to stay, eat and shop because of the currency rates. 

Other advantages are also fading. Beijing, Shanghai, Shenzhen, and even Chengdu and Chongqing, have most of the international brands Hong Kong has. Moreover, the quality of service is no longer guaranteed, with hundreds of thousands of Hong Kong’s workforce having migrated in the last three years.

Cathay Pacific’s ranking drop among airlines is a signal. The carrier axed 6,000 roles during the pandemic, and is now facing unprecedented staffing and training shortages. The carrier has also lost 1,500 experienced pilots due to a “ruthless permanent reduction in pay”, and it will take years for the airline to restore pre-pandemic flight schedules, the Hong Kong Aircrew Officers Association said in a release last month.

While the carrier has said it intends to hire 4,000 staff to fill operational needs over the next 18 to 24 months, the basic salary of HK$9,000 (US$1,148) makes it hard to attract new recruits, The Standard reported the Cathay Pacific Airways Flight Attendants Union as saying last month.

It’s hard to imagine how Cathay – which has won multiple customer service excellence awards in the past – will be able to maintain high service standards.