An exploratory study on Hong Kong as "ruins of shopping paradise" (購物天堂廢墟): for MBA students (information from perplexity.ai)
My question 1: "What is Hong Kong as "ruins of shopping paradise" all about with reference to tourism marketing?"
The reply: "The phrase "Hong Kong as 'ruins of shopping paradise'" in reference to tourism marketing reflects the decline and challenges faced by Hong Kong in maintaining its once-iconic reputation as Asia's top shopping destination. This decline is due to multiple factors including outdated tourism practices like "zero-dollar tours," changing consumer behavior, increased competition from Mainland China and other regional markets, and a lack of innovative tourism strategies.
Key points explaining this concept include:
Zero-dollar tours and shadow economy: Hong Kong’s tourism has been negatively impacted by so-called zero-dollar tours, which offer cheap packages but force tourists into specific partner stores, often with lower-quality goods, isolating them from the broader authentic retail sector and hurting local businesses. This practice has damaged Hong Kong’s image as a genuine shopping paradise.
Shift in tourist behavior: Mainland Chinese tourists, who historically made up nearly 90% of Hong Kong’s retail spending, are increasingly opting for independent travel rather than package tours. This shift comes alongside competitive e-commerce platforms in Mainland China reducing the incentive to shop in Hong Kong.
Eroding appeal of retail tourism: The traditional image of Hong Kong as the "shopping paradise" is fading, as luxury shopping loses its unique appeal due to increased availability of such goods in Mainland China and other markets. The city's retail receipts from tourism have dropped from 51% in 2018 to 41% by mid-2024, signaling a downturn in retail-driven tourism.
Marketing and branding challenges: Critics argue that the city's tourism marketing relies heavily on clichés ("Pearl of the Orient," "East meets West") that no longer resonate and lack creativity to attract new tourists. Despite a gradual recovery in visitor numbers post-pandemic, innovative and locally rooted tourism experiences are needed rather than relying on the old shopping paradise branding.
Need for diversification and revitalization: Industry experts emphasize that Hong Kong must diversify beyond retail, tapping into its cultural, natural, and food-related assets. Its Cantonese cuisine still holds strong appeal, and local experiences like hiking, historic villages, and unique food culture are key to rebranding and revitalizing tourism.
In summary, the "ruins of shopping paradise" metaphor highlights how Hong Kong’s former tourism marketing identity centered on tax-free, luxury shopping is deteriorating due to outdated practices, competitive pressures, and changing tourist preferences. To recover, the city must abandon stale slogans and reinvent itself with innovative, authentic experiences beyond just retail."
My question 2: "What are the theories to study this topic?"
The reply: "The study of Hong Kong as the "ruins of shopping paradise" within tourism marketing can be approached using several key theories and conceptual frameworks:
Touristification Theory: This theory views the transformation of retail areas under the influence of mass tourism as an ecological succession process. Touristification can reduce retail diversity by displacing local shops and promoting tourist-oriented retailers, which impacts the resilience of a destination’s retail ecosystem. For Hong Kong, this explains how reliance on tourist-specific retail (like zero-dollar tours and forced shopping stops) leads to a decline in authentic local retail offerings and diversity.
Retail Gentrification: Under this theory, tourism-driven changes in retail landscapes are likened to gentrification, where “local” shops serving residents are replaced by middle-class or tourist-focused consumption spaces. This process is gradual and complex but leads to homogenization of retail and loss of unique local character.
Consumer Behavior and Market Change Theories: These focus on shifts in tourist behavior, such as Mainland Chinese tourists moving from package tours to independent travel, and changes in retail competition driven by e-commerce and regional alternatives. These dynamics alter the demand side of tourism retail and challenge traditional tourism marketing centered on luxury shopping.
Marketing and Branding Theories in Tourism: These provide frameworks for understanding the impact of outdated, clichéd slogans and promotions on a destination’s image. They highlight the need for innovation, authenticity, and diversification beyond a single theme (like "shopping paradise") to attract modern tourists.
Ecological and Socioeconomic Models of Destination Resilience: These models address how diversity in retail and tourism offerings can serve as a buffer against shocks (e.g., pandemics or tourist decline). The loss of retail diversity due to touristification undermines destination resilience and sustainability.
In sum, the main theoretical lenses to study this topic include tourism-driven retail transformation (touristification and retail gentrification), consumer behavior changes, marketing and branding efficacy, and destination resilience frameworks. These combined provide a comprehensive way to analyze Hong Kong’s decline as a shopping tourism hub and its need for strategic rebranding."
My question 3: "What are the research gaps and issues on this topic?"
The reply: "The main research gaps and issues on the topic of Hong Kong as the "ruins of shopping paradise" in tourism marketing include:
Limited comprehensive tourism data and visitor behavior analysis: There is a significant gap in detailed and integrated tourism data, especially on outbound travel by Hong Kong residents, which hinders understanding the full dynamics of tourist flows and spending patterns needed for effective marketing strategies.
Insufficient study of retail market dynamics amid tourism recovery: Despite some tourism recovery, retail sales continue to decline with persistent vacancy rates in prime shopping centers. The relationship between tourist arrivals and retail market performance lacks thorough investigation, particularly how tourism-led retail can revitalize local commerce sustainably.
Impact of rising costs and tariffs on shopping appeal: While rising prices of everyday and imported goods (due to tariffs and inflation) are driving tourists, especially Mainland Chinese, to alternative destinations like Japan and South Korea, there is a research gap in quantifying how much these economic factors directly affect Hong Kong’s tourism shopping competitiveness and marketing messaging.
Overcrowding and spatial challenges influencing tourist experience: Overcrowded tourist districts and limited accessible public spaces negatively affect visitor satisfaction and local quality of life, but research on how to balance tourism growth with urban livability is incomplete.
Effectiveness of government and industry initiatives: Hong Kong has introduced measures to promote quality tourism, digital transformation, and diversify visitor experiences beyond shopping. However, empirical evaluations of these policies’ impacts, and whether they can successfully rebrand Hong Kong’s image, remain scarce.
Evolving consumer behavior and tourism marketing adaptation: Shifts such as Mainland Chinese tourists’ move from package tours to independent travel and preference for authentic local experiences are recognized but insufficiently explored in terms of implications for retail and destination branding strategies.
In summary, future research should focus on bridging data gaps, assessing economic and spatial impacts on tourism retail, evaluating policy effectiveness, and deeply understanding changing consumer behaviors to inform innovative and sustainable tourism marketing and development for Hong Kong. This will help address the challenges behind the metaphor of "ruins of shopping paradise" and guide strategic revitalization efforts."
My question 4: "What are the Hong Kong public media-reported issues on this topic over the past 3 years?"
The reply: "Over the past three years, Hong Kong public media have reported several key issues related to the topic of "Hong Kong as ruins of shopping paradise" in tourism marketing:
Declining Retail Sales and Shopping Appeal: Retail sales in Hong Kong have experienced sharp declines, such as a 14.7% drop in April 2023 compared to the previous year, marking multiple consecutive months of contraction. Key product categories like jewelry, electronics, and clothing saw significant decreases in sales. This reflects not only weaker local consumption but also a decline in tourist-driven retail spending.
Rising Prices and Tariff Impacts: High tariffs on imported US goods and inflation in Hong Kong have increased prices, making shopping less attractive to Mainland Chinese tourists who historically dominated retail tourism spend. This drives them to alternative destinations like Japan and South Korea, which are seen as offering better value and cultural appeal for products such as beauty, skincare, electronics, and health supplements.
Changing Tourist Behavior: Mainland Chinese tourists are visiting Hong Kong less for shopping and more for cultural and arts experiences. The shift towards independent travel and preference for experiential tourism means shopping-centric tourism marketing is losing relevance. The financial secretary and tourism officials acknowledge the need to revitalize and diversify tourism beyond retail.
Economic and Geopolitical Context: Mainland China's economic slowdown and deflation, combined with ongoing geopolitical tensions (notably between China and the US), have dampened tourism recovery and Hong Kong's appeal as a major shopping destination. The city's negative image due to tensions also discourages foreign tourist arrivals.
Overreliance on Intra-Regional Tourism and Market Challenges: Most tourist arrivals are expected to come from Asia-Pacific, making Hong Kong vulnerable to regional economic fluctuations. Local consumers are also becoming more cost-conscious amid unstable macroeconomic conditions. Retailers face tough challenges, including persistent vacancies in prime shopping centers and lower tourist spending.
Calls for Tourism Revitalization and Diversification: Media and experts stress the urgency for Hong Kong to shift from a shopping-mecca image to offering unique, high-quality experiences. There are calls for government and industry efforts to promote cultural, night market, and authentic local experiences to invigorate the tourism economy and regain momentum.
In summary, public media coverage over the last three years highlights that Hong Kong faces multiple intertwined issues: retail sales decline, rising prices, changing tourist preferences, economic and geopolitical headwinds, and a need for strategic tourism diversification beyond its traditional shopping paradise image."
My question 5: "Propose 4 related research objectives and 2 related research issues on this topic for a part-time MBA dissertation project with a duration of 4 months. Also suggest 2 primary research methods and 1 secondary research method for this project based on pragmatism."
The reply: "For a part-time MBA dissertation project (4 months) on the topic related to "Hong Kong as the ruins of shopping paradise" in tourism marketing with retail and urban impacts, here are 4 related research objectives, 2 research issues, and suggested research methods based on a pragmatism paradigm:
Research Objectives
- To evaluate the impact of declining retail tourism on the financial performance and competitive strategies of Hong Kong retail businesses.(Focus: Assess how changing tourist behaviors and market conditions affect business revenues, pricing, and tenant mix decisions in retail districts.)
- To analyze the role of digital and experiential retail innovations in attracting Mainland Chinese tourists and reviving Hong Kong’s shopping appeal.(Focus: Examine the adoption of hybrid online-offline experiences like AR/VR and e-commerce integration to enhance tourist engagement.)
- To investigate the strategic responses of retail landlords and property managers to retail vacancies and market oversupply amid tourism decline.(Focus: Understand leasing strategies, rent adjustments, and tenant diversification efforts to sustain retail space occupancy.)
- To identify critical success factors for sustaining retail and tourism growth in Hong Kong under evolving tourism marketing environments.(Focus: Explore how sustainability, technology adoption, and stakeholder collaboration shape future retail and tourism resilience.)
Research Issues
- Challenges in correlating retail tourism decline with business and property market strategies within short research timeframes and limited data access.(There is often limited or fragmented data linking tourism flows, retail sales performance, and leasing decisions comprehensively.)
- Integrating technological innovations effectively in traditional retail environments to align with changing Mainland Chinese tourist expectations and behaviors.(Research is needed on measurable impacts and challenges of digital retail strategies in Hong Kong’s competitive tourism retail context.)
Suggested Research Methods (Pragmatism Approach)
Primary Research Methods:
Semi-structured Interviews with retail business owners, property managers, and tourism marketing officials to gain qualitative insights on strategic responses to tourism retail decline.
Structured Surveys targeting Mainland Chinese tourists and local shoppers to collect quantitative data on perceptions, behaviors, and preferences related to shopping and digital retail experiences.
Secondary Research Method:
Document Analysis of industry reports, retail sales data, tourism statistics, government policies, and market forecasts to contextualize findings and identify macroeconomic and market trends.
These objectives and methods fit an MBA focus on business strategy, marketing innovation, and urban retail management, emphasizing actionable insights within a pragmatic, mixed-method research framework suited to a part-time 4-month dissertation timeline."
My question 6: "Comment on the originality, academic and practical values of this study. Also comment on the research ethics issues involved in this study."
The reply: "Certainly! Commenting on the originality, academic and practical values, and research ethics issues of the proposed part-time MBA dissertation study on "Hong Kong as the ruins of shopping paradise" (focused on tourism marketing, retail business strategy, and urban retail management) goes as follows:
Originality
The study is original in its integration of tourism marketing decline with retail business strategic responses and property management perspectives, a nexus not extensively explored especially in Hong Kong’s context.
It innovatively combines digital retail innovation (e.g., AR/VR, e-commerce hybrid models) with traditional retail challenges posed by changing Mainland Chinese tourist behavior, filling a research gap on how retail can leverage technology for market recovery in a declining tourism environment.
The focus on retail landlords’ and property managers’ strategic leasing and tenant-mix decisions amid tourism decline offers novel insights beyond typical consumer-centric studies, embedding the research in a broader commercial real estate and urban retail ecosystem context.
Overall, the study’s pragmatic view addressing short-term actionable strategies for a tourism-affected retail sector in a unique urban setting (Hong Kong) adds a fresh and practically relevant perspective in MBA research.
Academic Value
The study contributes to business strategy literature by elucidating how firms and property stakeholders adapt to external shocks caused by tourism market transformation and consumer behavior shifts.
It enriches retail and tourism marketing scholarship with empirical data from a critical global city undergoing retail disruption, shining light on challenges faced by tourism-reliant businesses in dynamic markets.
By investigating the intersection of digital innovation and experiential marketing within a distressed retail tourism sector, it provides theoretical and applied understanding relevant to modern retail management and marketing disciplines.
Findings can inform further academic discussion on adaptation and resilience in urban retail markets amid evolving tourism economies, broadening frameworks around touristification, retail gentrification, and strategic innovation.
Practical Value
The research delivers actionable insights to retail business owners, property managers, and policymakers about how to navigate and revive Hong Kong’s retail tourism market under current constraints.
It informs decision-making about the deployment of digital and experiential strategies to attract Mainland Chinese tourists and local consumers, critical for sustaining revenue and competitive advantage.
The study supports commercial real estate strategies for mitigating vacancy risks and optimizing the tenant mix in shopping districts impacted by tourism decline.
Recommendations can help the tourism and retail sectors collaborate more effectively to diversify Hong Kong’s tourism offerings and stabilize urban retail ecosystems.
The practical findings support timely responses, crucial given the dynamic economic and geopolitical challenges facing Hong Kong’s tourism and retail industries.
Research Ethics Issues
Informed Consent: Participants (retailers, property managers, tourists, local shoppers) must be fully informed about the study’s purpose, data use, voluntary participation, and rights to withdraw, before data collection.
Confidentiality and Anonymity: Ensuring participants’ identities and sensitive business information (e.g., financial or tenant negotiations) remain confidential is essential to avoid risks to reputations or competitive standing.
Minimizing Harm: Questions related to financial viability or strategic challenges must be asked sensitively to avoid stress or discomfort, especially amid current uncertain market conditions.
Data Integrity: Researchers must honestly report findings and avoid bias, ensuring transparency especially when dealing with potentially conflicting stakeholder perspectives (e.g., landlords vs. tenants).
Conflict of Interest Management: If the researcher has any relationships with participant businesses or industry bodies, these must be transparently declared to maintain objectivity and trustworthiness.
Cultural Sensitivity: Given Hong Kong’s diverse and politically sensitive context, researchers should be aware of cultural nuances and geopolitical sensitivities that may affect participant responses or data interpretation.
In summary, this MBA dissertation study promises a novel and valuable contribution linking tourism marketing decline with business and property strategic management, supported by a pragmatic mixed-method approach. It also demands careful ethical planning and conduct to protect stakeholders while producing credible and actionable insights."
My question 7: "Here are 6 non-academic and 6 academic references in Harvard format relevant to the study on "Hong Kong as ruins of shopping paradise" in tourism marketing and its urban impacts, based on recent public media and scholarly sources:
Non-Academic References
Hong Kong Business (2025) ‘Hong Kong losing appeal as shopping mecca due to tariffs’, Hong Kong Business, 4 June. Available at: https://hongkongbusiness.hk/retail/exclusive/hong-kong-losing-appeal-shopping-mecca-due-tariffs (Accessed: 9 August 2025).
South China Morning Post (2025) ‘Hong Kong retail sales drop for 12th straight month in February, down by 13%’, SCMP, 31 March. Available at: https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3304567/hong-kong-retail-sales-drop-12th-straight-month-february-down-13 (Accessed: 9 August 2025).
South China Morning Post (2025) ‘Hong Kong economy’s “mixed signals” portend retail-sector turbulence, analysts say’, SCMP, 7 July. Available at: https://www.scmp.com/business/article/3317271/hong-kong-economys-mixed-signals-portend-retail-sector-turbulence-analysts-say (Accessed: 9 August 2025).
Insideretail Asia (2025) ‘Hong Kong retail sales fall for 14th straight month in April’, Insideretail Asia, 3 June. Available at: https://insideretail.asia/2025/06/03/hong-kong-retail-sales-fall-for-14th-straight-month-in-april/ (Accessed: 9 August 2025).
China Daily Hong Kong (2025) ‘Hong Kong retail sales bounce back after 14-month decline’, China Daily HK, 2 July. Available at: https://www.chinadailyhk.com/hk/article/615102 (Accessed: 9 August 2025).
Hong Kong Business (2025) ‘Hong Kong retail challenges persist despite rise in tourist arrivals’, Hong Kong Business, 14 July. Available at: https://hongkongbusiness.hk/hotels-tourism/news/hong-kong-retail-challenges-persist-despite-rise-in-tourist-arrivals (Accessed: 9 August 2025).
Academic References
Zhao, W., Lam, T., & McKercher, B. (2024) ‘Touristification and retail diversity: theory and evidence’, Palgrave Communications, 10(1), Article 85. Available at: https://www.nature.com/articles/s41599-024-03805-9 (Accessed: 9 August 2025).
Wu, F. (2022) ‘Beneath the appearance of state-led gentrification: A case study of the Urban Renewal Authority in Hong Kong’, Cities, 123, 103546. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0264837722000813 (Accessed: 9 August 2025).
Cheung, K.C. (2021) ‘Residents’ perceptions of tourism development and neighborhood change in Hong Kong’, PhD thesis, Hong Kong Polytechnic University. Available at: https://theses.lib.polyu.edu.hk/handle/200/11472 (Accessed: 9 August 2025).
Lam, T. and Zhang, T. (2019) ‘Touristification, retail diversity, and destination resilience: Evidence from Hong Kong’, Chinese University of Hong Kong Business School Presentation. Available at: https://www.bschool.cuhk.edu.hk/events/touristification-retail-diversity-and-destination-resilience-evidence-from-hong-kong/ (Accessed: 9 August 2025).
Long, Y. and Shen, J. (2021) ‘Environmental gentrification and welfare implications in Hong Kong’, HKUST Center of Economic Policy Working Paper. Available at: https://cep.hkust.edu.hk/sites/default/files/publications_media/full_paper/WP%202021-07.pdf (Accessed: 9 August 2025).
Xie, P. (2023) ‘Touristification and Retail Change: An Ecological Perspective on the Transformation of Urban Shopping Streets in Hong Kong’, Research Bunny. Available at: https://www.researchbunny.com/papers/touristification-and-retail-change-an-ecological-perspective-on-the-transformation-of-urban-shopping-streets-jpxi (Accessed: 9 August 2025).
These selections provide a robust foundation covering recent retail market conditions, tourism trends, and scholarly insights into urban retail transformation and tourism marketing challenges in Hong Kong."
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