Hong Kong experienced a 15% plunge in short-haul visitor arrivals in June 2026, even as the total number of visitors to the city rose by 7% compared to the previous year. The Hong Kong Tourism Board reported that the city welcomed 3.72 million visitors last month, largely driven by a 10% increase in arrivals from mainland China, totaling 2.88 million.

However, non-mainland visitor numbers fell by 4% to 837,962. The decline in short-haul travelers was partially offset by a 16% rise in long-haul arrivals, which reached 277,034.

The Tourism Board attributed the drop in short-haul arrivals to elevated aviation fuel costs linked to the Middle East conflict, which led some airlines to reduce flight capacity. Additionally, depreciation of currencies in short-haul markets against the Hong Kong dollar dampened travel demand.

Fuel prices surged following the outbreak of the US-Israeli war involving Iran, prompting carriers across Asia to raise fares, impose surcharges, suspend routes, or cut capacity. Malaysia-based budget airline AirAsia reduced its capacity by 10% and suspended underperforming routes during the fuel crisis but expects to restore full capacity by the end of August 2026.

Although jet fuel prices have fallen from their April peak, they have recently edged upward again.

Sources