Concerns Linger Beneath the Festive Atmosphere of Hong Kong’s Lunar New Year Markets

On Saturday night at the Victoria Park Lunar New Year Fair, the crowds were bustling, but it was merely a superficial spectacle. (Voice of America/Lin Kan-fung)

[People News] As the 2025 Chinese New Year approaches, Hong Kong’s traditional Lunar New Year markets are in full swing, offering festive flowers and various seasonal goods. Now in the third year of the post-pandemic era, the markets may appear lively, but the gloomy economic outlook casts a long shadow over the city. Despite the bustling crowds, many Hong Kong residents remain pessimistic about the economic prospects for the Year of the Snake.

According to Voice of America (VOA), experiencing the festive atmosphere of a New Year market before Lunar New Year is a long-standing tradition in Hong Kong. However, VOA reporters at Victoria Park’s Lunar New Year Market—the city’s largest—discovered that both long-time vendors and cost-conscious shoppers are struggling to feel optimistic about the current economic situation.

Miss Chan, a 40-something office worker, spent over an hour browsing the Victoria Park market on Saturday evening with a friend. However, she only spent around HK$30 on two glutinous rice dumplings and a decorative couplet (Fai Chun) for a friend. She explained that due to the poor economic climate, she now carefully considers prices before making a purchase—something she had not done in the past.

She feels that she has already sensed the downturn in the economy from her work environment.

She shared her concerns with VOA: “The economic situation has indeed worsened over the past year. It’s much quieter than before. In my line of work, we used to be extremely busy during the Christmas season, often working overtime. But now, there’s hardly ever a need for overtime.”

Similarly, Mr. Li, a flower vendor who has run a stall at Victoria Park for over 20 years, noted that although the crowds seem as lively as before, sales are not as strong. To maintain the same level of income, he has been forced to adopt a “low-profit, high-volume” strategy, even reducing prices by 20% to attract customers.

In an interview with Voice of America (VOA), Mr. Li, a flower vendor, predicted that 2025 (Year of the Snake) would be even more difficult than previous years.

He explained: “For many people, Lunar New Year is a once-a-year occasion, so they will still spend money. However, customers are much more frugal this year—even some of my biggest clients are bargaining and asking me to sell at lower prices than last year. Although the exchange rate between the Chinese yuan and the Hong Kong dollar has dropped, rising transportation costs have canceled out any savings. Other operational costs have also gone up, which means we’re essentially operating at a loss. But we can’t afford to skip the New Year market—it’s a matter of survival. I believe 2025 will be even worse than last year because I also run a business in mainland China, where the business environment has deteriorated significantly. This year, my flower farm in China will definitely lose money.”

Cross-Border Shopping Boom Makes It Harder for Hong Kong Businesses to Survive

Ms. Cheung, who works at a stall selling traditional Fai Chun (Spring Festival couplets) at the Victoria Park market, also expressed concerns. Her company specializes in Hong Kong-themed Fai Chun and has set up stalls at four different New Year markets across the city. Their core business model relies on short-term rental storefronts for sales.

She pointed out that the growing trend of Hong Kong residents traveling to mainland China to shop during holidays has significantly impacted both her company’s daily business and their Lunar New Year market sales.

She warned that if the economic situation does not improve, her company may have to shut down entirely.

She told VOA: “Our sales are actually better on regular weekdays because we primarily cater to local Hong Kong customers. But on weekends, business drops sharply because people travel to the mainland to shop instead. The Hong Kong government has been actively promoting various perks and convenience measures to encourage people to spend across the border, which has drastically reduced opportunities for local businesses like ours.”

She added that while she used to operate two stores simultaneously, rising rents may force her to cut back to just one location or even close entirely, relying solely on pop-up flea markets.

A customer named Mr. Wong, who was shopping at the Victoria Park market, mentioned that compared to other Lunar New Year markets, this one still has more stalls selling products with a strong Hong Kong identity. That’s why he chooses to shop here and support local businesses, even purchasing non-essential items.

However, he acknowledged that high costs in Hong Kong sometimes force him to buy cheaper alternatives from the mainland.

He admitted: “It’s difficult to resist because mainland products are so much cheaper. Recently, I’ve also started shopping on Chinese e-commerce platforms. I know this could be seen as ‘betraying’ Hong Kong businesses, and I agree that keeping my spending within Hong Kong would be better. But the price difference is just too big.”

Due to Hong Kong’s prolonged economic downturn and negative social atmosphere, many locals prefer to save money during regular days and spend only during holidays—often by traveling abroad or shopping in mainland China. This worsens the economic cycle in Hong Kong.

According to Hong Kong Immigration Department statistics, between January 24 and 27, a total of 1,532,279 Hong Kong residents left the city. Meanwhile, the number of non-Hong Kong residents entering the city over the same period was less than 700,000, creating a net difference of over 830,000 people.

Worsening U.S.-China Relations Impact Hong Kong

The escalating competition between the U.S. and China, particularly former U.S. President Donald Trump’s renewed tariff threats against China, has made foreign trade and economic development even more difficult for Hong Kong, which the U.S. now views as part of China.

Dr. Lai Yung-wei, an Assistant Professor at the General Education Center of Taiwan's Lunghwa University of Science and Technology, predicts that Hong Kong’s economic outlook for the Year of the Snake looks bleak.

He explained:“I don’t see any room for optimism. China and Hong Kong’s development will depend entirely on how the U.S. acts. As long as things don’t get worse, that’s already a good outcome. If there’s no further deterioration, it’s already a relief. Hong Kong reached a major turning point in 2019 and 2020, making young people deeply worried—many even left the city and still don’t dare to return. When Hongkongers themselves feel pessimistic about the future, why would foreign businesses feel any different? If even locals are losing faith, wouldn’t foreign investors also worry that political instability could hurt their economic prospects? Under such circumstances, no foreign businesses or investors would dare to put their money into China or Hong Kong.”