Hong Kong, China – Mimi Lau, a Hong Kong resident, regularly travels to Shenzhen to dine with friends and shop at the Chinese metropolis’s many luxury malls.
For Lau, who lives in Hong Kong’s New Territories, close to the border with mainland China, Shenzhen is not only a shorter bus ride away than most of his hometown’s popular shopping and dining areas, but also a lot cheaper.
“Especially from Shenzhen Bay Port, it’s very easy, you just walk across. [the border]”Your Hong Kong ID and mainland China ID will be checked and there is a huge transport network at the border with taxis and buses. You can even hail your own Didi Chuxing,” Lau told Al Jazeera, referring to Uber, a popular Chinese service.
“It’s very convenient and you don’t have to carry cash around. It’s all electronic.”
Lau is not alone in his enthusiasm for Shenzhen, a metropolis of more than 17 million people that transformed from a sleepy fishing village in tandem with China’s economic reforms in the 1980s.
In 2023, the first full year after COVID-era border restrictions were lifted, 53 million Hong Kong residents crossed the border to visit Shenzhen, according to government data.
In March, the number of tourists leaving the city reached a record 9.3 million, mostly to mainland China, leaving the city’s nightlife and shopping attractions largely deserted over the Easter holiday.
For many Hong Kongers, Shenzhen’s appeal is its vast array of shopping, dining and entertainment options at a fraction of the prices of Hong Kong.
Hong Kong resident Yvonne Ko said she and her friends enjoy visiting Shenzhen for day trips packed with massages, affordable meals and fun activities such as go-kart racing.
“It’s very safe and everything is very convenient,” Koh told Al Jazeera.
Hong Kong, a former British colony with a more decidedly capitalist lifestyle than mainland China, has long been wealthier than the rest of China, but the gap is narrowing with its rapid rise as the world’s second-largest economy.
According to the Hong Kong Trade Development Council, Hong Kong’s economy is nearly twice the size of Shenzhen’s per capita, and Hong Kong residents have superior purchasing power across borders.
But Hong Kong has recently been able to make its money work harder thanks to a favorable exchange rate between the Hong Kong dollar, which is pegged to the U.S. dollar, and the Chinese yuan.
At the same time, China’s slower-than-expected recovery from the pandemic has made prices look even more attractive to travelers.
Rising purchasing power in China means Hong Kong residents are spending a growing proportion of their income across the border on everything from cheaper medical services to bargain hunting at Shenzhen’s new Costco, said Tim Li, senior China analyst at the Economist Intelligence Unit.
“In addition to overseas travel to mainland China [and overseas]“Residents are also spending more on everyday items such as groceries and glasses,” Lee told Al Jazeera.
“Falling prices in mainland China are supported by the relative strength of the US dollar, which is also being fuelled by greater understanding of mainland China lifestyle apps and improved customer service,” he added.
Traveling to Shenzhen has also become easier than ever, with multiple subway and bus routes, and the high-speed rail takes just 15 minutes to reach the first stop after crossing the border.
You will need to go through immigration to travel, but the process is usually quick, except on major holidays.
China is not just trying to lure Hong Kong residents across the border.
Late last year, Beijing relaxed visa requirements for foreign residents, who make up a sizable portion of Hong Kong’s population. They can now apply for a six-day visa to enter Guangdong province, where Shenzhen and Guangzhou are located. Paying for goods and services, long a headache for foreign tourists, has also become easier in recent days.
Foreigners can now link their credit cards to the payments app Alipay and make payments of up to $2,000 without registering their identity documents, but some features remain unavailable without registering.
Still, Hong Kong retains a certain allure compared to mainland China.
Hong Kong is a semi-autonomous region, but the distinction between Hong Kong and mainland China has been blurred by a broad national security crackdown, although Hong Kong still enjoys many more rights and freedoms than mainland China.
Because mainland China doesn’t have an open internet and the apps have a reputation for invading users’ privacy, frequent visitors like Lau keep a separate phone for travel.
“There is a bit of psychological anxiety when you cross the border. I know I will have to change the settings on my SIM card. I will no longer be able to use Facebook or WhatsApp,” she said.
“[But to] Honestly, the price, or value, offered for a temporary severance from the free world is well worth it.”
The surge in Hong Kongers heading to Shenzhen marks a major reversal at the border, where traffic had previously flowed mainly in the other direction.
To escape the chaos of the Cultural Revolution in the 1960s and 1970s, thousands of Chinese swam to Hong Kong, then still a British colony.
Since Hong Kong’s return to China in 1997, it has become a magnet for mainland Chinese seeking greater economic opportunities and a more open social and political environment.
Hong Kong also draws millions of Chinese tourists each year, who have access to brands and products not available in mainland China.
Cross-border traffic came to a halt amid COVID-19, as both mainland China and Hong Kong imposed some of the world’s strictest restrictions on travel and freedom of movement.
Both countries did not fully lift “COVID-free” restrictions until the end of 2022, long after most of the world had reopened their economies. Both economies have struggled to return to pre-pandemic levels due to their own unique challenges.
Tens of thousands of Hong Kong residents and many businesses have fled the city since a sweeping national security law was enacted following mass pro-democracy protests in 2019.
Due in part to the strength of the Hong Kong dollar, Hong Kong is also struggling to attract tourists from south of the border.
Tourists from mainland China, once the driving force behind Hong Kong’s retail economy, are increasingly flocking to countries such as Thailand and Singapore, which, unlike Hong Kong, offer visa-free entry.
Chinese tourists are also attracted to Japan, where a weak yen has seen a surge in international tourism.
Boarded up shopfronts and restaurants are a common sight in many parts of Hong Kong, including trendy hotspots such as Central and Sai Ying Pun.
The Economist Intelligence Unit’s Lee said he was cautiously optimistic about the future, as the Hong Kong dollar is expected to weaken along with the U.S. dollar as the Federal Reserve cuts interest rates in the coming months.
Big box stores such as Shenzhen-based Sam’s Club are also adapting to price-sensitive Hong Kong, with the US brand planning to launch an online shopping and delivery service for the city, the South China Morning Post reported.
This is good news for Hong Kong residents who still prefer to shop locally and avoid mainland China for personal reasons.
Jenny, a Hong Kong resident who asked to only give her first name, said she doesn’t go to Shenzhen because she can do much the same thing in Hong Kong.
She said the furor over travel to mainland China was largely driven by social media, but it also blurred the distinction between China and Hong Kong – something the government is keen to do.
“If you’re looking for things you can’t do in Hong Kong, like really amazing countryside and hiking, then I think it makes sense to travel to China,” she told Al Jazeera.
“But if you choose to go to China and do something as mundane as going to the movies or having dinner, it’s an acceptance that China is really one country. Boundaries, borders and separations are becoming blurred here.”
