‘More needed to unlock digital growth,’ say HK adland leaders on Budget 2025

Hong Kong’s finance chief Paul Chan has unveiled the government’s financial plan for 2025, with significant investments being planned for artificial intelligence (AI), tourism, and talent attraction. The budget aims to drive economic growth through digital innovation, while reinforcing Hong Kong’s role as a key player in the Greater Bay Area (GBA).

The city’s leader John Lee welcomed the budget and called for public support, highlighting its alignment with the administration’s long-term vision.

"The budget proposes pragmatic measures to improve public finances, focusing primarily on strictly controlling government expenditures, supplemented by suitably increasing revenue, to steadily restore fiscal balance while taking into account the actual social situation and Hong Kong's competitiveness,” he said.

The government has allocated HK$1.2 billion to the Hong Kong Tourism Board (HKTB) to promote its “tourism is everywhere” initiative, aimed at revitalising the sector. HKTB chairman Pang Yiu-kai said the funds would support MICE (Meetings, Incentives, Conferences, and Exhibitions) events, boost cruise tourism and attract visitors from the Middle East and ASEAN markets. He also revealed plans to enhance the Discover Hong Kong platform with a "Live Travel Map" to improve seamless travel experiences.

“Investing in tourism promotion is crucial as it not only boosts the economy and creates job opportunities but also promotes Hong Kong’s culture and tells its good stories to the world,” Pang said.

Business chambers in Hong Kong have largely supported the budget, with Chinese General Chamber of Commerce chairman Jonathan Choi calling it a necessary step in balancing public finances while prioritising technological innovation. He said the plan provides a solid foundation for Hong Kong’s economic momentum, strengthening its competitiveness in key industries and unlocking new opportunities in emerging sectors.

However, public sentiment has been somewhat split.

Media intelligence firm CARMA recorded more than 9,700 mentions of the budget, with only 17.8% of reactions being positive and 13.3% negative. Social media discussions were particularly focused on the discontinuation of the student financial assistance programme, as well as measures targeting low-income families.

With digital transformation and AI taking centre stage in the government’s strategy, industry leaders are assessing how these investments will shape Hong Kong’s marketing, media and advertising landscape. We asked key figures in the advertising sector for their perspectives on what this budget means for the industry and how it could impact future business decisions.

Don't miss: 6 key takeaways for HK marketing community from Budget 2025

Danley Stone, head of client leadership and office lead, Design Bridge and Partners

The budget positions Hong Kong as the ideal connector, where commercial success and cultural richness intertwine. As the traditional bridge between East-West, Hong Kong is also the favourite hot spot for those in the "know", particularly from Korean and mainland China visitors, the two markets where marketers go above and beyond to impress audiences on a large scale.

Hong Kong's strength lies in fostering creative collaborations that span both business and culture - where government initiatives, agency creativity, and corporate innovation create meaningful exchanges. This means developing partnerships that drive commercial growth while celebrating cultural authenticity.

By encouraging cross-sector collaboration on both levels, Hong Kong reinforces its role as a dynamic hub where business opportunities flourish alongside cultural exchange, creating richer, more resonant experiences for locals and visitors alike.

Yvonne Ma, founder and managing director, Eighty20

As of the end of last year, various talent admission schemes had received over 430,000 applications, with more than 270,000 approved, bringing approximately 180,000 talents to Hong Kong. 

I believe the KPI should not only focus on the number of approvals but also consider the number of people who choose to reside and settle in Hong Kong. This would provide a more meaningful measure. Currently, it seems that some individuals under the Top Talent Pass Scheme may not be staying in Hong Kong for the long term. Perhaps there is room to refine the focus of the KPI to better reflect this aspect.

Regarding Yacht tourism, I believe it could boost Hong Kong's appeal as a luxury destination and attract high-spending visitors. These assets, paired with the vibrant offerings of a cosmopolitan city, make Hong Kong an ideal hub for luxury yachts, enhancing tourism, supporting local businesses, and showcasing its unique urban-meets-nature charm. As I understand, cooperation between the nine mainland cities in the GBA and the Hong Kong and Macao Special Administrative Regions has been given greater emphasis and priority.

I can envision a coastal concert inviting yacht owners from across Asia to Hong Kong, sparking a creative breakthrough in high-end tourism.

Johnny Ng, vice president, strategy and growth, GroupM Hong Kong 

Budget 2025 is certainly welcome news for Hong Kong. Businesses, particularly those in the retail sector, have been eager for reasons to be optimistic, and this budget provides a much-needed boost.

For marketers, the anticipated increase in visitor numbers presents renewed opportunities to engage with these audiences and potentially secure larger marketing budgets. After a period of pragmatism, many are looking for ways to innovate and create impactful campaigns. We all want fame!

The government's commitment to supporting tourism promotion, including new mega-events, is crucial for Hong Kong's competitiveness in the region.

We've seen the "Swiftonomics" effect in Singapore driven by the Taylor Swift tour last year, and the upcoming concerts at the new Kai Tak Stadium are already driving brand activity through sponsorships and creating opportunities for paid media, content, and influencer marketing.

The Hong Kong government's committed investment in technology and innovation, aligning with the goal of becoming an international innovation and technology hub, is also significant. While the budget's focus on fintech development is certainly positive and has the potential to enhance digital payment systems, there's more that can be done to fully realise Hong Kong's digital potential.

ECommerce adoption, for instance, still lags behind other markets in the region. Further initiatives to enhance digital infrastructure would be invaluable in enabling more businesses to adapt to the digital economy.

The expansion of banking services with mainland China presents another significant area of opportunity. However, to truly drive growth, we need to see new and innovative approaches to digital marketing and technology-driven innovation. These are the areas that will genuinely empower businesses to thrive and fully leverage the opportunities presented by Budget 2025.

Peggy Hon, general manager, Landor Hong Kong

Hong Kong has been going through a transformation these past few years. The city has taken the bash from Covid and every pillar requires a new structural change to tell a "comeback story" of Hong Kong.

It's of no surprise that with all the resources on I&T and public services, some cuts need to be made during this transformation phase. However, the focus of this topic should be "Is the money well spent?" And the answer is positive. The resources are to support the six big key pillars' of Hong Kong in order to tell the story right. Hong Kong is no longer just all about a "shopping paradise" as we lost the competitive advantage to China retail.

With the changes and developments in technology, air transportation, port and harbourfront development, entertainment, tourism and local enterprises, we can tell they are making the right bets as Hong Kong needs to a big statement as Asia's World City - by interpretation it means Hong Kong is a global hub that drives global excellence in sectors that matter.

The city has been recovering from the economic downturn and everyone is waiting for a "comeback story" of Hong Kong. If the changes and plans on the sectors are well executed it all should ladder back up to the brand positioning of "Asia's world city".

The government still needs a big statement to connect all the transformations we have in all sectors. It's not just a seasonal campaign slogan, it's a positioning and story that informs the Hong Kong strategy for the next 20 years. Think we may want to reinforce the meaning of "Asia's world city" still in today's context, it means we are a city of global excellence. We are the global hub to connect China and the world, we have financial resilience, and we have world-class entertainment supported by world-class transportation and technology.

So instead of saying we have so many different events and happenings, we just need to decide what's this ONE story we want to tell the world about Hong Kong.

Derek Yip, chief operating officer, Omnicom Media Group Hong Kong

Hong Kong government's HK$1 billion investment in the Hong Kong Artificial Intelligence Research and Development Institute represents a significant step for innovation and technology. By combining knowledge with AI ethics, we believe this can enhance market efficiency and optimise working processes, creating opportunities for a skilled workforce in Hong Kong.

Additionally, Hong Kong's role as a cultural bridge allows us to engage with global technological developments effectively. In tourism, the HK$1.23 billion allocated to promote "Tourism is everywhere" can attract diverse tourists and boost the economy.

We predict this initiative will generate new business opportunities in travel, food, and hospitality, promoting growth in these sectors and increasing marketing and advertising investment.

David Ko, managing director and head of Asia, RFI Asia

While the government's allocation of HK$1 billion for an AI research institute and HK$10 billion for the industry-oriented fund represents promising steps, these measures fail to address fundamental structural issues hindering Hong Kong's tech ecosystem.

Hong Kong sits adjacent to the world's manufacturing powerhouse, with China producing 33% of global manufacturing output. The GBA hosts world-class talent in AI, robotics, and manufacturing, as evidenced by unicorns such as DJI, Tencent, and SenseTime—all founded within 100km of Hong Kong.

Our challenge isn't geography or talent availability, but systemic barriers.

The border between Hong Kong and the GBA must become more porous to facilitate seamless talent and technology exchange. The current bureaucratic hurdles surrounding seed funding and pilot projects remain significant dealbreakers for startups.

While initiatives such as the Manufacturing+ scheme and the AI Supercomputing Centre are welcome, they don't address the core issues requiring transformation: our legislative framework, infrastructure ecosystem, and venture capital landscape.

If Hong Kong truly aspires to position AI as a core industry, we need comprehensive reform beyond financial allocations. Without addressing these foundational challenges, we risk watching more unicorns emerge just beyond our borders rather than within them.

Kate Kwan, managing director, TEAM LEWIS Greater China Region

Given current geopolitical sentiment, coupled with structural deficit, this highly anticipated budget understandably focused on cost-cutting measures. From a citizen’s perspective, policies that may bode well include civil servant pay freeze and job cuts.

The emphasis on technology and AI is encouraging, but it remains to be seen how soon these investments will yield returns for Hong Kong.

It is critical to align with mainland China’s policy support for AI, in order to fully capitalise on this technological wave.  Additionally, the government's support for exploring innovations in virtual asset technologies is a positive step. This initiative could further strengthen Hong Kong’s position as a leading financial hub in the broader APAC region as well as Greater China. The budget essentially highlights Hong Kong's position as an integral part of mainland China, emphasising its strategic role within theGBA. This will be a key consideration for businesses looking to align with regional economic developments and opportunities.

Mega projects such as the Northern Metropolis and the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone are not entirely new concepts. However, it is reassuring to see a more concrete direction in their development. That said, these large-scale initiatives will take time to generate tangible economic benefits for the general public.

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