6 key takeaways from Budget 2026 for HK’s marketing scene

Positioning Hong Kong as a talent hub, reviving tourism and advancing AI-driven innovation are among the key priorities for the city in the year ahead, according to Budget 2026.

During an opening speech delivered at LegCo, Hong Kong’s finance chief Paul Chan stated that Hong Kong’s economy had grown 3.5% in 2025, marking the third consecutive year of expansion.

The labour market gradually stabilised in the latter half of the year, with the seasonally adjusted unemployment rate standing at 3.8% in the fourth quarter. Inflation remained mild, with underlying inflation at 1.1% last year, excluding one‑off government measures.

In 2025, Hong Kong saw a 12% increase in visitor arrivals, creating business and job opportunities for related sectors. Furthermore, driven by investments in AI and other new technologies, demand for related products continues to underpin trade expansion in Asia. Entering 2026, global trade tensions have moderated, and economic activities continued to expand in major economies. Nevertheless, the international outlook remains complex: shifting policies in advanced economies keep trade uncertain, and slower-than-expected US rate cuts could undermine market optimism.

Hence, this is still a deficit budget. The operating account for 2026-27 is estimated to register a surplus of about HK$11.9 billion, while the capital account is estimated to record a deficit of about HK$90.1 billion. Taking into account the bond issuance of about HK$160 billion and repayments of about HK$59.7 billion in 2026‑27, a consolidated surplus of HK$22.1 billion is expected for the year, and the fiscal reserves will rise to HK$679.3 billion.

The government forecasts Hong Kong’s economy will grow by 2.5% to 3.5% this year, average 3% per annum in real terms from 2027 to 2030, and see underlying inflation average about 2% a year.

This year’s budget features a purple cover symbolising the strengthening internal momentum of Hong Kong’s economy amid a rapidly changing external environment, said Chan on his weekly blog on Sunday (22 February).

Below, MARKETING-INTERACTIVE lays out some of the key takeaways from the Budget 2026 that businesses and marketers in Hong Kong should focus on.

1. Establishing international hub for high-calibre talents

The various talent admission schemes have attracted over 270,000 talented individuals from around the world, with the Top Talent Pass Scheme drawing over 100,000 global elites, contributing to Hong Kong's economic development.

Meanwhile, the Office for Attracting Strategic Enterprises (OASES) (引進重點企業辦公室) has attracted over 100 strategic enterprises to establish in Hong Kong.  Among them, 51 have been listed, and 76 set up their global or regional headquarters in Hong Kong, bringing in about HK$60 billion of investment and creating around 22,000 jobs. 

Invest Hong Kong assisted 560 enterprises in establishing or expanding their operations in Hong Kong last year, which is expected to generate about HK$70 billion of investment and create over 10,000 jobs. The number of companies in Hong Kong with Mainland or overseas parent companies and the number of start‑ups in Hong Kong both rose by 11%, hitting new highs.  

The Hong Kong Talent Engage will continue stepping up its efforts to attract talents from the Mainland and overseas, and expanding its network of working partners to help incoming talents and their families settle in Hong Kong.

InnoHK has collaborated with more than 30 top universities and research institutions in the Mainland and overseas, bringing together more than 3,000 researchers for world‑class scientific research collaborations.  We launched the HK$3 billion Frontier Technology Research Support Scheme (沿科技研究支援計劃) last year to align with the country's strategic plan for frontier technology development.

As a major international education hub, Hong Kong is developing an international education hub by establishing the "Study in Hong Kong" (留學香港) brand. The Education Bureau (EDB) has established the task force on Study in Hong Kong to attract top‑notch students globally.  

The "Study in Hong Kong" week, currently underway, features key events including the Asia‑Pacific Association for International Education Conference and Exhibition (APAIE 2026), and the international symposium hosted by the Alliance of Universities of Applied Sciences.

2. Enhancing tourism appeal

In the coming year, the government will allocate HK$1,660 million to the Hong Kong Tourism Board (HKTB). To further promote Hong Kong as the Events Capital of Asia (亞洲盛事之都), the HKTB will scale up its flagship events and promotion, introducing new elements and extending event duration, and organise more signature festive events to highlight Hong Kong's East‑meets‑West uniqueness.

Building on the success of last year's "Immersive Light Show in Central" (光影匯．中環) featuring spectacular 3D light shows, the HKTB will launch a brand new show with the theme of light festivals across various locations at different times of the year to replace "A Symphony of Lights".

As part of an effort to attract high‑end overnight visitors, the HKTB will step up marketing efforts in source markets with potential, including Mainland cities outside Guangdong, as well as emerging markets such as ASEAN and the Middle East.  It will also proactively promote the hosting of a wider range of conferences, exhibitions and incentive travel events in Hong Kong.

Given that ship calls to Hong Kong reached 189 last year, a 26% year‑on‑year increase, the HKTB will work to attract more international cruises to include Hong Kong in their itineraries. The government will also continue strengthening cooperation with the GBA and other Mainland provinces and municipalities, and will explore multi‑destination flight itineraries with airlines to draw more overseas visitors to Hong Kong and the Mainland.

Historic buildings embody the city culture of Hong Kong.  The government has implemented 24 revitalisation projects, while providing subsidies for maintenance works of more than 80 private historic buildings. The government will earmark an additional funding of HK$1 billion for the Built Heritage Conservation Fund (保育歷史建築基金) to continue taking forward the relevant work.

Meanwhile, the government will  adhere to the "incremental approach" in enhancing the harbourfront by conducting a consultation on the construction of a pedestrian walkway at the praya of Kennedy Town in the second quarter of this year.  After the phased opening of a waterfront site near Hung Hom Station this quarter, the harbourfront promenades in Kowloon will be extended to about 15kilometres.

To support "tourism is everywhere" (無處不旅遊) and promote "urban‑rural integration" (城鄉共融), the government has proposed allocating HK$200 million for launching the "NM Urban‑rural Integration Fund" (北都城鄉共融基金) as a pilot scheme.  The scheme aims to encourage non‑governmental organisations and relevant bodies to take forward rural tourism projects and bring economic vitality to rural villages.

3. Boosting elite sport, events and cultural commerce

With Hong Kong athletes achieving outstanding results on the international stage, the government will allocate more resources to proactively promote sports in the community, support elite sports, maintain Hong Kong as a centre for major international sports events, enhance professionalism in sports, and develop sports as an industry.

The government will inject HK$1.2 billion into the sports portion of the Arts and Sport Development Fund (藝術及體育發展基金) to further promote sports development, including strengthening training for team sports athletes, improving the professional standards of coaches, as well as supporting and exploring more diverse and higher-level sports competitions to be held in Hong Kong.  

The government will continue promoting Hong Kong as a centre for major international sports events and developing sports as an industry through the "M" Mark System. For example, it will continue working with Kai Tak Sports Park to proactively attract more major international sports events and activities.

In terms of cultural and creative industries, Chan said a total of over HK$9 billion has been injected into the CreateSmart Initiative and the Film Development Fund. The government is proactively developing Hong Kong into a global trading hub for premium arts, and will shortly finalise the details of our collaboration with Art Basel for the coming five years.

To strengthen Hong Kong's position as one of the world's top three arts trading centres, the government has initiated a study focusing on exploring areas such as financing and talent development.  The study is expected to be completed within this year.

4. Developing international I&T hub through AI+

AI is accelerating industrial transformation, spawning new technologies, industries and products. The government is advancing AI industrialisation and broader adoption across sectors to achieve widespread use.

Chan will chair the Committee on AI+ and Industry Development Strategy (AI+與產業發展策略委員會) to formulate strategies and create conditions for AI-driven industrial transformation. The panel—made up of experts, academics, businesses and industry‑park firms—will initially focus on life and health technology and embodied AI.

In terms of empowering industries through basic AI research and development (R&D), the InnoHK Research Cluster (InnoHK) has funded 16 AI and robotics labs researching AI‑driven robotics for healthcare, logistics, smart manufacturing and construction. Moreover, the HK$3 billion AI subsidy scheme (人工智能資助計劃) has approved about 30 R&D projects in areas such as large language models, new materials and biomedicine to boost local AI research and applications.

The government is also aligning with the National AI+ Initiative to promote "industries for AI" and "AI for industries (AI產業化、產業AI化)." The Hong Kong Artificial Intelligence Research and Development Institute Company (香港人工智能研發院) will begin operations in the second half of this year to drive AI+ development, commercialise R&D outcomes, and advise on governance and regulatory matters.

In the banking sector, the Hong Kong Monetary Authority (HKMA) and Cyberport have launched trials for a second sandbox cohort focused on "AI vs. AI" strategies to promote secure and responsible AI use.

While AI offers new opportunities for society and the job market, the government believes the priority is to broaden understanding of and access to AI across all levels of society. It will invite public bodies, tech firms and tertiary institutions to run AI courses, seminars and competitions for students, youth and the public to boost AI awareness, skills and responsible use, with HK$50 million allocated to the initiative.

The government has set up the AI Efficacy Enhancement Team to co‑ordinate and steer government departments to apply AI, conduct process re‑engineering and enhance efficiency.  It will allocate HK$100 million for introducing leading technologies from the industry so as to accelerate the digital intelligence transformation of the government.

5. Nurturing and strengthening emerging industries and sectors

Low‑altitude economy (LAE) is a new engine for smart city development and regional integration.  The government has completed the first‑stage legislative amendment exercise, and will refine the legislation and regulatory framework on civil aviation to lay the foundation for the development of LAE standardisation in the long run, building a competitive LAE ecosystem.

Under the first cohort of the Regulatory Sandbox (監管沙盒), 32 projects have conducted trials along their designated routes.  Some application scenarios of unmanned aircraft such as building management and inspection have already been implemented. 

Meanwhile, trial projects, such as unmanned aircraft system traffic management system, multiple applications/users shared‑platforms, cross‑boundary routes and passenger‑carrying flying aircraft, will be rolled out in phases from the first half of this year.  

The government is also exploring with the mainland to commence trial flights on cross‑boundary low‑altitude logistics.

In terms of embodied AI, development is shifting from large language models to embodied intelligence that interacts with the physical world, with robotics and other platforms evolving to reshape manufacturing, business operations and daily life. Various I&T parks and the Hong Kong Investment Corporation (HKIC) also provide support to embodied AI start-ups.  The government will actively promote the development of an ecosystem for embodied AI and the application of related products.

Furthermore, the government has introduced the HK$10 billion Innovation and Technology Industry Oriented Fund (創科產業引導基金) to channel market capital to invest in emerging fields of strategic importance, such as life and health technology, AI and robotics, as well as future industries.  The selection of fund managers is underway.  It aims to commence the operation of the fund within this year.

To attract emerging firms to choose Hong Kong as a base for Corporate Treasury Centres (CTCs) and to boost the city's role as a platform for "bringing in and going global" (引進來、走出去), the government will announce enhancement measures mid‑year. These include additional tax incentives and greater flexibility for CTCs and their affiliates, plus a pre‑approval mechanism.

6. Establishing international trade centre and supporting SMEs

Facing a complicated and ever‑changing geopolitical and economic landscape, the government will consolidate and enhance the city's status as an international trade centre on all fronts through a series of policy initiatives.

To further attract enterprises to set up in Hong Kong, last year's Policy Address announced that the government would formulate preferential policy packages to promote industries and investment. A preliminary framework has been drawn up, considering industry, technology level, and potential economic and employment contributions. Policy tools include land grants, subsidies and tax incentives, with preferential tax rates at half‑rate or 5%. An amendment bill will be introduced this year.

Tax policy is a key component of economic competitiveness. In view of the evolving global tax environment in recent years, Chan will establish and chair an Advisory Committee on Tax Policy (稅務政策諮詢委員會)  to gather views widely from commercial, industrial and professional sectors, so that Hong Kong's tax policy can reinforce economic development.

Given that more mainland enterprises are expanding overseas, the Task Force on Supporting Mainland Enterprises in Going Global will run promotions to help them go global via Hong Kong and set up a cross‑sectoral professional services platform—linking legal, accounting, financial, testing and certification, marketing and other providers to support their expansion.

In terms of supporting local enterprises, the government understands that the growing popularity of online shopping and changing consumption patterns have posed challenges to some sectors. It is enhancing various measures to strengthen the competitiveness of SMEs.

Moreover, the government will inject HK$200 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), raise the "Easy BUD" funding ceiling to HK$150,000 per application, and provide more targeted support for AI-related enterprises. The Hong Kong Export Credit Insurance Corporation will also pilot a scheme this year to insure SMEs trading with higher‑risk buyers.

Mark your calendars for 24 June! #Content360 Hong Kong returns with a dynamic, one-day event dedicated to pivotal trends—from the silver economies to breakthrough IP collaborations, sports, and beyond. Let's dive into the art of curating content with creativity, critical thinking and confidence!

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