The number of tourists to Hong Kong is expected to drop further by 1.8 percent this year to about 58.3 million.
In papers submitted to the Legislative Council, the Hong Kong Tourism Board said fierce competition in the region and uncertainties in the global economy are to blame for the decline.
Tourism Board executive director Anthony Lau Chun-hon also said protests against parallel traders and the death of a mainland tourist last October were also particular reasons for the biggest drop in mainlanders visiting the SAR last year.
Mainland visitors dropped by 3 percent while overall visitor numbers was 59.3 million last year, down 2.5 percent.
Tourists are also expected to spend less this year as the forecasted per capita spending by overnight visitors falls below HK$7,000 for the first time since 2010.