The Economic Case for
LGBTQ+ Inclusion in Hong Kong
Stronger LGBTQ+ inclusion can help maintain Hong Kong’s competitive edge
City Ratings Report 2025 Data
Hong Kong is recognised as a global economic powerhouse and a leading hub for entrepreneurship and talent. However, as highlighted in the Open for Business 2025 City Ratings, Hong Kong is only partially open for business (BBB rating). The city’s current legal and social environment for LGBTQ+ inclusion poses growing risks to its long-term competitiveness. Younger generations increasingly prioritise quality of life, inclusion, and social acceptance when choosing where to live and work. While public acceptance and corporate leadership are advancing, the absence of comprehensive protections and recognition for LGBTQ+ people create significant, quantifiable economic risks and missed opportunities for Hong Kong. Addressing the gap in LGBTQ+ inclusion will be essential for Hong Kong to sustain its position as a leading global hub. Greater inclusion can strengthen its ability to attract top talent, foster innovation, and capture new opportunities in tourism and investment.
This briefing highlights headline findings on Hong Kong, forming part of, and building towards, Open for Business’ wider initiative, “The Economic Case for LGBTQ+ Inclusion in East Asia”. It will aim to explore the economic impact of inclusion across Hong Kong, Taiwan, Japan, and South Korea. By deepening its commitment to LGBTQ+ inclusion, Hong Kong can reaffirm its status as an open, innovative, and globally competitive economy, setting a powerful example for the region and securing long-term prosperity for its people and businesses alike.
Key findings:
LGBTQ+ inclusion can reduce brain drain: The lack of legal protections for LGBTQ+ people is a direct driver of brain drain, particularly among high-performing talent. Open for Business estimates that this exodus could cost Hong Kong up to $22 billion HKD annually (over $2 billion USD) in lost economic value, forfeited fiscal contributions, and diminished innovation capacity. The cost is estimated to reach $251 billion HKD (around $32 billion USD) over the next decade.
Boosting tourism through LGBTQ+ inclusion: Evidence shows that travellers increasingly value LGBTQ+ inclusion when choosing destinations. Open for Business estimates that legalising same-sex marriage alone could boost annual tourism revenue by an estimated $950 million to $2 billion HKD (around $122M to $295M USD), leveraging a demographic with high disposable income and a strong preference for inclusive destinations. Hong Kong has an opportunity to capture a significant share of the high-value tourism market.
LGBTQ+ inclusion can strengthen the entrepreneurship ecosystem: There is a clear correlation between LGBTQ+ inclusion and dynamic, high-quality entrepreneurship. While Hong Kong ranks as the world's second-most attractive economy for start-ups, its drop in inclusion ratings since the 2021 Open for Business City Ratings risks its competitive edge to regional competitors. Inclusive cities show entrepreneurship scores 2.5 times higher than less inclusive peers, fostering diverse thought and risk-taking essential for sectors like fintech. With its entrepreneurship ecosystem growing at 26.6% annually, Hong Kong has a narrow window to future-proof its development model.
LGBTQ+ inclusion can help close Hong Kong’s “innovation gap”: Hong Kong struggles to translate strong innovation investments into high-value outputs. Open for Business research shows that LGBTQ+-inclusive environments directly enhance innovation capacity, with top-tier inclusive cities having innovation scores 2.0 times higher than the bottom tier. Fostering inclusion is a strategic lever to address Hong Kong's demographic challenges and boost research collaboration.
