Hong Kong's public relations agencies are heading into 2026 with renewed optimism, propelled by a rebounding IPO market and expanding technology and travel sectors, according to the 2026 PRHK Benchmark Survey. Agency leaders rated the 2025 business environment at a muted 2.50 out of 5, but sentiment for 2026 jumped to 3.08 out of 5.
The survey, produced by Public Relations Hong Kong (PRHK) and The Chinese University of Hong Kong's Centre for Communication and Public Opinion Survey, reveals an industry that is adapting to structural pressures while keeping growth firmly in sight.
Key findings include:
- The "GBA Paradox": 73.3% of Hong Kong PR agencies generate no revenue at all from the Greater Bay Area, despite considerable discussion about its potential.
- AI adoption gap: ChatGPT is used by 81.3% of agencies, yet 75% of leaders still cite AI as a top industry issue, struggling to move beyond tool-level experiments.
- Culture trumps cash: The median staff retention rate is 84.5%. Company culture was named by 87.5% of leaders as the strongest retention driver, far outpacing base compensation at 43.8%.
Financial services, tech, and tourism lead growth
When asked to forecast growth for the next 12 months, 75.0% of agency leaders pointed to financial services - banking, insurance, and fintech - as the sector with the greatest potential. The anticipated revival of Hong Kong's IPO market is expected to generate substantial communications mandates. Technology and travel/tourism tied for second, each cited by 56.3% of respondents as key growth drivers.
Penn Leung, Chairperson of PRHK, said: "The Hong Kong PR industry is demonstrating remarkable resilience. While budget pressures and talent challenges remain, our agencies are adapting and showing a renewed sense of cautious optimism for 2026. The expected return of financial market activity and the structural expansion of tech and tourism prove that strategic communications counsel is more relevant than ever."
The Greater Bay Area gap
The survey calls out a stark disconnect between GBA ambitions and commercial reality. While the region dominates strategic conversations, 73.3% of agencies draw zero revenue from it. The Hong Kong government's launch of the GoGlobal connect platform, designed to link agencies with Chinese companies, is one mechanism that could begin to close that gap.
AI adoption meets operational realities
ChatGPT has become a near-universal tool in Hong Kong PR agencies. But agency leaders admit they are still wrestling with how to turn scattered trials into disciplined, enterprise-wide workflows. The gap between experimentation and integration remains wide enough that three-quarters of leaders flag AI as a pressing industry concern.
Culture beats cash in the talent race
Defying the "revolving door" reputation of agency life, the industry recorded a median retention rate of 84.5%. When asked what keeps employees from leaving, 87.5% of leaders pointed to company culture as their primary retention lever. Base compensation trailed at 43.8%, underscoring that salary alone is rarely the deciding factor.
Fee discounting threatens perceived value
Shrinking client budgets remain the industry's sharpest vulnerability. An overwhelming 81.3% of agency leaders named them as the top challenge for the year ahead, and 68.8% admitted discounting professional fees in the last financial year to win assignments. The report warns that this scale of price-cutting erodes market fees and weakens the perceived value of strategic PR as a premium service.
David Ketchum, Research Chair of PRHK, said: "The data reveals critical insights that agency leaders must address head-on. The disparity between ambitions in the Greater Bay Area and actual revenue generation is stark. Furthermore, the prevalence of fee discounting poses a structural threat to our industry. Agencies that will thrive in 2026 are those that firmly defend their value and operationalize new technologies to enhance their consulting-led strategies."
Why this matters for PR and communications professionals
The numbers send a clear signal: optimism is returning, but it sits on a fragile foundation. Fee discounting at the current scale risks commoditizing the very expertise agencies are built on. Leaders who hold the line on value while building stronger operational muscle around AI will be the ones who capture the growth in financial services, technology, and tourism. Bridging the gap from experiment to workflow demands more than casual use of ChatGPT - it calls for structured training in AI for PR and communications. And in a market where talent is precious, the survey confirms that a deliberate, well-resourced culture remains the most durable retention tool a firm can have.
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