Hong Kong releases March 2003 visitor arrival figures

Hong Kong's detailed visitor arrivals figures for March 2003 were released by the Hong Kong Tourism Board (HKTB) today, confirming that Hong Kong welcomed 1,347,386 visitors in the month. This represents an increase of 3.9% over the same month in 2002, slightly higher than the 3.6% reported in the provisional figures announced earlier on 4 April.

The figures  verify, however, that there was a rapid downturn in arrivals following the first outbreak of atypical pneumonia cases in Hong Kong from mid-March onwards. Arrivals plunged from 19.1% positive growth in the first 15 days of the month to 9.9% negative in the last 16 days (both figures year-on-year).

With the SARS virus having since become a global health concern, affecting sentiment to travel worldwide, the HKTB expects the April figures to be substantially worse, showing a fall of 70% or more. The fall in arrivals has accelerated following the issue of a World Health Organisation (WHO) advisory against non-essential travel to Hong Kong and Guangdong on 2 April, and confirmation of many new cases in Mainland China.

Nevertheless, commented HKTB Executive Director Clara Chong, there are now glimmers of light at the end of the tunnel. "The situation appears to be stabilising with the daily number of new cases in Hong Kong on a declining trend," she noted. "With the Government's stringent health monitoring measures now in place at the airport and all land and sea border points, we are hopeful that the WHO will feel able to lift their advisory on Hong Kong before too long."

Ms Chong added that work was already well under way in developing a strong and sustained "comeback campaign" that the HKTB plans to launch worldwide as soon as the time appears right. "We are now in the process of  seeking further input from the Government and the travel trade, and hope to have the plans finalised within May," she said. "It is very encouraging to learn that the Government is making HK$1 billion of additional funding available to revitalise travel, exhibitions and commerce. We will continue to  consolidate proposals from all trade partners and will work closely with the Government to ensure that the tourism industry receives adequate funding for its promotions and publicity campaign."

Analysis of March Visitor Arrivals

Despite the second-half downturn, arrivals from Mainland China remained in positive growth during March, as awareness of the SARS virus remained relatively low among Mainland travellers until early April. In total, there were  666,343 Mainland arrivals in Hong Kong during the month, a 43.2% increase on the March 2002 figure.

All other markets recorded negative arrivals growth for March. Europe, Africa & the Middle East was the least affected, showing a 6.1% shortfall, while arrivals fell by 14.0% from Australia, New Zealand & South Pacific, 14.6% from Taiwan, 20.3% from North Asia and 22.5% from The Americas. The  worst hit market was South & Southeast Asia with a 23.4% decline, although individually India bucked the trend by recording 19.3% growth.

For the first quarter of the year to date, Mainland China (+53.1%), Europe, Africa & the Middle East (+4.8%) and Australia, New Zealand & South Pacific  (+3.2%) all remain in positive growth, while arrivals from South & Southeast Asia are virtually unchanged from the same period in 2002. On the other hand, arrivals from Taiwan (-2.6%), North Asia (-1.2%) and The Americas (-5.7%) have slipped into negative growth for this quarter.

Same-Day Visitors

In March 2003, 36.3% of all visitors continued to other destinations on the same day as arrival, compared with 34.9% for the same month in 2002. The increase can partly be explained by the larger-than-usual proportion of  Taiwan visitors - 79.3% - who left on the same day, mostly business travellers en route to or from other destinations in the Pearl River Delta.

However, 79.1% of visitors from Australia, New Zealand & South Pacific and 77.7% from The Americas stayed for one night or longer. For the first quarter of 2003 to date, 63.2% of all visitors have stayed for one night or longer, compared with 64.8% over the same period in 2002.

Hotel Occupancy

Average occupancy rate across all categories of hotels and tourist guest houses in March was 79%, compared with 86% in March 2002. Hotels in the top tariff category were the most severely affected by the mid-month downturn, averaging 70% occupancy compared with 82% a year earlier.

Medium tariff hotels fared slightly better with a slippage from 88% to 83%. Cumulatively, occupancy for the first quarter of 2003 has remained ahead of the same period last year, averaging 81% compared with 78% in 2002. However, occupancy rates are expected to dip severely from April onwards, with some hotels currently reporting single-digit occupancy levels.