AUGUST VISITOR ARRIVALS SHOW 15.8% GROWTH

Visitor arrivals to Hong Kong in August totalled 1,161,777, [1] an increase of 15.8% compared with the same month last year, according to figures released today (29 September) by the Hong Kong Tourist Association (HKTA).

Average room occupancy for August reached 85% — up from 80% for the same month last year — with High Tariff A hotels showing an increase of nine percentage points to 80% while hostels and guesthouses increased 12 percentage points to 85%.

For the period January to August, arrivals totalled 8.44 million, an increase of 15.4% compared with the same period last year.

According to figures provided by the Immigration Department, the total number of visitors entering Hong Kong through Hong Kong Immigration and travelling on to Mainland China, other destinations or simply remaining in Hong Kong on the same day increased from 3 million in 1996 (23% of total arrivals) to 3.49 million in 1999 (30% of total arrivals).

The increasing dominance of Hong Kong International Airport as an aviation hub for the region is an indicator that there may be further growth for this visitor segment in 2000 with resulting positive impact on Hong Kong's tourism industry. It demonstrates that more visitors are aware of Hong Kong's competitive edge in serving as the transportation hub of Asia and therefore select Hong Kong as a stopover on multi-destination itineraries.

Together with the travel trade, the HKTA is developing strategies to further encourage same-day visitors to extend their stay and discover more of what the City of Life has to offer.

Analysis by Markets:

Most regional markets showed considerable growth. Australia, New Zealand and South Pacific was up 22.3%, South and Southeast Asia up 20.5%, and Mainland China up 19.6%.

Individual markets in Southeast Asia — Malaysia, Singapore, India and Thailand — continued to register strong growth, attributed in some degree to the spin-off from the Cathay Pacific-BKK/Citibank promotion launched in May/June 2000.

A print ad campaign mounted by 24 consortium agents, China Airlines, BCA Card Center and Fuji Image to promote packages to Hong Kong and the Pearl River Delta region generated further awareness and interest in Hong Kong. Attendees from Indonesia at the recent Buddhist Conference held in Hong Kong further contributed to visitor numbers.

The Japanese market is being stimulated by the special tactical campaign, “Hong Kong – Japan’s Tobikkiri” and a series of supporting promotions for the Hong Kong Film Festival at the Tokyo International Film Festival in November.

Arrivals from Australia grew steadily as agents and operators continued to offer highly competitive packages. New marketing initiatives recently launched throughout the country also contributed to the increased appeal of Hong Kong.

Visitor arrivals from the United States (up 11.8%) in August increased due to strong promotions to the senior market in May. More than 25,000 seniors attended an exhibition on Hong Kong at the American Association of Retired Persons.

This together with a trade show and a direct mail campaign targeting one million seniors in California, Arizona and the American Southwest generated further interest and market awareness.

Arrivals from Canada increased 14%. Airlines have been offering special bonus membership miles to members which further encouraged travel to Hong Kong during this period. There was also strong PR coverage of Hong Kong through consumer media including BCTV, Quebec TV and Radio and Prime TV-Ontario.

[1] The HKTA began including non-Macanese visitors arriving from Macau in January 2000, taking into account the significant increases over the past few years in international visitors entering Hong Kong via Macau, and through Macau International Airport. To ensure that overall year-on-year comparisons are valid, all figures quoted here have also been adjusted to include those non-Macanese arrivals from Macau.