RENEWED LONG-HAUL MARKET GROWTH HELPS KEEP YEAR-END TARGETS WELL IN SIGHT

Visitor arrivals in Hong Kong during November 2000 topped a million for the ninth consecutive month, according to figures released today (30 December) by the Hong Kong Tourist Association (HKTA). The total of 1,118,517 arrivals represents a 7.2% increase on the same month in 1999.

While the growth rate is lower than in some previous months, overall growth for the first 11 months of 2000 remains at a healthy 15.0%, and the HKTA still expects the final arrivals total for 2000 to come close to the 1996 record of 12.97 (X) million. By the end of November, 11.83 million arrivals had been recorded.

A particularly encouraging trend in November was renewed growth in the long-haul markets after a lull in October. Arrivals from the Americas grew 10.4% compared with November 1999; arrivals from Australia, New Zealand and the South Pacific grew 7.4%; and arrivals from Europe, Africa and the Middle East grew 3.1%.

In contrast, growth in the short-haul markets was generally lower than in some previous months, although all continue to show double-digit growth for the year to date. November’s leading regional performer was North Asia, which recorded 15.5% growth for the month and is showing a 20.3% cumulative increase over the first 11 months of 2000.

The percentage of same-day visitors remains at 32.4% for the year to date.

Hotel occupancy averaged 89% during November, and 90% at the highest tariff hotels. For the first 11 months of 2000, total occupancy averaged 83%, compared with 79% for the same period in 1999. This is despite a small increase (3.2%) in the number of rooms available.

Analysis by Markets

Mainland China again provided the largest market share with 304,466 visitors during November, a 27.2% share of all arrivals in Hong Kong. This represents a 5.8% increase in arrivals over the same month in 1999. Visitor numbers from Taiwan grew by 3.6% to 189,346, a 16.9% market share.

Some of November’s best performers, however, were Asian countries that command smaller market shares. Arrivals from Thailand grew by 24.3% to 18,067, as many Thai nationals are currently favouring short-haul destinations like Hong Kong instead of longer trips to Europe or North America. Arrivals from Malaysia grew 19.3% to 29,346, boosted by the earlier-than-usual start of school holidays on 15 November, and growing interest in multi-destination holidays that include Hong Kong.

India continues to be one of Hong Kong’s fastest-growing markets and November saw a further 20.8% increase to 10,975 arrivals, compared with the same month in 1999. November is a peak month for weddings in India, and Hong Kong proved an attractive honeymoon destination for many couples.

South Korea (33,330, +17.4%) and Japan (128,638, +15.0%) also showed continued good growth during the month. A new promotional campaign in South Korea helped increase awareness of Hong Kong’s attractions as a shopping and eating destination, while business traffic increased due partly to the Cosmoprof Asia exhibition in Hong Kong. Arrivals from Japan were boosted by two public holidays during November that gave consumers the chance to take long weekend breaks in Hong Kong.

In the long-haul markets, an HKTA advertising and PR campaign in Spain helped boost arrivals from that country by 33.7% to 2,668. Arrivals from the United States also grew by an encouraging 11.3% to 93,525. The HKTA has been strongly promoting Hong Kong’s cultural attractions to US residents in recent months, most notably through a new multimedia campaign called “Cultural Kaleidoscope” launched in seven major US cities during October. There have also been various co-operative marketing activities with classical radio stations, Museum Magazine and Reader’s Digest.

Visitor numbers from Australia (29,887) and Canada (27,221) both grew by 7.4% in November, compared with the same month in 1999, due partly to special campaigns encouraging ethnic Chinese residents of those countries to visit friends and relatives in Hong Kong and Mainland China.

Arrivals from the Philippines, however, continue to be depressed due to political uncertainties and the weak value of the peso. Visitor numbers from Indonesia also fell by 12.0% in November, although this can be attributed to unusually high arrivals in November 1999. Overall, arrivals from Indonesia are showing a 15.9% increase for the first 11 months of 2000.

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X - 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 1996 and 1999 figures quoted here have been adjusted to include non-Macanese arrivals from Macau.