LONG-HAUL MARKETS SHOW SIGNS OF STEADY GROWTH

Consistent growth from long-haul markets assisted Hong Kong in receiving a total of 1,075,893 visitors in September, an increase of 22.5% over the same month last year, according to figures released today (30 October) by the Hong Kong Tourist Association (HKTA).

For the period January to September 2000, visitor arrivals totalled 9,520,155, an increase of 16.2% compared with the same period last year.

Hong Kong today is generally regarded as being less expensive and more competitive than in the pre-Handover peak of 1996. While statistics indicate visitors may be staying for shorter periods, tourism receipts for the period January to June 2000 reached HK$30.1 billion, an increase of 12.4% over the same period last year.

Average hotel room occupancy for September reached 83% — up from 79% for the same month last year. While the average hotel room rate for the year to date increased by 7% to HK$666, this figure is still 40% lower than for the same period in 1996.

Analysis by Markets:

All major markets recorded healthy growth during the month of September: Mainland China (311,743, +36%); South and Southeast Asia (143,171, +25%); Taiwan (197,253, +22.9%); North Asia (161,780, +16.9%); The Americas (93,702, +13.4%); Australia, New Zealand and South Pacific (37,909, +8.3%), and Europe, Africa and the Middle East (92,859, +5.6%).

Visitor arrivals from the United States increased by 12.8% in September due to strong co-operative marketing efforts, such as a HKTA joint campaign with the Carlson Travel Group, with more than 1,000 leisure outlets promoting a Northwest World Vacation Hong Kong package.

The continuing United Vacations/MasterCard promotion utilising print and Internet advertising attracted consumers and travel agents booking for Hong Kong packages.

The Canadian market saw growth of 17.8% as a result of strong ongoing promotions, with coverage in print and electronic media arousing consumer interest in Hong Kong. A special bonus miles programme offered by Cathay Pacific to Advantage members encouraged travel to Hong Kong. Additional flight capacity on Air Canada also contributed to growth.

In Australia, market growth of 8.4% was assisted by an ongoing postcard campaign to the travel trade that carries the latest news from Hong Kong, maintaining a high level of awareness of the destination in terms of products and packaging. Two major trade shows, the Hong Kong Watch & Clock Fair (6-10 September) and the September Hong Kong Jewellery & Watch Fair (20-24 September) helped boost business traffic to Hong Kong.

Arrivals from Spain were up 12.4% due to increased leisure traffic to Mainland China and South and Southeast Asia via Hong Kong. Increased trade links between Spain, Hong Kong and Mainland China also contributed to improving arrival numbers.

Individual markets in Asia all registered continued strong growth: Thailand (16,148, +41.2%), Singapore (37,006, +40.4%), Indonesia (17,911, +27.3%), Malaysia (28,535, +11.5%), Taiwan (197,253, +22.9%), South Korea (29,116, +30.7%), and Japan (132,664, +14.2%).

Japan demonstrated growth in both group and incentive business during September. The on-going incentive campaign “Hong Kong Value Plus 2000” showed excellent results — 27 groups comprising 1,261 people were recorded.

In South Korea, the five-day holiday called “Chusuk” stimulated overseas travel. Many traders visited Hong Kong to attend the Hong Kong Jewellery & Watch Fair.

Many Taiwanese frequent individual travellers came to Hong Kong during the Mid-Autumn Festival holidays. Joint promotions by China Airlines with ABN Bank also stimulated travel to Hong Kong. A 10% discount was offered to all Bankcard holders who purchased the Dynasty Package.

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NOTES

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, the September 1998 and September 1999 figures quoted here have also been adjusted to include those non-Macanese arrivals from Macau.

[1] According to figures provided by the Immigration Department, the total number of visitors entering Hong Kong through Hong Kong Immigration then 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 1 999 (30% of total arrivals).