MAINLAND GROWTH CUSHIONS IMPACT OF U.S. ATTACKS ON SEPTEMBER ARRIVALS

Despite the severe impact on tourism worldwide of the 11 September terrorist attacks, visitor arrivals in Hong Kong during the month fell by a modest 2.1% compared with September 2000, the Hong Kong Tourism Board (HKTB) announced today. Significant falls in most major markets were cushioned by an 11.7% rise in arrivals from Mainland China, a market that has maintained double-digit growth for much of this year.

The HKTB’s Executive Director Clara Chong warned, however, that the situation could worsen in the next few months before confidence returned to the marketplace. “Firstly, we have to remember that September’s figures were only partly affected by the US attacks,” she noted. “We can expect a full month’s impact to be much greater.

“Secondly, leisure visits are normally planned two or three months ahead of the travel date. Our feedback from the long-haul markets is that many potential customers are taking a ‘wait and see’ attitude at present, which means that the real impact will be felt some way down the line.”

As might be expected, the most seriously affected market was The Americas, which saw a 15.0% decline. Arrivals from Australia, New Zealand & South Pacific also fell sharply, slipping 11.1 %, although Europe, Africa & the Middle East showed a lesser fall of 2.7%. In the short-haul markets, Taiwan (–9.9%), South & Southeast Asia (–8.2%) and North Asia (–8.0%) were also significantly affected.

Nevertheless, some individual countries bucked the trend. Arrivals from India grew 20.1%, attributed partly to travellers switching to Hong Kong from longer-haul destinations. Arrivals from South Korea rose 7.3%, boosted by business visitors attending two major jewellery, watch and clock fairs during September.

Ms Chong said it was encouraging to see that Hong Kong’s largest market, the Mainland, appeared to have remained relatively immune to the effects of the US tragedy. “It is clear that in the coming months, Mainland visitors will become more critical to us than ever,” she commented. “For this reason, the Chief Executive’s recent announcement of measures to facilitate tour group and business travel to Hong Kong are especially timely and welcome.

“The value of Mainland visitors to Hong Kong can never be underestimated,” Ms Chong added. “In 2000, their per capita spending was second only to that of visitors from The Americas. On average, each Mainland visitor contributes nearly HK$5,000 to the economy.”

Cumulative Arrivals, January – September 2001

In spite of the downturn in September, cumulative arrivals for the first nine months of the year remain 6.3% ahead of the same period in 2000. In total, 10,123,338 arrivals have been recorded since the beginning of the year. With the fourth quarter’s figures expected to be much reduced, however, the HKTB has already revised its full-year forecast for 2001 from 7.8% to zero growth.

Mainland China remains the strongest performing market, showing 13.4% growth in the first nine months. Other markets still registering positive growth at present are North Asia (+6.0%), Taiwan (+3.7%), The Americas (+3.3%) and South & Southeast Asia (+0.6%).

In contrast, Europe, Africa & the Middle East (–1.0%) and Australia, New Zealand & South Pacific (–5.1%) are showing a decline compared with the same period last year. Notwithstanding the effects of recent events, these two markets have been affected all year by low currency values and other external factors.

Hotel Occupancy

Average hotel occupancy across all categories in September was 74%, compared with 83% for the same month in 2000. The downturn in visitors was most strongly reflected in the top grade (High Tariff A) hotels, where occupancy fell from 83% to 67%, as these hotels are most dependent on long-haul business. Medium tariff hotels saw their occupancy slip only four percentage points from 82% to 78%. Hotels on Hong Kong Island outside the main business areas of Central, Wan Chai and Causeway Bay maintained an occupancy rate of 86%.

For the year to date, an average occupancy rate of 78% has been achieved, compared with 82% for January to September 2000. In the intervening period, there has been a 2.5% growth in the daily number of rooms available for sale.

Same-Day Visitors

During September, 63.4% of visitors stayed for one night or longer, compared with 66.1% in September 2000. The US terrorist attacks are unlikely to have had any significant influence on this figure, which is in line with recent trends reflecting Hong Kong’s growing role as a regional air hub.

For the first nine months of 2001, 64.6% of visitors stayed for one night or longer, compared with 67.7% for the first nine months of 2000. Taiwan visitors continue to be the shortest stayers, with only 24.9% staying overnight during this period. In contrast, 83.9% of all visitors from The Americas, 81.4% from Australia New Zealand & South Pacific, and 81.0% from South & Southeast Asia did so.