SPENDING ON THE RISE AS GROWTH IN MAINLAND VISITORS KEEPS FORECASTS ON TRACK

Strong growth in the number of visitors from Mainland China helped Hong Kong achieve a 7.2% increase in arrivals in July 2001, the Hong Kong Tourism Board (HKTB) announced today (27 August). The 400,172 Mainland visitors welcomed in July represents a 20.3% increase, compared with the same month in 2000.

So far this year, arrivals from the Mainland have grown by 12.7%, as opportunities are opened up for more Mainland residents to travel to more destinations. While increased numbers of Mainlanders are visiting the SAR in its own right, Hong Kong is also gaining the benefit of many who visit other destinations in Southeast Asia. These travellers are allowed up to seven days’ visa-free stay in Hong Kong en route — and are using the opportunity to stop over for a few days and spend money.

Across all markets, there were 1,174,565[2] visitors to Hong Kong in July, a 7.2% year-on-year increase. For the first seven months of the year to date, arrivals growth stands at 7.4%, close to the HKTB’s forecast of 7.8% for the full year despite difficult economic conditions in some major markets.

The HKTB also issued today its Tourism Receipts figures for the first six months of 2001. These show that visitor spending has been rising in line with arrivals growth, totalling HK$31.26 billion from January to June 2001, an increase of 7.7%. Most encouragingly, there were also small rises in both overall length of stay (3.11 nights, +3.3%) and per capita spending (HK$4,701, +0.2%), indicators that have been in decline for the past few years.

The HKTB’s Executive Director, Clara Chong, said the increases in overall and per capita spending were encouraging, but it was too early to be more than “cautiously optimistic” about maintaining the trend. “We are very happy to see a favourable outturn for the first six months, but looking at the global economic environment and the growing regional competition for the tourist dollar, it is clear that the next six months are going to be more difficult,” she noted.

“We will continue our marketing campaigns to encourage visitors to stay longer and spend more, but it will need the full support of everyone in the industry if growth in tourism receipts is to be maintained.”

Analysis by Markets

While the Mainland China market again performed strongly in July, most other market regions recorded only moderate growth in the wake of economic uncertainties.

North Asia recorded a relatively flat July performance (145,189 arrivals, +2.4%) but remains Hong Kong’s second fastest growing market with 8.8% growth in the year to date. Arrivals from South Korea grew 11.4% in July, with a recent joint HKTB and Cathay Pacific consumer marketing campaign helping boost family travel to Hong Kong for the summer holidays.

Arrivals from Taiwan (221,048, +2.4%) grew less strongly in July than in recent months, due to consumer concerns about negative economic growth and the effects of Typhoon Toraji. For the year to date, however, growth stands at 6.1%.

Arrivals from The Americas showed a 1.5% July increase, to 112,407. One reason for the relatively small increase is a strong comparative performance in July 2000, when the economic situation was healthier. While North Americans are still travelling, they are tending to choose destinations closer to home. Nevertheless, arrivals from The Americas for the year to date show growth of 5.6%.

The South & Southeast Asia market grew 0.2% in July with 131,753 arrivals. Growth for the year to date stands at 1.9%. India, though still a relatively small market, continues to be the star performer in this region; July arrivals grew 34.5% to 13,834 and year-to-date growth stands at 26.1%. The Philippines registered a modest growth of +1.2%, helped by some competitively-priced Hong Kong tour packages, while Thailand (+0.6%) also registered a small increase. Arrivals from Singapore, however, fell 7.4% in the wake of economic concerns.

Arrivals from Europe, Africa & the Middle East totalled 88,491, a small increase of 0.1%. Individually, France (+6.7%) and Italy (+3.9%) showed growth but there were fewer arrivals from the United Kingdom (–0.3%) and Germany (–6.1%). South Africa, a currently small but promising market, saw arrivals grow by 18.8% to 2,582; for the year to date, growth stands at 6.3%.

Australia, New Zealand & South Pacific continues to be one of Hong Kong’s most difficult markets. Arrivals fell 10.6% to 29,963 in July and stand at 3.3% down for the year to date. The current low value of the Australian and New Zealand dollars against the US dollar has been an underlying factor in recent months, exacerbated in July by the Cathay pilots’ dispute. As many visitors from this region use Hong Kong as a stop-over destination en route to or from Europe, some long-haul travellers are minimising the risk of disruption by switching to other airlines that by-pass Hong Kong.

Same-Day Visitors

During July, 64.2% of visitors stayed for one night or longer, compared with 66.8% in July 2000. The cumulative figure for the first seven months of 2001 is 64.6% (2000: 67.8%). Taiwan visitors remain the shortest stayers, with only 26.2% staying overnight in July. In contrast, 84.9% of all visitors from The Americas and 81.2% of those from South & Southeast Asia did so.

Hotel Occupancy

Average hotel occupancy across all categories in July was 79%, compared with 82% for the same month in 2000. For the year to date, the comparative figures are also 79% and 82% respectively. In the intervening period, however, there has been a 2.5% growth in the daily number of rooms available for sale.

Accommodation on Hong Kong Island outside the main districts of Central, Wan Chai and Causeway Bay is becoming increasingly popular. Hotels in Eastern and other Island districts registered 89% occupancy in July, despite a 16.9% growth in rooms available since July 2000.

January – June 2001 Tourism Receipts

For the first six months of 2001, visitor spending grew 7.7% to HK$31.26 billion and total tourism receipts (including receipts from servicemen, aircrew members and transit/transfer passengers) to HK$32.28 billion. Visitors from Mainland China contributed more than HK$10 billion of the total, a 13.3% increase.

Despite current economic uncertainties, per capita spending by visitors from The Americas grew 9.3% to HK$5,684, and from Europe, Africa & the Middle East by 6.0% to HK$5,024. Visitors from Taiwan (HK$5,016, –4.9%) and the Mainland (HK$4,971, +1.8%) ranked next among Hong Kong’s highest per capita spenders. Overall per capita spending grew 0.2% to HK$4,701.

Visitors from Australia, New Zealand & South Pacific stayed longest during the first six months of 2001, an average of 4.15 nights, followed by those from Europe, Africa & the Middle East (4.04 nights), The Americas (3.46 nights) and Mainland China (3.44 nights). Overall length of stay grew by 3.3% to 3.11 nights.



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[1] The Hong Kong Tourism Board was formerly known as the Hong Kong Tourist Association (HKTA). The change took effect from 1 April 2001 and reflects a change to the tourism body’s constitutional structure. Its primary responsibilities for marketing and promoting Hong Kong as a destination worldwide, and for providing visitors with assistance when they arrive, remain unchanged.



[2] Including arrivals of non-Macau residents from Macau.