ENC OURAGING LONG-HAUL GROWTH KEEPS FEBRUARY VISITOR ARRIVALS BUOYANT

Hong Kong welcomed 967,771 visitors in February, the Hong Kong Tourist Association (HKTA) announced today (29 March), a 4.1% growth on the same month in 2000. Especially encouraging growth was seen in some longer-haul markets including The Americas (up 17.7%) and Australia, New Zealand & South Pacific (up 10.9%), while North Asian arrivals increased by 20.3%.

In contrast, there were slight decreases in arrivals from Mainland China (down 5.7%) and Taiwan (down 3.5%). These anomalies, however, can largely be attributed to the fact that the Lunar New Year fell in January this year, rather than February as in 2000. Generally, the Lunar New Year period sees a decrease in business travellers, but an increase in visitors from the Mainland and Taiwan who take advantage of the long holiday break.

The combined January and February figures, which offer a clearer picture, show that arrivals have grown by 6.1% in the year to date, with most regions showing steady growth. These include North Asia (up 10.7%), The Americas (up 8.4%), Mainland China (up 7.4%) and Taiwan (up 5.4%). Some growingly important individual markets such as India (up 23.6%) are also continuing to perform strongly.

In announcing the latest statistics, the HKTA noted that another anomaly is that February this year had only 28 days, whereas February 2000 had 29. This one day difference could make the true February 2001 increase more than 3% higher, if month-on-month comparisons are made.

Length of Stay

During February, some 35.5% of all visitors left for other destinations on the same day; for January and February combined, the figure was 34.2%. This compares with 30.5% for the first two months of 2000, indicating that the trend of Hong Kong being used as a “stop-over” is continuing to increase. Those who stay on, though, are doing so for longer: an average of 3.5 nights (up 3.8%) in January 2001, the latest figure available.

Visitors from Taiwan continue to be the shortest stayers, with 73.9% of all February arrivals leaving again on the same day. At the other end of the scale, only 17.3% of visitors from The Americas did so.

Hotel Occupancy

The overall hotel occupancy rate for February was 77%, and for January and February combined, 76%. Compared with Jan/Feb 2000, there has been an increase of 1.8% in the daily average number of rooms available for sale.

February 2001 analysis by markets

As noted earlier, the strongest performing region in February 2001 was North Asia, with a total of 157,375 visitors (+20.3%). Individually, South Korea contributed 33,297 visitors (+21.1%) and Japan 124,078 (+20.1%).

Factors stimulating the South Korean market included increased family traffic during the February school holidays, business visitors attending the Hong Kong International Fur & Fashion Fair, and increased consumer awareness generated by a co-operative advertising campaign with Freedom Travel. Japanese arrivals were boosted by a number of incentive group tours from the Sendai region.

Arrivals from The Americas grew 17.7% to 94,888. The Canadian market (21,251, +23.3%) performed especially well, helped by strong interest in Bali or Thailand packages that include a three-night stop-over in Hong Kong, and in the “Visit Asia Pass” being promoted by Cathay Pacific. The United States market (68,639, +17.1%) also showed strong growth, spurred by the low air fares on offer from United Airlines and Cathay. A wave of coast-to-coast TV coverage on Hong Kong in the second half of last year is another factor now starting to pay dividends.

New Zealand (3,475, +17.9%) was a prominent contributor to the 10.9% overall growth recorded by the Australia, New Zealand & South Pacific region. Attractive airfares being offered from New Zealand by Qantas, Air New Zealand and British Airways are stimulating interest in Hong Kong, both as a primary destination and as a stop-over en route to Europe. Australia (23,865, +9.8%) also performed well in February, with Hong Kong-based cruise holidays continuing to prove popular.

Arrivals from South & Southeast Asia region grew 6.8% to 107,323, with India (9,692, +46.2%) and Thailand (18,256, +43.0%) prominent. Indian arrivals continue to show strong growth, helped by Hong Kong’s popularity as a honeymoon destination, as well as a hub for business traffic to and from Mainland China. Arrivals from Thailand were boosted by low-cost culinary tour packages offered by Cathay Pacific with eight travel agencies, and special fly/cruise tours promoted with Star Cruises. In addition, some 6,000 Thai visitors came on an AIA incentive trip.

In contrast, arrivals from Malaysia (15,865, –23.5%), Indonesia (9,616, -5.3%) both fell in the wake of dampened economic sentiment.

Europe, Africa & the Middle East recorded a 5.9% overall gain, with 88,990 arrivals in February. Of the key individual markets, the United Kingdom (29,689, +6.7%) led the way. Arrivals from Germany (13,364, –13.4%) and some other European countries, however, are being restrained by the low value of the euro, which is expected to have a prolonged effect on US-dollar linked destinations like Hong Kong.



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NOTES

Including arrivals of non-Macau residents from Macau

The Hong Kong Tourist Association will be renamed the Hong Kong Tourism Board with effect from 1 April 2001, to reflect a change to its constitutional structure. Its primary responsibilities for marketing and promoting Hong Kong as a destination worldwide, and for providing visitors with assistance when they arrive, will remain unchanged