Analyse of the sector 29/11/2010
Global financial turmoil impacts Hong Kong travel and tourism

The travel and tourism industry was badly affected by the global financial crisis in general in 2009, especially international tourism. Hong Kong saw a decline in arrival numbers and travel accommodation value sales in 2009. Visitors have to think twice before undertaking travel, often choosing a budget tour or short haul trip if they decided to travel. The effect of the H1N1 flu pandemic was not so enduring compared to the financial crisis, with business recovering from the former in three months.

 

China the main source of inbound tourism for Hong Kong

 

Despite the decrease in the number of tourists from the international market, Hong Kong tourism saw a rise in incoming tourist receipts in 2009 because of the increase in the number of Chinese tourists, especially through the Individual Visit Scheme. Hong Kong travel and tourism is expected to recover over the forecast period as the economy recovers. Apart from leisure travel, there will also be more business travel through the closer economic relationship between Hong Kong and China. There are a number of agreements signed between Hong Kong and Guangdong which aim to develop the Pan-Pearl Delta Region and establish a ‘1-hour traffic circle’.

 

Government incentives help to boost tourism growth

 

Hong Kong is not passively waiting for an improvement in international tourism, the government and private tourism associations have made great efforts to develop Hong Kong into ‘Asia’s world city’. The Hong Kong Tourism Board, as the national tourism association, has been leading the Hong Kong tourism industry with international promotions and different marketing tactics, such as the Symphony of Lights and the Wine and Food Year, which attracted large numbers of international tourists to Hong Kong. Additionally, the Hong Kong Trade Development Council is now promoting Hong Kong’s small and medium enterprise capabilities. It organises approximately 350 exhibitions annually, which have become the window showcase for a variety of products and attracted international business travellers.

 

Internet transactions gain popularity

 

Most tourism categories in Hong Kong, including travel retail, car rental, spas and travel accommodation provide online services for international travellers. With increasing global internet coverage, online travel transactions represent an increasing trend because of the time and cost savings possible.

 

Positive outlook

 

Hong Kong travel and tourism is expected to recover over the forecast period as the economy recovers. Arrivals, incoming tourist receipts and travel accommodation are expected to show growth over the forecast period. Over the forecast period, the Hong Kong Tourism Board will continue to attract more Chinese tourists due to their high spending power. Additionally, the Hong Kong government will continue to develop its local cruise tourism industry with the aim of becoming a regional cruise hub over the forecast period. The continuous efforts made by the Hong Kong Tourism Board will help to push Hong Kong travel and tourism to the next level over the forecast period.