Bangkok--26 Jan--Francom Asia PR
Tourism spending exceeds expectations, arrivals increase from major markets and high-yield segments
Highlights
The total increase in tourism expenditure associated to inbound tourism (TEAIT) exceeded projections by HK$10 billion in 2005 and 2006.
Family and business arrivals saw double-digit growth in 2006, compared with 2004.
Overall arrivals to Hong Kong grew by 8.1% in 2006.
Several markets showed double-digit growth, including South Korea, the UK and the Philippines, and the emerging markets of the Middle East and the Netherlands.
Provisional figures issued by the Hong Kong Tourism Board (HKTB) today (22 January) show that the financial contribution from inbound tourism to Hong Kong’s economy in 2005 and 2006 should exceed projections by around HK$10 billion. Total expenditure associated to inbound tourism is likely to reach $117.3 billion in 2006, compared with an estimated HK$114.7 billion. Provisional per capita spending by same-day arrivals to Hong Kong in 2006 also grew to around HK$1,000, an increase of about HK$300 compared with 2004.
The tourism industry’s focus on high-yield visitor segments has resulted in an increase of around 30% in arrivals to conventions and exhibitions in 2006, compared with 2004. Arrivals by family visitors also grew by 13% compared with 2004, with visits by children aged 16 and under increasing by 30%.
Overall visitor arrivals to Hong Kong in 2006 increased by 8.1% to 25.25 million. Arrivals in December exceeded 2.4 million, setting an outright record for a single month. Visitor increases were also seen from all key markets in 2006, including South Korea (718,758; +11.9%); the UK (516,495, +11.2%); and the Philippines (454,036, +16.1%). High-performing emerging markets included the Middle East (+24.2%) and the Netherlands (+14.8%). Arrivals from Mainland China exceeded 13.5 million (+8.4%).
HKTB Chairman The Hon Mrs Selina Chow commented that the increased spending, and growth from targeted segments reflect the emphasis on high-yield visitors. “We will continue to focus on attracting high-yield visitors in order to increase the contribution made by tourism to the overall economy,” she said. “While we will strive to maintain a balanced portfolio of visitors, we will also continue to target markets and segments with the highest potential in our marketing activities overseas.
Mrs Chow added, “Although facing increasing competition from Mainland cities and Macau, the HKTB will work closely with their tourism authorities and trade to make Hong Kong an essential component in all combo and multi-destination itineraries.”
Analysis of arrivals, January-December and December 2006
Hong Kong welcomed 25,251,124 visitors in 2006, 8.1% more than in the previous year. Of these, more than 15.82 million (62.7%) stayed overnight, with the remaining 9.42 million leaving on the same day as they arrived. In December, 2,403,246 arrivals came to the city, of which 1.51 million (62.9%) stayed overnight and more than 890,000 (37.1%) were classified as same-day in-town visitors.
Mainland China continued as the leading source of visitors to Hong Kong in 2006, with arrivals reaching 13,591,342, 8.4% more than in 2005. This represented 53.8% of overall arrivals to Hong Kong. More than 6.6 million Mainland citizens travelled to Hong Kong under the Individual Visit Scheme (IVS), 49.1% of the total from across the border and 20.2% more than in 2005. In December, 1,265,519 Mainland residents visited Hong Kong, a 7.4% increase, of which 52.5% (664,944, a rise of 23.2%) travelled under the IVS.
Arrivals from South & Southeast Asia reached 2,659,707 in 2006, an increase of 10.2% over the previous year, confirming the region’s position as Hong Kong’s second largest source market. Arrivals from the Philippines during the year reached a new record of 454,036, an increase of 16.1%, while strong performances were also seen from Indonesia (323,987, up 24.4%) and Malaysia (445, 993, a rise of 13.8%). December arrivals from the region reached 318,981, a 12.4% increase over the same month in 2005.
Visitor numbers from Taiwan rose by 2.2% to 2,177,232 in 2006, while monthly arrivals for December grew by 3.3% to 187,062.
Arrivals from North Asia grew by 9.5% in 2006 to 2,029,869, with the increase led by the 11.9% growth in visitors from South Korea (718,758). Japanese arrivals also grew satisfactorily, with an increase of 8.3% to 1,311,111. In December, monthly arrivals from North Asia numbered 203,026, a 16.2% increase over the same month in 2005.
Among long-haul markets, Europe, Africa and the Middle East again took the lead with arrivals of 1,916,861, an 11.1% increase that also made this Hong Kong’s best-performing market region in 2006. Arrivals from the United Kingdom grew by 11.2%, breaking the half-million mark for the first time and reaching an eventual 516,495. Monthly arrivals from the region in December grew by 20.6% to 162,570.
The Americas recorded 1,630,637 arrivals in 2006, 4.2% more than in 2005. The United States provided the bulk of arrivals at 1,159,025, a moderate 1.4% increase over 2005, while visitor numbers from Canada grew by 8.7% to 335,697. December arrivals from the Americas reached 135,554, a 4.9% increase over the same month in 2005.
Arrivals from Australia, New Zealand & South Pacific reached a new high of 667,684 in 2006, a 7.7% rise over the previous year. Of these, 563,933 came from Australia, 7.3% more than in 2005, while New Zealand provided a further 97,797, a 9.2% increase. December arrivals from the region reached 63,169, a rise of 8.0%.
Same-Day In-Town Visitors
During 2006, 62.7% of all visitors stayed one night or longer, 0.5 of a percentage points fewer than the 63.2% who did so in 2005. The remaining 37.3% were classified as “same-day in-town” visitors, departing for another destination on the same day as arrival, a trend reflecting Hong Kong’s increasing importance as a regional transport hub.
Most long-haul visitors stayed one night or more, including 79.4% of 2006 arrivals from Australia, New Zealand and South Pacific, 75.4% from The Americas and 73.6% from Europe, Africa and the Middle East. Some 74.7% of visitors from South & Southeast Asia and 65.6% from North Asia also stayed overnight. The 62.1% of visitors from the Mainland who stayed at least one night in Hong Kong represent a 1.9 percentage-point fall compared with 2005.
While Taiwan has always provided the highest number of same-day in-town visitors, as many travellers from this market are in transit to or from the Mainland and other regional destinations, the percentage staying overnight grew from 29.1% in 2005 to 31.1% in 2006, reflecting an increase in leisure travel from the island.
Hotel Occupancy
The average occupancy rate across all categories of hotels and tourist guesthouses was 87% for the whole of 2006. This is one-percentage-point increase over the previous year has been achieved in spite of the 7.4% increase in Hong Kong’s room supply between December 2005 and December 2006.
Top tariff hotels averaged 85%% in 2006, a one-percentage-point increase over 2005, while those in the second and third tiers reached 88% and 87%, respectively two percentage higher and identical to the previous year. Hotels in Yau Ma Tei/Mong Kok achieved the highest average occupancy over the year, at 91%.
The average achieved hotel room rate across all hotel categories and districts in 2006 was HK$1,091, a 16.8% improvement on the 2005 figure.