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“It is clear that customer confidence is returning, albeit slowly, helped by the very competitive air fares and hotel rates that are now on offer.  These present a challenge of their own to the tourism industry, though, as it means that yields are generally lower.

“We can feel encouraged that Hong Kong has done better than many other leading destinations in returning positive growth,” Ms Chong added, “but at the same time we have to recognise that the year ahead is going to remain very difficult.  Many of our key source markets are still in the throes of economic depression, while competition for the tourist dollar is going to become even fiercer in 2002.”

Nevertheless, she pointed out, Hong Kong’s location as the major regional transport hub and gateway to Mainland China placed it in a strong position to build on the growth of 2001 this year.  “China’s accession to the WTO and the award of the 2008 Olympics to Beijing will create more interest than ever in visiting, or doing business with China,” she explained.  “Hong Kong will certainly benefit from this.

“In addition, the relaxation of visa restrictions on Mainland visitors to Hong Kong and the sharp increase in the number of licensed tour agents should continue to boost arrivals from this crucial market,” Ms Chong observed.

“Overall, I am confident that Hong Kong will be able to maintain its position as Asia’s most popular single destination in 2002.”

Analysis by Markets

The figures released by HKTB today show that a record 4,448,583 million visitors came to Hong Kong from Mainland China in 2001 – an increase of 17.5%, or some 662,000 visitors, over the previous year.  A record 457,000 Mainland visitors came in December alone, when the CLP Lights Up Hong Kong programme proved a popular attraction.  Hong Kong benefited during 2001 not only from increased interest in visiting the SAR itself, but also from many thousands of other Mainland travellers who stopped off in Hong Kong en route to or from other popular Asian destinations such as Thailand, Malaysia and Singapore.  In total, the Mainland accounted for 32.4% of all arrivals into Hong Kong.

Taiwan remained Hong Kong’s second largest source market with 2,418,827 million arrivals in 2001, a 17.6% market share, although growth was relatively small at 1.4% due to the weakened value of the NT$ and generally difficult economic conditions.  While these concerns are likely to continue in 2002, they should be partly offset by the speeding-up of visa application procedures through the impending introduction of the electronic iPermit system, which will offer HKTB the opportunity to promote more “spontaneous” weekend visits.

North Asia proved a market of contrasts with arrivals from Japan (1,336,538,         –3.3%) showing a small decline but those from South Korea (425,732, +14.2%) increasing sharply.  Overall, arrivals from North Asia recorded 0.4% growth to 1,762,270, representing 12.8% of all visitors.  The HKTB expects Japan to remain a difficult market in 2002 due to the continuing low value of the yen.

There were also contrasting results within South & Southeast Asia, which achieved almost exactly the same overall performance as in 2000, with 1,746,558 arrivals.  Singapore and Malaysia, which were two of the strongest performing individual markets in 2000, both showed negative growth last year of –6.4% and –9.1% respectively in the wake of economic concerns.  Arrivals from Indonesia fell 10.2%, despite a dramatic comeback (+46.1%) in December.  On the other hand, arrivals from Thailand recorded a 5.6% increase.  The star performer of this region, however, continues to be India, which followed its 2000 increase of 22.4% with a further 23.1% growth, to 161,752 arrivals, in 2001.

In the long-haul markets, The Americas continued to be the leading source of visitors with 1,258,567 arrivals, despite a small 2.9% decline over the year.  After showing positive growth for the first eight months of the year, arrivals from the United States finished 3.1% down at 935,717, although this can be considered quite an encouraging result in the light of the tragic events of 11 September which, understandably, affected this market the most severely of all.  Arrivals from Canada followed a similar pattern, slipping from positive growth to a year-end outturn of 249,707 arrivals (–1.3%).

Arrivals from Europe, Africa & the Middle East were depressed for much of the year by the low value of the euro, and finished 4.2% down with a total of 1,171,386 arrivals.  The United Kingdom remained the largest market with 360,581 arrivals, showing positive growth until August but then slipping to –2.0% for the year.  South Africa, although still a relatively small market, showed encouraging growth of 5.2% to reach 32,504 arrivals.

Australia, New Zealand & South Pacific was another market affected by low currency values for much of 2001, as well as by the closure of Ansett Airlines and a fall in travel to Europe, from which Hong Kong benefits as a popular stop-over destination.  Overall, arrivals fell 7.2% to 386,750, with those from Australia slipping 8.0% and those from New Zealand by 1.2%.

Same-Day Visitors

During 2001, 64.7% of all visitors stayed for one night or longer, compared with 67.5% in 2000.  The increasing proportion of same-day visitors reflects in part Hong Kong’s growing status as a leading regional air transport hub.

Taiwan visitors, many of whom use Hong Kong to reach destinations in Southern China, remained the shortest stayers, with only 24.7% staying overnight.  In contrast, 83.4% of all visitors from The Americas, 81.1% from Australia, New Zealand & South Pacific and 80.8% from South & Southeast Asia did so.

Hotel Occupancy

Average hotel occupancy across all categories in 2001 was 79%.  This represents a slippage of four percentage points compared with 2000, but is a considerably better result than had been expected four months ago.  Top grade (High Tariff A) hotels were the most badly affected by the declines in business and long-haul visitors after 11 September, with occupancy falling to 74% from 82% the previous year.  High Tariff B and Medium Tariff hotels, on the other hand, maintained average occupancy rates in excess of 80%.

December was a particularly encouraging month for the industry, with Medium Tariff hotels showing occupancy of 89% and High Tariff B recording 88%.  Hotels in the less central areas such as Mong Kok/Yau Ma Tei and the Eastern part of Hong Kong Island did especially well, achieving occupancies of 91% and 90% respectively.