Hong Kong reports Visitor Arrival Figures for March 2005

Hong Kong welcomed 1,831,699 visitors in March 2005, the best March result on record and a 5.7% increase compared with the same month in 2004. For the first quarter of the year, cumulative growth in arrivals now stands at 10.8%.

Stimulated by increased air capacity and attractive fares from several key markets, and strong interest in the Rugby World Cup Sevens among long-haul visitors, most market regions showed double-digit growth over their March 2004 performance. Arrivals from South and Southeast Asia grew by 32.5% to 201,218; from Australia, New Zealand and the South Pacific by 35.8% to 49,921; from North Asia by 28.2% to 153,689; from the Americas by 23.8% to 143,153; and from Europe, Africa and the Middle East by 23.9% to 156,888.

Another contributory factor in boosting arrivals was the staging of several major trade shows, including the Hong Kong International Jewellery Show, the International Fabric Show and the Hong Kong International Film and TV Market (FILMART).

Arrivals from Mainland China and Taiwan, on the other hand, fell by a modest 4.8% and 6.0% respectively, declines that were largely due to a general slowdown in travel following the long Chinese New Year holidays.

Hong Kong Tourism Board (HKTB) Executive Director Clara Chong said that in spite of the softening in the Mainland and Taiwan, the figures kept Hong Kong well on track to meet the forecast 7.3% growth for 2005 overall. “Provisional figures for April 2005 show that the Mainland market continues to grow, with cumulative arrivals ahead of those for 2004. 

“As for Singapore, Australia, Japan, Canada and the USA, as well as Thailand, Malaysia and the Philippines, they have all performed exceptionally well in March, building on the robust momentum from all these markets since the beginning of the year,” she said. “Indeed, the double-digit growth from the majority of our key markets shows that sentiment towards Hong Kong as a destination for leisure and business remains strongly positive.

“Nonetheless, given the recent anti-Japanese protests, which might affect the travel desire of Japanese and Mainland visitors, we’re keeping a watchful eye on the marketplace so that we can respond flexibly and proactively to any variations in consumer sentiment,” Ms Chong remarked.

Looking ahead, Ms Chong said that the HKTB would launch its trade promotions for the 2006 Discover Hong Kong Year later this month, which would provide an excellent opportunity to create a fresh new image of Hong Kong among the global travel trade. “By highlighting Hong Kong’s lesser-known attractions on top of its new  developments, we will spark further interest in our destination,” she said. “We expect our 2005 Hong Kong Shopping Festival, which starts in June, will also provide further impetus to arrivals growth.”

Analysis by Markets, March and January–March 2005

Mainland China remained the highest contributor to total arrivals in March, with 932,243 visitors, a 4.8% decrease on the March 2004 figure. Following the phenomenal growth in visitors who took advantage of the long holiday break during the Lunar New Year in February 2005, travel generally eased in March in advance of the 1 May “Golden Week” period. Of the total Mainland arrivals, 401,203 (43.0%) arrived under the Individual Visit Scheme. In the first quarter of 2005, Hong Kong welcomed 3,038,791 Mainland visitors, a growth of 4.1% on 2004, including 1,364,796 (44.9%) travelling as individuals.

Arrivals from Taiwan in March totalled 156,370, a 6.0% decline compared with March 2004. Total 2005 arrivals now stand at 502,032, 4.2% ahead of the first quarter of 2004.

South and Southeast Asia recorded a total of 201,218 arrivals in March, 32.5% higher than in the same month in 2004. Arrivals from Singapore increased by 60.4% to 49,847, helped by vigorous price competition among airlines. The combination of school holidays and the Easter weekend break boosted leisure arrivals from the  Philippines (33,975, +30.4%) and Malaysia (33,824, +40.1%), while attractively priced packages to Hong Kong and the Pearl River Delta generated good response from Indonesia (16,769, +31.3%). First quarter arrivals for this market region totalled 499,168, an increase of 32.6% over 2004.

North Asia sustained its growth momentum in March 2005 with 153,689 arrivals, 28.2% ahead of March 2004. Arrivals from Japan were particularly buoyant (111,183, +35.2%), while South Korea showed 13.0% growth to 42,506. Cumulatively, the region achieved an aggregate growth of 38.2% (459,126 arrivals) for the first quarter, making it the best performing of all regions.

Among long-haul markets, Australia, New Zealand and the South Pacific was once again the star performer. March arrivals totalled 49,921, a remarkable increase of 35.8% on March 2004. The market was very much boosted by the strong interest in the Rugby World Cup Sevens, which attracted even greater number of overseas participants this year. Tactical promotions riding on the Sevens also prompted good results from the market. Total arrivals for this region in the first quarter of 2005 now stand at 134,341, 31.2% ahead of 2004.

Europe, Africa and the Middle East contributed 156,888 arrivals in March, a 23.9% increase on March 2004. Travel promotions, increased air capacity and the strong Euro against the Hong Kong dollar all positively affected visitor numbers. There were also especially encouraging results from South Africa (+87.3%), with high numbers of business visitors attending the Hong Kong International Jewellery Show in early March. Arrivals from Switzerland, France, Belgium, Spain and Portugal all recorded strong growth. From the UK, a cooperative campaign boosted attendance at this year’s Rugby Sevens to record levels, while promotional fares on the Kangaroo route resulted in increased stop-over traffic. Total arrivals from this region for the first quarter of 2005 grew by 17.8% over 2004 to 369,452.

Arrivals from the Americas reached 143,153 in March, 23.8% higher than for the same month in 2004. Both the United States and Canada recorded robust growth of 21.6% (104,864) and 29.5% (29,124), with low-season advertising stimulating travel from each market. Arrivals from Canada were also encouraged by the relative  strength of the Canadian dollar. For the first quarter of 2005, total arrivals from this region showed a growth of 19.3% to 352,940.

Same-Day In-Town Visitors

In March, 62.1% of all visitors stayed one night or longer, compared with 63.0% in March 2004. The remaining 37.9% were classified as “same-day in-town” visitors, either returning home or departing for another destination on the same day as arrival – the latter reflecting Hong Kong’s increasing importance as a regional transportation hub.

Most long-haul visitors stay one night or more, including 75.7% of March arrivals from the Americas, 80.9% from Australia, New Zealand and South Pacific, and 75.1% from Europe, Africa and the Middle East. Encouragingly, 71.0% of arrivals from South and Southeast Asia were also classified as overnight visitors in March. On the other hand, only 25.4% of visitors from Taiwan stayed overnight, as many travellers from this market are in transit to/from Mainland China or other regional destinations.

For the first 3 months of 2005, 63.5% of all visitors stayed for one night or more, compared with 63.2% for the same period in 2004.

Hotel Occupancy

Hotel occupancy across all categories of hotels and tourist guest houses was 85% in March 2005, compared with 94% in March 2004. The highest tariff hotels averaged 86% while those in the second and third tiers reached 86% and 84% respectively. Geographically, visitors’ most favoured location was Tsim Sha Tsui, where hotels recorded an 88% occupancy rate. The average achieved hotel room rate across all hotel categories and districts was HK$969, 22.5% higher than the 2004 figure.

For the first quarter of the year, average hotel occupancy now stands at 84%, exactly the same for the first quarter of 2004. The average achieved hotel room rate is HK$891, higher than the HK$740 recorded for this period in 2004.

See also: Hong Kong Tourism Board reports February 2005 Visitor Arrival Figures

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