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Hong Kong sets more records as October 2003 visitor arrivals soar to 1.58 million

Travel News Asia 28 November 2002

For the third time this year, visitor arrivals in Hong Kong have set a new monthly record, the Hong Kong Tourism Board (HKTB) said today (28 November). October arrivals totalled 1,584,563, a 37.2% increase on the same month in 2001 and well ahead of the previous record of 1.50 million set in August.

Once again the main driving force was the Mainland China market, which also broke the record set two months earlier by contributing 669,828 visitors, a 68.4% year-on-year increase. However, all short-haul and long-haul markets showed healthy increases in October, most recording double-digit growth. 

For the first ten months of 2002 to date, total arrivals have now increased by 18.2% to 13,327,716. With two peak tourism months of the year still remaining, this is not far short of the record 13.7 million achieved for the whole of 2001.

HKTB Executive Director Clara Chong observed that although the percentage growth seen in October was unusually high, as arrivals in the corresponding month last year were depleted by the impact of September's terrorist attacks, the hard numbers were indisputable.

"It is not only the Mainland market that is doing well - all our long-haul markets are now performing above pre-9/11 levels, as is South & Southeast Asia, while North Asia is getting there," she commented. "It is particularly encouraging that arrival figures appear to be holding up well despite the further impact of the Bali bombing, which occurred in the first half of October."

Ms Chong noted that the HKTB's monthly arrivals figures were compiled strictly in accordance with the standards laid down by the World Tourism Organization (WTO) to ensure fair and accurate comparison with other destinations.

Analysis by Markets

Of the 669,828 visitors from Mainland China recorded in October, some 255,000 arrived in the first 10 days of the month alone, coinciding with the "Golden Week" National Day holiday. While there were fewer tour groups than for the previous Golden Week holiday, there were more individual and business travellers over the period. October is one of Hong Kong's busiest months for trade fairs, with events such as the Hong Kong Electronics Fair, Electronic Asia, the Hong Kong International Lighting Fair and the Asia-Pacific Leather Fair all attracting substantial numbers of business visitors from the Mainland.

Following recent relaxation of the requirements for business visas, there has been a 35% increase in Mainland visitors to exhibitions in Hong Kong this year.

All other markets also showed strong growth in October. Arrivals from The Americas, which were especially affected last year by the September terrorist attacks, jumped 37.0% to 140,583, with the United States itself showing growth of 40.8%.

Arrivals from Europe, Africa & the Middle East rose 23.8% to 160,187, while those from Australia, New Zealand & South Pacific were 18.5% ahead at 39,163.

In the short-haul markets, North Asia led the way with 24.9% growth compared with the same month in 2001, contributing 148,316 arrivals . This included 109,610 visitors from Japan, a 29.5% increase. 

Arrivals from South & Southeast Asia were 25.3% up, totalling 170,278. There were especially strong performances from Thailand (26,553 arrivals, +43.6%), India (21,462, +29.5%) and the Philippines (29,191, +20.4%). 

Taiwan remains Hong Kong's second largest source market with 215,486 arrivals in October, a 9.0% growth. 

Cumulative figures for the first ten months of 2002 show Mainland China leading the way with a 49.9% increase to 5,373,384 arrivals, the first time any single market has surpassed the five million mark. Arrivals from South & Southeast Asia are showing a 7.3% increase, followed by Europe, Africa & the Middle East (+6.4%), The Americas (+5.1%), Australia, New Zealand & South Pacific (+3.7%) and North Asia (+2.0%).

Only Taiwan (-0.3%) has currently seen fewer arrivals than in the first ten months of 2001, although it is expected to move back into positive growth before the end of 2002. 

Same-Day Visitors

Since the October 2000 figures, the HKTB has published a monthly breakdown of "overnight" visitors (defined by the WTO as those who stay in Hong Kong for one night or more) and "same day" visitors (those who leave for another destination on the same day as arrival). The WTO defines "international" visitors as including both groups. This is a significant issue in Hong Kong because of its growing status as a regional transport hub; in particular, a substantial proportion of visitors from Taiwan are business people who continue by land or sea to other destinations in the Pearl River Delta.

Monthly publication of these figures helps Hong Kong's tourism industry understand and plan for this phenomenon. It should be noted that "same day" arrivals only include those visitors who actually pass through Immigration and spend time in Hong Kong; it does not include those who are purely in transit at Hong Kong International Airport.

During October there was a slight decrease in the percentage of visitors staying for one night or longer, which fell to 62.3% from 63.2% in the same month last year. The remaining 37.7% continued to other destinations on the same day.

Taiwan visitors continue to be the least likely to stay overnight, with only 21.1% doing so in October. On the other hand, 79.8% of visitors from The Americas, 77.5% of those from Australia, New Zealand & South Pacific and 72.6% of those from Europe, Africa & the Middle East stayed for at least one night.

For the first ten months of the year to date, 64.2% of all visitors have stayed for one night or longer, a marginal decrease from the 64.5% recorded in the same period in 2001.

Hotel Occupancy

Average hotel room occupancy across all categories was 85% in October, compared with only 76% achieved in the same month in 2001. Top tariff hotels performed especially well, achieving average occupancy of 88%, the highest of any category, boosted by the large number of business visitors coming to Hong Kong for major trade fairs and conventions. In contrast, these hotels were among the worst hit by the post-9/11 downturn last year, achieving only 71% occupancy in October 2001. 

The improvement in occupancy, however, was also reflected across all other categories of hotels and tourist guest houses, and across all different districts of Hong Kong.

For the ten months of the year to date, average occupancy stands at 83%, compared with 78% in the same period of 2001. While hotel operators were able to achieve significantly improved room rates in October, the cumulative trend remains downward, with average achieved rates having fallen 7.8% to HK$706 compared with the first ten months of last year.

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