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Hong Kong reports May 2005 Visitor Arrival Figures

Travel News Asia 12 July 2005

Visitor arrivals to Hong Kong in May grew by 7.5% over the same month in 2004, bringing the total for the month to 1,821,923. The increase was fuelled by continued strong performances from regional and long-haul markets, and raises the total number of arrivals from January to May 2005 to 9,235,303, a 10.4% growth over the first five months in 2004.

The vast majority of Hong Kong’s key markets registered month-on-month growth in May 2005, with the best regional performers being Europe, Africa and the Middle East (131,893, +30.0%); Australia, New Zealand and the South Pacific (47,432, +28.1%); and South and Southeast Asia (209,797, +26.4%). Arrivals from the Americas also grew by 15.2% to 125,074, and from North Asia by 11.6% to 138,820, while those from Taiwan registered an 8.5% increase over May 2004 to 162,382.

While noting that May has traditionally been one of the quieter months for Hong Kong’s tourism industry, Hong Kong Tourism Board (HKTB) Executive Director Clara Chong said that the continued strong growth from long-haul and regional markets remained very encouraging. “The fact that we achieved double-digit growth in the vast majority of our key markets not only underlines Hong Kong’s broad international appeal as a destination, but also reflects the effectiveness of our ongoing marketing and promotional activities across all regions. With cumulative arrivals for the first five months of the year comfortably ahead of our projected total, we’re confident we can meet our half-yearly target,” she said.

“Looking ahead, we expect our 2005 Hong Kong Shopping Festival, which runs from 25 June to August 31, will help to overcome an inevitable tendency among consumers to consider deferring travel to Hong Kong until after the opening of the first of our major new tourism attractions, Hong Kong Disneyland, in September.” Analysis by Markets, May and January–May 2005

Mainland China again provided the lion’s share of arrivals to Hong Kong in May, the 972,313 visitors representing 53.4% of the city’s total monthly arrivals. Although this was 0.1% lower than the figures for May 2004, the cumulative 4,998,195 visitors from the Mainland for the first five months in 2005 was nonetheless 4.1% higher than in the previous year. Some 421,046 Mainland arrivals travelled under the Individual Visit Scheme in May, 43.3% of the total. The slight decline in arrivals reflected a combination of the anticipated post-Golden Week holiday contraction and an ongoing “Red Tourism” campaign encouraging domestic travel to historic sites on the 70th anniversary of the Long March, which has had a negative effect on overall outbound travel from the Mainland. 

The 8.5% increase in visitors (to 162,382) from Taiwan brought the total number of arrivals in January-May 2005 to 847,945, a 4.9% increase over the same five months in 2004. Even more encouraging is the fact that overnight visitors from the island are increasing much faster than the overall rate, the 233,437 arrivals who stayed at least one night in Hong Kong represent a 21.8% increase over the total for January-May 2004. These positive results reflect a number of aggressive promotions by major airlines to free independent travellers (FITs) and the HKTB’s ongoing co-operation with airline and trade partners in Taiwan.

South and Southeast Asia performed well, with total arrivals of 209,797 some 26.4% higher than in May 2004. Singapore continued to be the star performing individual market with 50,758 visitors, a 46.7% increase on the previous year that was spurred by the overwhelming consumer response to continued air-fare promotions by both low-cost airlines and conventional carriers, the advantageous exchange rate and the Labour Day holiday. Arrivals from the Philippines (40,199, +33.3%), Malaysia (35,197, +31.1%) and Thailand (31,832, +23.4%) were also boosted by the Labour Day holiday, a range of attractive packages and increased business traffic attending the HOFEX 2005 exhibition. Arrivals for January-May from the region now stand at 924,302, 27.8% higher than in 2004.

The regional arrivals growth from North Asia was largely driven by South Korea, where the HKTB helped to maintain strong consumer awareness of Hong Kong through newspaper advertorials and the recently launched Hong Kong Ambassadors programme, in which visitors from Korea gave accounts of their trips in local print media. 

Such activities contributed to the 50,832 Korean arrivals, a 33.5% increase over 2004. There was also a slight firming of demand in Japan, from which visitor numbers grew by 1.9% to 87,988, although market sentiment remained affected by the lingering tensions with the Mainland. Taken together, these performances lifted May arrivals from North Asia by 11.6% (138,820), while the cumulative increase in visitors from the region in the first five months of 2005 now stands at 26.1%.

Australia, New Zealand and the South Pacific again grew strongly, with May arrivals of 47,432 some 28.1% higher than for the same month in 2004. Increased capacity on the Sydney-Hong Kong routing, and competitive airfares and packages continued to help drive the growth in arrivals from Australia, which rose by 28.4% to 39,822. In total, 234,526 visitors from this region arrived in Hong Kong between 1 January and 31 May, 30.5% more than in 2004. 

Europe, Africa and the Middle East was Hong Kong’s highest-performing regional market, providing 131,893 visitors in May, a 30.0% increase over the 2004 total. While the UK was the single biggest national market, with 32,204 (+11.1%) arrivals, the 16,808 visitors from France represented a 57.1% increase over the same month in 2004,  while arrivals from Germany grew by 26.8% to 15,987. Other encouraging results were seen from Italy (+21.2%), the Netherlands (+30.8%) and the Nordic Countries(+22.0%), with South Africa (+58.6%) and the Middle East (+37.7) also putting in strong performances. The combination of the relative strengths of local currencies against the Hong Kong dollar, a range of attractive fares and packages, and enhanced awareness of Hong Kong arising from a number of promotions all helped to fuel these increases. From the beginning of the year to the end of May, Hong Kong welcomed 687,922 arrivals from this region, 23.4% up on the previous year.

Arrivals in May from the Americas rose by 15.2% to 125,074, including 91,564 (+13.6%) from the United States and 24,662 (+15.5%) from Canada. The arrivals growth was stimulated by continued promotional campaigns in both major markets, as well as an increase in airline passenger capacity from the USA. Visitors from this region reached 622,926 in the first five months of 2005, 18.0% higher than in 2004.

Same-Day In-Town Visitors

In May, 63.5% of all visitors stayed one night or longer, compared with 62.6% during the same month in 2004. The remaining 36.5% 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 77.7% of May arrivals from the Americas, 81.0% from Australia, New Zealand and South Pacific, and 74.8% from Europe, Africa and the Middle East, while 74.9% of arrivals from South and Southeast Asia were also classified as overnight visitors. In contrast, 26.3% of visitors from Taiwan stayed overnight, as many travellers from the island transit to and from Mainland China or other regional destinations via Hong Kong.

For the first five months of 2005, 62.7% of all visitors stayed for one night or more, exactly the same percentage as for the same period in 2004.

Hotel Occupancy

While the 80% hotel occupancy across all categories of hotels and tourist guest houses in May is three percentage points lower than the 2004 figure, this apparent drop reflects the 6% increase in Hong Kong’s room supply during the past 12 months. The highest tariff hotels averaged 82% (three percentage points higher than in 2004), while those in the second and third tiers recorded 80% and 77% respectively. Visitors’ most favoured geographic locations were Central/Admiralty and Tsim Sha Tsui, where hotels recorded an occupancy rate of 82%. The average achieved hotel room rate across all hotel categories and districts was HK$832, a 13.8% increase over May 2004.

Average hotel occupancy in January-May 2005 is 84%, one percentage point lower than for the same period in 2004. The average achieved hotel room rate is HK$919, 18.8% higher than in 2004.

See also: Hong Kong reports Visitor Arrival Figures for April 2005

See other recent news regarding: HKTB, Hong Kong, Visitor Arrivals

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