Rated as one of the most open economies in the world, particularly with a focus on financial and trade services, Hong Kong was not unscathed by the global economic slowdown. The year 2008 proved to be particularly bad, as demand from EU, Japan and the US dried up. The H1N1 scare further added to woes. Resultantly, the economy grew at just 2.5% that year and the unemployment rate climbed to 5% in early 2009. Incidentally, the global economic slowdown has steered many economies such as Hong Kong to expand avenues like tourism as a buffer.
In the past two decades, visitors from India to Hong Kong have been steadily increasing. From a mere 76,000 in 1989, the destination clocked 3,67,000 visitors last year. Interestingly, overnight visitors form a large part of this segment?with 52% of them just hopping over for a little vacation and with another 37% visiting essentially for business. ?As many as 63% of arrivals from India are just overnight visits. We have seen a gradual shift in the arrival pattern of visitors from India. Earlier, there were more business visitors. Now, 41% of the vacation visitors comprise families and another 23% young adults,? says Anthony Lau, Executive Director, Hong Kong Tourism Board. Encouraged by the findings and with the Chinese New Year celebrations (February 14) just round the corner, Lau visited India last week to share details of his marketing plans for 2010.
?We have a series of events lined up for this year. The traditional Bun festival and Entertainment Expo in April will be followed up with the Hong Kong International Dragon Boat Festival in July and the Halloween treats later in the year,? says Lau. The Board has doubled the promotional budget for its source markets to more than HK$15 million. As much as 45% of it will be invested in the mainland though?Hong Kong?s key market. Even as arrivals from Taiwan dropped by 10.3% and North Asia by 18.2%, mainland China arrivals recorded a jump of 6.5%. ?Amongst the emerging markets, India, Russia and the Middle East achieved positive growth last year. In fact, Russia grew by 15.7% and India by 4.6%, possibly as a result of enhanced flight capacity and our promotional efforts,? says Lau, adding that ?if estimates stand true, the visitor arrivals during the Chinese New Year holiday will increase by about 10% over the same period last year.?
With the global economy reviving, Lau definitely has all the reasons to feel optimistic. The latest figures, he points out, estimate the per capita spending by overnight arrivals to increase from HK$5,439 in 2008 to HK$5,650. The same-day in-town visitors? average per capita spending is also likely to increase from HK$1,498 in 2008 to around HK$1,700 in 2009.
However, not all seems well. The Hong Kong Disney Land reported a net loss of HK$1.315 billion last year, even with 4.6 million visitors trickling in. The scheduled opening of Disney Land in neighbouring Shanghai in another five years might just make matters worse. That?s just a probability though, and a weak one at that, because the Hong Kong Disney Land is already planning a $468-million expansion. If all goes well, the number of visitors to the theme park will touch eight million visitors by 2015. Till then, it?s for the other favourites such as the Victoria Peak, the Ocean Park and the Ladies? Market to hold the mantle.