2009 visitor arrivals likely to pass 29 million

The provisional total visitor arrivals to Hong Kong in 2009 have reached 29.59 million, according to the Hong Kong Tourism Board (HKTB). This represents a 0.3% year-on-year increase and is ahead of HKTB’s original forecast of a 1.6% shortfall in 2009.

HKTB Chairman James Tien said that the HKTB is strongly encouraged by the year-end results. “Notwithstanding the serious challenges in 2009, our tourism industry achieved better-than-expected results, thanks to the concerted effort and tremendous support of our industry partners.”

Mr. Tien noted that during the first half of 2009, Hong Kong’s tourism performance was severely impacted by the global financial crisis that emerged since the third quarter of 2008 and the outbreak of human swine influenza in May 2009.

“However, starting from the third quarter of 2009, visitors’ concern about the outbreak gradually subsided, while the economic conditions also improved,” Mr. Tien said. “Simultaneously, the HKTB adapted its strategies flexibly and collaborated with the travel trade to step up its promotions. As a result, the negative arrival trend reversed in August and positive growth was sustained until the fourth quarter. In particular, the implementation of arrangements that facilitate multiple individual visits by permanent Shenzhen residents, as well as greater desire for outbound travel among Mainland visitors, have fueled robust growth of the Mainland arrivals, contributing to the 0.3% gain in overall arrivals in 2009.”

The visitor arrivals from Mainland China and short- and long-haul markets are summarized below:

The full breakdown on arrivals by markets for December 2009 and January-December 2009 will be released later in January.

Visitor arrivals rose 7.6% in November

Visitor arrivals to Hong Kong reached 2,606,085 in November 2009, a 7.6% rise compared with November 2008, according to the Hong Kong Tourism Board. Due to the positive November result, the cumulative arrival shortfall from January to November has been further narrowed to — 0.7% from -1.6% in October 2009. Arrivals from different market regions are summarized below:

* Total figure includes arrivals from Macau SAR.

Following its strong performance in October, Mainland China continued to lead the way as the top performing market region in November, with arrivals increasing by 13.3% year-on-year. In addition to reflecting consumers’ desires for travel, the growth was also attributed to increased consumption visits by permanent residents in Shenzhen, who have been able to apply for multiple entry endorsement under the Individual Visit Scheme since April 2009.

Also registering positive growth was South and Southeast Asia (+5.2%). As consumers’ sentiments gradually improved, arrivals from a number of markets in the region — including Indonesia (+26.9%), Thailand (+11.9%) and the Philippines (+3.6%) — picked up in November, with winter being one of the favorite travel periods among visitors in the region. Another market with remarkable growth was India (+28.5%), which has enjoyed increased flight capacity since September 2009.

Arrivals from North Asia and Taiwan remained in the negative zone. The former owing to the decreased outbound travel from South Korea and the latter to the cross-strait direct links, their shortfall has been narrowed to -8.3% and -5.1%, respectively, indicating that the decline has slowed down.

Positive gains were recorded in the long-haul markets, compared with the relatively lower arrival base in November 2008, when the global financial crisis caused severe deficit in arrivals from these markets.

Overall, some 58.1% of all visitors to Hong Kong in November stayed in the city for at least one night, which is 0.9 percent lower than the same month last year. The remaining 41.9% in-town visitors either returned home or left for another destination on the same day they arrived.

Hotel occupancy across all categories of hotels in November 2009 was 89%, one percentage point higher than in November 2008. The average achieved hotel room rate across all hotel categories was US$137.05, 13% lower compared with November 2008.

Aviation passenger fuel surcharges to stay

On January 22, the Civil Aviation Department (CAD) approved passenger fuel surcharges levied by three airlines to be maintained for the period from February 1-28.  

The maximum levels of fuel surcharges will remain at US$10 (HK$78) for short-haul flights and US$46.4 (HK$362) for long-haul flights. The applicable surcharge levels are based on the ticket issue date. It is an international practice for airlines to levy passenger fuel surcharges.  

“When compared with the average amounts of surcharges at the international level, the surcharges on the local routes remain at a lower level. Fuel surcharges are a type of aviation tariff, which require the approval of the relevant aeronautical authorities before they can be levied,” the CAD spokesman said.

When dealing with the latest applications for levying fuel surcharges, CAD has followed the same approach, taking into consideration changes in the prices of aviation fuel, the justifications provided by the airline operators, and other relevant factors, such as the charges levied by the other airlines. This approach has been consistently followed, regardless of whether oil prices are increasing or declining.

Passenger fuel surcharges seek to allow airlines to partially recover the increase in operational costs due to fluctuations in aviation fuel prices.

Passenger fuel surcharges are reviewed regularly by CAD. The last review was done at the end of December 2009, when the maximum surcharge levels approved by CAD were US$10 (HK$78) for short-haul flights and US$46.4 (HK$362) for long-haul flights.