2009 tourism spending reaches US$20.88 billion

Figures released by the Hong Kong Tourism Board (HKTB) show that the Total Expenditure Associated to Inbound Tourism (TEAIT) grew 3.2% year-on-year to US$20.88 billion in 2009, despite the impact of the global economic downturn. On average, spending by overnight visitors increased 6.1% to US$739.74 per capita, while that of same-day, in-town visitors soared 20% to US$230.51 per capita. 

HKTB Chairman James Tien said the increase in tourism expenditure is highly encouraging, given 2009’s challenging environment. “The key driver was the greater number of Mainland visitors and their higher spending, as led by the Mainland’s robust economic growth and the implementation of measures to facilitate individual visits by Shenzhen residents. Indeed, Mainland visitors have become the highest spenders among all markets, contributing US$10.7 billion, or about 70% of our total visitor spending.

“While there was decline in visitors’ spending in other market regions as a result of the global economic downturn, we expect the situation will improve this year along with the continued recovery of the global economy and better travel sentiments in major source markets, giving a further boost to the total tourism receipts this year.” 

In terms of per capita spending, both overnight and same-day visitors from the Mainland enjoyed double-digit growth. 

Also notable was the growth in per capita spending of same-day visitors from other long- and short-haul market regions. The growth reflects a burgeoning trend for visitors to make brief stops in Hong Kong and spend money before or after visiting mainland China or other destinations. Per capita spending by overnight and same-day visitors from different market regions is summarized below:

Note: US$1 = HK$7.8

In 2009, shopping continued to be the largest share of spending among both overnight (63.6%) and same-day (88.4%) visitors, with the total spending on shopping up 17.3% to US$10.52 billion. The proportion was even higher for overnight and same-day visitors from Mainland China, which reached 76.3% and 91.4%, respectively.

As in previous years, the tourism expenditure figures were calculated according to methodology recommended by the World Tourism Organization (UNWTO). The two components of TEAIT are: (1) Total Destination Consumption Expenditure: the sum of all payments made by visitors for goods and services consumed in Hong Kong, including accommodation, shopping, meals and entertainment. The information is collected from HKTB’s Departing Visitors Survey; (2) Passenger International Transportation Expenditure: receipts of Hong Kong-based carriers for cross-boundary transportation of non-resident passengers by air, sea or land. The data are provided by the Census and Statistics Department of the Hong Kong Special Administrative Region Government. 

Record first-quarter arrivals  

Visitor arrivals to Hong Kong during the first quarter of 2010 surged 16.5% to 8,624,688, the most ever for the first quarter, according to the Hong Kong Tourism Board (HKTB). Also setting a new record were March visitor arrivals, which amounted to 2,798,316, a year-on-year increase of 14.4%.

“The continued increase in visitor arrivals in March has culminated in a record high for the first quarter of 2010, with most market regions showing double-digit growth,” HKTB Chairman James Tien said. “In particular, arrivals from mainland China, Taiwan and most short-haul markets have surpassed the levels in 2008 before the onset of the global financial crisis, while other markets are also steadily heading for full recovery. All these positive trends are evidence of the improving confidence and sentiments to travel among global consumers as the economic conditions rebound.

“Riding on the growth momentum in the first quarter, we will intensify our promotions during the peak summer travel season. Apart from staging the brand new Hong Kong Dragon Boat Carnival we will work closely with our travel trade partners to roll out promotions targeting the Mainland and other short-haul markets, so that we can sustain the growth trend into the second quarter and drive further increase in visitor arrivals.”

The table below summarizes arrivals from different market regions:

* Total figure includes arrivals from Macau Special Administrative Region

In the first quarter of 2010, mainland China was the best performing market region, with total visitor arrivals surpassing 5,540,000, or 18.7% more than in the first quarter of 2009. The increase is mainly attributed to the multiple-journey Individual Visit Endorsement by the Mainland, which gives Shenzhen residents even greater convenience in visiting Hong Kong. Meanwhile, vacation visitors from Taiwan have increased as a result of cross-strait direct flights, raising the total arrivals from the island by over 10% to 537,024. 

Besides mainland China, North Asia also achieved significant growth (+18.3%) in the first quarter. In particular, arrivals from South Korea soared as much as 43.6% as a result of the appreciation of the won currency and rebound in outbound travel in the past three months.

For long-haul regions, the double-digit increase in arrivals is partly due to the relatively lower base for comparison, as arrivals from the regions last year were affected by the global financial meltdown. In March, the staging of the Hong Kong Sevens 2010 rugby tournament and numerous large-scale trade shows resulted in a 19.6% surge in visitor arrivals from Australia, New Zealand and South Pacific, surpassing 2008 levels.

The widespread growth also applied to emerging markets, which sustained the growth trend from the end of 2009. As a result of a number of positive factors, including expanded flight capacity, visa-free arrangements and increased propensity to travel, there were prominent increases in arrivals from India (+42.8%), Russia (+133.4%) and the Middle East (+22.7%) in the first quarter of 2010. 

Overnight visitors made up 56.1% of all visitor arrivals to Hong Kong in the first quarter. All market regions showed a higher proportion of overnight visitors. In particular, the increase in the number of vacation visitors from Taiwan drove the proportion of overnight arrivals to 34.5%, three percentage points higher than in the same period in 2009.

As for same-day, in-town visitors, the ratio rose from 42% in the first quarter of 2009 to 43.9% this year, which reflects the surging number of same-day visitors from mainland China.  

Hotel occupancy across all categories of hotels in March was 88%, six percentage points higher than in March 2009. The average achieved hotel room rate across all hotel categories was US$151.53, or 9.9% higher than in March 2009. For the first quarter of 2010, hotel occupancy stood at 85%.

30% increase in MICE arrivals

MICE (meetings, incentives, conventions and exhibitions) visitor arrivals exceeded 280,000 in the first quarter of 2010, according to the Hong Kong Tourism Board (HKTB). This is a 30% increase from the same period last year, as most market regions benefited from a recovering economy, recording double-digit growth.

“Last year, MICE visitor arrivals to Hong Kong were impacted by the global financial crisis and the outbreak of human swine influenza. Many corporations also put on hold their corporate meetings and incentive travel activities,” said HKTB Chairman James Tien. “As the global economy shows signs of rebound since the beginning of this year, we have seen a rise in the number of MICE events in Hong Kong in the first three months, driving an increase in overall MICE visitor arrivals. We expect that this upward trend will continue into the next few quarters should the current growth momentum of the economy sustain.

“Riding on the positive macro environment and the ensuing business opportunity, the HKTB will work closely with MICE event organizers, the government and trade partners to attract more MICE visitors to Hong Kong.”

In 2009, the Meetings and Exhibitions Hong Kong Office of the HKTB successfully secured several hundred MICE events to be held in Hong Kong before or during 2013. These events are expected to bring more than 150,000 additional visitors to Hong Kong.

The table below summarizes overnight MICE visitor arrivals to Hong Kong in the first quarter of 2010:

* Total figure includes arrivals from Macau Special Administrative Region