Tourism started up as a viable industry in Hong Kong in the late 1950s, which also saw the formation of the Hong Kong Tourism Authority. By the early 1960s, the colony received over 220,000 visitors annually and by 1972 a million a year came to Hong Kong. In the early days most visitors were non-Asian, however since the mid-1980s Asian tourists have accounted for approximately 75% of all visitors.

Few countries have seen their tourism industry's collapse like Hong Kong’s. In a period of general economic downturn in the region and in Hong Kong, the tourism industry has been hit hardest. The initial blow was a loss in the number of Japanese and other Asian tourists and visitors to Hong Kong. To compound this situation an avian flu virus that deterred many visitors, the confusion surrounding the closure of Kai Tak International Airport and the opening of the new Chek Lap Kok hit the SAR's tourist industry.

There are also underlying reasons for Hong Kong’s declining tourism industry. The handover of Hong Kong to China is thought to have deterred some visitors. Many Asian tourists enjoyed the colonial atmosphere in the territory and the tourism authorities no longer accentuate this. Additionally, Hong Kong’s long-standing position as a leading retailing centre in south east Asia has diminished with the rise of other regional centres in Singapore, Kuala Lumpur and now even in Shanghai and mainland China.

Hong Kong appeared to have lost its way in 1997/1998. Hong Kong as a brand appeared to have passed its sell-by date, the ‘Hong Kong City of Life’ campaign was deemed a failure by many in the SAR. As one pundit suggested, “who would advertise themselves as the City of Death, and if Hong Kong is the New York of Asia, why not just visit New York?” Unemployment was rising, the economy in a malaise, property prices falling. Perhaps just as London’s position as a ‘hot’ tourist destination rose with the economy (‘Cool Britannia’ certainly didn’t suit 1980s North of England) so recession in Hong Kong deterred visitors. A recession in Japan, a major source of arrivals didn’t help either.

By the latter half of 1998, industry was picking up steam again. Certainly Chek Lap Kok was operating at better capacity and efficiency, hotel occupancy rates were increasing, mainland Chinese visitor numbers were up and the Hong Kong Tourism Authority appeared to be successfully organising overseas campaigns again.

In 1999, the tourist industry resumed growth fuelled by the number of business travellers and Mainland visitors. Leisure travel has also begun to recover thanks in part to a rise in the number of cheap tour packages available.

Market Definitions

Access Asia has published this new edition of Tourism in Hong Kong as part of the China Contact Market Research report series. The report covers the market for tourism in Hong Kong SAR and covers the following areas of interest:

• Tourism receipts
• Tourist arrivals & points of origin
• Tourism services

Few countries have seen their tourism industries collapse like Hong Kong’s. In a period of general economic downturn in the region and in Hong Kong, the tourism industry has been hit hardest. The initial blow was a loss in the number of Japanese and other Asian tourists and visitors to Hong Kong.

Hong Kong appeared to have lost its way in 1997/1998. However, By the end of 1999 it began to appear that the industry was picking up steam again. There has been a lot of good news in 1999- a recovering Southeast Asian economy, the successful conclusion of the Disney deal and the smoother operations at Chek Lap Kok Airport.

Key Facts

• Hong Kong received 10.68 million visitors in 1999, an 11.5% growth over 1998 and the highest number since the peak of 11.7 million visitors in 1996, according to figures the Hong Kong Tourist Association (HKTA).
• However, Total tourism receipts for 1999 were 4.1% less than in 1998. Asia accounted for the bulk of receipts among the regional markets. Visitors from Mainland China were the largest contributors in 1999, while Taiwan was second with a growth of 2% over the previous year.
• Tourists from the mainland and Taiwan took up 47% of the market in 1999. Both set records last year with visitors topping three million and two million respectively.
• Most regions sent more visitors to Hong Kong in 1999 over 1998. Crucially, the depressed South and Southeast Asian market was up by 19% and North Asia by 13.8%. For the long-haul markets, the Americas saw a growth of 4.7% and Europe, Africa and the Middle East 2.1%.and 0.4% for Australia, New Zealand and the South Pacific.

Core Contents

• Total tourism receipts, per capita expenditure and spend by major category & nationality.
• Total tourist arrivals by mode of transport, country of origin and length of stay.
• Current issues including the cruise market, Hong Kong Express and airport issues.
• Discussion of issues affecting the future of the market including local projects, Disney’s arrival, convention centres, retailing and catering.
• Statistics and profiles of major tourist attractions, theme parks and operators.
• Analysis of marketing, promotions and advertising.
• Major domestic and foreign tourist services companies profiled.
• SWOT analysis on Hong Kong’s tourism market.
• Full forecasts 2000-2004

Company Coverage

• Cheung Sha Wan Shipyard
• Chek Lap Kok International Airport
• China Travel International
• Cathay Pacific
• Dragonair
• Gray Line Tours
• Hong Kong Ferry
• Hong Kong & Shanghai Hotels
• Hutchison Whampoa
• Jardine Matheson
• Madame Tussaud’s
• New World First Ferry
• Ocean Park
• Polly Ferry
• Sai Kung Marine Life Centre
• Shun Tak Holdings
• Snoopy Place/Snoopy’s World
• Star Ferry Company
• Thomas Cook
• Turbojet
• Wharf Holdings

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