HKTB paints bleak picture of 2015 tourism performance

ALTHOUGH 2014 visitor arrivals hit a record 60 million with 12 per cent growth, the Hong Kong Tourism Board (HKTB) is not optimistic about this year given negative factors such as the impact of Occupy Central, depreciation of the Russian rouble and the uncertain global economy.

HKTB chairman Peter Lam said: “For sure, Occupy Central has affected tourism, and the recent street protests against Chinese visitors will continue to dampen tourists’ desire to come. The unprecedented drop (0.2 per cent) in 2014’s retail sales was a consequence and hoteliers have already cut rates to maintain occupancy.

“Therefore, we project 6.4 per cent growth for total visitor arrivals with only single-digit growth for China, shorthaul and new markets, while negative performance can be expected for longhaul markets.”

Hong Kong-based China Travel Services suffered a 20 per cent drop in profit from China MICE last year. Its general manager of business travel and MICE, George Kai, expects 2015 will be a challenging year from the lingering impact of Occupy Central.

“Some events in January were cancelled and what makes it worse is the sentiment against Chinese visitors by some local groups, which has tarnished the city’s image. To maintain business, we have shifted some of our business in outbound MICE from Hong Kong given the appreciation of the US dollar.”

However, ATI Travel managing director, Richard Woss, said: “We didn’t receive any cancellations during the Occupy Central, and though HKTB has forecast a drop in longhaul markets, I am positive about the German market.

“Still, I will leverage on the board’s waiver of travel consultants’ fee in overseas tradeshows this year. I used to do two shows but now intend to double them, because this means saving HK$200,000 (US$25,792).”

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