Hong Kong tourism sector recorded sluggish growth in 2008 as compared to a year ago, mainly due to shrinking consumer spending in the present economic environment.
Data released by the Hong Kong Tourism Board has revealed that there was a provisional rise of 4.7% in the number of tourist arrivals in the city, down from the 10% growth rate observed in 2007, as reported by Forbes.
With a population of 6.9 Million, Hong Kong registered 29.5 Million tourist arrivals in 2008; however, the figure fell fractionally short of the targeted 30 Million for the year. Provisional figures for the full year suggest that the number of visitors grew slightly to 2.8 Million in December 2008 from 2.79 Million in December 2007. There was a 3.9% decline in the number of tourists from long-haul markets in 2008. In 2009, tourist arrivals may decline to 29 Million, 1.6% down from 2008.
The growth in Hong Kong tourism, though sluggish, was primarily due to increase in the number of visitors from Mainland China. Further, since the city’s economy majorly relies on trade, financial turmoil in developed economies has hit it hard. So Hong Kong fell into recession during Q3 2008, resulting into sluggish tourism growth.
Moreover, contracting consumer spending in the US and Europe, combined with a strong US dollar, contained the long-haul tourist arrivals during the latter half of 2008.
The tourism board is making plans to focus predominantly on promoting Hong Kong as a tourist destination in Mainland China as well as in emerging markets like the Middle East and Russia. Also, aiming to provide support to the Hong Kong’s economy, China promised further relaxation in visa requirements so that more tourists from Mainland China can visit the territory.
According to a Research Analyst at RNCOS, “Global economic recession slowed down the growth of Hong Kong’s tourism sector in 2008. Feeble hike in income, declining exports and soaring unemployment in 2009 will force the consumers to reduce their expenditure. As a result, future prospects appear gloomy for the tourism sector.”
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