Globalysis Ltd., a leading boutique strategy consultancy, issued its 2008 mid-year tourism sector outlook for Hong Kong Special Administrative Region (SAR), People’s Republic of China today. The industry report provides a macro-perspective of the dynamics of Hong Kong’s tourism sector…
Globalysis Ltd., a leading boutique strategy consultancy, issued its 2008 mid-year tourism sector outlook for Hong Kong Special Administrative Region (SAR), People’s Republic of China today. The industry report provides a macro-perspective of the dynamics of Hong Kong’s tourism sector, including its hotel lodging, airline, MICE, and retail industries.
Mr. Jeff Voyles, Partner at Globalysis Ltd., stated, “Now more than ever, Hong Kong faces stiff competition for tourist dollars from other Asian destinations such as Singapore, Vietnam and Macau. Hong Kong must constantly seek new tourism value drivers to enhance tourism visitation. Moving forward, it will be important for Hong Kong’s tourism industry to be sensitive to the growing levels of global economic volatility in their strategic business planning.”
The following are some industry highlights of the Globalysis report:
Hotels: Hong Kong’s hotels should continue sustained growth in 2008, with Average Room Rates (ARR) estimated to rise approximately 8.1% year-on-year over 2007 to HK$1314 (US$168). Hong Kong’s hotel occupancy levels are expected to remain among the highest in the world.
Airlines: Hong Kong’s airline industry is stable and should sustain a modest growth path – with Hong Kong International Airport expected to handle a milestone 50 million passengers in 2008. However, sustained high fuel prices could bring significant risks to airline industry performance.
MICE: With growing regional competition for business tourists from Bangkok, Singapore and other cities, Hong Kong is turning its strategic focus to developing its MICE industry to attract higher spending business visitors.
The outlook estimates that Hong Kong will welcome approximately 30 million visitors for CY2008, with a 7% rise over arrivals in CY2007. The report also forecasts that tourism revenues grow to HK$154.6 billion (US$19.8 billion) for 2008.
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