Travel / Tourism

Overview

Hong Kong Outbound Tourism Data

	2010	2011	2012 (est.)	2013 (est.)
Total Departures by residents (‘000)	86,344.9	89,831.7	92,676.5	95,338.5
Departures for the U.S. (‘000)	150	155	159	163
International Tourism Expenditure of residents (US$million)	15,416	16,133	16.634	17,067

Source: Hong Kong Tourism Report Q1 2012, Business Monitor International (BMI) Ltd. and the World Tourism Organization (UNWTO)

China Outbound Tourism Data

	2010	2011	2012 (est.)	2013 (est.)
Total Departures by residents (‘000)	37,950	40,767	46,381	52,209
Departures for the U.S. (‘000)	802	a/a	n/a	n/a
International Tourism Expenditure of residents (US$million)	49,180	56,428	62.753	69,278

Source: China Tourism Report Q1 2012, Business Monitor International (BMI) and U.S. Department of Commerce (DOC)

Hong Kong is unique in the outbound source travel market. It not only has a significant outbound travel market of its own, but also serves as an important platform to tap into China’s and other Asian countries’ growing outbound travel markets. Hong Kong ranked as the 4th largest outbound market in Asia and 15th in the world in terms of international tourism expenditure, according to UNWTO. There are five major reasons behind this phenomenon: (1). Hong Kong is one of the most densely populated areas in the world, with an overall density of 6,426 people per square kilometer. Since there is also a general lack of local recreational options, Hong Kong people often choose to spend their holidays outside of Hong Kong; (2). Hong Kong people have high spending power. Its GPD per capita ranked the 2nd highest in Asia; (3). Hong Kong’s geographical location and excellent transportation infrastructure allow for relatively easy travel abroad; (4). Most people in Hong Kong speak English and hold the Special Administrative Region (SAR) passport, which does not require visas to visit over 140 countries and regions in the world; and (5). Most importantly, the Hong Kong government controls neither its people nor foreign exchange from leaving the territory. Due to these factors, the number of Hong Kong residents traveling around the region and abroad for business and pleasure continues to rise. However, according to BMI’s outbound tourism data, many of those departures (98.7%) are for mainland China, Macau and other nearby Asian destinations. Therefore, within Hong Kong alone, there lies good potential for promoting U.S. tourism.

In addition, Hong Kong plays a key role for international tour operators and other businesses seeking to access the soaring Chinese and other Asian countries’ outbound travel market. First, Hong Kong is strategically located at the heart of the Asian continent. It is within five hours’ flight from most cities in Asia. Hong Kong is less than two hours’ drive from the Pearl River Delta, one of the most developed regions in China. It gives Hong Kong instant access to the affluent consumer market, with 120 million people in southern China alone. Second, Hong Kong's Closer Economic Partnership Arrangement (CEPA) with China gives Hong Kong-based travel companies preferential treatment in China. Finally, Hong Kong’s world class integrated transportation infrastructure can better facilitate outbound travel. In Hong Kong, there are 95 airlines operating 875 flights per day to 155 destinations worldwide, including 40 cities in mainland China. For these reasons, many Asian travelers, especially those from mainland China transit through Hong Kong.

Sub-Sector Best Prospects

1. Fixed Itinerary Tours for individual travel (FIT)

2. Prepaid package tours for family vacations

3. Visiting Relatives & Friends (VRF)

4. Meeting, Incentive, Conference and Exhibition (MICE)

5. Cruises

Opportunities

Hong Kong citizens tend to travel during public holidays such as Chinese Lunar New Year, Easter, and Christmas because an average worker only has 10-14 days of annual leave. The traveling seasons usually occur around these public holidays and summer holidays. The summer months of June, July and August on average account for 30 percent of Hong Kong outbound travelers to the United States. In mainland China, travel peaks during the Golden Weeks, two annual 7-day national holidays. One is the "Spring Festival (or Chinese Lunar New Year) Golden Week" which begins in January or February. The other is the "National Day Golden Week" which begins around October 1.

Various published statistics indicate that a significant portion of Hong Kong and mainland China outbound travels are in FIT. People from Hong Kong and China prefer to join package tours, particularly for first-time traveling and trips to new destinations. Travelers visiting a region for the first time want to see as many places as possible and cover multiple-destinations in one trip. Package tours offer precisely that: a packed itinerary covering several destinations. Wine country tours have become very popular, especially among the Chinese travel market. Some other specialty tours for diving, golfing, horseback riding and skiing have also been quite successful. Furthermore, cruises have become popular. In 2010, there was a 9% annual increase in the number of international cruise passengers passing through Hong Kong to 660,921, of which 436,456 were from China. Cruise suppliers from Florida, California, Alaska or Hawaii should consider this new business opportunity and introduce cruise products in Hong Kong.

Shopping is a theme for many outbound Hong Kong and mainland tourists. U.S. destinations may wish to incorporate shopping into their product offerings.

American visa applications in 2011 from China have risen by 34%. On January 19, 2012, President Obama signed an executive order which will ease visa restrictions for Chinese and Brazilian tourists. It will likely present more opportunities for the travel industry as many of the Chinese tourists will transit through Hong Kong

Web Resources

Trade Shows:

ITE 2012 – The 26th International Travel Expo Hong Kong
Date: June 14 – 15, 2012 (Trade Days)
June 16 – 17, 2012 (Public Days)
Venue: Hong Kong Convention & Exhibition Center (HKCEC)
Organizer: TKS Exhibition Services Ltd.
Room 601, Stanhope House, 734 King’s Road, Quarry Bay, Hong Kong
Tel: (852) 3155-0600
Fax: (852) 3520-1500
Website: www.itehk.com

Guangzhou International Travel Fair
Date: March 1–3, 2012
Venue: Guangzhou Tinhan Exhibition Center
Organizer: Hannover Fairs China Ltd., Guangzhou Office
Contact: Ms. Iris Han
Tel: 86-20-8626 6696-8008
Fax: 86-20-8626 6690
Email: Iris.han@hmf-china.com
Website: www.gitf.com.cn

China International Travel Mart (CITM) 2012
Date: November 20 – 21, 2012 (Trade Days)
November 22 – 23, 2012 (Public Days)
Venue: Shanghai New International Expo Center
Organizers: China National Tourism Administration
Shanghai Municipal People’s Government
Website: www.citm.com.cn/english/index.aspx

Hong Kong Immigration Department
www.immd.gov.hk

Travel Industry Council of Hong Kong
Address: Rooms 1706-09, Fortress Tower, 250 King's Road, North Point, Hong Kong
Tel: (852) 2807-1199
Fax: (852) 2510-9907
Website: www.tichk.org

U.S. Commercial Service Hong Kong
Contact: Ms. Kimmy Lee, Commercial Specialist
Tel: (852) 2521-5950
Fax: (852) 2845-9800
Email: kimmy.lee@trade.gov