Tuesday, 13 August 2013

Tourists Chinese caused the boom of hotels in Hong Kong

Hong Kong needs to almost double its hotel rooms over the next decade to meet the growing demand, according to a government task.

The working group specializing in industry conference and exhibition in tourism has also noted that the number of tourists visiting Hong Kong will increase significantly over the next 10 years, visits driven by a steady increase in the number of tourists from mainland China, fueling the need for many more hotel rooms.

In 2012, Hong Kong received a record 48.6 million visitors, up 16% from a year earlier, according to the Tourism Commission of Hong Kong.

Among these visitors, 71.8% came from mainland China. About 68,300 hotel rooms in the city have enjoyed an average occupancy rate of 89% last year.

"If the Chinese economy continues to grow in the coming years and if the earnings and incomes continue to rise, while mainland tourists continue to be a major source of tourist arrival in Hong Kong," said Raymond Yeung, senior economist at ANZ.

Analysts expect that the tourism industry in Hong Kong continues to increase after the implementation of major development projects, including the Hong Kong-Zhuhai-Macau Bridge and the railway connecting Hong Kong high-speed Shenzhen and Guangzhou.

While the government has invested in exhibitions, trade fairs and marathons, Mr. Yeung said that the government should work harder to attract tourists as Hong Kong faces competition from cities in mainland China. Tourism accounts for about 5% of the gross domestic product of Hong Kong.

Despite the increasing number of visitors from China, the growth in the hotel industry in Hong Kong has been tempered by a decline in the number of tourists from the United States and the rest of Asia. tourism saw a temporary windfall in 2011 while visitors from Japan went to Hong Kong after the earthquake.

Michael Li, executive director of the Federation of owners of hotels in Hong Kong, said he expected the number of hotel rooms in the city going to rise to 76,000 compared to the current figure of 68,300 in 2017 with the help of expansion projects.

The call for a greater capacity of the hotel also comes at a time when the shortage of land in Hong Kong causes more uproar among residents, prompting the head of the city, Leung Chun-ying, has recently pointed out that the need for hotel rooms must be weighed against the demand for housing.

Although the number of tourists increased last year, nearly 25 million of them were day visitors, and therefore the hotel occupancy rate in the city is unchanged for 2012.

Li urged caution against the too rapid expansion of hotel capacity. It indicates that the expansion of hotels requires a very careful examination of the behavior of tourists and other economic trends. Invest in hotels is a long-term which usually takes at least 10 years to get a return.

In addition, Li said that with the increase in the number of hotel rooms, there should be a simultaneous increase in frontline staff and management leadership, something he is not sure the Hong Kong education system could bring.
Keywords: railway, Hong Kong, hotel, Hong Kong-Zhuhai-Macau bridge, tourism

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