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Download - Hong Kong Institute of Certified Public Accountants

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maintain a diversified visitor portfolio, in<br />

order to cope with changes in the macroeconomic<br />

environment and to reduce the<br />

impact <strong>of</strong> market fluctuation,” a <strong>Hong</strong> <strong>Kong</strong><br />

Tourism Board spokesman tells A Plus.<br />

However, industry executives cite the continuing<br />

surge <strong>of</strong> Mainland tourists under the<br />

Individual Visit Scheme, which began in 2003,<br />

as evidence that a significant policy change is<br />

unlikely. “The Individual Visit Scheme has<br />

been running for the past nine years and that<br />

trend is not going to be stopped,” says Philips<br />

Ng, finance manager <strong>of</strong> <strong>Hong</strong> <strong>Kong</strong> Airlines<br />

and an <strong>Institute</strong> member.<br />

Flying high<br />

<strong>Hong</strong> <strong>Kong</strong> Airlines, which flies mainly to<br />

Mainland destinations, but also to Taiwan,<br />

Japan, Thailand and Indonesia, hopes to<br />

bring tourists to <strong>Hong</strong> <strong>Kong</strong> from more inland<br />

Mainland cities such as Lanzhou, Xi’an,<br />

Chengdu, Kunming and Guiyang.<br />

Such second-tier cities are an important<br />

emerging consumer segment for <strong>Hong</strong> <strong>Kong</strong><br />

airlines. “Most airlines are developing their<br />

western China market, which has nearly 400<br />

million people,” says Ng.<br />

While Guangdong is the most popular<br />

source <strong>of</strong> Mainland tourists to <strong>Hong</strong> <strong>Kong</strong>,<br />

followed by visitors from the other tier-one<br />

metropolitan centres <strong>of</strong> Beijing and Shanghai,<br />

travellers from smaller cities, such as Peng,<br />

the Sasa shopper from Changchun, are increasingly<br />

common – and welcome.<br />

“Non-tier-one city visitors are outstripping<br />

the growth <strong>of</strong> tier-one city visitors,”<br />

says Oliver Rust, managing director <strong>of</strong> market<br />

research company Nielsen <strong>Hong</strong> <strong>Kong</strong>.<br />

“Visitors from non-tier-one cities place more<br />

emphasis on customer service, price and<br />

promotions.”<br />

MacCharles at Deloitte says the pr<strong>of</strong>ile <strong>of</strong><br />

the Mainland tourist has changed dramatically<br />

over the years. “They’re not necessarily<br />

staying three to a room and eating instant<br />

noodles for every meal,” he says. “They<br />

have more <strong>of</strong> a midmarket or premium pr<strong>of</strong>ile,<br />

and that follows through to dining and<br />

transport. They spend more on the experience,<br />

not just the goods.”<br />

Such consumers may still be drawn<br />

to bargains, however, such as budget airlines.<br />

<strong>Hong</strong> <strong>Kong</strong> Express, a sister carrier to<br />

<strong>Hong</strong> <strong>Kong</strong> Airlines is being transformed<br />

into a low-cost carrier. (Both are owned by<br />

HNA Group, the parent company <strong>of</strong> Hainan<br />

A PLUS<br />

“ They’re not necessarily staying three<br />

to a room and eating instant noodles<br />

for every meal... They have more <strong>of</strong> a<br />

midmarket or premium pr<strong>of</strong>ile, and that<br />

follows through to dining and transport.<br />

They spend more on the experience, not<br />

just the goods.”<br />

PHOTO: AFP<br />

December 2012 37

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