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