Hong Kong

Market Overview New Zealand is a popular choice among Hong Kong holiday-makers and is considered a destination particularly suitable for families.

Visitor arrivals from Hong Kong totalled 22,114 in the year ending October 2008, a 1.5 per cent decrease on the previous year.

There was strong growth in Hong Kong arrivals in the month of October (32 per cent increase in total and 102 per cent increases in holiday arrivals). Factors influencing this growth may have included the weaker New Zealand dollar and an online promotion run in August and September.

Outlook

The Hong Kong travel industry forecasts a drop of 5-10 per cent in leisure travel during the Christmas and Chinese New Year periods (compared with the same time last year). However the weaker currencies and the fact that it is peak season down under should mean that Australia and New Zealand are less affected by this drop in numbers than other destinations.

The financial crisis and fear of unemployment is seeing consumers show caution in their spending. The sharp fall in the stock and property markets, combined with rising unemployment, will have more of an effect on consumer confidence in the coming months.

Business travel is being hit hard by the financial crisis, with airlines and incentive travel agents suffering the most. Business in this segment is down by over 50 per cent.

Cathay Pacific and Air New Zealand report a busy Christmas and Chinese New Year, even though the former has terminated some routes and frequencies as a result of a poor performing year and the economic slowdown. The airline’s Hong Kong to Auckland route will remain twice daily until the end of March 2009.

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