Challenges of Hong Kong Luxury Hotels Facing Nowadays
Challenges of Hong Kong Luxury Hotels Facing Nowadays
Hong Kong, as a Special Administrative Region of China, is a popular destination for travelers from Mainland China and also other countries (Tasci, & Denizci, 2010). Tourism is one of the pillar industries of Hong Kong’s economy, and has made significant contribution in recent decades. One of the main elements of this rapidly growing industry is the hotel industry, which is also flourishing in Hong Kong with plenty of hotels for visitors. However, with the changing traveling patterns of the tourists, the hotels especially the luxury ones are being presented with great challenges. This essay analyses the current situation of Hong Kong’s hotel industry and points out the challenges that the high tariff hotels facing today.
Hotel selection of the majority of overnight visitors.
Statistical review of Hong Kong tourism 2012 shows that overnight visitor per capita spending in 2012 is 7,818 HKD (HKTB 2013a). Among the spending during their visit, 47.5% is on hotel bills. However, as the policy that permit the visitors from some cities in Chinese mainland to travel to Hong Kong and have DIY(Do-it-yourself) itineraries, Hong Kong is facing a larger market of mainland visitors, as the table below shown.
2012
Vs 2011
Total*
48,615,113
+16.0%
Mainland China
34,911,395
+24.2%
Taiwan
2,088,745
-2.8%
Other Short-haul Markets
6,385,187
+1.0%
Long-haul Markets
4,273,750
-1.4%
New Markets**
956,036
-6.0%
*Total figure includes arrivals from Macau SAR
**New markets include India, the Middle East, the Netherlands, Russia and Vietnam
HKTB (2013b). OVERNIGHT VISITORS TO HONG KONG UP 6.5% IN 2012.
Most of these visitors are with the main purpose of shopping in Hong Kong. As Hobson and Ko(1994) states, they may not be able to afford either Hong Kong luxury and upscale hotel prices. Even if they are getting wealthier these decades, according to Andreu (2013), they prefer to spend as little as
Hong Kong, as a Special Administrative Region of China, is a popular destination for travelers from Mainland China and also other countries (Tasci, & Denizci, 2010). Tourism is one of the pillar industries of Hong Kong’s economy, and has made significant contribution in recent decades. One of the main elements of this rapidly growing industry is the hotel industry, which is also flourishing in Hong Kong with plenty of hotels for visitors. However, with the changing traveling patterns of the tourists, the hotels especially the luxury ones are being presented with great challenges. This essay analyses the current situation of Hong Kong’s hotel industry and points out the challenges that the high tariff hotels facing today.
Hotel selection of the majority of overnight visitors.
Statistical review of Hong Kong tourism 2012 shows that overnight visitor per capita spending in 2012 is 7,818 HKD (HKTB 2013a). Among the spending during their visit, 47.5% is on hotel bills. However, as the policy that permit the visitors from some cities in Chinese mainland to travel to Hong Kong and have DIY(Do-it-yourself) itineraries, Hong Kong is facing a larger market of mainland visitors, as the table below shown.
2012
Vs 2011
Total*
48,615,113
+16.0%
Mainland China
34,911,395
+24.2%
Taiwan
2,088,745
-2.8%
Other Short-haul Markets
6,385,187
+1.0%
Long-haul Markets
4,273,750
-1.4%
New Markets**
956,036
-6.0%
*Total figure includes arrivals from Macau SAR
**New markets include India, the Middle East, the Netherlands, Russia and Vietnam
HKTB (2013b). OVERNIGHT VISITORS TO HONG KONG UP 6.5% IN 2012.
Most of these visitors are with the main purpose of shopping in Hong Kong. As Hobson and Ko(1994) states, they may not be able to afford either Hong Kong luxury and upscale hotel prices. Even if they are getting wealthier these decades, according to Andreu (2013), they prefer to spend as little as
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