Speech at Panel on Economic Development

Hong Kong Tourism Board Work Plan for 2019-2020

HKTB’s work plan and marketing strategies

Notwithstanding the HKTB’s work plan to drive overnight arrivals in 2019-2020, Mr CHAN Chun-ying noted that HKTB projected a drop of per capita spending (“PCS”) by overnight visitors from $6,607 in 2018 to $6,195 in 2019. He enquired whether there were figures about special activities taken by visitors like green tourism given the increasing number of visitors coming to Hong Kong for hiking.

Mr Anthony LAU of HKTB explained that the projected drop of PCS by overnight visitors in 2019 was mainly due to consideration of strong United States dollars which had affected visitors’ spending in the second half of 2018 and was expected to continue in 2019. In response to Mr CHAN Chun-ying’s further enquiry, Mr LAU undertook to provide HKTB’s analysis on visitors’ spending in Hong Kong. (Post-meeting note: The Administration’s response was issued to members vide LC Paper No. CB(4)689/18-19(01) on 27 March 2019.)

Mr CHAN Chun-ying also referred to the district promotions on Old Town Central and Sham Shui Po which had received a positive feedback from short-haul visitors. Considering a good move to promote different districts on a progressive manner, he asked about the plan for promotion, in particular the districts to be promoted and the timetable.

Mr Anthony LAU of HKTB said that HKTB was planning to roll out the next neighbourhood promotion and had a few ideas in mind. HKTB would fully consult relevant Government departments and travel trade, and proactively engage the district councils concerned to gauge views of the local residents. It would then draw up promotional plan taking into account the development of the supporting facilities in relevant districts. It was expected to roll out the next promotion programme by end of 2019 or the first quarter of 2020.

 

Update on Hong Kong Disneyland Resort

Business performance of HKDL

Mr CHAN Chun-ying pointed out that in FY12, HKDL also had a total park attendance of 6.7 million while recorded a net profit of $109 million. Noting that HKDL recorded a net loss of $54 million in FY18 with the same level of total park attendance as FY12, Mr CHAN enquired about the factors contributing to the difference of around $160 million in the net income of the Hongkong International Theme Parks Limited (“HKITP”) between FY12 and FY18. Besides, he considered that it was quite expensive for tourists to stay in the hotels of HKDL and suggested that HKDL should provide more choices of accommodation to cater for markets with different affordability. For example, HKDL could make use of the vacant site reserved for the Phase 2 development of HKDL (“the Phase 2 site”) to provide accommodation options like camp sites or caravans for visitors who advocated tourism with local characteristics. He also enquired about the impact of the opening of the Hong Kong Ocean Park Marriott Hotel on the occupancy rate of the hotels of HKDL.

Ms Stephanie YOUNG of HKDL advised that HKDL was committed to achieving growth in total revenue and EBITDA, and she believed that the addition of the Marvel-themed rides, such as the “Iron Man Experience”, and the new hotel Disney Explorers Lodge (“DEL”) would sustain the growth. To increase park attendance and hotel occupancy, HKDL would provide concessionary offers and tailored packages in collaboration with its trade partners. HKDL would also attract local guests to enjoy a short stay in its hotels especially during the low-demand seasons.