CHAPTER 16 TRAVEL AND TOURISM
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HONG KONG's travel and tourism industry weathered another challenging year in 1998 as the economic turmoil and currency devaluations in the region continued to affect its performance. Total arrivals were 9.6 million, 8.0 per cent less than the 10.4 million in 1997. Nevertheless, Hong Kong remained the most popular tourist destination in Asia in 1998 after the Mainland of China.
The Mainland remained Hong Kong's largest source market, with arrivals reaching 2.6 million, up 13.1 per cent over 1997. This represented 27.1 per cent of Hong Kong's total visitor arrivals. Taiwan came second, with arrivals of 1.8 million, up 1.7 per cent, and contributing 18.9 per cent of total arrivals. South and Southeast Asia remained the third-largest source, with visitors arrivals totalling 1.2 million, down 20.2 per cent. Japan was fourth, with arrivals of 945 000 visitors, down by 30.9 per cent. Most other source markets declined during 1998, with only Canada, New Zealand, India, the Middle East, the Netherlands, Portugal and Spain registering growth.
Notwithstanding this, visitor arrivals gradually picked up again from mid-1998. The number of arrivals from July to December 1998 was some 5 million, up 7.5 per cent over the same time last year. Average hotel occupancy levels in 1997 and 1998 were the same at 76 per cent, while the levels gradually picked up during 1998 from 67 per cent in January to 81 per cent in December. From mid-year, the occupancy levels actually out-performed those at the same time in 1997.
Tourism continues to be one of Hong Kong's major earners of foreign exchange. Tourism receipts in 1998 totalled $55.3 billion, down by 23.4 per cent over 1997. The decline was mainly due to the price adjustment in Hong Kong during the period as well as the reduced spending power of many visitors.
The Hong Kong Tourist Association
The Hong Kong Tourist Association (HKTA) is a statutory organisation established by the government in 1957 to develop Hong Kong as a visitor destination. It promotes the improvement of visitor facilities, secures overseas publicity for the SAR's attractions and advises the government on tourism-related matters. Over the past 41 years, the HKTA has worked closely with both local and international tour operators and travel agents, providing information, support, advice and a host of other services, enabling them to market Hong Kong effectively to their clients.
The chairman and members of the HKTA Board of Management are appointed by the Chief Executive. The association is mainly funded by an annual subvention from the government. It also derives funds from membership dues, sales of publications
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