XN000022-1974-10-08 — Page 2

TUESDAY, OCTOBER 8, 1974

ECONOMIC IMPORTANCE OF TOURISM TO HONG KONG

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THE SECRETARY FOR ECONOMIC SERVICES, MR. DEREK JONES, TODAY DESCRIBED THE CONTRIBUTION OF THE TOURIST INDUSTRY TO THE ECONOMY OF HONG KONG AS +SIGNIFICANT AND VALUABLE.+

SPEAKING AT THE LUNCHEON MEETING OF THE HONG KONG ASSOCIATION OF TRAVEL AGENTS, MR. JONES SAID THAT IN 1960 HONG KONG HAD 164,000 TOURISTS WHO SPENT JUST OVER $300 MILLION HERE.

BUT BY 1973, HE SAID, THIS HAD RISEN TO ALMOST 1,300,000 WHO SPENT OVER $2,500 MILLION IN HONG KONG, REPRESENTING AN AVERAGE GROWTH OF MORE THAN 17 PER CENT A YEAR IN BOTH ARRIVALS AND EXPENDITURE.

REFERRING TO EMPLOYMENT IN THE TOURIST INDUSTRY, MR. JONES SAID: +ABOUT 100,000 PEOPLE ARE EMPLOYED IN HOTELS, TRAVEL AGENCIES, TOUR GROUPS, TOURIST SHOPS AND SO ON.

+THIS IS UNDER SIX PER CENT OF THE TOTAL HONG KONG LABOUR FORCE OF ABOUT 1-3/4 MILLION. THE NET EARNINGS OF THE TOURIST INDUSTRY, ON THE OTHER HAND, COME TO ALMOST 6-1/2 PER CENT OF THE GROSS DOMESTIC PRODUCT.t

HE SAID: +THIS MEANS THAT THE AVERAGE CONTRIBUTION TO THE NATIONAL INCOME PER WORKER IN THE TOURIST INDUSTRY IS SLIGHTLY HIGHER THAN THE AVERAGE CONTRIBUTION OF ALL WORKERS IN THE ECONOMY.+

ON THE CONTRIBUTION OF TOURISM TO THE ECONOMY OVER THE YEARS, MR. JONES SAID: +FROM THE TIME WHEN TOURISH FIRST TOOK OFF IN HONG KONG IN THE EARLY 1960S THE GROUTH OF TOURISM AND THE GROWTH OF THE ECONOMY AS A WHOLE HAVE RUN ON FAIRLY PARALLEL LINES,+

BETWEEN 1961 AND 1969 THE NET CONTRIBUTION OF VISITOR EXPENDITURE TO THE GROSS DOMESTIC PRODUCT FLUCTUATED FROM A LOW 6.4 PER CENT IN 1965 TO EIGHT PER CENT IN 1969.

IN 1970, THE YEAR OF EXPO '70, IT ROSE TO AS MUCH AS 8.4 PER CENT TO DECLINE THEREAFTER TO 6.2 PER CENT IN 1973.

/MR. JONES

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