Tourist trade: The Tourism Board expects Hong Kong's visitor arrivals to surge 8% to 30.43 million this year.

Visitor arrivals are expected to surge to 30.43 million, up 8% on last year, with spending related to inbound tourism forecast to rise 10.7% to $152.7 billion, the Tourism Board says.

Outlining its 2008-09 work plan in the Legislative Council today the board said the projected growth rate is higher than World Tourism Organisation's forecast that international travel will rise 5% this year, and above the Pacific Asia Travel Association's estimate Asia Pacific arrivals will see lower but stable growth of 6.2%.

Among the projected visitor arrivals, those from the Mainland will account for 16.8 million, up 8.3% on a year earlier, while those from other places will grow 7.7% to 13.7 million.

Optimistic outlook

Looking ahead the board is cautiously optimistic on the outlook for the tourism industry with due regard to favourable exchange rates, increased flight capacity, continuous expansion of the Mainland outbound travel market and the 2008 Beijing Olympics.

There are also potential risks too, including the softening of world travel due to uncertainties in the US economy, stiff competition from neighbouring destinations, and increased air connectivity between the Mainland and other gateways.

The board will focus on 19 source markets that account for 93% of the arrival base in 2008-09 and the proposed devotion of marketing input will reach $331.9 million.

Work plan

It will raise Mainland and overseas market resources with promotional efforts to non-Guangdong and secondary cities expanded and more resources for high-potential markets such as the Philippines and South Korea deployed. Investment in new and emerging markets, namely Russia, India and the Middle East, will be increased.

The board will use the Beijing Olympics to reinforce Hong Kong's image and reputation promoting it as a "must-stop" city on the China itinerary. Giant Olympic rings will be installed along the harbourfront while an Olympic piazza will be erected at the Cultural Centre.

Other key initiatives are:

* bolstering Hong Kong's position as the leading international convention, exhibition and tourism capital and speed up cruise development;

* boosting ties with the Pan Pearl River Delta, Macau and other Asian destinations on multi-destination itineraries;

* offering new education-cum-entertainment products for families, repackaging shopping streets with new themes such as "upstairs" local shopping areas and electrical appliances districts for shoppers, to pilot an integrated communication campaign for arts and performance lovers, and to form a hiking and outdoor activities database for green seekers;

* expanding the Quality & Honest Tours programme to more Mainland cities including Chengdu and Nanning;

* maximising the reach of the Quality Tourism Services scheme and launching the pilot scheme for hair salons;

* bolstering partnerships with the travel trade and initiating cross-selling with non-travel-trade partners; and,

* conducting a market study of Russia to understand visitors' changing needs and tastes.

System review

The board is reviewing its performance measurement system to formulate more specific key performance indicators for application in 2009-10. The current four indicators - visitor arrivals, length of stay, visitor spending and satisfaction level - will be used to track the tourism industry's performance.

For 2007-08 total Government subvention to the board will amount to $541.8 million. As at the end of March the board projects to have accumulated a reserve of $185 million.

The board's current established posts are 325, with 224 in the head office and 101 in its global offices, with the number of vacancies at 20. However, the board has no plan to raise its headcount in 2008-09.