| Examination of Estimates of Expenditure 2012-13 |
Reply Serial No.
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CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION
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CEDB(CIT)113
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Question Serial No.
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2153
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Head :
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152 Government Secretariat:
Commerce and Economic
Development Bureau (Commerce,
Industry and Tourism Branch)
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Subhead (No. & title) :
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Programme :
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(7) Subvention: Hong Kong Tourism Board
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Controlling Officer :
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Permanent Secretary for Commerce and Economic Development
(Commerce, Industry and Tourism)
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Director of Bureau :
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Secretary for Commerce and Economic Development
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Question :
What promotional campaigns will the Hong Kong Tourism Board (HKTB) adopt to penetrate into the markets of India, the Middle East, Vietnam, the Netherlands and Russia? (Please give details of the promotional campaigns by country and of the estimated expenditure by campaign.)
What is the percentage change in HKTB’s prmotional expenditure for the above countries as against that in the last two financial years?
Are there performance indicators (e.g. visitor number forecast, length of stay in Hong Kong and spending during stay) for expenditure in individual markets?
If yes, what are the details; if no, would performance indicators be set as soon as possible to convince the public that HKTB’s promotional expenditure is well spent?
Asked by : Hon. TSE Wai-chun, Paul
Reply :
The Hong Kong Tourism Board (HKTB) is committed to developing new and emerging markets so as to open up new sources of visitor arrivals for Hong Kong. In 2012-13, the HKTB will adopt a focused marketing approach in these markets, targeting specific cities and visitor segments in each market and launching promotion during specific periods of the year. Major marketing strategies for the emerging markets are as follows:
India - Focusing resources on the four cities of Mumbai, New Delhi, Bengaluru and Chennai, which are all connected to Hong Kong by direct flights and contribute some 80% of all Indian arrivals to Hong Kong:
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To focus promotion in the summer and winter periods and launch travel packages with airlines.
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To roll out multi-destination itineraries with Macau.
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To develop travel programmes in collaboration with Indian TV stations and raise Hong Kong’s profile through celebrity endorsement.
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To launch direct consumer promotion on the latest tourism products of Hong Kong.
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To invite the Indian travel trade on large scale familiarisation visits to Hong Kong to gain first-hand experience of the tourism products and attractions of Hong Kong. Arrange meetings between the Indian and the Hong Kong travel trade for them to explore co-operation opportunities.
The Middle East – Concentrating promotion in the United Emirates (Dubai and Abu Dhabi) and Saudi Arabia:
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To collaborate with airlines to promote Hong Kong tourism products.
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To organise online and public relations activities, such as media familiarisation tours to Hong Kong, to increase local consumers’ knowledge of Hong Kong.
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To invite the travel trade from the Middle East on familiarisation visits to Hong Kong to gain first-hand experience of the tourism products and attractions of Hong Kong. Arrange meetings between the Middle East and the Hong Kong travel trade for them to explore co-operation opportunities.
Russia – Targeting promotion at Moscow and St Petersburg, in anticipation of the significant increase of flights between Hong Kong and these two cities by 80% in 2012:
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To increase Hong Kong’s exposure through consumer promotion, such as radio programmes and outdoor advertisements.
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To continue partnership with Hainan to promote the Hong Kong-Hainan combo itineraries.
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To invite the travel trade to consider the possibility of arranging chartered flights from Russia to Hong Kong during winter, which is one of the most popular travel seasons among Russian visitors.
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To invite the Russian travel trade on large scale familiarisation visits to Hong Kong to gain first-hand experience of the tourism products and attractions of Hong Kong. Arrange meetings between the Russian and the Hong Kong travel trade for them to explore co-operation opportunities.
Vietnam – Focusing on launching promotions in Hanoi and Ho Chi Minh City:
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To appoint a representative in the market for launching promotion.
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To launch tactical promotion with airlines.
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To organise travel missions for the travel trade to visit the two cities for seeking exchange and collaboration with the Vietnamese travel trade.
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To promote Hong Kong’s tourism offerings and large scale events, as well as raise consumer awareness of Hong Kong as a travel destination through public relations activities, radio promotion and outdoor advertisements.
The Netherlands – Focusing promotion on Amsterdam:
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To appoint a representative in the city to launch promotion in the market.
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To co-operate with the travel trade, including airlines and travel agencies, in rolling out tactical advertisements targeting at senior travellers.
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To conduct road shows and training courses to strengthen partnership with the Dutch travel trade and increase their knowledge of Hong Kong.
The marketing budget for the emerging markets is as follows:
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2010-11
(HK$ million)
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2011-12 Revised Estimate
(HK$ million)
(vs. 2010-11)
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2012-13 Proposed Budget
(HK$ million)
(vs. 2011-12)
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India
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8.9
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10.7
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(+20.2%)
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12.5
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(+16.8%)
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The Middle East
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2.1
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3.8
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(+81.0%)
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5.6
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(+47.4%)
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Russia
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6.7
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4.5
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(-32.8%)
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6.5
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(+44.4%)
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Vietnam
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-
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2.3
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(n/a)
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3.5
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(+52.2%)
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The Netherlands
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-
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1.6
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(n/a)
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2.8
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(+75.0%)
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Total
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17.7
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22.9
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(+29.4%)
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30.9
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(+34.9%)
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The projected growth in visitor arrivals and tourism receipts from the emerging markets are as follows:
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2012
Projected Visitor Arrivals
(Growth vs. 2011)
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2012
Projected Overnight Visitor Spending
(HK$ million)
(Growth vs. 2011)
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India
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526 000
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(+5.6%)
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1,835
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(+6.4%)
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The Middle East
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199 000
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(+0.1%)
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930
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(-6.2%)Note
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Russia
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171 000
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(+30.0%)
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1,299
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(+29.5%)
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Vietnam
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89 000
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(+10.8%)
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712
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(+18.3%)
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The Netherlands
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109 000
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(+1.1%)
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470
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(+2.0%)
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Note: It is projected that the political instability and possible downward adjustment in oil prices may affect the sentiments of consumers in the Middle East and in turn the spending by its overnight visitors, hence leading to a drop in total projected spending.
Apart from the above performance indicators, the HKTB has set other indicators to measure the effectiveness of its promotion in different markets. These include publicity value generated by the promotion, as well as the number of travel trade representatives participating in travel trade shows and familiarisation tours.
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Signature
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Name in block letters
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Andrew HY WONG
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Post Title
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Permanent Secretary for Commerce and
Economic Development
(Commerce, Industry and Tourism)
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Date
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29.2.2012
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