Hong Kong welcomed 936,914 visitors in December, 11.1% more than in December 1997 and the highest monthly total since May 1997. That brought the total arrivals for 1998 to 9.6 million, 8.0% less than in 1997. However, when comparing the post-Handover period, there was a significant growth of 7.5% between July and December.

In December alone, most source markets registered increases in arrivals. Thailand recorded the largest growth of 63.0%, due probably to the two-week holiday over the Asian Games which may have encouraged Thai consumers to travel overseas.

Most other shorthaul markets also showed increases in arrivals, with those from Indonesia rising by 47.3%, fuelled primarily by Indonesian Chinese travelling overseas for a year-end break. The number of visitors from India grew by 39.9% in the month, encouraged by lower prices available in Asian destinations. Arrivals from Malaysia were up by 29.3%; those from South Korea by 26.0%; those from Taiwan by 13.4%; from Singapore by 11.0%; from Mainland China by 10.9%; and from the Philippines by 10.5%. A range of factors, from low-price packages to stabilising currencies, helped to boost outbound travel from most of these markets. Japan was the only shorthaul market to register a drop in arrivals (of 3.8%) in December, caused by a lack of desire to travel overseas due to the gloomy domestic economic situation.

Longhaul markets also mainly showed improving arrivals figures in December. The number of visitors from the UK rose by 21.0%, boosted by a strong domestic economy and currency, as well as special offers in the market. Arrivals from South Africa were up by 19.6%, stimulated by attractive packages available. Those from Canada rose by 17.7%; those from the USA by 14.1%; from Germany by 4.8%; from Australia by 3.5%; and from France by 2.3%. Stable home economic situations and competitive pricing in Hong Kong contributed to these increases.

The longhaul markets that bucked the upward trend included Switzerland, from where arrivals fell by 15.5%; Italy, with a drop of 6.8%; and New Zealand, which fell by 4.5%.

Despite the strong showing by most markets in December 1998, the overall figures for the year were affected by the decline in arrivals over the first six months of 1998. However, the markets that showed year-on-year growth were Mainland China (up 13.1%), Canada (up 9.2%), India (up 4.2%), New Zealand (up 2.6%) and Taiwan (up 1.7%).

Hong Kong's average hotel occupancy rate for 1998 was the same as for 1997, at 76%. However, the rate for December 1998 alone was 81%, up from just 69% in December 1997. In line with arrivals, which also began to recover in the middle of the year, the occupancy rate increased each month from June last year.

Commenting on the year-end results, Mrs. Amy Chan, Executive Director of the HKTA, said, "Despite the year-end fall of 8%, we are glad to see that, since June last year, arrivals have been increasing from many markets, and December's figures for both arrivals and hotel occupancy were very encouraging. We are looking forward to a much more stable and prosperous 1999."