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Tourism Management 21 (2000) 363}377

An importance-performance analysis of hotel selection factors in the Hong Kong hotel industry: a comparison of business and leisure travellers Raymond K.S. Chu, Tat Choi*
Department of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong Special Administrative Region, People's Republic of China Received 16 December 1998; accepted 3 February 1999

Abstract Using an Importance}Performance Analysis (IPA), this paper examined business and leisure travellers' perceived importance and performance of six hotel selection factors in the Hong Kong hotel industry. The six hotel selection factors identi"ed were: Service Quality, Business Facilities, Value, Room and Front Desk, Food and Recreation, and Security. Both business and leisure travellers held the same perceptions towards all the six hotel selection factors. The IPA grids illustrated that the Value factor fell into the Concentrate Here quadrant; Service Quality, Room and Front Desk and Security in the Keep Up the Good Work quadrant; and Business Facilities and Food and Recreation in the Low Priority quadrant. Room and Front Desk and Security were found to be the determining factors for business and leisure travellers, respectively, in their hotel choice selection. Implications for Hong Kong hoteliers and researchers were discussed. 2000 Elsevier Science Ltd. All rights reserved. Keywords: Importance}Performance Analysis; Hotel selection factors; Business and leisure travellers

1. Introduction 1.1. The Hong Kong hotel and tourism industry Hong Kong has long been Asia's most popular tourist destination. The total visitor arrivals for 1996 reached a record of 11.7 million, representing a remarkable 14.7 per cent growth over 1995, with HK$84.5 billion (US$10.8 billion) #owing into the Special Administrative Region's economy in foreign exchange earnings. The 14.7 per cent growth rate in 1996 out-performed the world average of 4.5 per cent, as well as the average growth rates for East Asia/Paci"c and South Asia, with 7.9 per cent and 4.0 per cent respectively (WTO, 1997). In addition, approximately 8 per cent of Hong Kong's Gross Domestic Product (GDP) is attributable to tourism (HKTA, 1998). However, since the beginning of 1997, Hong Kong's inbound tourism industry has experienced

* Corresponding author. Tel.: #852-2766-6363; fax: #852-23629362. E-mail address: tatc@inet.polyu.edu.hk (T. Choi)

an unprecedented decline. As illustrated in Table 1, the Hong Kong Tourist Association (HKTA) revealed that the numbers of visitors declined from 11.7 million in 1996 to 10.4 million in 1997, representing a 12 per cent fall (HKTA, 1998). The fall in visitor arrivals has been aggravated by the regional currency turmoil, which has made Hong Kong an expensive destination to travel in comparison with other Southeast Asian regions (Poole, 1997). The depreciation of the Thai baht, the Indonesian rupiah, the Malaysian ringgit, and the Philippine peso has inevitably attracted international travellers who prefer to seek bargain visits to these cheaper destinations. Hong Kong is now considered less &vacation-friendly' than previously as high in#ation has driven up prices. In 1989, 60 per cent of travellers rated shopping in Hong Kong as &above average' in value for money, but in 1993 the number fell below 45 per cent (HKTA, 1998). In the early 1990s, Hong Kong su!ered from a relatively high in#ation rate of about 10 per cent per annum as a result of an increase in labour and land costs. Although in#ation fell to 8.7 per cent in 1995, Hong Kong is still at a disadvantage when compared with most industrialised countries, where in#ation has been running at 3}4 per

0261-5177/00/$ - see front matter 2000 Elsevier Science Ltd. All rights reserved. PII: S 0 2 6 1 - 5 1 7 7 ( 9 9 ) 0 0 0 7 0 - 9

364 Table 1 Visitor arrivals to Hong Kong, 1988}1997 Year Visitor arrivals Business (1,000,000) travellers (%) 5.6...
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