Financial services, Trading & Logistics, Tourism and Producer & Professional Services are the four main pillars for HongKong Economy, and Tourism has been contributed 17.1% of HongKong's GDP in 2006.
In this report, we narrow our analysis into 6 key vendors in the industry, which are Aviation, Hospitality, Road Transportation, Theme Park, Exhibition and Insurance.
HongKong is one of the global aviation hubs and its airport, HKIA, has provided a platform for 85 airlines servicing 5,800 weekly flights between HongKong and about 150 cities worldwide2. It plays an important role for external trade and directs jobs attribution as well as the multiplier effect upon other industries throughout the economy.
Cathay Pacific Airways Limited (CX) and HongKong Dragon Airlines (KA) are the two major HK-based airlines which has his market share with 33.89% and 14.60% respectively14.
Hospitality is another the key sectors in the industry for economic contribution. As the statistics report conducted by HKTB in 2008, Hotel Bills has been contributed 21.7% of the expense of the Overnight Travelers. As of 2008, there were in total 149 hotels in HongKong providing 60,273 room classified as High Tariff A (16%), High Tariff B (32%), Medium Tariff (44%) and Unclassified (8%)14.
High Tariff B hotels have traditionally been more popular among Leisure Travelers and Mainland Chinese, which Regal Hotels International and Harbour Plaza Hotel & Resorts have been providing 3552 and 3495 rooms respectively as of September 200914.
Road Transport is a necessity for every single journey. It brings tourists in and out of their destinations or different attractions. The Mass Transit Railway Corporation (MTR) and The Kowloon Motor Bus Company (KMB) are the major two companies in this area.
The MTR network comprises 9 different lines, as well as Light Rail, serving around HongKong. It carries an averaged 3.7 Million passengers daily7. While KMB provides franchised public bus services extensively covers in Kowloon and New Territories. It network contains 402 routes and carries about 2.8 million passengers every day15.
Theme Park is an excellent example of the Built Attractions which could effectively motivate travelers intention to visit a place and could also prolong the length of the stay of the tourist. Ocean Park and HongKong Disneyland are listed in Top 5 Visited Place in 2008, which leads 18% and 16% of Overnight Visitors respectively14.
HongKong, ranked the world’s 12th largest trading economy, has a strategic location in Asia and positions as a gateway to Mainland China. HKTDC also indicates that in 2008 about 551,000 visitors came to HongKong for business and meetings4-6. As one can see, HongKong plays a crucial role as a convention and exhibition centre in the region. The HongKong Convention and Exhibition Centre (HKCEC), Asia World-Expo are two major exhibition venue in HongKong.
Insurance is also an important vendor in the structure of travel and tourism industry because every outbound traveler has to buy travel insurance prior to their departure for outbound trip. There are two major players:-
Blue Cross (Asia-Pacific) Insurance Limited - It has more than 30 years operation experience in this industry and is a travel insurance leader. It is the first insurance co. in HK to sell insurance on-line9.
MSIG Insurance (HongKong) Limited - It has large extensive distribution network, for example Standard Chartered Bank is one of their selling agent. It also being granted AA (Long term insurer financial strength) by Standard & Poor's10.
| |Company |Company | |Aviation |Cathay Pacific Airways Limited |Hong Kong Dragon Airlines...
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