The Hong Kong Tourism Board (HKTB) hosted a web conference on April 24, 2020 to provide the latest updates on tourism development and introduce the HKTB’s strategic framework of recovery plan. HKTB Chairman Dr. YK Pang said that the Covid-19 pandemic has posed unprecedented challenges to Hong Kong tourism and put global tourism to a halt.
He continued, “The tourism landscape will be reshaped. In the post-pandemic world, we will see a shift in preference and behavior among travelers – the public health conditions of destinations, and the hygiene standards of transportation, hotels and other tourism facilities will become a top priority; people will prefer short-haul breaks and shorter itineraries; wellness-themed trips will become a new trend. It is an ideal time for us to review and rethink Hong Kong’s position in the global tourism market and elevate service standards. Together with the travel trade, the HKTB is going to map out the long-term development strategy for our tourism industry.”
The web conference was attended by close to 1,500 representatives from travel agencies, attractions, hotels, airlines, the retail and dining industries, as well as Meetings, Incentives, Conventions and Exhibitions (MICE) and cruise sectors. Representatives from the HKTB’s worldwide offices also participated in the meeting to provide insights into the latest developments in various market regions:
Mainland Market
- The Mainland has gradually resumed economic activities and people have returned to work.
- Given the outbreak’s impact on the economy, consumers will become more price-conscious and pursue value-for-money holidays. After prolonged confinement, visitors will also place greater emphasis on health and nature. When choosing destinations for future trips, they will favor those that pose low risks to health.
- The Meeting and Incentive market has slowed down as many activities have been postponed or will be held online.
Short-haul and New Markets
- Domestic travel will be the major preference shortly after the pandemic, and outbound travel will resume soon after.
- Regional competition will be fiercer than ever, as the tourism authorities and travel trade of various destinations are gearing up for intensive promotions to vie for visitors.
- In Japan, Korea and Taiwan, the young and middle-aged segments will be the most eager to travel. Green tourism and the outdoors will be favored, while short-haul travel will be preferred due to financial and holiday leave constraints.
Long-haul Markets
- Currently, governments are focusing on containing the outbreak within the region. A longer time is expected for these markets to recover and outbound travel may resume in the last quarter of this year at the earliest.
- Ethnic Asian visitors are expected to be the first to visit Hong Kong after the pandemic.
- Consumer sentiment is comparatively more positive in Canada, France and Germany and outbound travel is expected to recover at a faster rate in these markets.
The HKTB has announced earlier that it will be allocating HK$400 million (US$51.2 million) to support promotions by the trade. HKTB Executive Director Dane Cheng explained that the HKTB has devised a three-phase plan to reinvigorate Hong Kong tourism. The exact timeline will depend on the development of the pandemic.
Phase 1 (Now) – Resilience
- The HKTB is preparing a recovery plan for Hong Kong tourism.
Phase 2 – Recovery
- When the pandemic shows signs of abating, the HKTB will first focus on local market to promote positive ambiance in Hong Kong by encouraging locals to rediscover different neighborhoods and community cultures in order to send a positive message to visitors and restore their confidence in the city. Meanwhile, the HKTB will launch tactical promotions with the trade in selected markets based on the developments of individual markets to stimulate people’s interest to visit Hong Kong.
Stage 3 – Relaunch
- Mega events and a new tourism brand campaign will be launched to rebuild Hong Kong’s tourism image.
What lies ahead for tourism and culture sectors in S Ontario?
There is no doubt tourism, sport and area festivals are being impacted by pandemic
restrictions. The question remains where we will be over the next 18 months?
Highlights for many are the parades and festivals across our area. These bring
people into Haldimand and Norfolk who spend money in our local economy. These have
been cancelled going into fall – the impact of which is still to be seen.
From Lowbanks in Haldimand to Long Point in Norfolk, the Grand River and the Lake
Erie shoreline traditionally attracts daytrippers, boat, cottage and trailer owners.
With restrictions, to what extent are visitors continuing to boost our downtown
economies?
In the culture and heritage sector, while some activity is resuming under Stage 2,
museums, sporting events and performances are dependent on gatherings of people.
Even if restrictions on large gatherings are lifted, physical distancing would
result in significant reductions in capacity.
A recent survey conducted by the Ministry of Heritage, Sport, Tourism and Culture
Industries found many Ontario residents are still uncomfortable attending museums
and would be hesitant to have their children attend dance or music lessons. While
professional sports teams are working on changing their seasons, minor soccer and
baseball have been cancelled locally. What will happen going into the fall is still
to be seen.
In my area, Lighthouse Festival Theatre in Port Dover is one casualty, cancelling its 2020
season. Hagersville Rocks is another – put off until 2021. Area museums have yet to
open.
The province’s Financial Accountability Office (FAO) recently looked at the sector.
The FAO found from February to May, employment in tourism-connected sectors fell by
26 per cent and in the culture and heritage sector by 20 per cent.
In 2019, the tourism, culture and heritage sectors generated a combined $43.7
billion in economic activity, representing 4.9 per cent of Ontario’s GDP. The
tourism sector was supported by 147 million visits by tourists (Ontarians,
interprovincial and international) who spent $29.4 billion in Ontario, supporting
335,000 jobs. The culture and heritage sector, which includes film and television
production, publishing, broadcasting, performing arts and museums, contributed $24.0
billion to the economy and supported 282,000 jobs.
Looking forward, the FAO forecasts that Ontario’s overall real GDP will decline by
9.0 per cent in 2020 and rebound in 2021, growing by 8.5 per cent. However, the
tourism, culture and heritage sectors face unique challenges as ongoing travel,
economic and social restrictions will impact the sectors’ ability to reopen and
recover. For example, the federal government has banned visits from overseas and
non-essential visits from the US, and requires a 14-day quarantine for people
entering the country. Until the COVID-19 outbreak is resolved such that
international travel is able to significantly resume, the loss in annual spending by
international tourists will reach $11.4 billion.
Locally, the loss of international visitors is sure to have some impact on the
tourism industry. The difficult question to quantify is if Ontario residents staying
home and visiting local attractions is offsetting this.
I sit on a minister’s committee for Heritage, Sport, Tourism and Culture. If you are
part of this sector and have input, please share it with me.
My area is well known for hosting and entertaining visitors. Where that will be 12
to 18 months from now remains to be seen.
Toby Barrett is MPP for Haldimand-Norfolk