Travel/Tourism core group

Brief notes of an informal meeting with Mr Mike Rowse, Commissioner for Tourism on Thursday, 2 September 1999 at 5:00pm at the Chamber Boardroom.

Convenor :

Mr James Lu, Hong Kong Hotels Association

Guest :

Mr Mike Rowse, Commissioner for Tourism

Present :

Mr Tony Au, HK Information Technology Federation Ltd

Mr Marshall Byres, Ernst & Young

Mr Michael Duck, Miller Freeman Asia

Mr Douglas Gautier, Hong Kong Tourist Association

Mr George Leung, Hong Kong Bank

Mr Richard Willis, P & O Travel Ltd

Mr Alan Wong, Cathay Pacific Airways Ltd

Mr Samuel Wu, All Travel Ltd

Dr Jane Lee, Hong Kong Policy Research Institute Ltd

Mr Howard Young, Cathay Pacific Airways Ltd

Ms Tracy Yu, Standard Chartered Bank

Dr Eden Woon, Hong Kong General Chamber of Commerce

Dr W K Chan, Secretary General

Ms Charlotte Chow, Deputy Secretary

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1) Mr Lu told members the background of the HKCSI Travel/Tourism group which met once a year to discuss issues of interest to the industry. It was hoped that with the appointment of the Commissioner for Tourism, problems pertaining to the travel industry would be taken care of and issues prioritised for action. A listing of some major issues on travel and tourism was tabled for discussion.

2) Mr Lu said that Hong Kong¡¦s international image was an area of concern. World misunderstanding about China had seriously affected Hong Kong¡¦s ability to stand on its own for international promotion purpose. It was therefore important to work aggressively with the international travel trade to build up a positive image to counter the bad publicity, so as to encourage more people to visit Hong Kong and return home with a more positive image of Hong Kong.

3) Environmental and pollution issues should be high on our agenda. These had continued to deteriorate and Hong Kong was ranked amongst the world¡¦s worst polluted cities. Until something was done quickly and effectively, Hong Kong would lose its attractiveness to tourists, international businesses and multi-national investors. Members were told that environment would be included in the Chief Executive¡¦s coming policy address.

4) Some people were saying that tourism used to have prosperity cycles of 3-4 years. However, in the case of Hong Kong, the cycles were stretched to 7 years. If that was true, it would be important for Hong Kong not to repeat old mistakes and to prepare ourselves to manage future success. If we were to believe that tourism would eventually recover and reach new heights within 3 years, Hong Kong would need better educated and trained people to work in the travel trade. Members were told that the government was conducting a study on human resources in terms of the number as well as skill profile required.

5) Traditional strengths and values of Hong Kong should not be destroyed. On the contrary, they should be reinforced by making them more effective and attractive. Existing attractions should be upgraded; landmarks such as the Star Ferry should be preserved and new products should be developed. As in many countries, promotions targeting local people should also be considered.

6) To make shopping in Hong Kong more attractive, facilities such as seats and chairs should be provided in shopping malls, and different levels of shopping facilities should be developed to cater for the different needs. Citizen education was important especially on courtesy. Every Hong Kong citizen should be reminded that they were part of the hierarchy of tourism and everybody had a role.

7) It was suggested that the existence of the variety of religious constructions such as churches, temples, mosques, synagogues, etc could be an attraction not easily found elsewhere.

8) Mr Rowse felt that the construction of a Disneyland in Hong Kong might also attract other amusement centres and theme parks to Hong Kong.

9) At present, the use of funds on the promotion of tourism was directed mostly to the Hong Kong Tourist Association. Mr Rowse commented that there might be a need for a realignment of responsibilities within HKTA, a matter in which some members expressed an interest.

10) It was felt that a good PR image for Hong Kong was critical. Mr Rowse agreed that government bureaucracy might have been a problem. At present, funds were allocated to HKTDC, GIS and other government offices for the promotion of Hong Kong. However, co-ordination between these offices was insufficient, thus affecting the promotion of Hong Kong¡¦s image as a trade centre. It was suggested that the downturn of the economy also had an impact on business travellers. Mr Rowse revealed that the government would make a record on expenditure by various government departments on tourism related activities. It was suggested that Hong Kong could also be promoted more through the Internet.

11) Facilitating entry such as freeing up paper work, removal of the quota system, etc for mainland visitors was cited as another concern.

12) It would be useful to promote the Mainland as a complementary destination. For example, free air tickets for a second destination in the Mainland could be offered to long haul visitors. Hong Kong should aim to become a complementary destination rather than a sole destination.

13) It was suggested that questions such as ¡¥what is the attractiveness of Hong Kong?¡¦, ¡¥to what extent is Hong Kong a springboard for other places?¡¦ and ¡¥how could our position as a springboard be preserved?¡¦ should be asked more often by the travel industry.

14) Other issues discussed included: usage and charges at the New Airport, promotion of cultural activities to the international arena, whether the uniqueness of Hong Kong or that the concept of ¡§Something for Everyone in Hong Kong¡¨ should be promoted.

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Notes of an informal meeting of the HKCSI Travel/Tourism Group held on Thursday, 26 November 1998 at 9:00am at the Chamber Boardroom.

Convenor :

Mr James Lu, Hong Kong Hotels Association

Present :

	Mr John Ap, Hong Kong Polytechnic University
	Ms Debbie Cho, Office of The Hon Howard Young, JP
	Mr David Dodwell, Jardine Fleming Holdings Ltd
	Mr Francis Hung, China Holiday Tours Ltd
	Mr Stanley Ko, Jardine Pacific Ltd
	Ms Ellen Kwan, Hong Kong Tourist Association
	Ms Kitty Lee, Office of The Hon Howard Young, JP
	Mr Michael Li, Federation of Hong Kong Hotel Owners Ltd
	Ms Jennifer May, Tour East (Hong Kong) Ltd
	Mr Ray Pine, Hong Kong Polytechnic University
	Mr Garry Tse, Jade Travel Ltd
	Mr Richard Willis, P & O Travel Ltd
	Mr Samuel Wu , All Travel Ltd
	Mr Raymond Yeung, Hong Kong Policy Research Institute Ltd
	Mr Howard Young, Cathay Pacific Airways Ltd
	Mr Joe Wong, Economic Services Bureau
	Dr Eden Woon, Hong Kong General Chamber of Commerce
	Dr W K Chan, Secretary General
	Ms Charlotte Chow, Deputy Secretary

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1) Dr Chan briefed participants on the background of the HKCSI Travel/Tourism group which met once a year to discuss issues of mutual interest. This group comprised about twenty people, among them there was a ¡§Core Group¡¨ of eight people who met quarterly. Usually, a representative from the government would be invited. As a result of these informal meetings, seven position papers had been developed and submitted to the government during the past years.

2) Mr Lu added that the aim of the meeting was to allow free expression of views in a personal capacity rather than representing one¡¦s own affiliated sector. Views and suggestions should be forward looking.

3) Mr Lu drew participants¡¦ attention to an article by Mr Peter Sutch, Chairman of the Chamber, which was tabled. In the article, two points were highlighted:

i) The number of visitors to Hong Kong from the greater China market was over 50%, which was a major shift from the traditional pattern. Of this, some 27-28% was not served by our major carrier.

ii) Hong Kong needs to have a strategy on tourism and the appointment of a commissioner for tourism was appreciated.

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What can be expected in 1999 if the status quo remains

4) Business for the industry for 1998 was down 8% compared with the last year. As Hong Kong became more competitive, it was felt that the prospect for 1999 would improve slightly. However, it would take some time before we could go back to the level of two to three years ago.

5) Regionally, the greater China market should be monitored closely. More visitors from the mainland and Taiwan would be expected as Taiwan businesses started to adopt a five day week together with the relaxation of the restriction limiting Taiwan nationals to complete military service before they were allowed to leave the territory. As Hong Kong enjoyed a great deal of transit traffic between the mainland and Taiwan, any possible development in direct traffic between these two places would affect Hong Kong greatly and its impact should be assessed. Although it was unlikely that direct flight between Taiwan and the mainland would materialize in 1999, it was suggested that ultimately a triangular route making Hong Kong an essential visiting destination for either place should be promoted. In addition, the extension of ADS status by Australia and New Zealand to mainland China would attract more transit visitors.

6) The performance of Hong Kong¡¦s other short haul markets depended heavily on the economic and political situation of our neighbours.

7) Participants were optimistic about the prospect of long haul markets such as Europe and America. Other markets such as Middle East and Russia should not be overlooked. Some participants were concerned of the lack of new attractions in Hong Kong and suggested that attractions in southern China should be promoted in connection with Hong Kong.

8) It was suggested that when promoting Hong Kong, focus should be on both new comers and return visitors. The promotional message should be about Hong Kong as a whole, emphasizing Hong Kong¡¦s character.

9) Attention was drawn to the ¡¥Hong Kong International¡¦, a body set up within the Chamber to promote Hong Kong worldwide by businessmen travelling overseas. It was felt that HKI could have a very useful role to play.

10) A HKTA study indicated that the hotel occupancy rate for 1999 would be similar to this year, or may be 1-2% down before a recovery in year 2000. Hotel tariff would be stable for the next two years. It was revealed that hotel occupancy rate would also be affected by the 4,500 new hotel rooms anticipated for 1999-2000. The study showed that 72-75% of arrivals stayed in hotels with a 1.8 room-sharing ratio. While the number of arrivals increased, the throughput of Chek Lap Kok remained the same. It was anticipated that hotels might expect a slightly better than anticipated first half for 1999 and a not too bad second half when most of the new rooms would come on stream.

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The proposal for an overall travel industry strategy

11) Hong Kong should have an overall strategy of improving the quality of services. Piecemeal campaigns (eg courtesy campaign) would be ineffective. The services of Hong Kong needed a fundamental re-orientation. In the long term, Hong Kong needed to develop and strengthen its local culture as attractions.

12) Members believed that a long-term strategy was needed rather than ¡¥fire-fighting¡¦ campaigns. The government, practitioners and academia should work together to develop a long-term tourism strategy for Hong Kong. Studies conducted by Professor Michael Enright/Coopers & Lyband and Fiona Gilmore were referred to.

13) The government should have a long-term plan with clear priorities for Hong Kong¡¦s tourism industry. It was believed that the term of office of the commissioner should be long enough, say five years, so as to enable a realistic strategy of 10-15 years to be developed. The commissioner should have total commitment of support from the various policy secretaries and be backed by experienced assistant commissioners well versed in the trade. The person should have vision and be able to work well with government officials without compromising on basic principles.

14) Externally, the person should be a marketer of Hong Kong. Internally, the person should have a good understanding of the industry, its requirements and trends. He should be able to convince the government to focus its attention in facilitating Hong Kong as a better place to serve visitors.

15) The change of the tourism industry in Hong Kong had put a great deal of pressure on the HKTA to enlarge its mandate in addition to its original role of marketing Hong Kong overseas.

16) The various organizations had their own roles. The Commissioner for Tourism would play an effective coordinating role.

17) There was a concern that Hong Kong was not consolidating our strengths but competing on our weaknesses. It was agreed that Hong Kong needed to be focused on our needs and prioritization was important. A more effective and transparent government was also desirable.

18) It was suggested that similar workshops focusing on various aspects of the industry should be organized to collect views.

Brief notes of an informal meeting of the Travel/Tourism Group held on 18 March 1997 at 9:00am at the Chamber Boardroom.

Present:       Mr Michael Duck          Miller Freeman Asia Ltd
               Mr Jackie Kwong          Jebsen & Co Ltd
               Mr James Lu              Hong Kong Hotels Association
               Mr Howard Young          Cathay Pacific Airway Ltd
               Dr W K Chan              HKCSI Secretary General
               Ms Charlotte Chow        Deputy Secretary

Airport charges

1. Members started by discussing the Airport Authority's reply to the Fifth Position Paper by the HKCSI. While agreeing with the AA's position about the need to run Chek Lap Kok on prudent commercial principles, members felt that competitiveness of the airport and of Hong Kong as a whole should also be emphasised. It was felt that the general impression of Chek Lap Kok from overseas was that it would be an expensive airport. For CLK to be successful, such adverse publicity should be addressed. It should be emphasised that more tourism revenue would be brought to Hong Kong from more visitors, rather than more airport revenue.
2. A member suggested that in line with most other airports (excep Sydney), the airport tax should go to the AA rather than government, thus relieving the AA of some pressure to increase charges.
3. With bigger capacity it would be possible for airlines to increase number of flights at CLK, but the key remains attracting more passengers and throughput rather than deterring potential visitors through an expensive image. In this regard the marketing of the airport itself should also be strengthened. A member suggested a reduced charge for landing at night might be considered to take advantage of the 24 operating hours.
4. Members agreed that in approaching this issue, the HKCSI should maintain a balanced, community-based perspective, and should continue to pursue discussion over the matter with the AA and the Economic Services Branch.

Hong Kong as a regional hub

5. Hong Kong should continue to enhance its leading status as a regional hub for travellers. In this regard Hong Kong is facing a stronger challenge from other competitive hubs, such as Singapore, Bangkok and Kuala Lumpur which are increasingly being used by European countries as a long-haul destination and for hubbing to other Asian destinations.
6. In formulating his strategy for promotion of services the Financial Secretary has identified fourteen key service sectors for action. It was noted that Hong Kong's travel hub function would relate to many of these sectors, and that this should be conveyed strongly to the government. In promoting Hong Kong as a hub for air transport, other sectors would also benefit through increasing job opportunities and growth in business, for example, in the catering, hotels, wholesale/retail, forwarding, aircraft engineering, fuel replacement, advertising and public relations, film entertainment, telecommunications, financial services, exhibition services sectors.

Hotel development and manpower

7. The hotel sector is keen to play a part in accelerating the growth of tourism through increasing usage of the new airport. The industry is however concerned that the growth in hotel rooms and in number of visitors should go hand-in-hand.
8. It was felt that an integrated development such as the Pacific Place with first class hotels, shopping mall and office buildings has been well received and there should be a similar complex in Central. The fact that it would only require 14 minutes to go from Central to CLK would be an attraction to travellers.
9. The hotel industry is also concerned with labour shortage. Fewer young people are interested in joining the industry as it requires a lot of commitment and hard work, and instead of cultivating its own workforce the hotels often becomes a training ground for other businesses. In the short term, government should relax the labour importation scheme for hotels, otherwise staff cost would escalate and would inevitably bring about higher room charges. In the longer term institutions such as the VTC should also re-organise its training programmes with more emphasis on the hotel industry.

Venues for cultural activities

10. Members expressed concern over the lack of world class cultural and entertainment venues in Hong Kong. It was agreed that the CSI should should take this matter up further with the Urban Council and should support the use of the Stadium for musicals and concerts.

Support services

11. It was pointed out that the ferry pier at the new HKCEC complex could be better made use of by introducing services, both on a regular and events-oriented, ad hoc basis, between the HKCEC and Tsimshatsui and Tsimshatsui East.

Further action

12. It was agreed that the HKCSI Travel/Tourism core group would continue to take up the above matters as well as any other major issues that might occur during 1997, through the same format as in the previous years, i.e. informal meetings, consultation and submission of position papers.

(ends)

If you have any question, free to email us at csi@hkcsi.org.hk

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