Hospitality Industry in Hong Kong Market Size

Hospitality in Hong Kong Market Analysis

The hospitality industry in Hong Kong has recorded steady growth with the growing number of tourists from all over the world despite the uncertainty over the US-China trade war and Brexit. The total number of tourist arrivals to Hong Kong rose to a record high of 65.1 million in 2018 which was 11.4% more than the total arrivals it recorded in 2017. The average room rate grew by 9% with an average HK$1,310 per night, whereas the occupancy rate hit the highest of all-time with 92.05% compared with 90.74% in 2017. According to the Hong Kong Hotels Association, the first half of 2019 continued the trend with growing numbers but from the mid of July 2019, the scenario has changed with the rising number of protests all over the country that created Vandalism and disruptions to the major transport infrastructure which affected international conferences, exhibitions, events, etc and resulted in 13% year on year decline in revenue per available room which hit the worst in August 2019. August 2019 witnessed an almost 40% sharpest decline in occupancy rate since the 2003 SARS crisis. The COVID - 2019 is challenging the hospitality industry which greatly depends on the tourism sector. the tourist arrivals to Kong Hong recorded around 70% drop during the first quarter of 2020 amidst the pandemic situation.