Market Insights

Last Updated on: 14 December 2010

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Hong Kong's economy ecovered well after being hit hard by the global economic downturn in 2009. Visitor arrivals to New Zealand for the year ending October 2010 grew by 9.2 per cent compared to the previous year, to reach a total of 24,797 for that period.

Economy

Hong Kong's economy has recovered well from the global financial crisis, with GDP growing by more than 5 per cent this year.

The economy continued to expand in the second quarter of 2010, recording GDP growth of 6.5 per cent.  Many economists believe that if the global recovery continues, Hong Kong's GDP growth in 2010 should exceed expectations.

Consumer spending increased strongly in the first and second quarters of 2010 compared to the same quarters last year. Exports and imports also recorded impressive growth.

Unemployment has dropped during 2010 and now sits at 4.2 per cent.

Key Indicators

Sources:
www.economist.com (GDP Growth)
www.xe.com (Exchange rates)

Exchange Rate vs NZD HKD10 = NZD1.64 (9 Nov 10)
Expected GDP Growth +5.8% for 2010
+4.3% for 2011
(Nov 10 est.

Outbound Travel

Hong Kong's travel market has recovered well after the global economic downturn and the Influenza A H1N1 (Swine Flu) outbreak that negatively impacted outbound travel in 2009.

A strong Hong Kong economy and an increase in passenger capacity between Hong Kong and Auckland bodes well for the future of New Zealand tourism.

The busiest months for Hong Kong travellers coming to New Zealand are traditionally December and February. Both Air New Zealand and Cathay Pacific have reported strong forward bookings for the New Zealand holiday season and Tourism New Zealand expects continued growth in visitor numbers during this time.

Airline Update

Strong demand for flights between Hong Kong and Auckland over the summer season in 2010 prompted some airlines to increase their passenger capacity on the route.

Cathay Pacific added two more flights between Hong Kong and Auckland, making a total of 12 flights per week from 27 November 2010 to 6 March 2011.

Air New Zealand's also increased capacity on the route for the summer months, operating two of its daily services as 'terminator' flights. Rather than travelling on to London, these flights only travelled between Auckland and Hong Kong, increasing seat availability for the Hong Kong and South China markets.

Other indirect air links such as Hong Kong/Singapore/Auckland are being used by group agents due to a shortage of direct air capacity.  Airlines such as Singapore Airlines, Royal Brunei and Qantas are commonly used by group agents.

Competitor Activity

Australia, Korea and Thailand were particularly active in Hong Kong in 2010, marketing themselves as ideal holiday destinations for Hong Kong tourists. Taiwan has also moved to promote tourism from Hong Kong by simplifying its application process for residents of Hong Kong and Macau.