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Promoting Hong Kong as the “City of Life” and Persuading the Visitors from Mainland China to Visit Hong Kong

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We are glad to be of services to the Hong Kong Tourism Board (HKTB) - formerly known as Hong Kong Tourism Association, in presenting this consulting report on promoting Hong Kong as the “City of Life” and persuading the visitors from Mainland China to visit Hong Kong

In this report, we will base on the two-year major promotional tourism campaign “City of Life: Hong Kong is it!” which launched by the Hong Kong Tourism Board (HKTB) in April 2001 to showcase to visitors from Mainland China the most interesting and attractive aspects of Hong Kong. We will also contribute ideas on tourism promotion for this campaign to persuade the visitors from Mainland China to visit Hong Kong.

Four districts will be covered in this report that included Kowloon, Hong Kong Island, New Territories and the Outlying Islands. Besides, the most popular attractions in Hong Kong such as Shopping, Dinning and Sightseeing will also be particularly focused in this report.

Furthermore, negative aspects of Hong Kong will also be specially highlighted. In the final part of this report, a special issue on Quality Tourism Services (QTS) that plays an important role in the tourism industry will also be discussed.

Lastly, conclusion and the recommendations for the Hong Kong Tourism Board (HKTB) to further improvement will be included in this report
1 Introduction

1.1 The Hong Kong Tourism

Tourism plays an essential role in Hong Kong’s economy. To further promote Hong Kong as the most popular tourist destination in Asia, Hong Kong Tourism Board (HKTB) - formerly known as Hong Kong Tourist Association, thereby increases the contribution of tourism to Hong Kong’s economy. It tailors its marketing strategies carefully to the varying demographics and perceptions of each market region, making use of comprehensive market research and targeting especially those sectors that can bring the highest yield in terms of visitor spending.

In doing so, Hong Kong is promoted as a unique, vibrant destination that offers visitors a living fusion of Eastern and Western cultures. Complementary to this is the goal of ensuring visitors’ satisfaction when they arrive, and thus encouraging them to make repeat visits, or to recommend Hong Kong to friends and relatives. The Hong Kong Tourism Board (HKTB) put on efforts to fulfill the mission by providing information and assistance to visitors, fostering community support for tourism and good hospitality towards visitors, and working with the Hong Kong Government and the tourism industry to improve the range and quality of visitor facilities.

Hong Kong, City of Life, is a small place that lives large. A living fusion of East and West, it presents visitors with ever-changing kaleidoscope of colour and culture. City of Life: Hong Kong is it! programme of events is a 24-month-long extravaganza running from April 2001 to March 2003 which co-ordinated by the Hong Kong Tourism Board, Home Affairs Department, Leisure & Cultural Services Department, the Tourism Commission and Hong Kong’s 18 District Councils, and sponsored by the Hong Kong Jockey Clubs Charities Trust.

The programme showcases the events, festivals and activities that have helped to make Hong Kong the most popular destination in Asia. Both visitors and residents can explore Hong Kong’s 18 districts, which will highlight local events and attractions as well as international standard events.

By this two-year programme a breathtaking array of attractions will offer events for visitors never-to-be-forgotten experiences and memories of a vibrant city that will last a lifetime.

1.2 Purpose of Study

According to the Hong Kong Tourism Board (HKTB) ‘s arrivals figures in November 2002, the Mainland China market went one better, outperforming the October figures to set a further new record of 697,841, a 71.8% year-on-year increase. This is a significant issue in Hong Kong because of its growing status. To encourage the visitors from Mainland China to make repeat visits, or recommend Hong Kong to friends and relatives, Hong Kong Tourism Board (HKTB) must build on its strength to make Hong Kong a more visitor-friendly and attraction destination.

Our objectives of this report are summarized as below:

 To promote Hong Kong as the “City of Life!”
 To persuading visitors from Mainland China to visit Hong Kong
 To identify the negative aspects of Hong Kong
 To make recommendations

1.3 Scope

In this report, we will base on the tourism campaign “City of Life: Hong Kong is it!” to showcase to visitors from Mainland China the most interesting and attractive aspects of Hong Kong. We will contribute ideas on the tourism promotion campaigns based on a survey of 300 Mainland China visitors.

In addition, we will focus on four districts that included Kowloon, Hong Kong Island, New Territories and the Outlying Islands. Besides, the most popular attractions in Hong Kong included shopping, dining and sightseeing are also particularly discussed in this report.

Furthermore, negative aspects of Hong Kong will also be focused. In the final part of this report, we will also discuss a special issue on Quality Tourism Service (QTS) that plays an important role in the tourism industry

Finally, conclusion and the recommendations for Hong Kong Tourism Board (HKTB) will be included in the report.

1.4 Methodology

Information for this report comes from print and online sources and a survey of 300 Mainland China visitors. Convenience sampling method was used as the population size was widely dispersed. The survey was conducted in high attractions areas such as Tsim Sha Tsui and Central. A total of 300 questionnaires were completed from 5 December 2002 to 11 December 2002. Eligible respondents were adults, over the age of 15. Each questionnaire took approximately 5 to 10 minutes to finish.

The Mainland China visitors who responded represent a wide variety of behavior towards the Hong Kong tourism market. Concerning their behavior of visiting Hong Kong, 210 out of the 300 respondents (70%) visited Hong Kong for the purpose of sightseeing. This reflects that a large part of the market segment can be said to be in the sightseeing market.

Since 210 (70%) of the respondents chose the delicious food and the low price shopping for their reason of visiting Hong Kong, a large proportion of the Mainland China visitors (67%) found the gourmet paradise and shopping are the most attractions in Hong Kong.

In addition, 39% of the respondents suggested that Hong Kong needs an improvement on service quality and 82% will consider visiting Hong Kong again. Also, 85% of the respondents will introduce Hong Kong to their friends or other tourists. (See Appendix A for all of the raw data from the survey)

In general, the service quality receive positive perception values from the respondents with mean value less than 3 for most of the evaluative criteria except for the service of shopping (mean value = 4.1) and food (mean value = 4.8). This might mean that service marketing is thus important for the tourism industry. Besides, convenience for residence has a record of mean value 1.12 which is the best out of the other service quality chosen for the survey.

1.5 Limitations

1.5.1 Data reliability
Biased results might be obtained since

 people completing the questionnaires forms may be unaware of the requirements and place different interpretations on the questions
 false or misleading information are inevitably collected from respondents, and
 forms may only be partly completed

To alleviate this problem, we were very careful in the questionnaire design so that questions were phased clearly. A pre-test with our friends or schoolmates was conducted to provide ideas on areas of improvement. Questionnaires were conducted in partnership with the interviewer to ensure that every question of the form was answered.

1.5.2 Standard of measurement
The standard of measurement in certain area such as service performance is not always quantifiable.

1.5.3 Time constraint
As we are involved in a part-time study, a large scale of survey is not possible due to time constraint and limited costs. More accurate research methods such as those of probability ones are not desired in order to obtain the fastest and best results out of a limited period of time.

1.5.4 Feasibility of carrying out the questionnaire survey at the Hong Kong International Airport.
One of our main places for carrying out the questionnaire survey at the airport proposed was not possible, since Airport Authority had turned down our request. Therefore, all the questionnaires were completed in the high attractions areas such as Tsim Sha Tsui and Central.

1.5.5 Feasibility of carrying out the interview with travel agents
Travel agents did not entertain our request for the interview. The intended direct source of data was then recruited from other sources as listed in the methodology section.

2. Background

The increasing number of the Mainland China visitors would boost Hong Kong’s retail, catering and tourism services industry. According to the statistical figures from Hong Kong Tourism Board (HKTB), Mainland China continued to be the largest visitor source to Hong Kong in 2000 for the fourth consecutive year since 1997.

Arrivals from the Mainland China totalled 3.8 million in 2000, contributing 29% of the total visitors. From January to August 2001, Hong Kong had 2.8 million Mainland China visitors contributing 31% of the total arrivals; an increase of 13.6% compared with the same period in 2000. The per capita spending of visitors from the Mainland China amounted to HK$4,831 in 2000, among which 78%, that is HK$3,768, was spent on shopping, dining and entertainment.

In today’s Policy Address, Mr. Tung announced that the HKSAR Government has reached an agreement with the Hong Kong Group Tour Scheme, effective from January 2002. The goal is to enable all Mainland China agencies organizing outbound tours for Mainland China residents to arrange Hong Kong group tours.

With the extension of the validity period for multi-entry business visas, the Association of Better Business & Tourism Services (BBTS) estimated that in the coming year an additional 300,000 Mainland China visitors would visit Hong Kong resulting an estimated HK$1.13 billion additional tourism receipts on shopping, dining and entertainment.

By attracting more Mainland China visitors, Hong Kong, as a travel destination, has much to offer a unique heritage and culture, fine shopping and dining, quality services and efficient transport systems to its visitors. Its aim is to enhance Hong Kong’s position as the single most popular travel destination in Asia and to further project the “City of Life” image.

3. Negative Aspects of Hong Kong

As we focused mainly on the data collected from our survey, it can clearly see that the Mainland China visitors’ rating of the perception towards the service quality of Hong Kong is not good. This might mean that they have some experiences of being serviced impolitely by the Hong Kong people. Besides, there are some other negative aspects of Hong Kong:

 The original attractions are lost of its magic because its facilities are damaged and lack of repairs
 Poor quality and not enough variety of local products
 Not enough road map for visitors
 Not enough Visitor Information & Services Centre for visitors’ general queries or complaints

To conclude, all these factors would not only weaken Hong Kong’s competitive edge but would eventually affect the pace of development of its tourism industry. As a significant proportion of the Mainland China market, investigate the behavior of the Mainland China visitors, e.g. their spending pattern, to develop future business strategies; facilitate effective communication and business exchanges with the Mainland China must be determined by the Hong Kong Tourism Board (HKTB) to support the development of Hong Kong tourism industry.

4. Quality Tourism Service (QTS) Scheme

As part of on-going efforts to elevate service standards in the tourism service industry in Hong Kong, the Hong Kong Tourism Board has initiated the establishment of a “Quality Tourism Services” Scheme (the QTS Scheme). The QTS Scheme is a service certification programme whereby applicant organizations providing services that have fulfilled the assessment criteria as prescribed by the QTS Scheme will be authorized to display the “Quality Tourism Services” Decals (QTS Decals)

The first quality stamp of its kind for the tourism service industry in Hong Kong, the scheme allows retail shops and restaurants that have passed prescribed assessment criteria to display the QTS decal.

The QTS Scheme has established in the quest to provide visitors with a guaranteed happy, entertaining and memorable visit, it aims to:

 assist visitors and local customers to identify quality tourism service providers
 strengthen the capability of all service providers to achieve value-added performance in support of the tourism industry
 elevate Hong Kong’s tourism service standards in order to strengthen Hong Kong’s reputation as a “Shoppers’ Paradise” and the “ Culinary Capital of Asia”

“100% Refund Policy”
The Travel Industry Council of Hong Kong (TIC) has introduced a “100 per cent refund guarantee scheme” since February 2002. All travel agent members of the Travel Industry Council of Hong Kong offer a 100% refund guarantee. Under the scheme, visitors who are arranged by their travel agent to buy at shops are entitled to a full refund if they are not satisfied with their purchases and return them to the shops within 14 days.

“TIC Bonding Fund (TICBF)”
Visitors who have patronized a Travel Industry Council of Hong Kong (TIC) member agent are under the protection of the Travel Industry Council Bonding Fund (TICBF). This fund aims to compensate visitors suffering from monetary losses due to the willful failure to comply with the quality of service as committed by and TIC member agent.

To assist the QTS Council in effectively carrying out the functions, the QTS Assessment & Qualification Board has been set up to review and make recommendations to the QTS Council to change and amend the prescribed assessment criteria and assessment procedures.

5. Conclusion & Recommendations

Since the Mainland China was the fastest growing market in Hong Kong tourism, a 70.5% year-on-year increase; it has a lot of room for growth in Asia. To promote Hong Kong as a travel destination for people of Mainland China, we suggest the Hong Kong Tourism Board (HKTB) to open more operational offices to China gradually.

Since Asian Tourist market has not matured yet, there is stillroom for development. Particularly for China due to its large population size, it has a lot of room for growth in Asia. Thus, market expansion plan with a focus on Asia, particularly China, can be adopted at least in the coming 10 years. Series of marketing and promotion campaign as listed in the table at the end of this section help the Hong Kong Tourism Board (HKTB) to promote Hong Kong as a destination of “City of Life”.

To conclude, the traditional ways of handling demand analysis, quality control, and marketing are not sufficient anymore. Service quality is seen to be more important than quantity. Therefore, many aspects of the Hong Kong tourism have still to be addressed and improved continually as service quality is more important than quantity.

As the “City of Life” in Asia, Hong Kong buzzes with unique tourist attractions that are beyond compare in the region. In order to maintain Hong Kong’s position as the top destination city for visitors in Asia, the development of new attractions and events should be determined. By making use of the promotional tourism campaigns, Hong Kong always has something refreshing and remains a must-see destination for the visitors. The following table provides a quick scan on the recommendations:

Product Recommendations
Establish good image - through advertising campaigns with a theme song for Hong Kong to gain loyalty from visitors
Online service - introduce visitor “hotmail”, i.e. replying customers through e-mail Quality control - enhance the monitoring of visitor compliments and complaints through statistical reports; quality reports to monitor performance People Recommendations Frontline staff - promoting language courses for training staffs to improve the standard of Putonghua - promoting programs for training staffs to handle complaints for both the travelers and the travel agents - reward and performance evaluation system to motivate staff for high standards of service Travel agents - put more effort on the relationship with travel agents for the purpose of promoting Hong Kong to visitors Hong Kong residents - enhance to promote the quality culture and encourage people to be good hosts

Promotion Recommendations Direct marketing - proactive selling in the form of electronic mail broadcasting Media advertising - to increase advertising campaign e.g. in China Theme promotion - enhance the promotion of the theme Disneyland to visitors In-flight promotion - introduce and provide the Hong Kong signature dishes to the travelers Putonghua Discount - encourage more organizations to give discount to Putonghua Promotion speaking customers Place Recommendations Shopping - decoration design for shopping malls should be more attractive - improve the quality of service for all retail shops - Increase the variety of local products Dinning - improve the quality of service for all restaurants and hotels - ban smoking for all dinning places Sightseeing - more traveling tools for the places of sightseeing - detail road maps provide to the visitors - repair the facilities for places of sightseeing

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