Bloomberg News Service
HONG KONG — Hong Kong expects slower growth in tourism arrivals in 2001 as competition from other destinations and fragile economic conditions in key markets crimp the city’s appeal, according to the government-backed tourism authority.
The city expects arrivals to increase 7.8 percent to 14.08 million people, the Hong Kong Tourist Association said in a statement.
Last year, the city enjoyed its best-ever year for tourism, with more than 13 million visitors, an increase of 15.3 percent on 1999.
"Competition from other destinations is increasing all the time and there are still economic uncertainties around Asia and worldwide," said Selina Chow, the association’s leader.
Any upsurge in hotel and retail prices in Hong Kong may also harm the tourism industry, Chow said.
Hong Kong ranks 14th in the World Trade Organization’s tourism rankings and is the only city in the top 15. Within Asia, it’s second to China, which had 31.2 million arrivals last year, and ahead of Malaysia, with 10 million.
Hong Kong benefited last year from falling retail prices and room rates. Consumer prices have fallen for 26 consecutive months, although economists expect inflation to return in the second half of the year. The city is the world’s third most expensive to live in, according to a survey by consultants Watson Wyatt.
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