Posted on: Sunday, March 10, 2002
Decline easing for Asia airlines
Advertiser News Services
Asian airlines posted a smaller decline in passenger traffic in January than in December, indicating that demand may begin to recover soon, the Association of Asia-Pacific Airlines said.
Data from 10 carriers out of 18 association members showed that passenger traffic, or the number of paying passengers multiplied by distance flown, declined 7.6 percent from a year earlier, less than December's 11.3 percent drop. The number of passengers was down 5.6 percent in January compared with December's 5.2 percent drop.
"In December and January, it's starting to pick up," said Richard Stirland, director general of the association. "There's going to be a very gradual improvement."
Reduced demand for air travel since Sept. 11 may compel the carriers to offer discounts to lure travelers, hurting airline earnings. Investors are looking for indications that the slump may be coming to an end.
"There is still a lot of capacity out there. It may be too much for airlines to start raising prices," said Wong Soon Hwa, chairman of the Singapore branch of the Pacific Asia Travel Association.
The 10 airlines that contributed to the association's survey include Japan Airlines Co., Cathay Pacific Airways Ltd., EVA Airways Corp. and Singapore Airlines Ltd.
Japan Airlines, Asia's biggest carrier, posted a 22 percent drop in January traffic; Cathay Pacific, Asia's No. 6 carrier, posted a 3 percent drop; and Taiwan's EVA said traffic fell 5 percent. Singapore Air reported a 0.3 percent increase in traffic.
Domestic travel grows in Japan
JTB Corp., Japan's largest travel agent, said the domestic tour fees it collected on behalf of airlines and hotels rose for a third straight month in January because travelers avoided foreign destinations.
The closely held company's overall receipts rose 11 percent in January to 57.8 billion yen ($437 million) from the year-earlier month, said Kiohide Mitsuyama, head of JTB corporate planning. Receipts for overseas trips fell 38 percent to 20.8 billion yen, the fifth straight decline.
While Japanese travelers have been avoiding overseas trips since Sept. 11, demand for foreign travel has been showing signs of recovery. All Nippon Airways Co., Asia's second largest air carrier, said last week that sales for the year ending March 31 will beat its November forecast.
"There is a trend toward recovery (for international travel)," said Mitsuyama.
The drop in the amount of money JTB handled in January was smaller than in the preceding two months. Receipts for overseas travel fell 62 percent in November and 39 percent in December, Mitsuyama said.
Hong Kong loves mainland tourists
Hong Kong visitors from the Chinese mainland outspent visitors from the United States, Europe and Japan in 2001 for the first time since the city's tourism board began keeping statistics nine years ago.
From Armani boutiques to jewelers in the bustling Causeway Bay shopping district, shop managers say mainland Chinese tourists have deeper pockets than before.
"Sometimes they dress simply, but they spend a lot of money," said Yuen Bing Fung, shop assistant at Chow Tai Fook jewelers, adding that mainland tourists are favoring diamonds over gold. "The Chinese are the best customers in our shop."
China's overall economy expanded 7.3 percent last year, while Hong Kong's growth stalled. Hong Kong's tourism industry, a major income earner for the city, is betting that the travelers from the mainland will keep spending more.
Each of 4.4 million visitors from China last year spent HK$5,169 ($663) on average, more than any other group and higher than the overall average of HK$4,532, the Hong Kong Tourism Board said. Visitors from the Americas spent an average HK$5,072.
