Fuelling a new era of experiential tourism and passion-driven marketing There is something distinctly symbolic about the world-famous night view of the Victoria Harbour. Just as Hong Kong shines brighter when night falls, the whole industry sparkles in the increasingly demanding tourism market when we work harder together. With the concerted effort of the Government, our trade partners and the community, the Hong Kong Tourism Board (HKTB) enhanced its marketing strategies throughout 2015/16 to fuel the appeal of the city’s amazing array of core experiences. Contents Messages from Chairman & Executive Director 4 Chairman’s Message 6 Executive Director’s Statement 8 Board Members 10 Tourism Performance 14 Total Arrivals 16 Total Tourism Expenditure Associated with Inbound Tourism 16 Overnight Visitors’ Per Capita Spending 17 Average Length of Stay among Overnight Visitors 17 Overall Satisfaction of Overnight Visitors 17 Strategic Focus 18 Hong Kong Summer Fun 21 Overseas Promotions 26 Marketing Initiatives 40 Public Relations 42 Exciting Events 46 Trade Partnership 56 MICE Business 58 Cruise Experience 62 Top-Notch Service 64 Multi-Destination Travel 66 Tourism & The Community 68 Awards & Achievements 76 Destination – Hong Kong 78 Hong Kong Tourism Board 79 Corporate Information 82 Corporate Governance 84 Other Information 88 Worldwide Offices & Representatives 90 Independent Auditor’s Report 92 4 Hong Kong Tourism Board Annual Report 2015/16 MESSAGES FROM CHAIRMAN & EXECUTIVE DIRECTOR Fuelling purpose with insight Our Chairman and Executive Director reflect on the past year and look to the challenges and opportunities ahead. Hong Kong Tourism Board Annual Report 2015/16 5 Messages from Chairman & Executive Director Chairman’s Message 2015 was an intensely challenging year for the Hong Kong same time, Hong Kong’s hospitable image was affected by a tourism industry. Like cyclists in an uphill mountain race, we few incidents concerning Mainland visitors. faced considerable adversity but emerged with our spirit and resolve intact. The strong Hong Kong dollar, meanwhile, dented our arrivals from some international markets although we did see We saw a decline in visitor arrivals from the Mainland for encouraging signs of growth in the second half of the year in the first time since 2003, partly because the visa policy was some key markets including the US, Japan, South Korea, the tightened from multiple-entry to one visit a week. At the Philippines and Thailand. 6 Hong Kong Tourism Board Annual Report 2015/16 Messages from Chairman & Executive Director Our industry remains mired in a period of considerable into it. Like any winning team, though, it is our unity that will give challenge and it will require unity and ingenuity for us to regain us the competitive edge over our regional rivals. the momentum. What has impressed and heartened me has been the remarkable way in which my colleagues at the Hong Riding side by side with our trade and Government partners, Kong Tourism Board along with our trade and Government harnessing our collective imagination and ingenuity and partners have risen to that challenge. strength, I have every confidence that together we can power up our tourism industry and speed our way towards exciting new Nothing better symbolises our determination than the first-ever opportunities. Hong Kong Cyclothon which drew more than 3,600 competitors from 17 countries and regions. It was a spectacle that perfectly captured the energy and dynamism of our city. As well as the Cyclothon, our ideas and our sheer hard work have also begun to put us back on the right track. We teamed up with Taiwan to promote multi-destination itineraries to the Dr Peter Lam North America market and boost tourists’ desire to visit Asia, Chairman including Hong Kong. Our efforts in securing MICE events also Hong Kong Tourism Board paid off with more high-profile events coming to and continuing to run in Hong Kong. We also saw overwhelming support from our trade partners for the Hong Kong Summer Fun promotion, an event that highlights our year-round, all-seasons appeal as a destination. And the Hong Kong Government has given us steadfast support, putting valuable resources into our programmes and launching a matching fund for attractions to support overseas promotions. I believe we are beginning to see the fruits of these efforts. Positive sentiment is seeping back into our tourism sector. Every month, new and returning visitors from cities and countries everywhere are discovering Hong Kong’s diverse and timeless appeal as Asia’s World City. The road back to tourism growth is an uphill one, and we must continue to stretch our sinews and put every ounce of strength Hong Kong Tourism Board Annual Report 2015/16 7 Messages from Chairman & Executive Director Executive Director’s Statement A great philosopher once said that the only thing that is Tourism has had a testing time in the past year. The constantly constant is change – and the events of the past 12 months evolving behaviour and trends of international travellers have have demonstrated how the tourism industry is one that is tested our resilience as one of the region’s leading destinations; particularly susceptible to the winds of change. the cost of travelling here has increased because of a strong Hong Kong dollar; and our city’s image as a friendly, hospitable We are passing through a period of turbulence and challenge. destination has been dented by thorny issues. The way we adjust to that turbulence and rise to the challenge will determine the future of an industry that is such a vital It is imperative that we react positively and effectively and element of Hong Kong’s economy. power Hong Kong forward with the resourcefulness and spirit of 8 Hong Kong Tourism Board Annual Report 2015/16 Messages from Chairman & Executive Director innovation that has made us one of the world’s most dynamic, There is no question that our tourism industry has been successful cities. buffeted by the headwinds of change and challenge in the past year. However, it is important to remember that despite these At the Hong Kong Tourism Board we have focussed on a number setbacks, we have seen extraordinary growth in visitor numbers of objectives in events, marketing, public relations and trade over the past decade and Hong Kong remains a top tourism partnership to ride out the storms of recent months and steer destination that attracts tens of millions of visitors a year and is our tourism industry towards calmer skies. by far the second most-visited destination after the Mainland. Firstly, we have promoted the unique Hong Kong experience, We have every reason for optimism, and I would like to warmly organising and supporting more mega events to highlight thank the Government and our trade partners for their constant the diversity and dynamism of our city. Through impactful support and encouragement over the years. Together, we are a marketing and public relations campaigns, we have reached out formidable team with a wealth of ideas and an irresistible brand to consumers globally to show them the incredible diversity of to promote. Together, we can power up Hong Kong and make experience they can enjoy in a single trip to Hong Kong. sure that this dazzlingly diverse city remains one of the world’s most exciting and unmissable tourism destinations. Secondly, we have teamed up with trade partners across the city to provide even more attractive packages and special offers for visitors to enjoy. Hong Kong Summer Fun was a terrific example of how we can pull out all the stops to make sure visitors have an unforgettable, fun-packed stay. Thirdly, we have made efforts to enhance Hong Kong’s Anthony Lau reputation as a welcoming and hospitable city. We have worked Executive Director closely with personalities and media organisations in China Hong Kong Tourism Board to generate positive stories and word-of-mouth advocacy, and promoted Quality Tourism Services Scheme and Quality and Honest Hong Kong Tours to guarantee a high-quality experience for every visitor. Beyond this, we have also launched new initiatives to open up business opportunities for our trade partners. On top of the New Tour Product Development Scheme, with additional funding from the Government, we have had in place a Matching Fund for Overseas Tourism Promotion by Tourist Attractions Scheme (MFTA) to further strengthen the attractiveness of our attractions. Hong Kong Tourism Board Annual Report 2015/16 9 10 Hong Kong Tourism Board Annual Report 2015/16 BOARD MEMBERS Fuelling inspiration with leadership and visionary guidance Meet the team of dedicated professionals who use their expertise to guide the HKTB forward. Hong Kong Tourism Board Annual Report 2015/16 11 Board Members Board Members As at October 2016 Dr Peter Lam, gbs Cathy Chu, jp (Chairman) (Deputy Chairman) Chairman Commissioner for Tourism Lai Sun Group Commerce and Economic Development Bureau The Government of the Hong Kong SAR T C Chan, bbs, jp Victor Chan Benjamin Chau (Chairman of Audit Committee) Chairman (Chairman of Staff and Finance Senior Adviser Hong Kong Hotels Association Committee) Deputy Executive Director The Bank of East Asia, Limited Hong Kong Trade Development Council Winston Chow Sir Wayne Leung Perry Mak Director & Deputy General Manager (Chairman of Product and Event Publisher of Hong Kong Economic Times, Sky Post and U Magazine Chow Sang Sang Holdings Committee) International Limited Managing Director Hong Kong Economic Times Holdings Limited The Local Printing Press Limited Barry D. Nassberg Paulo Pong Nansun Shi (Chairman of Marketing and Business Founder & Managing Director Executive Director Development Committee) Altaya Group International Limited Film Workshop Co. Ltd. Group Chief Operating Officer Worldwide Flight Services 12 Hong Kong Tourism Board Annual Report 2015/16 Board Members Winnie Tam, sc James Tong Michael Wu, bbs, mh, jp Barrister-at-law Director Public Affairs Honorary Adviser Chairman, Hong Kong Bar Association John Swire and Sons (H.K.) Ltd.