Allan Zeman, chairman of Lan Kwai Fong Association, says Hong Kong’s upbeat mood is palpable

Hotels and restaurants have recorded a boom season, with occupancy rates not seen for 10 years. Latest government figures on retail spending reveal "a remarkable performance" in the six months to end June as sales of motor vehicles, electrical goods, photographic equipment, jewellery and watches all registered growth of over 20 per cent.

Tourism arrivals reached a record 2.07 million in August, up 25 per cent on July. This brings the total year-to-date arrivals to 14.7 million, an increase of 58 per cent over the same period last year.

The Chinese mainland easily remained the largest market by volume, with a rise of 31 per cent to a record 1.24 million visitors. Notable increases from other major markets included Malaysia (up 69 per cent), Singapore (57 per cent), Thailand (53 pr cent), Australia (49 per cent), the UK (47 per cent) and Canada (46 per cent).

'Positive vibe'

Bars and restaurants are packed to capacity as the people enjoy a party mood

As chairman of the Lan Kwai Fong Association, Mr Zeman oversees the promotion of Lan Kwai Fong, one of Hong Kong's most famous restaurant and entertainment districts.

"There's a feel-good factor that says Hong Kong is booming," Mr Zeman said. "Long haul tourists are coming in and droves; there are conventions almost every day; restaurants and bars are full. Customers are spending - and this is putting smiles on a lot of faces."

Joseph Tung Yao-chung, executive director of the Hong Kong Travel Industry Council, said tour operators were reporting an all-round confidence in Hong Kong as destination for both business and leisure travel. This was especially evident among customers in Europe and the US, for whom high-end dining and entertainment remains a priority. Tourists from the Chinese mainland, Mr Tung added, increasingly seek tours that offer luxury brand shopping.

Luxury sales increase

Andrew Windebank, chief executive of the Hong Kong Automobile Association, says buyer confidence is reflected in luxury car sales

Car sales, he said, are a good indicator of market confidence since cars are a non-essential item. "It reflects a return of optimism that people who have put off the buying decision for five or six years are now feeling confident enough to place orders," Mr Windebank said. "And this is pretty much across the board, at the lower end of the market as well, which is a very good sign.

"When you look at the fact that cars aren't a necessity for 80 per cent of buyers, this is a fairly good economic indicator."

A client visiting from Canada recently was "awe-struck" by the vibe in Hong Kong, Mr Windebank added. "He was impressed by how clean Hong Kong is, the level of infrastructure - even how well dressed everyone was. I'm hearing these comments more and more, and believe it is all up from here." 

Related Link
Hong Kong Tourism Board
Lan Kwai Fong Association
Hong Kong Travel Industry Council
Hong Kong Automobile Association