Hong Kong has seen a significant addition in the figure of Mainland Chinese visitants in the last decennary, get downing at the unpopular visiting clip of SARS and go oning today in lifting Numberss. Therefore, this research aims to turn out that marketing schemes now need to be diverted to pull visitants from alternate finishs in order to farther addition hotel tenancies, touristry outgos and hike GDP. To back up this theory, an analysis was conducted on the demands of Mainland Chinese plus Hong Kong ‘s supply directed at them, and included an interview, study, questionnaires and secondary statistics to roll up informations from Hong Kong ‘s authorities and touristry industry, Hong Kong occupants and Mainland Chinese visitants. The research concluded that due to the propinquity of Mainland China, visitants will maintain returning to Hong Kong for a assortment of grounds and therefore, the touristry industry in Hong Kong needs to a topographic point heavier accent on selling schemes for the remainder of the universe.

Keywords: Hong Kong, Mainland Chinese, Tourism, Visitor reachings, Selling schemes Recognitions

I would wish to admit the undermentioned people, who without their aid the authorship of this paper and its related research would hold been even more ambitious. First of all to Ms. Teresa Serra, the thesis coach who endured my endless and many inquiries and provided helpful hebdomadal support. Mr. Bill Ernest who made clip between two long draw flights to schedule an interview. To my parents who gave me firm support and encouragement throughout and, eventually to Zhandra and Sarah for maintaining me motivated.

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1. Introduction

Hong KongA?s history defines the ground for the significant one-year entrance flow of Mainland Chinese visitants. Since July 1st, 1997 Hong Kong has been a Particular Administrative Region ( HKSAR ) of China, runing as `one state, two systems ‘ as it was agreed the current economic and societal systems would stay unchanged for 50 old ages. ( Huque and Yep, 2003, pp. 141 ) .

Hong Kong faced a deteriorating economic system in 2003 when the disease, `Severe Acute Respiratory Syndrome ( SARS ) A? broke out and visitants from many finishs avoided the district. Hong Kong was forced into a new partnership known as the `Closer Economic Partnership Agreement ” between the cardinal authorities in Mainland China and the Hong Kong Special Administrative Region ( HKSAR ) . The `Individual Visitor SchemeA? ( IVS ) besides known as the `Solo Travel PolicyA? ( STP ) was created ( Huang and Hsu, 2005, pp. 191-205 ) .

The IVS was hastily implemented after the understanding was made one month prior to 28 July 2003. Under the policy, a more indulgent application procedure permits travelers from mainland China to come in Hong Kong handily, but for a limited period. ( Liu ; Choi and Lee. , 2008, pp. 351-364 ) .

The STP or IVS has led to a steady one-year addition in the figure of Mainland Chinese visitants and in 2008, more than 57.1 % of all tourers were Mainland Chinese and more than half of those ( 57 % ) entered under the IVS. ( Liu et. al. , 2011, pp.1287-1289 ) .

This fact is supported with grounds from WTO ( 2006, pp.67 ) that touristry in Hong Kong is quickly increasing, saying that two of the chief grounds for the overpowering addition in reachings from Mainland China are easier ways to traverse the boundary line and the desire to go.

Therefore, this paper shall look to confute that the current degree of selling is required because a significant figure of Mainland Chinese will come irrespective, and set out to analyse what Hong Kong is presently making for the long and short draw finishs and if it needs to get down puting a greater accent on them.

Dissertation Structure

To place Hong KongA?s need to market to other finishs ; this paper shall analyse different phases. Below the reader can understand the purposes and aims that look to be proven. The literary reappraisal in the 2nd chapter shall discourse Hong KongA?s touristry market from positions of assorted writers. The 3rd chapter shall discourse how the primary and secondary information was collected and any restrictions that might happen. The consequences shall so be presented in chapter four as these will so be discussed in relation to the literary reappraisal in chapter five. Chapter six will so look to unite all research together and supply a decision that will discourse whether the research inquiry was proven. Chapter seven lists the beginnings of the academic writers.

Aim and Aims

The purpose and aims of analysing Hong KongA?s selling schemes are stated below.

Research inquiry

Have Hong KongA?s authorities, touristry board, retail merchants, hotels and subject Parkss begun to alter their selling schemes ‘ focal point from chiefly enticing Mainland Chinese and now get downing a more balanced focal point on the remainder of the universe to obtain a positive addition in touristry reachings and outgo?


The four different aims that will look to be proven whilst carry oning this research are:

Identify the significance of Mainland Chinese tourers in the last ten old ages

Distinguish the schemes used by both public and private concerns to chiefly aim and pull the Mainland Chinese market.

Understand if there are now less or greater selling schemes presently focused on Mainland Chinese than antecedently.

Identify if the outgo by visitants from short draw and long draw finishs is similar to that of Mainland Chinese visitants.

By utilizing the listed aims that relate to the given hypothesis, this will supply a focal point that shall be used to steer the thoughts of assorted writers and associate together their combined positions in a logical and corporate construction that will supply some comparative replies to the stated hypothesis.


There are a assortment of positions by faculty members on the impact that the mark section of Mainland Chinese has on Hong Kong. Likewise, there are those foreigners who believe this cat and mouse game to be deserving prosecuting due to the influential growing in both states. These positions will supply the chance to compare and contrast the demand for Mainland Chinese visitants and support or chase away the belief that adequate schemes are presently in topographic point, intending Hong Kong can now deviate its attending and selling schemes.

First, the demand shall be analyzed, looking at what Hong Kong as a state has created by utilizing the wants and desires of their visitants. Second, the supply side, seeing what assorted steps Hong KongA?s authorities, touristry board, stores, subject park and hotels have taken to run into these wants and desires. Third it will be considered whether Mainland Chinese visitants are volitionally come ining Hong Kong without these legion schemes and hence, the demand to aim them is no longer necessary. The 4th measure will be to reason whether Hong Kong should be more willing to aim other states throughout out the universe.

2.1 The Demands of Mainland Chinese

Chon ( et. al. , 2010, pp.260 ) explain that it is the close propinquity of Hong Kong and China and similar political and economic issues that have led to Mainland China being the cardinal factor to Hong KongA?s economic system for a decennary.

Income is one of the determiners of demand for a merchandise ( Hong Kong, the merchandise ) . Once a consumer ‘s degree of income additions, the measure of goods and services people are willing to purchase at alternate monetary values in a given clip period besides increase doing a displacement in the demand. ( Schiller, 2005, pp. 65 )

Substitutes is a 2nd determiner of demand by which if the monetary value of other goods or services ( different finish ) increases or has more handiness so the demand for another merchandise ( finish ) shall increase. ( Schiller, 2005, pp. 62 )

Song ( et. al. , 2010, pp.230 ) confirms that in order to analyze the demand of Hong Kong as a touristry attractive force, an analysis must be conducted on the income degree in the origin state or part and the comparative monetary value of Hong KongA?s touristry industry. Second, the replacement good should be analyzed.

Heung ( 2000, pp.310 ) conducted research which analyzed Mainland Chinese occupants sing Hong Kong and discovered from the 215 respondents, 51.8 % earn monthly less than the equivalent to 200 Euros. 25.6 % earned between 200-400 Euros. Merely six per centum earned more than the equivalent of 800 Euros a month. However, ChinaA?s economic growing has helped 400 million people overcome utmost poorness. ( Spechler, 2010, pp.1-17 ) .

This degree of growing can besides be evidenced by the significant addition in the figure of millionaire families which enjoy half of the nationA?s full wealth but merely stand for 0.1 % of all ChinaA?s people. Besides a minor figure of coastal states, most of the wealth is located in Hong KongA?s chief visiting metropoliss, Guangzhou, Beijing and Shanghai ( China.org.cn, 2009 ) .

China WTO ( 2006, pp. 53 ) describes that Mainland Chinese see Hong Kong as a “ Eden for the consumers ” because branded name apparels, electronic contraptions, cosmetics and jewelry are alluring them. The mean Chinese single visitant to Hong Kong on a regular basis spends more than 5000 Hong Kong Dollars ( HKD ) per visit or about 500 Euros. If they stayed two to seven yearss, the norm rose to 8,600 HKD ( 860 Euros ) of which 560 Euros would be for shopping.

Hsu and Terry ( 2003 ) came to the decision that Mainland Chinese bask sing because Hong Kong they feel `safeA? and suggest that this message should be continually conveyed to future travelers.

2.2 Hong KongA?s current offerings to Mainland Chinese

2.2.1 Hong Kong Tourism Board and Government Policies

Goeldner and Ritchie ( 2006 ) cited in Hsu ( et. al. , 2008, pp. 5 ) depict the term `Marketing TourismA? as the, `processes, activities, and outcomes originating from the relationships and the interactions among tourers, touristry providers, host authoritiess, host communities, and environing environments that are involved in the attracting and hosting of visitors.A?

The Hong Kong Tourism Board ( HKTB ) has been actively researching originative thoughts to convey visitants to Hong Kong. Meanwhile Plog ( 2005, pp.452-453 ) , suggests that touristry managers have a strenuous occupation as they are responsible for the figure of visitants come ining the state in a given twelvemonth, yet there are indirect factors which are outside of their power but can significantly act upon the market. These include bettering the merchandise, the finish ; the monetary value of hotel suites which are being charged to invitees ; or being able to spread out on the sum of flights, trains and ferries that are coming into the state.

This theory is contradicted by the accomplishments of the Hong Kong Tourism Board, as solutions have led to get the better ofing these issues as mentioned in World Trade Organization ( WTO, 2006, pp.69-70 ) , with the run “ Hong Kong, Live it, Love it! ” This plan was re-branded and re-worked with the thought of utilizing the strengths of the metropolis to pull wealthier Mainland Chinese to Hong Kong by promoting longer visits and higher norm disbursement through particular publicities in add-on to a “ Mega Events programme, ” which was subsequently proven a success.

From the terminal of July 2003 onwards, the Individual Visitor Scheme ( IVS ) was implemented by the authorities in phases for Mainland Chinese ( WTO, 2006, pp.68 ) . This strategy was finally a success as Mainland Chinese visitants traversing the boundary line are passing a great amount of money on shopping, accounting for 50-70 % of many manner interior decorators ‘ entire grosss generated in Hong Kong ( Liu et. al. , 2011, pp.1287-1289 ) .

2.2.2 Shopping

The manner industry is critical for Hong KongA?s touristry industry as tourers spend a important sum of their money on interior decorator goods. ( Liu ; Choi and Lee, 2011, pp.351-364 ) ,

Yeung ( et. Al. 2004 ) agreed, claiming visitant shopping is an of import subscriber to the economic system of Hong Kong as it accounts for more than half the entire visitorsA? outgo.

Hong KongA?s luxury retail concerns made positive accommodations turn toing old negative feedback ( Liu ; Choi and Lee 2011, pp.351-364 ) from Mainland Chinese who complained that the bulk of luxury goods retail merchants had no monetary value tickets or waies of usage in simplified Chinese and moreover, communicating jobs with staff existed. Evidence of these alterations can be seen from the figure of Hong Kong manner retail merchants following necessary tactics to develop and update their web sites to include the simplified Chinese version of composing for their mark audience. Additionally, ailments led to a big per centum of luxury goods retail merchants developing and proving their staff in Mandarin to guarantee a quality service for shoppers.

2.2.3 Theme Parks

When sing the motivational grounds as to why Mainland Chinese tourers are doing such a important part to the addition in touristry grosss and therefore the GDP of Hong Kong, the first ground listed by Huang and Hsu ( 2005, pp.200 ) was shopping, second was knowledge sweetening and the 3rd, Ocean Park, the lone subject park in Hong Kong until the gap of Hong Kong Disneyland in 2005.

Ocean Park, the bigger of the two subject Parkss, has been so successful that they were able to pass an extra $ 5.5 billion Hong Kong Dollars or about $ 538 million Euros on 35 new drives, excepting extra fundss required for the building of three hotels. They are anticipating that with these investings, half of the entire sum of invitees they welcome will be from Mainland China ( Chan, 2005 ) .

Hong Kong Disneyland, financially supported by the Government, struggled to do an immediate positive impact with locals and tourers likewise. DisneyA?s troubled start showed important alterations were needed and this resulted in the Walt Disney Company acquisition and accommodating to the Chinese civilization to increase Numberss of both first clip and repeating Mainland Chinese invitees come ining the park. These alterations included more drives, increased fiscal disbursement, bring forthing greater creativeness in readyings of Chinese vacation events and finally, by seting their American concern schemes to conform to the local Chinese civilization. This created a higher visibleness and entreaty for the park ( Cateora et. al. , 2010, pp.614-615 ) .

Matusitz ( 2011 ) is in understanding when he concludes that the direction of Disney, by holding made four major accommodations to suit the local Chinese civilization, are basking consequences superior to before. Of these major accommodations, the first was a lessening in ticket monetary values, the second was developing the acquisition and apprehension of local visitorsA? imposts, the tierce was remodelling the park substructure to better accommodate the local civilization and fourthly, they discovered ways to actuate employees efficaciously by altering their ain employment ordinances which improved employee benefits.

Furthermore, Hong Kong Disneyland introduced particular one twenty-four hours guided Tourss of the park in order to show what makes Disney so loved and how visitants could maximise the enjoyment of their twenty-four hours ( Chen, 2011, pp. 10 ) .

2.2.4 Hotels

The services that hotels provide for Mainland Chinese invitees differ from others as there is greater accent on the safety and security facets alongside the touchable, physical facets of the hotel. Tourists from other finishs were chiefly unconcerned about these factors and felt intangible services that derive from the employees ‘ service bringing were their chief involvement. ( Musinguzi and Leung, 2010, pp.62 ) .

However, Heung has a differing position of the grounds why Mainland Chinese choice hotels and uses old grounds from Qu and Li, ( 1997, cited in Heung, 2000 ) to reason that sufficiency of hotels, their location, service quality, handiness of installations and the monetary value being offered to them, were the five chief elements for the bulk of Mainland Chinese in act uponing their pick of travel.

2.3 Why Mainland Chinese Should Not be Chiefly Targeted

The United Nations World Tourism Organization has analyzed that by 2020, China will supply the 4th largest figure of outward travelers. This has led to emerging states such as India, North Korea and South Korea implementing and establishing selling touristry events to entice Mainland Chinese visitants to their finishs. However, despite their high rates of outgo, Mainland Chinese have gained a negative repute throughout the universe for legion grounds, but chiefly due to a perceptual experience of bad behavior. Chen continues that due to their recent addition in capita, they are inexperienced at traveling and make non understand yet the demand to be respectful to civilizations that differ from their ain. ( Chen, 2011, pp. 1 ) .

This said, Hong Kong is still determined to be a force to be reckoned with in viing with other mainstream finishs such as Singapore, Taiwan and Thailand for Mainland Chinese visitants. Therefore, Hong Kong needs to go on to guarantee that Mainland Chinese view Hong Kong positively as this is critical to their competiveness with other markets ( Law and Cheung, 2010, pp. 304 ) .

Furthermore, Mainland Chinese consider international travel to be a luxury merchandise. Research has shown that if Hong KongA?s competitorsA? were to increase their tourist finish monetary values, so this is likely to increase the demand for Hong Kong ( Song et. al. , 2010, pp.230-231 ) .

In a satisfaction study of Mainland Chinese visitants created by Song ( et. al. , 2011, pp. 92-93 ) , an analysis was generated for both retail stores and hotels which resulted in strong evaluations on the graduated table of satisfaction, and Song speculated that these `high evaluations could be because many operators in Hong Kong have adopted industry-wide and/ or internationally recognized service criterions to guarantee a high degree of service.A?

Huang and Hsu ( 2005, pp. 191-205 ) conducted a focus-based-groups research in Mainland China in two of the parts from where most visitants to Hong Kong originate. These are, Beijing, the capital metropolis of China and Guangzhou, a state in the south close to the boundary line of Hong Kong. They concluded that the primary ground for Mainland Chinese to see Hong Kong was for shopping and if they were with household, so the subject parks excessively.

When analysing future anticipations of the figure of tourers coming to Hong Kong, in malice of a forecasted addition in visitants from a broad scope of different international states, Mainland Chinese are still expected to continually increase ( Song et. al. , 2010, pp. 234 ) .

2.4 Looking To New Countries

Overseas international touristry is seen as a luxury merchandise as the demand for a finish depends on the beginning of where tourers are sing from and the comparative monetary value degree to their ain. A luxury merchandise besides has the drawback of holding an elastic demand whereby consumers besides consider utility goods ( Chon et. al. , 2010, pp. 259-278 ) .

The definition of monetary value snap of demand is the reaction of consumers to a alteration in the monetary value of a good or service. ( Schiller, 2005, pp. 65 )

The Hong Kong Tourism Board ( HKTB ) faces the overpowering challenge of seeking to maintain the visitant growing from the of import Mainland Chinese market lifting whilst seeking to put more accent on other markets ( Wu et. al. , 2011 pp. 46-56 ) .

Bao and McKercher ( 2008, pp. 101-111 ) conducted a survey to look at the most visited tourers from both short and long draw flights. They concluded there to be four different market factors, the first being that there are many more adult females sing Hong Kong on short draw flights than on long draw 1s. Second, there are more married twosomes sing from long draw distances. Third, geting on short draw flights within Asia it was more common to see households of different coevalss, friends and concern associates. Fourthly, short draw flight visitants are more likely to see subject park, Ocean Park than long haul visitants who prefer to see museums.

Using old grounds from Song and Li and Song, 2008 and Song ; Wit and Lee ( 2009, cited in Song et. al. , 2010, pp. 224 ) , it is usual to analyse reachings from different states and parts in order to cognize the International Tourism demand. Other factors which can be studied are touristsA? outgo and the figure of darks that tourists stay.

In 2007, the Mainland Chinese were much more mark marketed by the Hong Kong Tourism Board. At that clip, they were unconcerned about visitants from long draw finishs, therefore the ground why the three long draw taking markets back so, Australia, United Kingdom and USA, had low outgos. The United States visitorsA? expenditures merely represented six per centum of the entire touristry outgo in Hong Kong. Australia and the United Kingdom simply represented three per centum each. ( Wu et. al. , 2011, pp. 46-56 )

Chon ( et. Al, 2010, pp.260 ) suggest that Mainland Chinese should go on to be the chief mark market as they are the largest market come ining Hong Kong.

However, clearly the Government has been listening to the Hong Kong Tourism Board ( HKTB ) as together, they have released their `Tourism Board Work Plan for 2012-2013A? . For the first clip this study contains a budget which is comparatively balanced for different finishs of the universe and reflects the demand to look to make selling enterprises beyond those aimed at Mainland Chinese visitants The study provinces, `While Mainland visitant reachings make up 67 % of all reachings to Hong Kong, the HKTB is determined to keep a balanced visitant portfolio so as to continue Hong KongA?s standing as an international and world-travel destination.A? The HKTB is get downing to make more diverse schemes, which are being more every bit divide among visitants with the budget being provided from the HKSAR authorities.

Having dissected Hong KongA?s demand, supply and mentality on the hereafter from the positions of assorted writers, the generated information shall be used to explicate inquiries to personally roll up information which will concentrate chiefly on the supply side for Mainland Chinese visitants. Therefore, these inquiries should back up the hypothesis from the eyes of the retail concerns, subject Parkss, hotels and Hong Kong occupants.


A combination of both quantitative and qualitative informations shall be used to turn out the given hypothesis that due to the addition and frequence of visits by Mainland Chinese over the last decennary, Hong KongA?s touristry industry has enjoyed fiscal income benefits of selling to Mainland Chinese and these pieces of informations will assist to place the effectivity of the already established selling schemes and therefore the demand to broaden their schemes to the planetary market.

3.1 Datas Used

The research shall be conducted by utilizing both primary and secondary informations. The primary informations will include questionnaires, an interview and a study.

The questionnaires for luxury goods retail stores, hotels, subject Parkss and locals including expat occupants were designed with inquiries that relate to their specific country and will assist to understand the selling schemes towards both Mainland Chinese and international visitants.

The interview shall be with Mr. Bill Ernest, the President of Disney Asia who oversees Hong Kong Disneyland to ask if Disney is merely aiming Mainland Chinese or if being an international company, the `Magical KingdomA? has globally diverse schemes.

To back up the field-collected primary informations, relevant secondary informations shall be used to analyse Hong KongA?s current state of affairs in four ways, with a direct focal point on what has been losing or outdated in antecedently analyzed secondary informations. Statisticss derived from the authorities and touristry board shall be used to: foremost indicate the figure of Mainland Chinese millionaires and the addition in wealth as a state ; secondly, the addition in visitants yearly and the involvements of visitants: thirdly, the existent reachings from different finishs of the universe interrupt down into different parts and ; fourthly, the budget that the Government provides to the Hong Kong Tourism Board.

By utilizing primary and secondary informations right, in add-on to having quality responses and non sing excessively many jobs whilst roll uping informations such as linguistic communication barriers, the collected informations should supply positive consequences reflecting the hypothesis.

3.2 Methods and techniques

Whilst in Hong Kong, during the hebdomad of 21st-27th June, 2012 bulk of the primary information was collected from luxury goods retail stores, subject Parkss every bit good as local occupants including exiles. Hotel questionnaires were distributed at a ulterior day of the month on 30th September, 2012.

3.2.1 Primary Data-Interviews

An in-depth interview is a qualitative method type of research in which the interviewer and interviewee normally discuss a subject face to confront on a 1 on one footing in normally a relaxing ambiance for the interviewee. Unlike focal point group interviews, during in-depth interviews, much more can be discovered as there is no societal force per unit area and the interviewee can be more unfastened ( Hsu et. Al, 2008, pp. 125-126 ) .

The prearranged informal face to confront interview with Bill Ernest, President of Disney Asia, was conducted in his office on Monday, June 18 and lasted 45 proceedingss. It proposes choice information from a higher important direction position to understand DisneyA?s ain ends, aims and the accomplishments of both without the revelation of confidential information.

3.2.2 Primary Data- Questionnaires

Personal interviewing is normally used to roll up the informations retrieved in questionnaires. Despite being clip consuming, this method is much more likely to be completed with a larger response rate with higher quality returned questionnaires. ( Hsu et. Al, 2008, pp. 133 )

In the questionnaires for luxury goods retail stores, hotels theme Parkss and occupants of Hong Kong, each inquiry in the four different distributed questionnaires will be analyzed by utilizing pie chart graphs, tabular arraies and saloon graphs to picture the assorted inquiries and comparison and contrast the similarities and differences of the consequences.

The first set of questionnaires designed for retail stores were distributed to 50 luxury good stores in two of the three chief shopping territories for Mainland Chinese to place the importance of this mark market is to them.

For each of the subject Parkss, one questionnaire was provided to both Ocean Park Guest Relations ServiceA?s on 18 October and Hong Kong DisneylandA?s on 19th October. The questionnaire was completed by good informed Guest Relation squads of both Parkss, to detect which countries employees felt were the most popular countries of the Parkss for Mainland Chinese and any alterations made.

Third, questionnaires were distributed from 18th to the 21st June, 2012 to local Hong Kong Chinese and expat occupants of a lower limit of two old ages. The intent was to ask if they had seen an addition in Mainland Chinese and if they had witnessed schemes with a exclusive intent of enticing their neighbors and who were they created by.

Fourthly, the hotel questionnaires distributed on 30th September, 2012 were used to set up whether Mainland Chinese are their chief market and largest mark section and whether they are or non, if they predict any hereafter alterations to their market.

3.2.3 Primary Data- Surveys

The personal interviewing method is normally used when finishing studies. This option is by and large known to be more clip devouring than mail or on-line studies but it is the most extremely effectual with a higher response rate. ( Hsu et. Al, 2008, pp. 133 )

Whilst in Hong Kong, studies were distributed to a little group. The sample received was 15 out of a possible 23. The sample consists of feedback with a high degree of English talking Mainland Chinese supplying a little overview of the demand. By carry oning this research, it shall assist to separate if selling schemes are needed or are they willing to see without any schemes and supply a comparatively complete image of Mainland ChinaA?s impact on Hong KongA?s touristry industry.

3.2.4 Secondary Data- Statisticss

First, tabular arraies, pie graphs and saloon graphs shall be used to demo the addition in Mainland Chinese millionaires in relation to ChinaA?s national income per capita.

Second, a tabular array and pie graph will be used to demo the impact of cordial reception and touristry in Hong Kong in respects to other industries to see the importance of this industry to Hong KongA?s GDP. A correlativity analysis will be used to expose the GovernmentA?s allocated budget for Mainland Chinese and the figure of reachings.

Third, statistical informations derived from the authorities and Hong Kong Tourism Board on the figure of Mainland Chinese visitants yearly, will be represented through descriptive statistics and a saloon graph to analyse a 10 twelvemonth period. This will besides include the representation of the Mainland Chinese market in the context of the full touristry market of Hong Kong.

Fourthly, tabular arraies, descriptive statistics and chart shall be used to show The GovernmentA?s addition in the allocated budget based on the recommendations of the Tourism Board for their assorted chief markets over a five twelvemonth period and, fifthly the addition in the figure of reachings from the chief markets over a five twelvemonth period.

By utilizing this methodological analysis, the consequences that will follow the aforesaid processs for aggregation of informations can be presented to larn whether or non Mainland Chinese will maintain coming irrespective, and if Hong KongA?s authorities are making adequate already to aim other finishs to pull them to Hong Kong.

4. Result

Below, tabular arraies and graphs are used in three different subdivisions that shall look to turn out the hypothesis. The first subdivision contains those consequences that relate to the assorted questionnaires which were distributed as antecedently discussed in the methodological analysis. The 2nd subdivision is the secondary statistics analysing authorities and touristry board statistical informations. Finally, the consequences of the interview are presented.

4.1 Questionnaires

Figure: Retail Businesses-Question 1. 4.1.1. Luxury Retailer Businesses

Figure: Retail concerns Question 2.

Figure: Retail Businesses-Question 3.

Figure: Retail Businesses-Question 4

Figure: Retail Businesses-Question 5

Figure: Retail Businesses-Question 6.

4.1.2. Hotels

Figure: Hotels-Question 1.

Figure: Hotels-Question 2.

Figure: Hotels-Question 3

Figure: Hotels-Question 4

Figure: Hotels-Question 5

Figure: Hotels-Question 6

Figure: Hotels Question 7

Figure: Hotels Question 8

Figure: Hotels Question 9

Figure: Hotels-Question 10

4.1.3. Subject Parks

Table: Q1. What are the most popular attractive forces? Are at that place certain 1s which are more popular for Mainland Chinese?

Ocean Park




Type of Ride


Type of Ride






Gentle/ Themed


Gentle/ Themed






Character Meet and Greet


Character Meet and Greet


Marine and Wildlife Viewing


Marine and Wildlife Viewing


Figure: Subject Parks Question 1

Figure: Subject Parks Question 2

Figure: Subject Parks Question 2A- What types of publicities have you noticed attract Mainland Chinese?

Ocean Park


Hong Kong Disneyland


Type of Promotion


Type of Promotion


Packages/ Discounts


Packages/ Discounts


New Ride/ Area Openings


New Ride/ Area Openings


New types of Animals/ Marine Life


New types of Animals/ Marine Life


Seasonal Holidays


Seasonal Holidays


Created Particular Events


Created Particular Events


Figure: Subject Parks Question 2B

Figure: Subject Parks Question 2C

Table: Question 3A- Does your subject park have any drives, attractive forces, unrecorded shows or information available in Putonghua?

Ocean Park


Hong Kong Disneyland


Type of Promotion


Type of Promotion


Interactive Rides


Interactive Rides


Announcement Spiels


Announcement Spiels


Simplifed Chinese Subtitles in Shows


Simplifed Chinese Subtitles in Shows


Spoken Putonghua during show


Spoken Putonghua during show


Maps/Time Schedules/ Brochures/ Signs


Maps/Time Schedules/ Brochures/ Signs


Figure: Subject Parks-Question 3B

Figure: Subject Parks-Question 3C

Table: Subject Parks Question 3-What did your subject park do for this Chinese New Year? Was there anything supernumerary this twelvemonth which was non done in old old ages?

Ocean Park


Hong Kong Disneyland


Type of Promotion


Type of Promotion


Particular Lion Dancing Performance


Particular Lion Dancing Performance


Lucky Red Packages


Lucky Red Packages


Different Shows


Different Shows


Particular Games throughout Park


Particular Games throughout Park


Annual Pass Holder Gifts


Annual Pass Holder Gifts


Figure: Subject Parks Question 3B

Figure: Subject Parks Question 3C

4.1.4. Hong Kong Residents

Figure: HK Residents Question 1A

Table: HK Residents Question 1B

Number of Old ages



Born and Raised in Hong Kong


62.00 %

Less than 1


0.00 %

1 twelvemonth


0.00 %

2 old ages


0.00 %

3-5 old ages


6.00 %

7-10 old ages


8.00 %

10+ old ages


24.00 %

Figure: HK Residents Question 2

Figure: HK Residents Question 3

Figure: HK Residents Question 4A

Table 5: HK Residents Question 4B

Subject Parks


Hong Kong Disneyland


Ocean Park


Luxury Goods Shops


DFS Galleria


Chow Sang Sang Jewllery




JW Marriott


Four Seasons


The Langham




Marco Polo


Shoping Promenades


Harbour City


Timess Square


Beauty and Healthcare Shops


Thomas augustus watsons




Sasa Cosmetics




CUP Card Promotion




RMB Exchange


International Brand-Asian Models


Figure: Subject Parks Question 5

Figure: HK Residents Question 6

Figure: HK Residents Question 7

Figure: HK Residents Question 8

Figure: HK Residents Question 9

Table: HK Residents Analysis 1A: Born and Raised Locals viewsA? on Mainland Chinese

Statement Answer


Strongly hold




Neither agree or differ




Strongly differ


Figure: HK Residents Analysis 1B

Table: HK Residents Analysis 2A: Future tolerance of Resident Expats of 10 or more old ages

Statement Answer


Strongly hold




Neither agree or differ




Strongly differ


Figure: HK Residents Analysis 2B

4.1.5. Mainland Chinese Visitors

Figure: Mainland Visitors Question 1

Figure: Mainland Visitors Question 2

Figure: Mainland Visitors Question 3

Figure: Mainland Visitors Question 4A

Figure: Mainland Visitors Question 4B

Figure: Mainland Visitors Question 4C

Figure: Mainland Visitors Question 4D

Table: The order of grounds for Mainland Chinese to see Hong Kong

Figure: Mainland Visitors Question 5

Figure: Mainland Visitors Question 6

Figure: Mainland Visitors Question 7

Figure: Mainland Visitors Question 8

Figure: Mainland Visitors Question 9

Figure: Mainland Visitors Question 10

4.2 Secondary Statisticss

Figure: Millionaires in China

*2023 is a anticipation based on the current tendency ( Sourced: china.org.cn, 2012 )

Figure: ChinaA?s GDP Price PPP

( Sourced: The World Bank, 2012 )

Figure: Hong KongA?s Tourism Expenditure

( Sourced: HKTB research statistics, 2012

Figure: Hong KongA?s Tourism Arrivals

( Sourced: HKTB research statistics, 2012 )

Figure: Hong KongA?s Long Haul Arrivals

( Sourced: HKTB research statistics, 2012 )

Figure: Percentage of long draw visitants

( Sourced: HKTB research statistics, 2012 )

Figure: Hong KongA?s Short Haul Arrivals

( Sourced: HKTB research statistics, 2012 )

Figure: Percentage of short draw reachings

( Sourced: HKTB research statistics, 2012 )

Figure: Entire figure of Mainland Chinese reachings

( Sourced: HKTB research statistics, 2012 )

Figure: Percentage of Mainland Chinese reachings

( Sourced: HKTB research statistics, 2012 )

Figure: Mainland Chinese visitant reaching descriptive statistics

Mainland Tourist Arrivals 2002-2011


Standard Error



Standard Deviation

Sample Variance








Largest ( 3 )

Smallest ( 3 )

Assurance Level ( 95.0 % )

Table: Descriptive statistics analysis



33 %


Median/ Mean

94.51 %


Difference from 100 %

0.05 %


( Range/Count ) / Average

15.44 %


Range/ Mean

154.42 %


Cardinal Inclination

77.21 %


Standard Deviation/ Mean

46.34 %


Number of Visitors































Figure: Upward tendency of Mainland Chinese reachings

Table: Five twelvemonth anticipation of Mainland Chinese reachings based on current tendency

( 2012-2016 are tendency anticipations )

Figure: Vacation VS concern 2011

( Sourced: HKTB research statistics, 2012 )

Figure: Vacation VS concern 2010

( Sourced: HKTB research statistics, 2012 )

Figure: First clip VS repetition visitants 2010

( Sourced: HKTB research statistics, 2012 )

Figure: First clip VS repetition visitants 2011

( Sourced: HKTB research statistics, 2012 )

Figure: Ages of visitants

( Sourced: HKTB research statistics, 2012 )

Figure: Males and Females 2010

( Sourced: HKTB research statistics, 2012 )

Figure: Male and Females 2011

( Sourced: HKTB research statistics, 2012 )

Table: The AmericasA? Total Arrivals 2010 VS 2011-Table

Countries/ Regions



The Americas



North America









South and Central America



Central America












South America















Figure: The AmericasA? Total Arrivals Graph

( Sourced: HKTB research statistics, 2012 )

Table: Europe Total Arrivals 2010 VS 2011 Table

Country/ Region ( s )



Europe Africa & A ; Middle East






United Kingdom






Nordic States




































Portuguese republic






Europe Others



Soviet union



Figure: Europe Total Arrivals 2010 VS 2011 Graph

( Sourced: HKTB research statistics, 2012 )

Table: Africa and Middle East Total Arrivals 2010 VS 2011

Countries/ Region ( s )



South Africa



Africa others



Middle East






United arab republic












Saudi Arabia






United Arab Emirates



Middle East Others



Figure: Africa and Middle East Total Arrivals 2010 VS 2011 Graph

( Sourced: HKTB research statistics, 2012 )

Table: Australasia Total Arrivals 2010 VS 2011 Table

Countries/ Regions



Australia/ NZ & A ; South Pacific






New Zealand



South Pacific Others



Figure: Australasia Total Arrivals 2010 VS 2011 Graph

( Sourced: HKTB research statistics )

Table: Entire figure of reachings from North Asia 2010 VS 2011

Countries/ Region ( s )



North Asia






South Korea



Figure: North Asia Total Arrivals 2010 VS 2011 Graph

( Sourced: HKTB research statistics, 2012 )

Table: South and South East Asia Total Arrivals 2010 VS 2011 Table

Countries/ Region ( s )



South & A ; South East Asia



Southeast Asia



Dutch east indies















SEA Others









Other Asiatic and Indian Subcontinent



Figure: South & A ; South East Total Arrivals 2010 VS 2011 Graph

( Sourced: HKTB statistics, 2012 )

Figure: Popular Shopping Items

( Sourced: HKTB research statistics, 2012 )

Figure: Popular Tourist Attractions

( Sourced: HKTB research statistics,2012 )

Table: Major Markets Per Capita Spending Table

2010 Per Capita Spending

HK $





South Africa


Middle East














Mainland Chinese


Figure: Major Markets Per Capita Spending

( Sourced: Hang Seng Bank, 2011 )

Figure: Leading Overnight Stephen spenders

( Sourced: HKTB research statistics, 2012 )

Figure: Leading Overnight Spenders Percentage

( Sourced: Hong Kong research statistics, 2012 )

Figure: Long Haul Market Outgos

( Sourced: HKTB research statistics, 2012 )

Figure: Short Haul Markets Expenditure

( Sourced: HKTB research statistics, 2012 )

Figure: Mainland Chinese Total Outgo

( Sourced: HKTB research statistics, 2012 )

Figure: Long Haul Market Expenditure Compared to Total

( Sourced: HKTB research statistics, 2012 )

Figure: Short Haul Market Expenditure Compared to Total

( Sourced: HKTB research statistics, 2012 )

Figure: Short Haul Market Expenditure Compared to Total

( Sourced: HKTB research statistics, 2012 )

Figure: Mainland Chinese Expenditure Breakdown

( Sourced: HKTB research statistics, 2012 )

Figure: Taiwan VisitorsA? Expenditure

( Sourced: HKTB research statistics, 2012 )

Figure: Japan VisitorsA? Expenditure

( Sourced: HKTB research statistics, 2012 )

Figure: Europe VisitorsA? Outgo

( Sourced: HKTB research statistics, 2012 )

Figure: USA VisitorsA? Outgo

( Sourced: HKTB research statistics, 2012 )

Figure: HKTB Global Budget 2010-2011

( Sourced: HKTB research statistics, 2012 )

Figure: HKTB Global Budget 2011-2012

( Sourced: HKTB research statistics, 2012 )

4.3 Interview with Bill Ernest

Mr. Bill Ernest, President and Managing Director of Walt Disney Parkss, Asia emphasized that despite Hong Kong Disneyland ( HKDL ) basking their highest figure of visitants in 2011 of which 45 % of reachings were Mainland Chinese, no extra schemes to their every bit planetary schemes were used. Disney has three offices in China and has made alterations to suit Mainland Chinese but HKDL uses their schemes such as the “ Star Guest Program ” , the gap of new countries or drives in extra to their seasonal publicities to pull visitants worldwide ( Appendix 6 ) .

With the consequences presented, a treatment will follow of whether or non the Mainland Chinese are being less targeted by the Hong KongA?s authorities and concerns than antecedently and the consequence on short and long draw markets. In order to grok the reply to this, comparatives and contrasts of the similarities and differences shall be made between both primary and secondary consequences in add-on to the positions by the assorted writers.

5. Discussion

5.1 The Demand

The overpowering addition in the figure of Mainland Chinese reachings to Hong Kong during the last decennary ( Figures 59 and 62 ) has proven that there is a strong demand for the merchandise ( Hong Kong ) from this market section. However, Hong Kong has besides seen a significant addition in the figure of visitants from other short draw and long draw markets during this clip, despite the economic crisis ( Figures 55 and 57 ) .

When analyzing more closely the reachings informations between 2010 and 2011 in figures 71-73 it is shown that of those visitants from the key long draw markets, viz. the United Kingdom, the United States and Australia, merely the United States saw an addition in the figure of visitants. It would look from figures 65 and 66 that the overall addition in demand was led by a generous figure of first clip visitants. From this it is sensible to reason that Hong Kong ‘s success at bring forthing a sustained addition in the Numberss of Mainland Chinese visitants was at the disbursal of accomplishing a similar consequence from other markets, therefore bearing out Wu.s ( et Al. 2011 ) remark that it is a hard undertaking to increase growing of Mainland Chinese whilst at the same clip looking to turn new markets.

Looking now at the features of the demand for Hong Kong, it can be seen that the primary demand is from those sing for leisure intents ( Figure 63 ) , largely in their late 30 ‘s to early 40 ‘s and with a higher figure of work forces compared to adult females ( Figure 69 ) . However, back uping the theory of Bao and McKercher ( 2008 ) it is shown that despite the greater figure of work forces overall, there is a higher per centum of adult females geting from short draw flights. The lone exclusion to this is Australia, where it would look that there are a similar figure of adult females geting from here as there are from the short draw finishs.

5.2 The Supply

When concentrating on Hong KongA?s local retail concerns, old research by both ( Liu ; Choi and Lee, 2011, pp.351-364 ) and Yeung ( et. Al. 2004 ) came to the decision that the bulk of the touristry outgo was in shopping. This is true for Mainland Chinese and short draw finishs but, by contrast those coming from long draw finishs spend their money otherwise, for illustration in the hotels. ( Figures 90 & A ; 91 ) Analysis by Yeung ( et. Al. 2004 ) right observed that retail stores were further heightening their service to Mainland Chinese, as the consequences from this research hold proven that about half of the concerns have used selling schemes or other methods such as using Mandarin talking employees. ( Figure 6 ) More Hong Kong concerns are accepting the China Union Pay ( CUP ) double currency recognition card that allows Mainland Chinese to pay in Hong Kong dollars whilst in Hong Kong, salvaging dealing charges. 30 % of retail concerns confirmed they accept this card whilst five Hong Kong locals and occupants recognized these schemes being used by retail to entice Mainland Chinese ( table 5 ) which have led to 80 % of concerns corroborating them as their largest disbursement market ( Figure 1 ) .

Huang and Hsu ( 2005, pp.200 ) showed that for the bulk of Hong KongA?s visitants, one of their three chief grounds for sing Hong Kong was the subject Parks. This is complimented by these research consequences as the 2nd primary ground to see for Mainland Chinese, after shopping was the subject Parkss ( Figure 42 and table 8 ) . Cateora ( et. al. , 2010, pp.614-615 ) and Matusitz ( 2011 ) both attained an indistinguishable decision that Hong Kong Disneyland made assorted accommodations in order to win. The interview with Bill Ernest confirmed this by saying several alterations were made to suit the Mainland Chinese section. DisneyA?s selling schemes for Mainland Chinese are known as 32 % of the 50 Hong Kong occupants asked could remember schemes ( Figure 29 ) .

Luxury 5 star hotels provided a different position of the Mainland Chinese influence in the market as merely 50 % of room darks were from Mainland Chinese and the other 50 % was split with their chief mark section of incoming visitants geting from all around the universe except Europe ( Figure 12 ) Even though 62 % stated they had marketed towards Mainland Chinese, really few Hong Kong occupants could remember seeing selling schemes.

5.3 Deviating selling schemes off from Mainland Chinese to aim other finishs

Chon ( et. Al, 2010, pp.260 ) made the determination that Mainland Chinese should still be chiefly targeted as they are the largest market come ining. However from this research, in figure 50, 100 % of Mainland Chinese visitants asked, stated that they enjoyed sing Hong Kong ( figure 40 ) and more positively for Hong KongA?s economic system, 100 % confirmed they would return without marketing schemes ( Figure 66 ) . In add-on, Mainland China had the highest figure of repetition visitants in 2011 with 73 % . Looking at figure 62, an upward tendency is seen and table 10 substantiates that based on the current rate and tendency in five old ages clip there will be 53.33 million Chinese reachings, a 25 million addition. Of the questionnaire consequences merely 13 % ( figure 38 ) Mainland Chinese said this was their first visit, imparting farther strong belief to the statement that they are repeat visitants ( calculate 40 ) , and therefore the ground why concerns should concentrate selling schemes elsewhere.

Whilst Hong KongA?s concerns should direct schemes towards other finishs, the Government and tourism board must guarantee that the continually increasing Numberss of Mainland Chinese are maintained and must mind the positions of Hong KongA?s locals and occupants. 82 % agreed Mainland Chinese are of import for the economic system ( Figure 33 ) . 88 % agreed continued addition of reachings in five old ages ( Figure 34 ) , but most significantly 66 % of all Hong Kong occupants disagreed there would be tolerance towards Mainland Chinese ( Figure 35 ) , of which 29 % born and raised locals strongly disagreed and 36 % disagreed ( Figure 36 ) . This resonates with Chen ( 2011, pp. 1 ) , who argued that its due to ChinaA?s rawness of going that has led to them holding a bad repute.

The disbursement per capita for Mainland Chinese is similar to that of other states ( figure 77 ) but their overpowering figure of extra reachings outweighs short and long draw finishs touristry outgo. ( Figures 78-85 )

The merger of the literary reappraisal and methodological analysis, underlined by the presentation of consequences prompted a treatment to turn out that Mainland Chinese will return to Hong Kong irrespective and suggested that Hong KongA?s concerns need to put a higher accent on short and long draw finishs. The concluding chapter, the decision will look to sum up all the grounds discussed and why this selling alteration is imperative.

6. Decision

6.1 Main findings

Mainland China is an of import market for Hong Kong because of the huge figure of reachings every twelvemonth. Many are repeat visitants who find Hong Kong convenient due to propinquity and besides because Hong KongA?s touristry concerns understand the wants of the Mainland Chinese and easy supply their demanded merchandises and services. However, Hong Kong can featherbed the Mainland Chinese in the same mode without holding to lure them with expansive selling schemes and alternatively utilize these fiscal and clip devouring resources to get down or come on in other regional markets.

Hong KongA?s authorities, touristry board, subject Parkss and hotels have planetary selling schemes already in topographic point yet the bulk of luxury retail stores merely target Mainland Chinese which is non ideal as there are other states with high disbursement per capita which could easy hike Hong KongA?s GDP if there were more visitants being convinced to see.

Overall, Hong Kong has done really good through Mainland Chinese in the last decennary when SARS and the fiscal crisis kept off possible short and long draw visitants, but with many planetary visitants looking to go once more, all of Hong KongA?s touristry industry needs to put a greater accent on other markets as Mainland Chinese will maintain returning for many more old ages.

6.2 Recommendations for farther research

To go on this subject for farther research, there would be two recommendations. The first being to analyse the 2012 and 2013 consequences of Hong KongA?s touristry to detect if the authorities and touristry board did do the right determination to put less of a selling focal point on Mainland Chinese and get down to every bit distribute the touristry budget between Hong KongA?s short and long draw flight finishs to increase visitant reachings.

The 2nd recommendation is to concentrate on Mainland Chinese, and travel into maximal deepness on their motives to see Hong Kong as Numberss continually increase. To carry through this, a strong degree of Mandarin would be needed in add-on to the necessary finance and clip demands.

7. Appendixs

Appendix 1: Retail concerns questionnaire

Appendix 2A : Subject Parkss questionnaire

Appendix 3A : Hotel questionnaire

Appendix 4A : Hong Kong locals and occupants questionnaire

Appendix 5A : Mainland visitants questionnaire

Appendix 6A : Bill Ernest interview


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