Hong Kong benefits from stricter tourism law
When the long-awaited tourism law was enacted by the mainland authorities early this year, it was always known the implications would be far reaching. The statute covers a wide range of issues, including package tour operations, safety standards, fee adjustments, and complaints and protection. While tourists hailed it as a positive change, the industry feared it would make business difficult.
When the long-awaited tourism law was enacted by the mainland authorities early this year, it was always known the implications would be far reaching. The statute covers a wide range of issues, including package tour operations, safety standards, fee adjustments, and complaints and protection. While tourists hailed it as a positive change, the industry feared it would make business difficult.
As a popular destination for mainland travellers, Hong Kong is inevitably affected. The impact was felt as soon as the new regime came into effect at the beginning of the National Day holiday. Inbound tours, according to the local Travel Industry Council, shrank by 10 per cent from last year. Shops catering to group tours were noticeably less crowded than before. Sales at individual outlets reportedly plunged as much as 90 per cent on the first day. The so-called golden week apparently brought more gloom than glitter this year.
The impact was the result of a ban on the notorious budget tours. Unless there is prior consensus, tour companies cannot charge unreasonably low prices and then make up the loss by compelling the group to shop at designated places for commission. Some tourists may be put off when a standard tour now costs nearly double. But the increase merely reflects how distorted the market was.
The changes may bring short-term pain. But the industry benefits from healthy development in the long run. It is good to hear that some jewellery shops are doing well, thanks to an influx of solo tourists. Given the enormous potential arising from the mainland market, there is much to be gained by offering quality tour services. Hong Kong is not alone in tuning itself to the new paradigm. The growth in individual tourists suggests the group-tour business needs to be adjusted. Our neighbouring countries are also trying hard to attract mainland tourists in an increasingly competitive environment. If we fail to adapt we will lose out.
