Introduction
Our topic studies about that the Mainland China visitor affecting Hong Kong tourism industry. For evidence for the most of Mainland people accounted for traveler in Hong Kong. The evidence will be mentioned the profile of them such as states and period by Yip Hiu Yi’s individual report. Lam Chi Longs individual assignment mentioned that spending of Mainland China traveler. According this report, we knoew whether they can substantially raise the revenue of Hong Kong. Moreover, “Zero-fee” tour was a hot topic in recent years which tour was happened side effect. Thus, Lau Cheok Hou study the information of “Zero-fee” tour in his assignement. The Trend of the visitor arrivals to Hong Kong

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All of the above charts show the monthly 2010 of the visitors’ arrivals to Hong Kong. Mainland China visitor is the most visitor arrival to Hong Kong in each month. For the February, there is the Lunar New Year, so it can lead the population increase of the Mainland China visitor. And for the June to August, there is the summer holiday so a large of visitor arrivals to Hong Kong. Also during the National Day Golden Week of October, many visitors due to this holiday to arrivals to Hong Kong. The growth was led by a lot of factors, include steady growth of the world’s economy, appreciation of most currencies against the Hong Kong dollar, as well as the expansion of the scope of the Individual Visit Scheme for Shenzhen residents by the Central Government. Therefore, comparing with 2009, the Mainland China visitors were increased. It also reflects the Hong Kong’s popularity as a travel destination for Mainland China visitors.

The main visitor is the Mainland China visitors for each month and there is unceasingly increased. Regardless of which month, the most visitor arrivals to Hong Kong are the Mainland China visitors. The strong performance reflects the continued growth of outbound travel among Mainland residents, as fuelled by the robust Mainland economy, as well as the popularity of Hong Kong as a travel destination for Mainland visitors. So improvement in the economicsof Hong Kong is depending on the Mainland China visitors. Comparing with the other market, Mainland China visitor has the trend of significantly increased. Other market visitor has the stable of the trend.

Page 2 Mainland China Visitor: Impact of Hong Kong Essay

It reflects Hong Kong cannot attract more other market visitors.

The source of mainland people consumption inHong Kong
Nowadays, there are many mainland people coming to Hong Kong everyday. They will consume in Hong Kong which can help local economy to be improved and become recovery. The main source of their consumption are the following way: Mainland tour travel to attraction, Dining and Shopping, Event and Festival, Motel and Hotel . Hong Kong is a city that is constantly reinventing itself, always balancing the old with the new. It offers a host of memorable tourist attractions within its compact area, with The Peak, Victoria Harbour and the Giant Buddha among the most awe-inspiring. Mainland people will be amazed by the diverse contrasts and close proximity of stunning cityscapes and soaring mountains, heritage sites and extensive green countryside. For sheer variety of products and brands in all price ranges, Hong Kong is a unique shopping experience.

From glitzy malls to funky street markets, and trendy boutiques traditional Chinese product stores and themed shopping districts, you can find everything from the latest designer fashions and electronic gadgets to best-value antiques and collectibles. On Dining, there are many sheer variety of products and brands in all price ranges, Hong Kong is a unique shopping experience. From glitzy malls to funky street markets, and trendy boutiques traditional Chinese product stores and themed shopping districts, you can find everything from the latest designer fashions and electronic gadgets to best-value antiques and collectibles. Mainland people can find tours to meet your every need and interest. Go sightseeing and experience ourliving culture and heritage. Take a day or night tour cruise the harbour visit outlying islands to enjoy nature at its best.

For the few years, Hong Kong government would like to make a policy that prohibited mainland people coming to Hong Kong but it will have many inflections. First, it makes changing in human policy. Limit of mainland women giving birth in Hong Kong that will affect birth rate decreasing and mainland people population will also reduce. Aging population problem has been improved because decrease the birth rate and H.K people don’t give to birth. In addition, medical services requirement has decreased. Hong Kong government can avoid misuse of medical resources and supply problem which can protect the problem of lack of resources such as emergency call, hospital supply, human resources supply, enhance expenditure.

They are the most important resources in our medical services. In long term policy, prohibition can avoid reduction of employment which can avoid low wages in Hong Kong people, we can enjoy more benefit by company and reduce competition with mainland people. Hong Kong increases the gap between rich and poor in H.K which is very serious problem. We need to concern this problem in our life.In economy, it also decrease the mupltiper effect and the income of economy such as investment or comsumption that will affect the local business and trade with other country. In education, the prohibition can avoid mainland students competition in H.K and decrease the demand of schools. After prohibition, it will affect the relationship between Hong Kong and Mainland. It will lose economy coordination, decrease economy support, influence of local economy, reduction the opportunity of cooperation, country become independent. Lastly, the vision of development become narrow because the world of potential market is not reliable.

LEO IND.
“Zero-fee” tour strikes tourism industry
Purchase under pressure
Mainland travelers joining a zero-fee tour does not mean they do not need to pay any tour fee. Rather, it means mainland tour operators making use of extra low tour fees to lure travelers to join package tours and then farming out such tours to Hong Kong receiving agents without paying any reception fee. The “zero-fee” tour is undeniable attractive to mainland travelers to tour in Hong Kong. Hong Kong travel agencies do not impose the traditional tour will be charged the fee. Most of the lower classes are also attracted by this chance to explore Hong Kong and Macau.

They are favored because it can enjoy shopping, eating, traveling even work in Hong Kong for the no charge tour package. On the other hand, there are no benefits that the company will not to do. So that, how about the expenditure of salary of tour guides, charges of petrol, travels agency, driver and others. The travel operator forces the tour guide to stress tourists buy more and more product. Under the zero-fee tours, travel agents or tour guides to make money is to bring some of these visitors to communicate well in advance
shopping firms to earn rebates.

For example, travel agents will take passengers to the gold shop to buy jewelry, gold shop where visitors shop, travel agency or tour guide will receive commission in proportion to determine the fares do not charge a supplement. As travel agents or tour guides to earn commission for a living, they will be urging visitors shopping, or take them to some of the goods expensive place to earn more commission. There are not every mainland traveler can afford to purchase in any shops. They are under pressure during the trip. The rude attitude will be generated from the tour guide such as the tour guide “Chun Lee”.

Solutions
But then how does the TIC tackle the problem? By implementing the 14-Day, 100% Refund Guarantee Scheme, the TIC ensures that visitors who are taken by Hong Kong receiving agents to registered shops are entitled to a full refund if they ask for it within 14 days. Any registered shops which refuse to refund will be handled by the Committee on Shopping-related Practices according to the Demerit System for Registered Shops.

And if there is any misconduct by tourist guides, the Tourist Guide Deliberation Committee will be responsible for punishing them. As for Hong Kong receiving agents which have violated rules of the TIC, the Compliance Committee will handle such cases. All the three committees consist of trade and non-trade members in order to ensure every single case involving registered shops, tourist guides and Hong Kong receiving agents is handled in a fair and just manner. Even though the TIC has put plenty of effort into tackling the problem of zero- and negative-reception-fee tours, one must recognize that the root of the problem does not lie in Hong Kong, but in mainland China.

Conducts Regulations and guidelines
In order to provide a good image to travelers during consumption in Hong Kong, the “Refund Protection Scheme (Registered Shops) for Inbound Tour Group Shoppers” will be conducted. It is require member agents to register the information of shops with the TIC before taking visitors to any shops. And shops wishing to be registered must make some pledges to the TIC. If they violate those pledges, they will be imposed a certain number of demerits. Once the total number of demerits reaches 30, they will be deregistered, and member agents will then be prohibited from arranging for group visitors to patronize them. On the whole, those differences may be divided into four categories: First is better protection.

The new scheme will require registered shops to pledge to provide six-month, full refund protection for mainland group visitors. Second is greater transparency. Information about registered shops will be posted on the TIC website, which includes their addresses and telephone numbers, the demerits imposed on them, the reasons for imposing demerits and particulars of the relevant receiving agents and tour operators. Third is a higher service standard. According to the new scheme, if the TIC receives 10 refund complaints against a registered shop within three months, it will be given 10 demerits apart from those demerits which may be imposed in each refund complaint.

Also, if a registered shop has done anything which may harm Hong Kong tourism (such as selling fakes), it will be deregistered. Fourth is prevention of responsibility shirked. Under the new scheme, even if a registered shop has changed its name or has obtained a new Business Registration Certificate, it will still be taken as the same shop, with all its accumulated demerits retained, so long as its business location is the same. Advantages of “zero-fee” tour

First, just as cheaper airline tickets, it can fulfill the different needs of people for lower standard services. Such as Hong Kong’s Oasis Airlines Link, it launches to promote the economic level tickets to attract the passengers who without high-value service. In fact, some of the leader airlines should change in the marketing demand such as Cathay Pacific. It must change and expand marketing strategy into the economic level tickets for the tourists. The mainly reason due to the price of tickets is too high for the general public and cannot satisfy customers with special preference.

Since high prices charged by some of travel agencies, plus some people want to buy something and do not want to have special service and meals. Therefore, the role of zero-fee tour will rise to mainly attract the mass consumption of people in Hong Kong. At this point, zero-fee is effectively
to increase the number of visitors. At the same time, it can increase the turnover of shops.

Second, this type of tour encourage guide provide more shopping and dining information. Point of view in the media, the tour guide information to provide more shopping and eating what appears to be negative. However, for some people who focus on shopping due to there is no basic salary on guide. So the guide will be more active under the commission system. The tour guide provide shopping information that the travelers can reduce the cost of access to information (information cost) so people can feel like a “smart buy” for their consumption.

Third, the visitors can customize the destination that what they want to visit. Since the relationship between the zero-fee, most of the programs are excluded which the travels need to spend their own money to enjoy it. However, the generally priced tours package include a number of shows and programs tickets for the tourist, in other words visitors have to be forced to watch their show they not interest. Cause of the zero-fee tours need to consume their own expense, so the customers are having a selection to choose what they prefer. They can be time the most wants to do on their own and it can be increased the degree of freedom. Customers can enjoy their favorites to try to reach the most fun (maximizing happiness state).

Last, it can increase the salaries of guide in the zero-fee tour. For the above-mentioned, if the tour guides can be successful promoting or successful in reducing marketing information cost in order to make appropriate compare prices for tourists and visitors to know all the goods preferences. Tour guides can increase revenue for their service providing and also do not only depend on tips received after the tour only income. Policy for Mainland residents travel

Restrict the number of visitor
In 2001, as the Mainland and Hong Kong develop closer economic ties, more businessmen are traveling between the two places. To further facilitate visits to Hong Kong, the Mainland’s public security authorities have agreed to extend the validity period for multi-entry business visas from the present six months to a maximum of three years, with each duration of stay extended to 14 days. This measure not only meets the needs of our economic development, but also helps promote our tourism and retail industries. In 2005, it will extend the Individual Visit Scheme. The Individual Visit Scheme for Mainland residents to visit Hong Kong has gone a long way towards boosting the local retail and job markets.

Last year Hong Kong received a total of 4.2 million Mainland visitors under the Scheme, bringing additional tourism receipts of around $6.5 billion. We will extend the Scheme on a step-by-step basis. After discussion with the Mainland authorities, I am pleased to announce that from November 1 this year, the Scheme will be extended to four more Mainland cities, namely Chengdu, Jinan, Shenyang and Dalian. As the next stage, we aim to extend the Scheme to those Pan-PRD provincial capitals not yet covered by the Scheme. And Staunch Support of the Central Government in 2005. Another important factor is the staunch support of the Central Government. During Hong Kong’s difficult times, the Central Government responded positively to the many suggestions put forward by the Special Administrative Region Government.

These included signing the Closer Economic Partnership Arrangement (CEPA), allowing more Mainlanders to visit Hong Kong under the Individual Visit Scheme, streamlining the procedures for Mainland enterprises to set up business in Hong Kong, establishing a new co-operation mechanism under the Hong Kong – Guangdong Co-operation Joint Conference, giving approval for local banks to conduct personal renminbi business, importing Mainland talent and implementing 24-hour boundary crossing clearance.

The increasing pace of modernization in the Mainland, the size of its economy and increasing market opportunities provide strong impetus to Hong Kong’s economic growth. In April of 2009, in the field of tourism, we are actively discussing with the Central Authorities measures to facilitate Mainland visitors traveling to Hong Kong. In April this year, the Mainland authorities introduced a one-year multiple-entry Individual Visit Scheme endorsement for Shenzhen residents to visit Hong Kong. The new arrangement has been well received. By end-September, about 740 000 visitors had traveled to Hong Kong with the new endorsement. Relaxation on the number of visitor

Due to the reason of the number of pregnant women come from the Mainland has increased sharply in the recent year, the Hong Kong government has carried out some policy to restrict the number of non-local pregnant women. For example the Hospital Authority has implemented a central booking system in 2007, mainland women must make prior arrangements with hospitals before they come to Hong Kong and they must undergo antenatal examinations. Also, once the hospital capacity is reached, the authority will stop making bookings for non-local pregnant women. Moreover, women who have been pregnant for seven months or above may be denied entry.

In 2011, the Hospital Authority found that the situation has not been improved, so they decided to make more measures to deal with it. They invite the professionals to set up procedures, so the examination methods between public and private-owned hospital will become constant. Also, they try to evaluate the existing arrangement of the certificate that issued by the private-owned hospital. They consider to unify it as “Department of Health” is the only department to issue certificate, in order to record the quantity. MY impact

The effect of prohibit mainland tour groups
The tourism from the Mainland visitor is the huge revenue bring into the Hong Kong economy. It generated a large amount of income to different industry. Those multiple effects can increase the revenue to each industry and create more job opportunities. Tourist destination in top ten

Earlier, Hong Kong was selected as the best international institutions, the top ten cities in the world tourist destination, is the only selected Asian cities. It Implies Hong Kong tourism has great potential. Refer to the Hong Kong tourism broad, the “Tourism Performance in 2010” stated that Hong Kong received a record-high of 36 million visitors from around the world, a remarkable increase of 21.8% over 2009. It is also the first time that the number of arrivals surpassed the 30 million mark. The improving global economy and travel sentiment have fueled the impressive performance. Effect to retail industry

However, the limited or prohibited the Mainland visitors travel to Hong Kong that will induce a big problem in Economic growth. The mainland visitors mostly keen on shopping activity due to Hong Kong is a Heaven of shopping. For the high-class brand in retail industry such as LV, Chanel and Hermes that the most popular attracted by Mainland visitor. If the government bans the mainland visitor, the each company will be lost the number of income revenue.

The Chain of the retail shop may be collapse due to the insufficient turnover volume. The Chain reaction will affect to different aspect such as company itself and the employees. The employees lost their job due to the downsizing the work forces is the better way to cut down the cost of production. In brief, the living standard of community will be decreased even the whole economy in Hong Kong.

Effect to foreign currency
RMB is the most economic income in the foreign currency. Especially in the property industry, the mainland people are the major source of revenue. They possess a large of funds flow into the property industry. The benefits of the foreign currency and the volume of purchase both will bring the Prosperity in the industry as well as the whole economy to well-being. Heavy losses in Tourism industry

In recently, Hong Kong Travel Agent Company is flourishing by the mainland people. Numbers of the group of tour are organized travel to Hong Kong. Thus, the travel agent companies gain a huge and continuously revenue by them, even it may be is a major source of revenue. On the other hand, this source of tourist is very important for the company. Actually, Hong Kong is a great tourist destination which is place good at develops in tourism industry. If the government prohibited or limited the mainland group, the tourism industry will be suffered hardly. LEO group

Target market outlook of Hong Kong tourism
Now a day, Mainland China visitor increase revenue of tourism, but the impact affecting in Hong Kong. If Government constrains quotas of Mainland China traveler, the policy will case them change the other destination. As a result, it causes serious negative impact to Hong Kong. For the prevention of the situation, Government should balance the visitor ratio. Moreover, Hong Kong Tourism Board published the cooperation with overseas market for attract target and change the ratio. Although, Mainland China traveler stills the major target, those strategies attract the visitor whose have spending power. The following contents mention about that what promotion will organize for enlarge target market and why Hong Kong can be a transit point.

For new enlarge the market, the status of Hong Kong should be grow. Millions of global travelers have voted Hong Kong as one of the top 10 travel destinations worldwide and the best in Asia in the 2011 Travelers’ Choice® Destinations awards by TripAdvisor®, the world’s best known and largest online travel site. Ranked alongside New York, London and Paris, Hong Kong is the only Asian city among the 10 best destinations. Awards add value for Hong Kong and effective promoted our city.

According the statistic of The Network of Hong Kong Tourism Partners, 2011 Visitor Arrival Statistics reported that the 2,503,151 Mainland China tourists visit Hong Kong, 69.6% of all tourists visit Hong Kong. The visitors of South & Southeast Asia, North Asia, Taiwan and Europe / Africa & Middle East are secondary major visitors in Hong Kong. 62% of TaiWan visitors were come to Hong Kong only, and the other 38% were going to multi destination included Hong Kong. Over half visitors of South & Southeast Asia, North Asia and Europe / Africa & Middle East were going to multi destination, that is mean Hong Kong may become a transit point.

As the result, Mainland China is stills a major target market for Hong Kong in future. For retain this target market, some programme designed for Hong Kong Government such as Hong Kong Gourmet Promotion that E. China media Zhejiang TV was invited to experience Hong Kong’s local delicacy and living culture. Guangzhou International Travel Fair (GITF) and China International Travel Expo (CITE) will hold on Sep 2011 in Guangzhou and The China International Travel Mart (CITM) will hold on October of 2011 in Kunming. Those programme as a promotion to attract Mainland China tourists.

Taiwan is nearby Hong Kong, it case the similar life style of Taiwan visitors chooses Hong Kong as a destination. Also, Hong Kong residents are welcomes them. The following Hong Kong Tourism Board’s promotional activities can retain and attract visitor from Taiwan. Tai Bao Zheng (台胞証) and iPermit (網上快證) holders of Taiwan Resident with a valid entry or exit Mainland and Hong Kong. Moreover, the cooperation with Taiwan Set TV to showcase Hong Kong as an Asia’s World City. Through the television, TaiWan citizen can know more about our city. A multi-destination tactical ad coop promotion namely Go 2港澳was launched after Chinese New Year.

In South & Southeast Asia , Thailand also has the similar fair (Thai International Travel Fair 2011) which is provides consumers HK information, latest updates and value-add offers Hong Kong Tourism Board participated in the 18th Travel Tour Expo by taking up a booth to promote destination HK. In Philippines, Hong Kong Winter Fest is family-targeted media and TV programme highlight Hong Kong as a “Family Fun Destination”. Channel U’s “I Cook For You” and “Going Home II” broadcast in Singapore which show introduce Hong Kong destination and events.

For the promotion of North Asia, Hong Kong cooperate with bloggers of Travel agent from Korea, who publish some information, recommendation and photo about HK at their blog sites. The other public relation activity is cooperation with Korea travel agency provide package include hotel combine hotel with their airfare to make fit products for incremental visitor. The university students in Korea can participate “Voluntour to HK” to learn and experience HK’s social activities, voluntary work and management.

Marathon is a mega event in Hong Kong, Hong Kong Tourism Board cooperate with airline and International Association of Japan for Cultural Exchange to create a package for Standard Chartered Hong Kong Marathon 2011. Also, cooperation with MSN and two Japan’s web company (Web R25 and AB-Road) to launch a comprehensive consumer website with plenty of general and up-to-date information about HK featuring Festive Hong Kong 2010.

“Hong Kong REWARDS!” is attracts the remote cities tourists such as Thailand,
Singapore, Indonesia, Philippines, Korea, Japan France, Germany and etc. The privilege programme for corporate groups with at least 20 overseas participants will receive a basic package and more than 100 overseas participants can enjoy the basic package, a welcome message displayed at the airport, and two cultural performances.

Hong Kong has a potential transit point, because the enormous flight capacity between Hong Kong and other cities. They like to come to Hong Kong and transit to other city like Mainland China, Macau, Thailand and Singapore. Comprehensive air traffic and attract the traveler who may stay in Hong Kong for one or two days. At the same time, they will consume here for transport, accommodation, recreation and show on. Thus, Government designs some promotion activities in Europe, Africa and Middle East. When traveler planning a trip, they will choose transit point at Hong Kong. It because that they also can visit our city. Leo conclusion

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