Shopping Tourism in Hong Kong
Item Page Number
Tourism in Hong Kong
Shopping Tourism in Hong Kong
Urban Tourism
Destination Marketing
Shopping Tourism
Questionnaire Design
Shopping Tourism in Hong Kong
Shopping tourism is a major aspect of the global tourism trade and as such is an area of tourism that is and should be promoted by destination countries and locations. This is true for Hong Kong as well as in other locations throughout the world. Ashworth (1989) writes that urban regeneration and tourism have become critically important activities beginning in the 1980’s. Ashworth specifically notes two elements that link the ideas of the city and tourism and which show the complex relationship that exists between the features of a city and the functions of tourism that serve to result in shopping tourism in the city. The first element is comprised by the specific characteristics of a city and how this serves to impact tourism activities. The second element is comprised by the various attributes of the city represented in the accommodations that tourists receive and that which represents the infrastructure of the city.
II. Tourism in Hong Kong
The Tourism industry in Hong Kong is reported as “a major pillar of the economy…in 2009, it contributed to 3.3% of Hong Kong’s GDP…employing over 193,200 individuals accounting for 5.5% of total employment…” in Hong Kong. (Hong Kong Tourism Commission, 2011) Visitor arrivals for the first half of 2011 is reported to have risen by 14.7% compared with the first half of 2010. Hong Kong features 184 hotels with 61,828 rooms, a total room supply increase of 1,724 rooms (2.9%) as compared to June, 2010. Reported as the average length of stay of overnight visitors in 2010 was 3.6 nights. To lengthen the stay of visitors the Hotel Accommodation Tax has been waived since July 1, 2008 and the government is reported as having “undertaken a number of initiatives to promote hotel development to meet the diversified needs” of Hong Kong visitors. (Hong Kong Tourism Commission, 2011)
III. Shopping Tourism in Hong Kong
Shopping tourism is a strong industry in Hong Kong, which features luxury brand streets. Particularly popular with tourists is Causeway Bay, which features department stores, small boutiques and bargain stalls. (Hong Kong Tourism Board, 2007) There are shops that specialize in “shoes, electrical appliances and fashion for young people.” (Hong Kong Tourism Board, 2007) It is reported that the streets of Wan Cahi are “steeped I history and offer an amazing array of shopping.” (Hong Kong Tourism Board, 2007) Spring Garden Lane is attributed as a specifically great spot to purchase competitively priced clothing and to be such that contain market stalls “exclusively sell[ing] products originally meant for export, meaning quality, and price are competitive.” (Hong Kong Tourism Board, 2007) Also reported is that Admiralty is a favorite spot to purchase brand-name luxury goods and that Pacific Place is one of the most popular malls in Hong Kong. Hong Kong’s Central District boasts “many shimmering skyscrapers and marbled shopping atriums and malls.” (Hong Kong Tourism Board, 2007) The Western Market in Sheung Wan is “a handsomely famous renovated Edwardian building filled with Chinese handcraft stores and fabric shops.” (Hong Kong Tourism Board, 2007) Paul McKenzie, Head of Consumer Research as CLSA is reported as having stated as follows:
“Hong Kong’s primary attraction as a shopping destination continues to be the superior quality of goods and wider choice vs. The mainland. Over the very long run, Hong Kong’s advantages may diminish if China lowers its import duties; if more foreign retailers operate in China; if a wider variety of products are manufactured and sold in China and if Hong Kong introduces its own VAT. “However, over the next few years, Hong Kong will still have relative advantages as many luxury brands will never be manufactured in China while we believe there is a certain cachet or ‘snob’ value attached to HK purchases of luxury products by mainlanders. With PRC tourists’ shopping preferences now very clear, we expect Sa, Lifestyle International and Dickson Concepts to remain the key beneficiaries of mainland visitor spending” (CLSA, 2004)
IV. Literature Review
The Tourism Commission in Hong Kong was first established in May, 1999 for the purpose of coordinating within government “various tourism development efforts and to provide policy support and leadership to the development of tourism in Hong Kong.” (Hong Kong Tourism Commission, 2011) The objective of the Tourism Commission is to “establish and promote Hong Kong as Asai’s premier international city, and a world-class destination for leisure and business visitors.” (Hong Kong Tourism Commission, 2011) It is reported that the trade and government work together closely to fulfill this mission. In addition, the government is reported to work very hard to “enhance the appeal of Hong Kong as an international convention, exhibition, and tourism capital. Additional fund is earmarked to raise Hong Kong’s MICE (meetings, incentive travels, conventions, and exhibitions) profile and strengthen support to MICE events to be hosted in Hong Kong.” (Hong Kong Tourism Commission, 2011) As well, the government of Hong Kong is reported to continue in developing a “wide range of diversified tourist attractions in Hong Kong with a view to enhancing Hong Kong’s overall attractiveness as a premier tourist destination.” (Hong Kong Tourism Commission, 2011) It is reported in one study that Hong Kong has been “…aggressively developing a variety of world-class tourist attractions. Some major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park.” (Hong Kong Tourism Commission, 2011 p.1) In addition it is reported that the residents of Hong Kong are extremely proud of Hong Kong’s “…colorful history and unique oriental culture, especially as related to the ancient Chinese traditions. Some of the region’s most popular annual festivals and events embody the essence of Chinese culture.” (Hong Kong Tourism Commission, 2011 p.1) Featured in Hong Kong are cultural festivals and events that have become “…worldwide, famous must-see or must-do attractions, which provide an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and Best of the Best Culinary Awards.” (Hong Kong Tourism Commission, 2011 p.1)
Included in Hong Kong’s tourism campaigns are the following: “The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale and Hong Kong WinterFest, and Hong Kong Salutes the World.” (Hong Kong Tourism Commission, 2011 p.1) Important to the tourism industry is Hong Kong is the enhancement of the service quality of facilities and a generally hospitable atmosphere. Cultural tourism is thriving in today’s hospitality and tourism industry on a global basis and the same is true for Hong Kong. The cultural elements that draw tourists to Hong Kong include such as Chinese Opera, Therapy, and Cinema. As well, the Dragon Dance reported as an “Intriguing conventional dance in Chinese culture, as well as festivals, the lion dance, Song, Dynasty Town, is reported as a “…replica of the Song capital. It provides the tourists unique opportunity to have a glimpse of China of yesteryears. The exciting tour gives information about the achievements of ancient Chinese civilization. Song Dynasty ruled China from 960 to 1279. Its reign is noted for the development of art, literature and philosophy.” (Hong Kong Tourism Commission, 2011 p.1 ) Tea drinking also draws tourists to Hong Kong because it is a “deep rooted habit in a thriving tradition in itself” lasting since it originated in “Chinese tea culture.” (Hong Kong Tourism Commission, 2011 p.1 ) Hong Kong is also a romantic getaway where tourists can “stay in a swank hotel, enjoy romantic seafood dinners on the waterfront, indulge in shopping for exclusive designer goods, dance the night away in each other’s arms, explore the colorful back streets and temples, hike up hilltops or stroll on the beach at sunset. Hong Kong has it all!” (Hong Kong Tourism Commission, 2011 p.1) Another description offered up by the Hong Kong Tourism Board is as follows: “Hong Kong is a kaleidoscope of life; a sophisticated fusion of East and West; a city of diversity where new and old meet at every turn. It is a unique experience shaped by a distinctive past and dreams of the future; an age-old synthesis of cultures and traditions that opens a window into what will be, while embracing what has passed.” (Hong Kong Tourism Commission, 2011 p.1) Chinese sailing in Hong Kong combined with walks about Hong Kong and tours by railroad all draw visitors into the unique culture of Hong Kong. Cheung (Hong Kong Tourism Commission, 2011 p.1) writes that the recent decline of rural areas and the rapid expansion of organization in the New Territories results in a great contrast “between the cultural heritage areas and the new town areas with their modern facilities for most leisure activities became more marked than ever before.” (Hong Kong Tourism Commission, 2011 p.1) This is due to the modern transportation network and “tourist-oriented authentic Chinese traditions when combined provide “both convenience and nostalgia” in tourism destinations and the time spent as well as the money spent in those locations. Cultural tourism has then served to drive the growth of tourism industry participants and moreover has driven the profitability of shopping tourism businesses in Hong Kong. Domestic cultural tourism is such that places a variety of individuals into a group experience that is voluntary in nature and based on identification with the traditional Hong Kong culture.
Visa reports a study that included representation of shopping tourists from Canada, The United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. Nine individuals in the study state an income of U.S.$5,001 or above, 1 individual reported an income of U.S.$3,001 – U.S.$4,000, one individual reported an income of U.S.$2,001 – U.S.$3,000, on individual reported an income of U.S.$1,001 – U.S.$2,000, and two individuals reported no income with two individuals reporting an income of U.S.$500 or below. (Visa, 2010)
The occupation of participants in the study reviewed included the following reported occupations:
Clerical/Administrative 1
Retired 2
Executive/Managerial 4
Academic/Educator 1
Other 2
Self-employed/Own Company 4
K-12 Student 1
College/Graduate Student 1
Information on the types of goods purchased in Hong Kong was obtained from a study reported by the Center for Retail Research, which reports that purchases of non-food retail items totaled €23.45 with 7,026 million shoppers in 2010. Purchases of food items in Hong Kong are reported at €29.27 for 2010. Hong Kong is reported to have had 7 million shopping tourists in 2010. Participants in the study reviewed that cited services quality in shopping malls as important totaled 2 participants with other participants citing that more important were the following factors:
Great selection
Good prices
Great bargains
Cheap and convenient
Broad selection range
Discount prices
Those who stated that prices of products were important included five participants. When asked if they intended to shop in Hong Kong again, all individuals participating in the study reported that they did except for one participant who states that they do not like to shop anywhere.
Figure 1
Questionnaire Answers: Shopping Tourism in Hong Kong (Gender, Age, Continent of Residence, Country, Education Level, Income, & Occupation)
Source: Visa — Tourism Outlook (2010)
Hong Kong ranks number six among shopping tourism locations in the survey findings reported by the Center for Retail Research. This survey is reported to have been published in 2011 and to have been sponsored by Kelkoo. Key results reported that London “was found to be the world’s shopping capital [and] the largest retail market in non-food shopping – £64.15 billion; the largest retail sales of food and non-food – £91.90 billion; and the largest online sales – £9.9 billion.” (Center for Retail Research, 2010) The survey examined the shopping size and impact and reports that comparability “is the key” in the research findings.
Figure 2
Figure 2
Shopping Capitals Non-Food Sales 2010
Ranking
Sales
(£bill)
Sales
(€bill)
Population
(millions)
London
1
£64.15
€75.72
11.917
Tokyo
2
£61.40
€72.49
12.989
New York
3
£46.95
€55.43
8.391
Paris
4
£46.58
€54.99
11.089
Los Angeles
5
£20.39
€24.07
3.834
Hong Kong
Rio De Janeiro
21
£4.57
€5.40
7.623
Johannesburg
22
£1.40
€1.65
3.888
Totals
£417.48
€492.83
Statistical Mean
£18.98
€22.40
5.212
Source: Centre for Retail Research (Blackburn House, Brake Lane, Newark, Notts) www.reteailresearch.org/worldshipping capitals.php
The city ranking for all retail both food and nonfood are reported as shown in the following table.
Figure 3
Ranking for All Retail (Food & Non-food)
Ranking for All Retail (Food & Non-food)
Ranking
Sales (£bn)
Sales (€bn)
London
1
£91.90
€108.49
Tokyo
2
£90.17
€106.44
Paris
3
£77.90
€91.96
New York
4
£66.20
€78.15
Los Angeles
5
£28.75
€33.94
Hong Kong
Rio de Janeiro
21
£6.50
€7.67
Johannesburg
22
£2.21
€2.60
Totals
£622.14
€734.44
Statistical Mean
£28.28
€33.38
Source: Centre for Retail Research
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Online sales shows a different picture with Hong Kong ranked at number 10 indicating that Hong Kong is missing opportunities to increase its sales in this arena.
Figure 3
Online Non-food Sales in each shopping capital
Online Non-food
(Percent retail)
Online Sales
(£ millions)
Online Sales
(€ millions)
Online Sales
Ranking
London
15.5%
£9,923.9
€11,715.1
1
Tokyo
13.8%
£8,453.3
€9,979.1
2
New York
13.4%
£6,314.1
€7,453.8
3
Paris
12.1%
£5,639.9
€6,657.9
4
Los Angeles
11.6%
£2,358.1
€2,783.7
5
Sydney
11.1%
£1,681.8
€1,985.4
6
Manchester
12.5%
£1,521.9
€1,796.6
7
Berlin
13.2%
£1,306.0
€1,541.8
8
Singapore
6.6%
£1,207.0
€1,424.9
9
Hong Kong
5.1%
£1,015.4
€1,198.7
10
Dubai
5.9%
£962.6
€1,136.4
11
Copenhagen
13.3%
£914.9
€1,080.1
12
Amsterdam
9.4%
£879.1
€1,037.7
13
Barcelona
6.1%
£800.9
€945.5
14
Milan
5.1%
£685.2
€808.9
15
Madrid
6.8%
£683.0
€806.3
16
Oslo
12.8%
£647.4
€764.2
17
Stockholm
10.6%
£559.6
€660.6
18
Rome
4.8%
£500.7
€591.0
19
Moscow
5.5%
£374.1
€441.6
20
Rio de Janeiro
6.5%
£295.1
€348.3
21
Johannesburg
6.6%
£92.3
€109.0
22
Totals
n/a
£46,816.3
€55,266.6
na
Statistical mean
9.5%
£2,128.0
€2,512.1
Source: Centre for Retail Research
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Online sales shows a different picture with Hong Kong ranked at number 10 indicating that Hong Kong is missing opportunities to increase its sales in this arena.
Reported is the most popular among global shopping centers with tourists from overseas are those of:
1. London (14.1 million);
2. Singapore (9.7 million);
3. New York (8.5 million);
4. Dubai (7.8 million);
5. Paris (7.8 million);
6. Hong Kong (7.0 million); and
7. Rome (5.5 million). (Center for Retail Research, 2010)
Specifically reported in the Tourism Hong Kong report by Visa is the following spending trends:
• Other retail 19.8% (761.8M)
• Accommodations 29.8% (362.7M)
• Remaining merchants 10.5% (314.3M)
• Department Stores 19.5% (176.9M)
• Restaurants 16.2% (126.4M)
• Health care 7.7% (43.6M)
• Other travel and entertainment 3.6% (35 M)
• Travel agencies 5.7% (25.5M)
• Airlines 11% (28M) (VISA, 2010) (Center for Retail Research, 2010)
Findings in the study reveal that the top tourism season in Hong Kong in 2010 was during November and December during the Hong Kong Winterfest, which is an event run by Hong Kong Tourism Board to attract overseas visitors to celebrate Christmas and New Year in the city. Tourist receipts are reported to have totaled U.S.$242.2 million and U.S.$239.5 million respectively for 2009 and 2010. The lowest ebb of Tourism shopping in Hong Kong is reported in February and an increase by 20% for shopping tourism is reported during October due to the Halloween celebrations taking place at the theme parks in Hong Kong.
Spending in merchant shopping categories include the following:
Other retail 19.8% ($761.8M)
Remaining merchants 10.5% ($314.4M)
Department Stores 19.5% ($176.9M)
Radio, TV, and stereo stores 32.4% ($11M)
Sporting goods stores 13.2% ($11.3M)
Furniture and equipment stores 19% (8.5M)
Miscellaneous Specialty -1.4% ($8.1M) (Center for Retail Research, 2010)
CLSA Asia-Pacific Markets reports its third survey as part of a series on PRC tourist arrivals to Hong Kong, which is stated to reinforce the SAR’s “image as a major shopping destination.” (2004) The report states that mainland visitor spending “continues to rise, with an overwhelming 90% of respondents affirming their intention to return…” (CLSA, 2004) Primary shopping attractions in Hong Kong include such as “…cosmetics, electronic products, clothing, gold and watches…” (CLSA, 2004)
CLSA’s survey is reported to show that “per-capital shopping expenditure has risen by 52% over nine months with cash as the preferred method of payment.” (CLSA, 2004) Key findings in the CLSA survey include those stated as follows:
Per-capita shopping expenditure is at HK$4,810, up 52% from CLSA’s survey in August 2003, implying that mainland visitors will spend U.S.$7.4bn on retail purchases this year.
Stripping out double-counted arrivals due to side trips such as Macau, mainlanders could account for 28% of HK’s total retail sales.
Based on an average 38% retail gross margin, HK is effectively capturingUS $2.6bn of this shopping expenditure, equivalent to 1.5% of estimated 2004 nominal GDP.
Using reasonable assumptions, mainlanders could be spending U.S.$16bn on shopping in HK by 2010, equivalent to 66% of this year’s projected total HK retail sales and 3.5% of nominal GDP using the same average gross margin. (CLSA, 2004)
The first study reviewed in this work involved five females and 11 males who had spent time in tourism shopping in Hong Kong. Participants involved individuals from Canada, The United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. The individuals in this study primarily had an income of $5,000 or above in U.S. dollars with others having lower income. Occupations of individuals in the study included clerical/administrative, retired, executive/managerial, academic/educator, other, self-employed or owner of a company, K-12 student or college graduate student.
Participants in the study reviewed cited the most important factors in shopping was: (1) great selection; (2) good prices; (3) great bargains; (4) cheap and convenient; (5) broad selection range; (6) discount prices. All participants in the study stated that they would shop in Hong Kong again. Hong Kong ranks number six among shopping tourism locations in the world according to the Center for Retail Research report published in 2011.
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Spending trends emerging during this study include those showing that the greatest tourism spending was on accommodations followed by retail spending, department stores spending, restaurant spending and airiness spending. Lower levels of spending were noted in health care, other travel and entertainment, and travel agencies.
Also emerging in the study was the heavy tourism experienced by Hong Kong in November and December during the Hong Kong Winterfest resulting in spending totally U.S.$242.2 million and U.S.$239.5 million respectively for 2009 and 2010. Spending in merchant categories revealed findings that the strong spending was in radio, TV, and stereo stores, followed by retail spending, furniture and equipment stores, sporting goods stores and miscellaneous specialty.
V. Urban tourism
As noted earlier in this work in writing, urban tourism is a big industry in the Hong Kong tourism industry. Hong Kong is replete with accommodations and attractions to draw urban tourists into Hong Kong’s cities for visits.
VI. Destination Marketing
The work of Jung, Hsieh, Byrd, and Cardenas (nd) entitled “A Case Study of Destination Marketing In Hong Kong” reports “Throughout its limited land, Hong Kong has been aggressively developing a variety of world-class tourist attractions. Some major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park.” In addition, it is reported that Hong Kong residents “are proud of its colorful history and unique oriental culture, especially as related to the ancient Chinese traditions. Some of the region’s most popular annual festivals and events embody the essence of Chinese culture. Hong Kong’s representatives have successfully developed its cultural festivals and events into worldwide, famous must-see or must-do attractions, which provide an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and Best of the Best Culinary Awards.” (Jung, Hsieh, Byrd, and Cardenas, nd ) The Hong Kong Tourism Board is reported as having consistently led “a series of ambitious, impressive tourism campaigns and promotions since 2000. These ceaseless efforts have contributed greatly toward positioning Hong Kong as one of the top world tourist destinations. The major tourism campaigns include The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale and Hong Kong WinterFest, and Hong Kong Salutes the World.” (Jung, Hsieh, Byrd, and Cardenas, nd) Findings stated in the work of Jung, Hsieh, Byrd, and Cardenas (nd) state that revealed are “…several strengths of Hong Kong tourism in terms of destination marketing. These included: effective tourism organizations, continuing tourism product development, a unique variety of annual festivals and cultural events, outstanding tourism campaigns and promotions, quality service controls and hospitality programs, thorough overseas market segmentation, targeting, and positioning activities, and active online marketing through a DMO website
VII. Shopping Tourism
Shopping tourism in Hong Kong is a big business and as such the Hong Kong Tourism Board promotes shopping tourism.
VIII. Research Purpose
The purpose of the research in this study is to examine the shopping patterns and preferences of individual who have spent time shopping in Hong Kong.
IX. Methodology
The methodology employed in this study is a mixed methods study involving qualitative and quantitative data collection and analysis. Data collection will be in the form of a questionnaire distributed to a sampling of 70 individuals who have spent time shopping in Hong Kong.
X. Questionnaire Design
The use of a quantitative approach has the advantage of measuring the reactions of a large sampling of participants in a limited set of questions, which enables the comparison of the data collected. The questionnaire used in this study is structured in nature and developed specifically for data collection that is self-reported in nature. The questionnaire form is inclusive of the general demographics of the participants in the study and general questions, which focus on the travel, and shopping of tourists in Hong Kong. Respondents in the study were instructed to choose the statements that best reflected their travel activities or alternatively to fill in the blanks with the precise information based on their travel and shopping tourism experience in Hong Kong. The questions were utilized to investigate the shopping behavior characteristics in regards to motivation, attitudes, consideration, decision-making, and level of satisfaction while shopping in Hong Kong.
XI. Research Sample and Data Collection
Sampling was random in nature and target respondents were selected in the shopping areas of Hong Kong for the questionnaire survey. The researcher evenly distributed their time in various shopping locations in Hong Kong and the selection of respondents was conducted in a random fashion. Selection of respondents was upon the basis that the individuals were not residents of Hong Kong, but instead were visiting Hong Kong. A total of 75 questionnaires were distributed with 70 valid questionnaires resulting in a valid rate of 93.4%. The demographics of respondents in the study varied in regards to age, gender, marital status, education level, and ethnicity. The sampling is a valid one as the percentage of the gender and source continents represented in the study is in relation to the actual percentage is consistent in nature. The survey was conducted with the tourists in various shops throughout Hong Kong allowing the interview with tourists to be conducted simultaneously to the questionnaire and respondents who had a richer experience shopping enjoyed sharing their views about the shopping experience and were therefore chosen for in-depth interviews.
XII. Data Analysis
Statistical research techniques enabled the analysis of the perceptions of respondents as it is found previously to be quite varied between studies and makes comparisons of previous studies challenging.
XIII. Results
The stated objective of this study is to examine shopping tourism in Hong Kong and specifically to attempt to answer the questions as follows
1. Age of Participants
The ages of participants in this study are as follows:
20-29 Years of Age — 45%
30-39 Years of Age — 30%
40-49 Years of Age — 20%
Over 50 Years of Age — 5%
Nearly 1/2 of participants in the study were in the age range of 20 to 29 years of age with those in the age range of 30-39 years of age 30% of the total of participants and those in the age range of 40-49 years of age at 20% and over 50 years of age at 5%.
2. Nationality of Participants
Countries represented in this study include the following:
Canada
10%
United States
15%
Thailand
18%
China
22%
Vietnam
18%
Cambodia
17%
Participants in the study represented China at 22%; Thailand at 18%, the United States at 15%; Vietnam at 18%, Cambodia at 17% and Canada at 10%.
3. Was this the first time that you have been shopping in Hong Kong?
Yes — 30%
No — 70%
70% of respondents in the study had shopped as tourists in Hong Kong previously while 30% were experiencing their first shopping tourism experience in Hong Kong.
4. How long do you plan to stay in Hong Kong?
1 to 2 days – 5%
3 to 5 days — 60%
6 to 8 days — 5%
The majority of the respondents in the study (60%) planned to stay 3 to 5 days in Hong Kong, while 5% planned to stay 1 to 2 days and another 5% planned to stay 6 to 8 days in Hong Kong.
5. Income of the participants
Below 5000 40%
5000 — 8000 20%
8000 — 12000 20%
12000 — 15000 20%
Individuals with the lowest level of income comprise the largest group among shopping tourists in Hong Kong with all other income groups equally represented among Hong Kong Shopping Tourists.
6. How much do you plan to spend while in Hong Kong?
2000-4000 35%
5000 — 7000 15%
Above 10000 15%
Individuals with income of 4000 per month and below comprise nearly half of all shopping tourists in Hong Kong in this particular study.
7. How important is quality in the products you purchase?
Very important — 65%
Important — 20%
Fair — 10%
Unimportant — 5%
85% of shopping tourists in Hong Kong find quality of items purchased to be important or very important.
8. How important is price in the products you purchase?
Very Important — 50%
Important — 20%
Fairly Important — 25%
Unimportant — 5%
Price was cited by 50% of respondents in the study as being very important in their purchase decisions while 20% cited price as important, 25% cited price as fairly important and 5% stated that price was unimportant in their decision to purchase specific products in Hong Kong.
9. How important is the shopping environment relating to your purchase?’
Very Important 65%
Important 25%
Fairly Important 8%
Not Important 2%
90% of shopping tourist in Hong Kong find the shopping environment to be important or very important in terms of where they do their shopping while in Hong Kong.
14. Were the places you shopped in Hong Kong convenient?
Very Convenient — 70%
Convenient — 25%
Fairly Convenient — 5%
95% of shopping tourists in this study found shopping in Hong Kong to be either convenient or very convenient.
70% of respondents in the study stated that shopping in Hong Kong was very convenient while 25% of respondents stated that Hong Kong shopping is convenient and 5% stated that shopping in Hong Kong was fairly convenient.
15. Will you return to Hong Kong shopping in the future?
Yes — 85%
No — 15%
An overwhelming majority of respondents in the study (85%) stated that ‘yes’ they will return to Hong Kong in the future to shop. Only 15% of respondents stated that they would not return to Hong Kong to shop in the future.
In summary, the research in this study has found that tourists spend a great deal of this monthly income shopping in Hong Kong and that tourists find it very important to shop in a convenient environment and to purchase quality products at great prices. The tourism industry is a thriving industry in Hong Kong and this is especially true in regards to shopping tourism in Hong Kong.
XV. Recommendations
Cities are complex environments that present visitors with a range of experiences, which are more often than not centered on site-specific attractions. Future research study could focus on the importance of the Internet in promoting shopping tourism in Hong Kong and also could examine whether there is continuity in purchases made in Hong Kong after tourists have returned home via the Internet.
XVI. Limitations of the Study
The limitations of this present study are in the fact that the sampling while random was still in a fashion non-random sampling since the sampling was comprised of individuals who were shopping at the time they given the questionnaire or participated in the interview.
XVII. Conclusion
Tourism development in Hong Kong could easily focus in the future on a continuity of shopping via the Internet once tourists visiting Hong Kong have returned to their home. While the present shopping tourism industry is ‘place’ focused, there is still a potential for enabling the Hong Kong shopping experience for visitors through virtual shops that would further serve to bring more tourists to Hong Kong to shop and ultimately to upgird the economy of Hong Kong and enable future urban development.
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New Territories (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/shopping/location-new-territories.html
PRC tourists shopping in HK on the upswing CLSA survey finds per-capita expenditure rises by 52% over nine months (2004) CLSA. Jun-14-2004. Retrieved from:
Romantic Vacation (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/romantic-vacation.html
Tourism outlook: Hong Kong (2010) VISA. Retrieved from: http://corporate.visa.com/_media/visa-tourism-outlook-hong-kong.pdf
PRC tourists shopping in HK on the upswing CLSA survey finds per-capita expenditure rises by 52% over nine months (2004) CLSA. Jun-14-2004. Retrieved from:
https://www.clsa.com/about-clsa/media-centre/2004-media-releases/20040614_en.php
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Shopping Tourism in Hong Kong
Item Page Number
Tourism in Hong Kong
Shopping Tourism in Hong Kong
Urban Tourism
Destination Marketing
Shopping Tourism
Questionnaire Design
Shopping Tourism in Hong Kong
Shopping tourism is a major aspect of the global tourism trade and as such is an area of tourism that is and should be promoted by destination countries and locations. This is true for Hong Kong as well as in other locations throughout the world. Ashworth (1989) writes that urban regeneration and tourism have become critically important activities beginning in the 1980’s. Ashworth specifically notes two elements that link the ideas of the city and tourism and which show the complex relationship that exists between the features of a city and the functions of tourism that serve to result in shopping tourism in the city. The first element is comprised by the specific characteristics of a city and how this serves to impact tourism activities. The second element is comprised by the various attributes of the city represented in the accommodations that tourists receive and that which represents the infrastructure of the city.
II. Tourism in Hong Kong
The Tourism industry in Hong Kong is reported as “a major pillar of the economy…in 2009, it contributed to 3.3% of Hong Kong’s GDP…employing over 193,200 individuals accounting for 5.5% of total employment…” in Hong Kong. (Hong Kong Tourism Commission, 2011) Visitor arrivals for the first half of 2011 is reported to have risen by 14.7% compared with the first half of 2010. Hong Kong features 184 hotels with 61,828 rooms, a total room supply increase of 1,724 rooms (2.9%) as compared to June, 2010. Reported as the average length of stay of overnight visitors in 2010 was 3.6 nights. To lengthen the stay of visitors the Hotel Accommodation Tax has been waived since July 1, 2008 and the government is reported as having “undertaken a number of initiatives to promote hotel development to meet the diversified needs” of Hong Kong visitors. (Hong Kong Tourism Commission, 2011)
III. Shopping Tourism in Hong Kong
Shopping tourism is a strong industry in Hong Kong, which features luxury brand streets. Particularly popular with tourists is Causeway Bay, which features department stores, small boutiques and bargain stalls. (Hong Kong Tourism Board, 2007) There are shops that specialize in “shoes, electrical appliances and fashion for young people.” (Hong Kong Tourism Board, 2007) It is reported that the streets of Wan Cahi are “steeped I history and offer an amazing array of shopping.” (Hong Kong Tourism Board, 2007) Spring Garden Lane is attributed as a specifically great spot to purchase competitively priced clothing and to be such that contain market stalls “exclusively sell[ing] products originally meant for export, meaning quality, and price are competitive.” (Hong Kong Tourism Board, 2007) Also reported is that Admiralty is a favorite spot to purchase brand-name luxury goods and that Pacific Place is one of the most popular malls in Hong Kong. Hong Kong’s Central District boasts “many shimmering skyscrapers and marbled shopping atriums and malls.” (Hong Kong Tourism Board, 2007) The Western Market in Sheung Wan is “a handsomely famous renovated Edwardian building filled with Chinese handcraft stores and fabric shops.” (Hong Kong Tourism Board, 2007) Paul McKenzie, Head of Consumer Research as CLSA is reported as having stated as follows:
“Hong Kong’s primary attraction as a shopping destination continues to be the superior quality of goods and wider choice vs. The mainland. Over the very long run, Hong Kong’s advantages may diminish if China lowers its import duties; if more foreign retailers operate in China; if a wider variety of products are manufactured and sold in China and if Hong Kong introduces its own VAT. “However, over the next few years, Hong Kong will still have relative advantages as many luxury brands will never be manufactured in China while we believe there is a certain cachet or ‘snob’ value attached to HK purchases of luxury products by mainlanders. With PRC tourists’ shopping preferences now very clear, we expect Sa, Lifestyle International and Dickson Concepts to remain the key beneficiaries of mainland visitor spending” (CLSA, 2004)
IV. Literature Review
The Tourism Commission in Hong Kong was first established in May, 1999 for the purpose of coordinating within government “various tourism development efforts and to provide policy support and leadership to the development of tourism in Hong Kong.” (Hong Kong Tourism Commission, 2011) The objective of the Tourism Commission is to “establish and promote Hong Kong as Asai’s premier international city, and a world-class destination for leisure and business visitors.” (Hong Kong Tourism Commission, 2011) It is reported that the trade and government work together closely to fulfill this mission. In addition, the government is reported to work very hard to “enhance the appeal of Hong Kong as an international convention, exhibition, and tourism capital. Additional fund is earmarked to raise Hong Kong’s MICE (meetings, incentive travels, conventions, and exhibitions) profile and strengthen support to MICE events to be hosted in Hong Kong.” (Hong Kong Tourism Commission, 2011) As well, the government of Hong Kong is reported to continue in developing a “wide range of diversified tourist attractions in Hong Kong with a view to enhancing Hong Kong’s overall attractiveness as a premier tourist destination.” (Hong Kong Tourism Commission, 2011) It is reported in one study that Hong Kong has been “…aggressively developing a variety of world-class tourist attractions. Some major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park.” (Hong Kong Tourism Commission, 2011 p.1) In addition it is reported that the residents of Hong Kong are extremely proud of Hong Kong’s “…colorful history and unique oriental culture, especially as related to the ancient Chinese traditions. Some of the region’s most popular annual festivals and events embody the essence of Chinese culture.” (Hong Kong Tourism Commission, 2011 p.1) Featured in Hong Kong are cultural festivals and events that have become “…worldwide, famous must-see or must-do attractions, which provide an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and Best of the Best Culinary Awards.” (Hong Kong Tourism Commission, 2011 p.1)
Included in Hong Kong’s tourism campaigns are the following: “The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale and Hong Kong WinterFest, and Hong Kong Salutes the World.” (Hong Kong Tourism Commission, 2011 p.1) Important to the tourism industry is Hong Kong is the enhancement of the service quality of facilities and a generally hospitable atmosphere. Cultural tourism is thriving in today’s hospitality and tourism industry on a global basis and the same is true for Hong Kong. The cultural elements that draw tourists to Hong Kong include such as Chinese Opera, Therapy, and Cinema. As well, the Dragon Dance reported as an “Intriguing conventional dance in Chinese culture, as well as festivals, the lion dance, Song, Dynasty Town, is reported as a “…replica of the Song capital. It provides the tourists unique opportunity to have a glimpse of China of yesteryears. The exciting tour gives information about the achievements of ancient Chinese civilization. Song Dynasty ruled China from 960 to 1279. Its reign is noted for the development of art, literature and philosophy.” (Hong Kong Tourism Commission, 2011 p.1 ) Tea drinking also draws tourists to Hong Kong because it is a “deep rooted habit in a thriving tradition in itself” lasting since it originated in “Chinese tea culture.” (Hong Kong Tourism Commission, 2011 p.1 ) Hong Kong is also a romantic getaway where tourists can “stay in a swank hotel, enjoy romantic seafood dinners on the waterfront, indulge in shopping for exclusive designer goods, dance the night away in each other’s arms, explore the colorful back streets and temples, hike up hilltops or stroll on the beach at sunset. Hong Kong has it all!” (Hong Kong Tourism Commission, 2011 p.1) Another description offered up by the Hong Kong Tourism Board is as follows: “Hong Kong is a kaleidoscope of life; a sophisticated fusion of East and West; a city of diversity where new and old meet at every turn. It is a unique experience shaped by a distinctive past and dreams of the future; an age-old synthesis of cultures and traditions that opens a window into what will be, while embracing what has passed.” (Hong Kong Tourism Commission, 2011 p.1) Chinese sailing in Hong Kong combined with walks about Hong Kong and tours by railroad all draw visitors into the unique culture of Hong Kong. Cheung (Hong Kong Tourism Commission, 2011 p.1) writes that the recent decline of rural areas and the rapid expansion of organization in the New Territories results in a great contrast “between the cultural heritage areas and the new town areas with their modern facilities for most leisure activities became more marked than ever before.” (Hong Kong Tourism Commission, 2011 p.1) This is due to the modern transportation network and “tourist-oriented authentic Chinese traditions when combined provide “both convenience and nostalgia” in tourism destinations and the time spent as well as the money spent in those locations. Cultural tourism has then served to drive the growth of tourism industry participants and moreover has driven the profitability of shopping tourism businesses in Hong Kong. Domestic cultural tourism is such that places a variety of individuals into a group experience that is voluntary in nature and based on identification with the traditional Hong Kong culture.
Visa reports a study that included representation of shopping tourists from Canada, The United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. Nine individuals in the study state an income of U.S.$5,001 or above, 1 individual reported an income of U.S.$3,001 – U.S.$4,000, one individual reported an income of U.S.$2,001 – U.S.$3,000, on individual reported an income of U.S.$1,001 – U.S.$2,000, and two individuals reported no income with two individuals reporting an income of U.S.$500 or below. (Visa, 2010)
The occupation of participants in the study reviewed included the following reported occupations:
Clerical/Administrative 1
Retired 2
Executive/Managerial 4
Academic/Educator 1
Other 2
Self-employed/Own Company 4
K-12 Student 1
College/Graduate Student 1
Information on the types of goods purchased in Hong Kong was obtained from a study reported by the Center for Retail Research, which reports that purchases of non-food retail items totaled €23.45 with 7,026 million shoppers in 2010. Purchases of food items in Hong Kong are reported at €29.27 for 2010. Hong Kong is reported to have had 7 million shopping tourists in 2010. Participants in the study reviewed that cited services quality in shopping malls as important totaled 2 participants with other participants citing that more important were the following factors:
Great selection
Good prices
Great bargains
Cheap and convenient
Broad selection range
Discount prices
Those who stated that prices of products were important included five participants. When asked if they intended to shop in Hong Kong again, all individuals participating in the study reported that they did except for one participant who states that they do not like to shop anywhere.
Figure 1
Questionnaire Answers: Shopping Tourism in Hong Kong (Gender, Age, Continent of Residence, Country, Education Level, Income, & Occupation)
Source: Visa — Tourism Outlook (2010)
Hong Kong ranks number six among shopping tourism locations in the survey findings reported by the Center for Retail Research. This survey is reported to have been published in 2011 and to have been sponsored by Kelkoo. Key results reported that London “was found to be the world’s shopping capital [and] the largest retail market in non-food shopping – £64.15 billion; the largest retail sales of food and non-food – £91.90 billion; and the largest online sales – £9.9 billion.” (Center for Retail Research, 2010) The survey examined the shopping size and impact and reports that comparability “is the key” in the research findings.
Figure 2
Figure 2
Shopping Capitals Non-Food Sales 2010
Ranking
Sales
(£bill)
Sales
(€bill)
Population
(millions)
London
1
£64.15
€75.72
11.917
Tokyo
2
£61.40
€72.49
12.989
New York
3
£46.95
€55.43
8.391
Paris
4
£46.58
€54.99
11.089
Los Angeles
5
£20.39
€24.07
3.834
Hong Kong
Rio De Janeiro
21
£4.57
€5.40
7.623
Johannesburg
22
£1.40
€1.65
3.888
Totals
£417.48
€492.83
Statistical Mean
£18.98
€22.40
5.212
Source: Centre for Retail Research (Blackburn House, Brake Lane, Newark, Notts) www.reteailresearch.org/worldshipping capitals.php
The city ranking for all retail both food and nonfood are reported as shown in the following table.
Figure 3
Ranking for All Retail (Food & Non-food)
Ranking for All Retail (Food & Non-food)
Ranking
Sales (£bn)
Sales (€bn)
London
1
£91.90
€108.49
Tokyo
2
£90.17
€106.44
Paris
3
£77.90
€91.96
New York
4
£66.20
€78.15
Los Angeles
5
£28.75
€33.94
Hong Kong
Rio de Janeiro
21
£6.50
€7.67
Johannesburg
22
£2.21
€2.60
Totals
£622.14
€734.44
Statistical Mean
£28.28
€33.38
Source: Centre for Retail Research
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Online sales shows a different picture with Hong Kong ranked at number 10 indicating that Hong Kong is missing opportunities to increase its sales in this arena.
Figure 3
Online Non-food Sales in each shopping capital
Online Non-food
(Percent retail)
Online Sales
(£ millions)
Online Sales
(€ millions)
Online Sales
Ranking
London
15.5%
£9,923.9
€11,715.1
1
Tokyo
13.8%
£8,453.3
€9,979.1
2
New York
13.4%
£6,314.1
€7,453.8
3
Paris
12.1%
£5,639.9
€6,657.9
4
Los Angeles
11.6%
£2,358.1
€2,783.7
5
Sydney
11.1%
£1,681.8
€1,985.4
6
Manchester
12.5%
£1,521.9
€1,796.6
7
Berlin
13.2%
£1,306.0
€1,541.8
8
Singapore
6.6%
£1,207.0
€1,424.9
9
Hong Kong
5.1%
£1,015.4
€1,198.7
10
Dubai
5.9%
£962.6
€1,136.4
11
Copenhagen
13.3%
£914.9
€1,080.1
12
Amsterdam
9.4%
£879.1
€1,037.7
13
Barcelona
6.1%
£800.9
€945.5
14
Milan
5.1%
£685.2
€808.9
15
Madrid
6.8%
£683.0
€806.3
16
Oslo
12.8%
£647.4
€764.2
17
Stockholm
10.6%
£559.6
€660.6
18
Rome
4.8%
£500.7
€591.0
19
Moscow
5.5%
£374.1
€441.6
20
Rio de Janeiro
6.5%
£295.1
€348.3
21
Johannesburg
6.6%
£92.3
€109.0
22
Totals
n/a
£46,816.3
€55,266.6
na
Statistical mean
9.5%
£2,128.0
€2,512.1
Source: Centre for Retail Research
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Online sales shows a different picture with Hong Kong ranked at number 10 indicating that Hong Kong is missing opportunities to increase its sales in this arena.
Reported is the most popular among global shopping centers with tourists from overseas are those of:
1. London (14.1 million);
2. Singapore (9.7 million);
3. New York (8.5 million);
4. Dubai (7.8 million);
5. Paris (7.8 million);
6. Hong Kong (7.0 million); and
7. Rome (5.5 million). (Center for Retail Research, 2010)
Specifically reported in the Tourism Hong Kong report by Visa is the following spending trends:
• Other retail 19.8% (761.8M)
• Accommodations 29.8% (362.7M)
• Remaining merchants 10.5% (314.3M)
• Department Stores 19.5% (176.9M)
• Restaurants 16.2% (126.4M)
• Health care 7.7% (43.6M)
• Other travel and entertainment 3.6% (35 M)
• Travel agencies 5.7% (25.5M)
• Airlines 11% (28M) (VISA, 2010) (Center for Retail Research, 2010)
Findings in the study reveal that the top tourism season in Hong Kong in 2010 was during November and December during the Hong Kong Winterfest, which is an event run by Hong Kong Tourism Board to attract overseas visitors to celebrate Christmas and New Year in the city. Tourist receipts are reported to have totaled U.S.$242.2 million and U.S.$239.5 million respectively for 2009 and 2010. The lowest ebb of Tourism shopping in Hong Kong is reported in February and an increase by 20% for shopping tourism is reported during October due to the Halloween celebrations taking place at the theme parks in Hong Kong.
Spending in merchant shopping categories include the following:
Other retail 19.8% ($761.8M)
Remaining merchants 10.5% ($314.4M)
Department Stores 19.5% ($176.9M)
Radio, TV, and stereo stores 32.4% ($11M)
Sporting goods stores 13.2% ($11.3M)
Furniture and equipment stores 19% (8.5M)
Miscellaneous Specialty -1.4% ($8.1M) (Center for Retail Research, 2010)
CLSA Asia-Pacific Markets reports its third survey as part of a series on PRC tourist arrivals to Hong Kong, which is stated to reinforce the SAR’s “image as a major shopping destination.” (2004) The report states that mainland visitor spending “continues to rise, with an overwhelming 90% of respondents affirming their intention to return…” (CLSA, 2004) Primary shopping attractions in Hong Kong include such as “…cosmetics, electronic products, clothing, gold and watches…” (CLSA, 2004)
CLSA’s survey is reported to show that “per-capital shopping expenditure has risen by 52% over nine months with cash as the preferred method of payment.” (CLSA, 2004) Key findings in the CLSA survey include those stated as follows:
Per-capita shopping expenditure is at HK$4,810, up 52% from CLSA’s survey in August 2003, implying that mainland visitors will spend U.S.$7.4bn on retail purchases this year.
Stripping out double-counted arrivals due to side trips such as Macau, mainlanders could account for 28% of HK’s total retail sales.
Based on an average 38% retail gross margin, HK is effectively capturingUS $2.6bn of this shopping expenditure, equivalent to 1.5% of estimated 2004 nominal GDP.
Using reasonable assumptions, mainlanders could be spending U.S.$16bn on shopping in HK by 2010, equivalent to 66% of this year’s projected total HK retail sales and 3.5% of nominal GDP using the same average gross margin. (CLSA, 2004)
The first study reviewed in this work involved five females and 11 males who had spent time in tourism shopping in Hong Kong. Participants involved individuals from Canada, The United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. The individuals in this study primarily had an income of $5,000 or above in U.S. dollars with others having lower income. Occupations of individuals in the study included clerical/administrative, retired, executive/managerial, academic/educator, other, self-employed or owner of a company, K-12 student or college graduate student.
Participants in the study reviewed cited the most important factors in shopping was: (1) great selection; (2) good prices; (3) great bargains; (4) cheap and convenient; (5) broad selection range; (6) discount prices. All participants in the study stated that they would shop in Hong Kong again. Hong Kong ranks number six among shopping tourism locations in the world according to the Center for Retail Research report published in 2011.
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Spending trends emerging during this study include those showing that the greatest tourism spending was on accommodations followed by retail spending, department stores spending, restaurant spending and airiness spending. Lower levels of spending were noted in health care, other travel and entertainment, and travel agencies.
Also emerging in the study was the heavy tourism experienced by Hong Kong in November and December during the Hong Kong Winterfest resulting in spending totally U.S.$242.2 million and U.S.$239.5 million respectively for 2009 and 2010. Spending in merchant categories revealed findings that the strong spending was in radio, TV, and stereo stores, followed by retail spending, furniture and equipment stores, sporting goods stores and miscellaneous specialty.
V. Urban tourism
As noted earlier in this work in writing, urban tourism is a big industry in the Hong Kong tourism industry. Hong Kong is replete with accommodations and attractions to draw urban tourists into Hong Kong’s cities for visits.
VI. Destination Marketing
The work of Jung, Hsieh, Byrd, and Cardenas (nd) entitled “A Case Study of Destination Marketing In Hong Kong” reports “Throughout its limited land, Hong Kong has been aggressively developing a variety of world-class tourist attractions. Some major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park.” In addition, it is reported that Hong Kong residents “are proud of its colorful history and unique oriental culture, especially as related to the ancient Chinese traditions. Some of the region’s most popular annual festivals and events embody the essence of Chinese culture. Hong Kong’s representatives have successfully developed its cultural festivals and events into worldwide, famous must-see or must-do attractions, which provide an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and Best of the Best Culinary Awards.” (Jung, Hsieh, Byrd, and Cardenas, nd ) The Hong Kong Tourism Board is reported as having consistently led “a series of ambitious, impressive tourism campaigns and promotions since 2000. These ceaseless efforts have contributed greatly toward positioning Hong Kong as one of the top world tourist destinations. The major tourism campaigns include The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale and Hong Kong WinterFest, and Hong Kong Salutes the World.” (Jung, Hsieh, Byrd, and Cardenas, nd) Findings stated in the work of Jung, Hsieh, Byrd, and Cardenas (nd) state that revealed are “…several strengths of Hong Kong tourism in terms of destination marketing. These included: effective tourism organizations, continuing tourism product development, a unique variety of annual festivals and cultural events, outstanding tourism campaigns and promotions, quality service controls and hospitality programs, thorough overseas market segmentation, targeting, and positioning activities, and active online marketing through a DMO website
VII. Shopping Tourism
Shopping tourism in Hong Kong is a big business and as such the Hong Kong Tourism Board promotes shopping tourism.
VIII. Research Purpose
The purpose of the research in this study is to examine the shopping patterns and preferences of individual who have spent time shopping in Hong Kong.
IX. Methodology
The methodology employed in this study is a mixed methods study involving qualitative and quantitative data collection and analysis. Data collection will be in the form of a questionnaire distributed to a sampling of 70 individuals who have spent time shopping in Hong Kong.
X. Questionnaire Design
The use of a quantitative approach has the advantage of measuring the reactions of a large sampling of participants in a limited set of questions, which enables the comparison of the data collected. The questionnaire used in this study is structured in nature and developed specifically for data collection that is self-reported in nature. The questionnaire form is inclusive of the general demographics of the participants in the study and general questions, which focus on the travel, and shopping of tourists in Hong Kong. Respondents in the study were instructed to choose the statements that best reflected their travel activities or alternatively to fill in the blanks with the precise information based on their travel and shopping tourism experience in Hong Kong. The questions were utilized to investigate the shopping behavior characteristics in regards to motivation, attitudes, consideration, decision-making, and level of satisfaction while shopping in Hong Kong.
XI. Research Sample and Data Collection
Sampling was random in nature and target respondents were selected in the shopping areas of Hong Kong for the questionnaire survey. The researcher evenly distributed their time in various shopping locations in Hong Kong and the selection of respondents was conducted in a random fashion. Selection of respondents was upon the basis that the individuals were not residents of Hong Kong, but instead were visiting Hong Kong. A total of 75 questionnaires were distributed with 70 valid questionnaires resulting in a valid rate of 93.4%. The demographics of respondents in the study varied in regards to age, gender, marital status, education level, and ethnicity. The sampling is a valid one as the percentage of the gender and source continents represented in the study is in relation to the actual percentage is consistent in nature. The survey was conducted with the tourists in various shops throughout Hong Kong allowing the interview with tourists to be conducted simultaneously to the questionnaire and respondents who had a richer experience shopping enjoyed sharing their views about the shopping experience and were therefore chosen for in-depth interviews.
XII. Data Analysis
Statistical research techniques enabled the analysis of the perceptions of respondents as it is found previously to be quite varied between studies and makes comparisons of previous studies challenging.
XIII. Results
The stated objective of this study is to examine shopping tourism in Hong Kong and specifically to attempt to answer the questions as follows
1. Age of Participants
The ages of participants in this study are as follows:
20-29 Years of Age — 45%
30-39 Years of Age — 30%
40-49 Years of Age — 20%
Over 50 Years of Age — 5%
Nearly 1/2 of participants in the study were in the age range of 20 to 29 years of age with those in the age range of 30-39 years of age 30% of the total of participants and those in the age range of 40-49 years of age at 20% and over 50 years of age at 5%.
2. Nationality of Participants
Countries represented in this study include the following:
Canada
10%
United States
15%
Thailand
18%
China
22%
Vietnam
18%
Cambodia
17%
Participants in the study represented China at 22%; Thailand at 18%, the United States at 15%; Vietnam at 18%, Cambodia at 17% and Canada at 10%.
3. Was this the first time that you have been shopping in Hong Kong?
Yes — 30%
No — 70%
70% of respondents in the study had shopped as tourists in Hong Kong previously while 30% were experiencing their first shopping tourism experience in Hong Kong.
4. How long do you plan to stay in Hong Kong?
1 to 2 days – 5%
3 to 5 days — 60%
6 to 8 days — 5%
The majority of the respondents in the study (60%) planned to stay 3 to 5 days in Hong Kong, while 5% planned to stay 1 to 2 days and another 5% planned to stay 6 to 8 days in Hong Kong.
5. Income of the participants
Below 5000 40%
5000 — 8000 20%
8000 — 12000 20%
12000 — 15000 20%
Individuals with the lowest level of income comprise the largest group among shopping tourists in Hong Kong with all other income groups equally represented among Hong Kong Shopping Tourists.
6. How much do you plan to spend while in Hong Kong?
2000-4000 35%
5000 — 7000 15%
Above 10000 15%
Individuals with income of 4000 per month and below comprise nearly half of all shopping tourists in Hong Kong in this particular study.
7. How important is quality in the products you purchase?
Very important — 65%
Important — 20%
Fair — 10%
Unimportant — 5%
85% of shopping tourists in Hong Kong find quality of items purchased to be important or very important.
8. How important is price in the products you purchase?
Very Important — 50%
Important — 20%
Fairly Important — 25%
Unimportant — 5%
Price was cited by 50% of respondents in the study as being very important in their purchase decisions while 20% cited price as important, 25% cited price as fairly important and 5% stated that price was unimportant in their decision to purchase specific products in Hong Kong.
9. How important is the shopping environment relating to your purchase?’
Very Important 65%
Important 25%
Fairly Important 8%
Not Important 2%
90% of shopping tourist in Hong Kong find the shopping environment to be important or very important in terms of where they do their shopping while in Hong Kong.
14. Were the places you shopped in Hong Kong convenient?
Very Convenient — 70%
Convenient — 25%
Fairly Convenient — 5%
95% of shopping tourists in this study found shopping in Hong Kong to be either convenient or very convenient.
70% of respondents in the study stated that shopping in Hong Kong was very convenient while 25% of respondents stated that Hong Kong shopping is convenient and 5% stated that shopping in Hong Kong was fairly convenient.
15. Will you return to Hong Kong shopping in the future?
Yes — 85%
No — 15%
An overwhelming majority of respondents in the study (85%) stated that ‘yes’ they will return to Hong Kong in the future to shop. Only 15% of respondents stated that they would not return to Hong Kong to shop in the future.
In summary, the research in this study has found that tourists spend a great deal of this monthly income shopping in Hong Kong and that tourists find it very important to shop in a convenient environment and to purchase quality products at great prices. The tourism industry is a thriving industry in Hong Kong and this is especially true in regards to shopping tourism in Hong Kong.
XV. Recommendations
Cities are complex environments that present visitors with a range of experiences, which are more often than not centered on site-specific attractions. Future research study could focus on the importance of the Internet in promoting shopping tourism in Hong Kong and also could examine whether there is continuity in purchases made in Hong Kong after tourists have returned home via the Internet.
XVI. Limitations of the Study
The limitations of this present study are in the fact that the sampling while random was still in a fashion non-random sampling since the sampling was comprised of individuals who were shopping at the time they given the questionnaire or participated in the interview.
XVII. Conclusion
Tourism development in Hong Kong could easily focus in the future on a continuity of shopping via the Internet once tourists visiting Hong Kong have returned to their home. While the present shopping tourism industry is ‘place’ focused, there is still a potential for enabling the Hong Kong shopping experience for visitors through virtual shops that would further serve to bring more tourists to Hong Kong to shop and ultimately to upgird the economy of Hong Kong and enable future urban development.
Bibliography
Cheung, Sidney (nd) Cultural Tourism and Hong Kong Identity. Department of Anthropology. The Chinese University of Hong Kong. Retrieved from: http://cuhk.orientalecom7.com/en/publish/workingpaper4.pdf
Discover Hong Kong by Rail (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/discover-hongkong-rail.html
Experience Unique Hong Kong (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/cultural-tours.html
Hong Kong Culture (2012) Tourism Asia Network. Retrieved from: http://hong-kong.tourism-asia.net/index.html
Hong Kong Tourism Fact Sheet (2012) Hong Kong Tourism Board. Retrieved from: http://www.gov.hk/en/about/abouthk/factsheets/docs/tourism.pdf
Hong Kong Walks (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/hongkong-walks.html
Jung, SW; Hsieh, YJ; Byrd, E; and Cardenas, D (nd) A Case Study of Destination Marketing in Hong Kong.
New Territories (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/shopping/location-new-territories.html
PRC tourists shopping in HK on the upswing CLSA survey finds per-capita expenditure rises by 52% over nine months (2004) CLSA. Jun-14-2004. Retrieved from:
Romantic Vacation (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/romantic-vacation.html
Tourism outlook: Hong Kong (2010) VISA. Retrieved from: http://corporate.visa.com/_media/visa-tourism-outlook-hong-kong.pdf
PRC tourists shopping in HK on the upswing CLSA survey finds per-capita expenditure rises by 52% over nine months (2004) CLSA. Jun-14-2004. Retrieved from:
https://www.clsa.com/about-clsa/media-centre/2004-media-releases/20040614_en.php
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Shopping Tourism in Hong Kong
Item Page Number
Tourism in Hong Kong
Shopping Tourism in Hong Kong
Urban Tourism
Destination Marketing
Shopping Tourism
Questionnaire Design
Shopping Tourism in Hong Kong
Shopping tourism is a major aspect of the global tourism trade and as such is an area of tourism that is and should be promoted by destination countries and locations. This is true for Hong Kong as well as in other locations throughout the world. Ashworth (1989) writes that urban regeneration and tourism have become critically important activities beginning in the 1980’s. Ashworth specifically notes two elements that link the ideas of the city and tourism and which show the complex relationship that exists between the features of a city and the functions of tourism that serve to result in shopping tourism in the city. The first element is comprised by the specific characteristics of a city and how this serves to impact tourism activities. The second element is comprised by the various attributes of the city represented in the accommodations that tourists receive and that which represents the infrastructure of the city.
II. Tourism in Hong Kong
The Tourism industry in Hong Kong is reported as “a major pillar of the economy…in 2009, it contributed to 3.3% of Hong Kong’s GDP…employing over 193,200 individuals accounting for 5.5% of total employment…” in Hong Kong. (Hong Kong Tourism Commission, 2011) Visitor arrivals for the first half of 2011 is reported to have risen by 14.7% compared with the first half of 2010. Hong Kong features 184 hotels with 61,828 rooms, a total room supply increase of 1,724 rooms (2.9%) as compared to June, 2010. Reported as the average length of stay of overnight visitors in 2010 was 3.6 nights. To lengthen the stay of visitors the Hotel Accommodation Tax has been waived since July 1, 2008 and the government is reported as having “undertaken a number of initiatives to promote hotel development to meet the diversified needs” of Hong Kong visitors. (Hong Kong Tourism Commission, 2011)
III. Shopping Tourism in Hong Kong
Shopping tourism is a strong industry in Hong Kong, which features luxury brand streets. Particularly popular with tourists is Causeway Bay, which features department stores, small boutiques and bargain stalls. (Hong Kong Tourism Board, 2007) There are shops that specialize in “shoes, electrical appliances and fashion for young people.” (Hong Kong Tourism Board, 2007) It is reported that the streets of Wan Cahi are “steeped I history and offer an amazing array of shopping.” (Hong Kong Tourism Board, 2007) Spring Garden Lane is attributed as a specifically great spot to purchase competitively priced clothing and to be such that contain market stalls “exclusively sell[ing] products originally meant for export, meaning quality, and price are competitive.” (Hong Kong Tourism Board, 2007) Also reported is that Admiralty is a favorite spot to purchase brand-name luxury goods and that Pacific Place is one of the most popular malls in Hong Kong. Hong Kong’s Central District boasts “many shimmering skyscrapers and marbled shopping atriums and malls.” (Hong Kong Tourism Board, 2007) The Western Market in Sheung Wan is “a handsomely famous renovated Edwardian building filled with Chinese handcraft stores and fabric shops.” (Hong Kong Tourism Board, 2007) Paul McKenzie, Head of Consumer Research as CLSA is reported as having stated as follows:
“Hong Kong’s primary attraction as a shopping destination continues to be the superior quality of goods and wider choice vs. The mainland. Over the very long run, Hong Kong’s advantages may diminish if China lowers its import duties; if more foreign retailers operate in China; if a wider variety of products are manufactured and sold in China and if Hong Kong introduces its own VAT. “However, over the next few years, Hong Kong will still have relative advantages as many luxury brands will never be manufactured in China while we believe there is a certain cachet or ‘snob’ value attached to HK purchases of luxury products by mainlanders. With PRC tourists’ shopping preferences now very clear, we expect Sa, Lifestyle International and Dickson Concepts to remain the key beneficiaries of mainland visitor spending” (CLSA, 2004)
IV. Literature Review
The Tourism Commission in Hong Kong was first established in May, 1999 for the purpose of coordinating within government “various tourism development efforts and to provide policy support and leadership to the development of tourism in Hong Kong.” (Hong Kong Tourism Commission, 2011) The objective of the Tourism Commission is to “establish and promote Hong Kong as Asai’s premier international city, and a world-class destination for leisure and business visitors.” (Hong Kong Tourism Commission, 2011) It is reported that the trade and government work together closely to fulfill this mission. In addition, the government is reported to work very hard to “enhance the appeal of Hong Kong as an international convention, exhibition, and tourism capital. Additional fund is earmarked to raise Hong Kong’s MICE (meetings, incentive travels, conventions, and exhibitions) profile and strengthen support to MICE events to be hosted in Hong Kong.” (Hong Kong Tourism Commission, 2011) As well, the government of Hong Kong is reported to continue in developing a “wide range of diversified tourist attractions in Hong Kong with a view to enhancing Hong Kong’s overall attractiveness as a premier tourist destination.” (Hong Kong Tourism Commission, 2011) It is reported in one study that Hong Kong has been “…aggressively developing a variety of world-class tourist attractions. Some major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park.” (Hong Kong Tourism Commission, 2011 p.1) In addition it is reported that the residents of Hong Kong are extremely proud of Hong Kong’s “…colorful history and unique oriental culture, especially as related to the ancient Chinese traditions. Some of the region’s most popular annual festivals and events embody the essence of Chinese culture.” (Hong Kong Tourism Commission, 2011 p.1) Featured in Hong Kong are cultural festivals and events that have become “…worldwide, famous must-see or must-do attractions, which provide an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and Best of the Best Culinary Awards.” (Hong Kong Tourism Commission, 2011 p.1)
Included in Hong Kong’s tourism campaigns are the following: “The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale and Hong Kong WinterFest, and Hong Kong Salutes the World.” (Hong Kong Tourism Commission, 2011 p.1) Important to the tourism industry is Hong Kong is the enhancement of the service quality of facilities and a generally hospitable atmosphere. Cultural tourism is thriving in today’s hospitality and tourism industry on a global basis and the same is true for Hong Kong. The cultural elements that draw tourists to Hong Kong include such as Chinese Opera, Therapy, and Cinema. As well, the Dragon Dance reported as an “Intriguing conventional dance in Chinese culture, as well as festivals, the lion dance, Song, Dynasty Town, is reported as a “…replica of the Song capital. It provides the tourists unique opportunity to have a glimpse of China of yesteryears. The exciting tour gives information about the achievements of ancient Chinese civilization. Song Dynasty ruled China from 960 to 1279. Its reign is noted for the development of art, literature and philosophy.” (Hong Kong Tourism Commission, 2011 p.1 ) Tea drinking also draws tourists to Hong Kong because it is a “deep rooted habit in a thriving tradition in itself” lasting since it originated in “Chinese tea culture.” (Hong Kong Tourism Commission, 2011 p.1 ) Hong Kong is also a romantic getaway where tourists can “stay in a swank hotel, enjoy romantic seafood dinners on the waterfront, indulge in shopping for exclusive designer goods, dance the night away in each other’s arms, explore the colorful back streets and temples, hike up hilltops or stroll on the beach at sunset. Hong Kong has it all!” (Hong Kong Tourism Commission, 2011 p.1) Another description offered up by the Hong Kong Tourism Board is as follows: “Hong Kong is a kaleidoscope of life; a sophisticated fusion of East and West; a city of diversity where new and old meet at every turn. It is a unique experience shaped by a distinctive past and dreams of the future; an age-old synthesis of cultures and traditions that opens a window into what will be, while embracing what has passed.” (Hong Kong Tourism Commission, 2011 p.1) Chinese sailing in Hong Kong combined with walks about Hong Kong and tours by railroad all draw visitors into the unique culture of Hong Kong. Cheung (Hong Kong Tourism Commission, 2011 p.1) writes that the recent decline of rural areas and the rapid expansion of organization in the New Territories results in a great contrast “between the cultural heritage areas and the new town areas with their modern facilities for most leisure activities became more marked than ever before.” (Hong Kong Tourism Commission, 2011 p.1) This is due to the modern transportation network and “tourist-oriented authentic Chinese traditions when combined provide “both convenience and nostalgia” in tourism destinations and the time spent as well as the money spent in those locations. Cultural tourism has then served to drive the growth of tourism industry participants and moreover has driven the profitability of shopping tourism businesses in Hong Kong. Domestic cultural tourism is such that places a variety of individuals into a group experience that is voluntary in nature and based on identification with the traditional Hong Kong culture.
Visa reports a study that included representation of shopping tourists from Canada, The United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. Nine individuals in the study state an income of U.S.$5,001 or above, 1 individual reported an income of U.S.$3,001 – U.S.$4,000, one individual reported an income of U.S.$2,001 – U.S.$3,000, on individual reported an income of U.S.$1,001 – U.S.$2,000, and two individuals reported no income with two individuals reporting an income of U.S.$500 or below. (Visa, 2010)
The occupation of participants in the study reviewed included the following reported occupations:
Clerical/Administrative 1
Retired 2
Executive/Managerial 4
Academic/Educator 1
Other 2
Self-employed/Own Company 4
K-12 Student 1
College/Graduate Student 1
Information on the types of goods purchased in Hong Kong was obtained from a study reported by the Center for Retail Research, which reports that purchases of non-food retail items totaled €23.45 with 7,026 million shoppers in 2010. Purchases of food items in Hong Kong are reported at €29.27 for 2010. Hong Kong is reported to have had 7 million shopping tourists in 2010. Participants in the study reviewed that cited services quality in shopping malls as important totaled 2 participants with other participants citing that more important were the following factors:
Great selection
Good prices
Great bargains
Cheap and convenient
Broad selection range
Discount prices
Those who stated that prices of products were important included five participants. When asked if they intended to shop in Hong Kong again, all individuals participating in the study reported that they did except for one participant who states that they do not like to shop anywhere.
Figure 1
Questionnaire Answers: Shopping Tourism in Hong Kong (Gender, Age, Continent of Residence, Country, Education Level, Income, & Occupation)
Source: Visa — Tourism Outlook (2010)
Hong Kong ranks number six among shopping tourism locations in the survey findings reported by the Center for Retail Research. This survey is reported to have been published in 2011 and to have been sponsored by Kelkoo. Key results reported that London “was found to be the world’s shopping capital [and] the largest retail market in non-food shopping – £64.15 billion; the largest retail sales of food and non-food – £91.90 billion; and the largest online sales – £9.9 billion.” (Center for Retail Research, 2010) The survey examined the shopping size and impact and reports that comparability “is the key” in the research findings.
Figure 2
Figure 2
Shopping Capitals Non-Food Sales 2010
Ranking
Sales
(£bill)
Sales
(€bill)
Population
(millions)
London
1
£64.15
€75.72
11.917
Tokyo
2
£61.40
€72.49
12.989
New York
3
£46.95
€55.43
8.391
Paris
4
£46.58
€54.99
11.089
Los Angeles
5
£20.39
€24.07
3.834
Hong Kong
Rio De Janeiro
21
£4.57
€5.40
7.623
Johannesburg
22
£1.40
€1.65
3.888
Totals
£417.48
€492.83
Statistical Mean
£18.98
€22.40
5.212
Source: Centre for Retail Research (Blackburn House, Brake Lane, Newark, Notts) www.reteailresearch.org/worldshipping capitals.php
The city ranking for all retail both food and nonfood are reported as shown in the following table.
Figure 3
Ranking for All Retail (Food & Non-food)
Ranking for All Retail (Food & Non-food)
Ranking
Sales (£bn)
Sales (€bn)
London
1
£91.90
€108.49
Tokyo
2
£90.17
€106.44
Paris
3
£77.90
€91.96
New York
4
£66.20
€78.15
Los Angeles
5
£28.75
€33.94
Hong Kong
Rio de Janeiro
21
£6.50
€7.67
Johannesburg
22
£2.21
€2.60
Totals
£622.14
€734.44
Statistical Mean
£28.28
€33.38
Source: Centre for Retail Research
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Online sales shows a different picture with Hong Kong ranked at number 10 indicating that Hong Kong is missing opportunities to increase its sales in this arena.
Figure 3
Online Non-food Sales in each shopping capital
Online Non-food
(Percent retail)
Online Sales
(£ millions)
Online Sales
(€ millions)
Online Sales
Ranking
London
15.5%
£9,923.9
€11,715.1
1
Tokyo
13.8%
£8,453.3
€9,979.1
2
New York
13.4%
£6,314.1
€7,453.8
3
Paris
12.1%
£5,639.9
€6,657.9
4
Los Angeles
11.6%
£2,358.1
€2,783.7
5
Sydney
11.1%
£1,681.8
€1,985.4
6
Manchester
12.5%
£1,521.9
€1,796.6
7
Berlin
13.2%
£1,306.0
€1,541.8
8
Singapore
6.6%
£1,207.0
€1,424.9
9
Hong Kong
5.1%
£1,015.4
€1,198.7
10
Dubai
5.9%
£962.6
€1,136.4
11
Copenhagen
13.3%
£914.9
€1,080.1
12
Amsterdam
9.4%
£879.1
€1,037.7
13
Barcelona
6.1%
£800.9
€945.5
14
Milan
5.1%
£685.2
€808.9
15
Madrid
6.8%
£683.0
€806.3
16
Oslo
12.8%
£647.4
€764.2
17
Stockholm
10.6%
£559.6
€660.6
18
Rome
4.8%
£500.7
€591.0
19
Moscow
5.5%
£374.1
€441.6
20
Rio de Janeiro
6.5%
£295.1
€348.3
21
Johannesburg
6.6%
£92.3
€109.0
22
Totals
n/a
£46,816.3
€55,266.6
na
Statistical mean
9.5%
£2,128.0
€2,512.1
Source: Centre for Retail Research
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Online sales shows a different picture with Hong Kong ranked at number 10 indicating that Hong Kong is missing opportunities to increase its sales in this arena.
Reported is the most popular among global shopping centers with tourists from overseas are those of:
1. London (14.1 million);
2. Singapore (9.7 million);
3. New York (8.5 million);
4. Dubai (7.8 million);
5. Paris (7.8 million);
6. Hong Kong (7.0 million); and
7. Rome (5.5 million). (Center for Retail Research, 2010)
Specifically reported in the Tourism Hong Kong report by Visa is the following spending trends:
• Other retail 19.8% (761.8M)
• Accommodations 29.8% (362.7M)
• Remaining merchants 10.5% (314.3M)
• Department Stores 19.5% (176.9M)
• Restaurants 16.2% (126.4M)
• Health care 7.7% (43.6M)
• Other travel and entertainment 3.6% (35 M)
• Travel agencies 5.7% (25.5M)
• Airlines 11% (28M) (VISA, 2010) (Center for Retail Research, 2010)
Findings in the study reveal that the top tourism season in Hong Kong in 2010 was during November and December during the Hong Kong Winterfest, which is an event run by Hong Kong Tourism Board to attract overseas visitors to celebrate Christmas and New Year in the city. Tourist receipts are reported to have totaled U.S.$242.2 million and U.S.$239.5 million respectively for 2009 and 2010. The lowest ebb of Tourism shopping in Hong Kong is reported in February and an increase by 20% for shopping tourism is reported during October due to the Halloween celebrations taking place at the theme parks in Hong Kong.
Spending in merchant shopping categories include the following:
Other retail 19.8% ($761.8M)
Remaining merchants 10.5% ($314.4M)
Department Stores 19.5% ($176.9M)
Radio, TV, and stereo stores 32.4% ($11M)
Sporting goods stores 13.2% ($11.3M)
Furniture and equipment stores 19% (8.5M)
Miscellaneous Specialty -1.4% ($8.1M) (Center for Retail Research, 2010)
CLSA Asia-Pacific Markets reports its third survey as part of a series on PRC tourist arrivals to Hong Kong, which is stated to reinforce the SAR’s “image as a major shopping destination.” (2004) The report states that mainland visitor spending “continues to rise, with an overwhelming 90% of respondents affirming their intention to return…” (CLSA, 2004) Primary shopping attractions in Hong Kong include such as “…cosmetics, electronic products, clothing, gold and watches…” (CLSA, 2004)
CLSA’s survey is reported to show that “per-capital shopping expenditure has risen by 52% over nine months with cash as the preferred method of payment.” (CLSA, 2004) Key findings in the CLSA survey include those stated as follows:
Per-capita shopping expenditure is at HK$4,810, up 52% from CLSA’s survey in August 2003, implying that mainland visitors will spend U.S.$7.4bn on retail purchases this year.
Stripping out double-counted arrivals due to side trips such as Macau, mainlanders could account for 28% of HK’s total retail sales.
Based on an average 38% retail gross margin, HK is effectively capturingUS $2.6bn of this shopping expenditure, equivalent to 1.5% of estimated 2004 nominal GDP.
Using reasonable assumptions, mainlanders could be spending U.S.$16bn on shopping in HK by 2010, equivalent to 66% of this year’s projected total HK retail sales and 3.5% of nominal GDP using the same average gross margin. (CLSA, 2004)
The first study reviewed in this work involved five females and 11 males who had spent time in tourism shopping in Hong Kong. Participants involved individuals from Canada, The United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. The individuals in this study primarily had an income of $5,000 or above in U.S. dollars with others having lower income. Occupations of individuals in the study included clerical/administrative, retired, executive/managerial, academic/educator, other, self-employed or owner of a company, K-12 student or college graduate student.
Participants in the study reviewed cited the most important factors in shopping was: (1) great selection; (2) good prices; (3) great bargains; (4) cheap and convenient; (5) broad selection range; (6) discount prices. All participants in the study stated that they would shop in Hong Kong again. Hong Kong ranks number six among shopping tourism locations in the world according to the Center for Retail Research report published in 2011.
Hong Kong’s ranking is shown at number 6 in this category of the survey findings. Spending trends emerging during this study include those showing that the greatest tourism spending was on accommodations followed by retail spending, department stores spending, restaurant spending and airiness spending. Lower levels of spending were noted in health care, other travel and entertainment, and travel agencies.
Also emerging in the study was the heavy tourism experienced by Hong Kong in November and December during the Hong Kong Winterfest resulting in spending totally U.S.$242.2 million and U.S.$239.5 million respectively for 2009 and 2010. Spending in merchant categories revealed findings that the strong spending was in radio, TV, and stereo stores, followed by retail spending, furniture and equipment stores, sporting goods stores and miscellaneous specialty.
V. Urban tourism
As noted earlier in this work in writing, urban tourism is a big industry in the Hong Kong tourism industry. Hong Kong is replete with accommodations and attractions to draw urban tourists into Hong Kong’s cities for visits.
VI. Destination Marketing
The work of Jung, Hsieh, Byrd, and Cardenas (nd) entitled “A Case Study of Destination Marketing In Hong Kong” reports “Throughout its limited land, Hong Kong has been aggressively developing a variety of world-class tourist attractions. Some major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park.” In addition, it is reported that Hong Kong residents “are proud of its colorful history and unique oriental culture, especially as related to the ancient Chinese traditions. Some of the region’s most popular annual festivals and events embody the essence of Chinese culture. Hong Kong’s representatives have successfully developed its cultural festivals and events into worldwide, famous must-see or must-do attractions, which provide an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and Best of the Best Culinary Awards.” (Jung, Hsieh, Byrd, and Cardenas, nd ) The Hong Kong Tourism Board is reported as having consistently led “a series of ambitious, impressive tourism campaigns and promotions since 2000. These ceaseless efforts have contributed greatly toward positioning Hong Kong as one of the top world tourist destinations. The major tourism campaigns include The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale and Hong Kong WinterFest, and Hong Kong Salutes the World.” (Jung, Hsieh, Byrd, and Cardenas, nd) Findings stated in the work of Jung, Hsieh, Byrd, and Cardenas (nd) state that revealed are “…several strengths of Hong Kong tourism in terms of destination marketing. These included: effective tourism organizations, continuing tourism product development, a unique variety of annual festivals and cultural events, outstanding tourism campaigns and promotions, quality service controls and hospitality programs, thorough overseas market segmentation, targeting, and positioning activities, and active online marketing through a DMO website
VII. Shopping Tourism
Shopping tourism in Hong Kong is a big business and as such the Hong Kong Tourism Board promotes shopping tourism.
VIII. Research Purpose
The purpose of the research in this study is to examine the shopping patterns and preferences of individual who have spent time shopping in Hong Kong.
IX. Methodology
The methodology employed in this study is a mixed methods study involving qualitative and quantitative data collection and analysis. Data collection will be in the form of a questionnaire distributed to a sampling of 70 individuals who have spent time shopping in Hong Kong.
X. Questionnaire Design
The use of a quantitative approach has the advantage of measuring the reactions of a large sampling of participants in a limited set of questions, which enables the comparison of the data collected. The questionnaire used in this study is structured in nature and developed specifically for data collection that is self-reported in nature. The questionnaire form is inclusive of the general demographics of the participants in the study and general questions, which focus on the travel, and shopping of tourists in Hong Kong. Respondents in the study were instructed to choose the statements that best reflected their travel activities or alternatively to fill in the blanks with the precise information based on their travel and shopping tourism experience in Hong Kong. The questions were utilized to investigate the shopping behavior characteristics in regards to motivation, attitudes, consideration, decision-making, and level of satisfaction while shopping in Hong Kong.
XI. Research Sample and Data Collection
Sampling was random in nature and target respondents were selected in the shopping areas of Hong Kong for the questionnaire survey. The researcher evenly distributed their time in various shopping locations in Hong Kong and the selection of respondents was conducted in a random fashion. Selection of respondents was upon the basis that the individuals were not residents of Hong Kong, but instead were visiting Hong Kong. A total of 75 questionnaires were distributed with 70 valid questionnaires resulting in a valid rate of 93.4%. The demographics of respondents in the study varied in regards to age, gender, marital status, education level, and ethnicity. The sampling is a valid one as the percentage of the gender and source continents represented in the study is in relation to the actual percentage is consistent in nature. The survey was conducted with the tourists in various shops throughout Hong Kong allowing the interview with tourists to be conducted simultaneously to the questionnaire and respondents who had a richer experience shopping enjoyed sharing their views about the shopping experience and were therefore chosen for in-depth interviews.
XII. Data Analysis
Statistical research techniques enabled the analysis of the perceptions of respondents as it is found previously to be quite varied between studies and makes comparisons of previous studies challenging.
XIII. Results
The stated objective of this study is to examine shopping tourism in Hong Kong and specifically to attempt to answer the questions as follows
1. Age of Participants
The ages of participants in this study are as follows:
20-29 Years of Age — 45%
30-39 Years of Age — 30%
40-49 Years of Age — 20%
Over 50 Years of Age — 5%
Nearly 1/2 of participants in the study were in the age range of 20 to 29 years of age with those in the age range of 30-39 years of age 30% of the total of participants and those in the age range of 40-49 years of age at 20% and over 50 years of age at 5%.
2. Nationality of Participants
Countries represented in this study include the following:
Canada
10%
United States
15%
Thailand
18%
China
22%
Vietnam
18%
Cambodia
17%
Participants in the study represented China at 22%; Thailand at 18%, the United States at 15%; Vietnam at 18%, Cambodia at 17% and Canada at 10%.
3. Was this the first time that you have been shopping in Hong Kong?
Yes — 30%
No — 70%
70% of respondents in the study had shopped as tourists in Hong Kong previously while 30% were experiencing their first shopping tourism experience in Hong Kong.
4. How long do you plan to stay in Hong Kong?
1 to 2 days – 5%
3 to 5 days — 60%
6 to 8 days — 5%
The majority of the respondents in the study (60%) planned to stay 3 to 5 days in Hong Kong, while 5% planned to stay 1 to 2 days and another 5% planned to stay 6 to 8 days in Hong Kong.
5. Income of the participants
Below 5000 40%
5000 — 8000 20%
8000 — 12000 20%
12000 — 15000 20%
Individuals with the lowest level of income comprise the largest group among shopping tourists in Hong Kong with all other income groups equally represented among Hong Kong Shopping Tourists.
6. How much do you plan to spend while in Hong Kong?
2000-4000 35%
5000 — 7000 15%
Above 10000 15%
Individuals with income of 4000 per month and below comprise nearly half of all shopping tourists in Hong Kong in this particular study.
7. How important is quality in the products you purchase?
Very important — 65%
Important — 20%
Fair — 10%
Unimportant — 5%
85% of shopping tourists in Hong Kong find quality of items purchased to be important or very important.
8. How important is price in the products you purchase?
Very Important — 50%
Important — 20%
Fairly Important — 25%
Unimportant — 5%
Price was cited by 50% of respondents in the study as being very important in their purchase decisions while 20% cited price as important, 25% cited price as fairly important and 5% stated that price was unimportant in their decision to purchase specific products in Hong Kong.
9. How important is the shopping environment relating to your purchase?’
Very Important 65%
Important 25%
Fairly Important 8%
Not Important 2%
90% of shopping tourist in Hong Kong find the shopping environment to be important or very important in terms of where they do their shopping while in Hong Kong.
14. Were the places you shopped in Hong Kong convenient?
Very Convenient — 70%
Convenient — 25%
Fairly Convenient — 5%
95% of shopping tourists in this study found shopping in Hong Kong to be either convenient or very convenient.
70% of respondents in the study stated that shopping in Hong Kong was very convenient while 25% of respondents stated that Hong Kong shopping is convenient and 5% stated that shopping in Hong Kong was fairly convenient.
15. Will you return to Hong Kong shopping in the future?
Yes — 85%
No — 15%
An overwhelming majority of respondents in the study (85%) stated that ‘yes’ they will return to Hong Kong in the future to shop. Only 15% of respondents stated that they would not return to Hong Kong to shop in the future.
In summary, the research in this study has found that tourists spend a great deal of this monthly income shopping in Hong Kong and that tourists find it very important to shop in a convenient environment and to purchase quality products at great prices. The tourism industry is a thriving industry in Hong Kong and this is especially true in regards to shopping tourism in Hong Kong.
XV. Recommendations
Cities are complex environments that present visitors with a range of experiences, which are more often than not centered on site-specific attractions. Future research study could focus on the importance of the Internet in promoting shopping tourism in Hong Kong and also could examine whether there is continuity in purchases made in Hong Kong after tourists have returned home via the Internet.
XVI. Limitations of the Study
The limitations of this present study are in the fact that the sampling while random was still in a fashion non-random sampling since the sampling was comprised of individuals who were shopping at the time they given the questionnaire or participated in the interview.
XVII. Conclusion
Tourism development in Hong Kong could easily focus in the future on a continuity of shopping via the Internet once tourists visiting Hong Kong have returned to their home. While the present shopping tourism industry is ‘place’ focused, there is still a potential for enabling the Hong Kong shopping experience for visitors through virtual shops that would further serve to bring more tourists to Hong Kong to shop and ultimately to upgird the economy of Hong Kong and enable future urban development.
Bibliography
Cheung, Sidney (nd) Cultural Tourism and Hong Kong Identity. Department of Anthropology. The Chinese University of Hong Kong. Retrieved from: http://cuhk.orientalecom7.com/en/publish/workingpaper4.pdf
Discover Hong Kong by Rail (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/discover-hongkong-rail.html
Experience Unique Hong Kong (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/cultural-tours.html
Hong Kong Culture (2012) Tourism Asia Network. Retrieved from: http://hong-kong.tourism-asia.net/index.html
Hong Kong Tourism Fact Sheet (2012) Hong Kong Tourism Board. Retrieved from: http://www.gov.hk/en/about/abouthk/factsheets/docs/tourism.pdf
Hong Kong Walks (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/hongkong-walks.html
Jung, SW; Hsieh, YJ; Byrd, E; and Cardenas, D (nd) A Case Study of Destination Marketing in Hong Kong.
New Territories (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/shopping/location-new-territories.html
PRC tourists shopping in HK on the upswing CLSA survey finds per-capita expenditure rises by 52% over nine months (2004) CLSA. Jun-14-2004. Retrieved from:
Romantic Vacation (2012) Hong Kong Tourism Board. Retrieved from: http://www.discoverhongkong.com/eng/things-to-do/romantic-vacation.html
Tourism outlook: Hong Kong (2010) VISA. Retrieved from: http://corporate.visa.com/_media/visa-tourism-outlook-hong-kong.pdf
PRC tourists shopping in HK on the upswing CLSA survey finds per-capita expenditure rises by 52% over nine months (2004) CLSA. Jun-14-2004. Retrieved from:
https://www.clsa.com/about-clsa/media-centre/2004-media-releases/20040614_en.php
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