A travel demand model for Mainland Chinese tourists to Hong Kong

The purpose of the study was to determine what exogenous variables best explained the travel demand for Mainland Chinese tourists to Hong Kong. The 12 years (1984–1995) annual time series data of ‘number of Mainland Chinese tourist arrivals’, ‘China disposable income per capita’, ‘consumer price indices in Hong Kong and China’ and ‘exchange rates’ was used to develop a travel demand model. Seven exogenous variables were selected for the model through a literature review. An OLS multiple regression analysis was performed to identify the ‘best’ subset of seven exogenous variables to determine the demand model. The results showed that travel demand for Mainland Chinese tourists to Hong Kong could be explained by ‘disposable income per capita’ and ‘relaxation of visa requirements’.     

Travel demand and behavior of university students in Hong Kong

University students represent an emerging market for the travel industry. This paper reports the findings of a study on the travel behavior and travel patterns of Hong Kong university students. Using a questionnaire, a survey was conducted to identify student travel motives, their travel planning process and travel preferences. A total of 264 university students in Hong Kong were interviewed and data analyzed. The results indicate that to “Experience new and different styles”, “Take it easy and relax”, “Go to places I haven't been before” and “Outstanding scenery” were perceived as important motives in students' travel decision-making. Four factors with 24 attributes were identified. These factors were “Social relationships”, “Obtain new experience”, “Relax and enjoy” and “Cost of travel”. Based on the findings of the study, it was suggested that modifications to the existing tourism products and services and new product development were necessary in order to meet the demand of this emerging market.     

Value of a hotel stay: a case study in Hong Kong

This study examines the value of a hotel stay from the perspective of hotel customers and hotel service professionals. Respondents, including hotel customers and hotel service professionals, were asked the extent of their agreement or disagreement with statements related to four different value dimensions: functional value, emotional value, social value, and customer-perceived sacrifices. Results showed that there are significant differences between the hotel service professionals’ perceived value of the hotel stay and customers’ perceived value of the hotel stay. The differences are found in social value and customer-perceived sacrifices.     

Leadership Issues and Challenges in the Tourism Industry: A Hong Kong Perspective

This study examines current leadership issues and challenges in the tourism industry with a particular focus on Hong Kong, a trend-setting locality for the industry. Employing qualitative research, in-depth interviews were conducted with 10 highly respected industry leaders, all having long-established careers involving extensive local and global experience. These leaders represent a wide variety of sectors of the tourism industry. Study findings highlighted specific skills (business knowledge, communication, self-reflection), personal characteristics (determination, open-mindedness) and excellent relations with other parties (team support, respect) as key attribute requirements of industry leaders. The industry's universal “people orientation” emerged as the dominant issue that requires particular leadership skills with regard to interpersonal relations and communications. The emergence of new technologies and changes among employees were identified as the two key industry trends that require changing leadership skills. The implications of these findings are discussed and areas for future research highlighted.     

The Perceived Importance of Job Attributes Among Foodservice Employees in Hong Kong Hotel Industry

Abstract

This study explored the perceived importance of fourteen job attributes among foodservice employees in Hong Kong hotels. The study identified that Pay was ranked as the most important job attribute, followed by Fringe Benefits, then Advancement and Promotion, respectively. Status, Job Autonomy, Skill Utilization, and Supervision were the attributes ranked as having the lowest importance. Four factors were derived from the fourteen job attributes: Intangible Job Context, Employee Development and Skill Utilization, Remuneration Packages and Workplace, and Intangible Work Rewards. Results of ANOVA indicated that the four factors varied significantly related to the employees' Education Level, Income Level, Position, and Type of Hotel. Implications for future studies of job attributes were discussed.     

Market demand variations,room capacity,and optimal hotel room rates

This short note develops an optimal hotel room rate model and proposes optimal room rate strategies in both high and low seasons. We then examine our model with the data from tourist hotels in Taipei, Taiwan. The empirical results support our model's major predictions: (1) market demand variations significantly affect the difference between high season and low season optimal room rates; and (2) hotel's room capacity negatively affect the difference between high season and low season optimal room rates, which also means that fixed costs shall negatively affect the high season optimal room rate. This result contradicts with conventional wisdom.     

Training practices in the Hong Kong hotel industry: Managerial and executive perspectives

ABSTRACT

Technology is expected to be adopted for the benefits of two types of customers in the hotel industry—external customers for providing better guest experience and internal customers for upgrading skills and knowledge. A survey was used in this study. Training with technology is not the current trend, and on-the-job training is still being adopted frequently and is preferred by executives and managers. It is unpredictable how long it will be before Hong Kong hotels take complete advantage of computer-based training. Minimum yearly training hours and training budgets should be benchmarked and be transparent for a better provision of training.     

The impact of the Asian financial crisis on Japanese demand for travel to Hong Kong: A study of various forecasting techniques

The Asian financial crisis has drawn worldwide attention because of its significant economic impact on local economics, especially on the economy of a tourism‐dependent destination. Unfortunately, there have been very few articles about the relationship of the Asian financial crisis and tourism demand forecasting. This relative lack of prior studies on the Asian financial crisis and tourism demand forecasting is particularly true in the context of Hong Kong. This article reports on a study that utilized officially published data to test the accuracy of forecasts of Japanese demand for travel to Hong Kong, measured in terms of the number of Japanese tourist arrivals. Seven commonly‐used tourism forecasting techniques were used to determine the forecasting accuracy. The quality of forecasting accuracy was measured in five dimensions. Experimental results indicated mixed results in terms of forecasting accuracy. Overall, artificial neural network outperformed other techniques in three of the five dimensions.     

Exploring the relationship between employee creativity and job-related motivators in the Hong Kong hotel industry

The purpose of this research is to determine if there is any relationship between employee creativity and job-related motivators, using a case study of hotel employees in Hong Kong. From a sample of 983 employees, canonical correlation indicated there is a relationship between creativity and job-related motivators. Furthermore, the risk-taking dimension under creativity was found to be more correlated to the intrinsic job-related motivators. Intrinsic job-related motivators which include opportunity for advancement and development, loyalty to employees, appreciation and praise of work done, feelings of being involved, sympathetic help with personal problems and interesting work, are found to encourage the hotel employees’ risk-taking behavior. A “See-Saw” model is presented to show the relationship between the two opposing sides: intrinsic motivators and extrinsic motivators versus creativity and risk-taking factors.     

Tipping Behavior of Diners in Three Upscale Chinese Restaurants in Hong Kong

This study intends to fill a gap in the literature and explores customers' tipping behaviors in the Chinese foodservice industry. The main focus of this study is to test a model that examines the influences of “food quality”, “service quality”, “conformity”, “universalism”, “reputation”, “likelihood of return” and “overall meal satisfaction” on tip size. A survey was conducted with 611 restaurant patrons in three selected Chinese restaurants in Hong Kong. The findings of this study reveal that five of these seven factors were found to be good predictors of overall satisfaction except “universalism”. However, the overall impact of these seven factors on tip amount was small. Implications of the findings were discussed and directions for future studies were included.     

Hotel Selection Criteria Used by Mainland Chinese and Foreign Individual Travelers to Hong Kong

Given the growing number of outbound tourists from Mainland China to other parts of the world, it is important that hoteliers are aware of the different needs of this group of travelers. This study examines differences in the importance ratings of hotel selection criteria between Mainland Chinese and foreign individual travelers to Hong Kong. The results indicate that Mainland Chinese travelers placed different levels of importance on the various attributes examined than did their non-Chinese counterparts. They are generally more demanding than foreign respondents, despite the fact that the budgets they allocate for accommodation are smaller both in percentage and in absolute dollars.     

Hotel Employees' Perception of the Statutory Minimum Wage Policy in Hong Kong

Employee compensation is one of the largest expenses for businesses. Given the labor-intensive nature of the hotel industry, hotel employees' perceptions of the statutory minimum wage (SMW) policy have become a major concern for hotel operators since the introduction of the policy in Hong Kong. This exploratory study examines these perceptions, together with hotel employees' job and compensation satisfaction and intention to leave, since the introduction of the SMW policy. A survey of 161 hotel employees in Hong Kong was carried out. Respondents demonstrated high awareness of the SMW policy but viewed its effect on the hotel industry as limited. The largest gap between the perceived importance of, and satisfaction with, a factor related to job satisfaction was found for the benefits package. As well as making a contribution to the academic literature, this study provides practical implications of the SMW policy for the hotel industry in Hong Kong and other countries considering adopting a similar measure.     

The Importance of Hotel Attributes in Contributing to Travelers' Satisfaction in the Hong Kong Hotel Industry

Abstract

This study surveyed 402 international travelers to explore their satisfaction levels towards service and facility quality in three Hong Kong hotel market segments, High-Tariff A, High-Tariff B and Medium Tariff. Six perception dimensions were extracted from 33 hotel attributes by a factor analysis. All six dimensions had a significant impact on the overall satisfaction of travelers with service quality and facilities in the three Hong Kong hotel market segments. Quality of Staff Performance was the most influential factor followed by Quality of Room Facilities, Value for Money, Variety and Efficient Services, Business Related Services, and Safety and Security respectively. It was found that travelers had the lowest satisfaction level towards the Medium-Tariff hotel segment. By identifying the most influential hotel dimension in influencing travelers' satisfaction levels, hoteliers will be in an advantageous position to formulate tactics to meet the changing needs and expectations of travelers. Implementing human resources training that emphasizes the fact that service quality is part of each employee's job should have a significant impact on guest re-purchase intention. The importance of value segmentation cannot be overlooked by hoteliers. Travelers will continue to expect hotels to provide more value-for-money services and facilities and they are expected to shift their purchasing decision to an economic value basis.     

Food miles and food choices: the case of an upscale urban hotel in Hong Kong

The nature of food production and consumption has changed dramatically in recent decades. Food sources for hotels and resorts have been an increasingly important sustainability topic in recent years. Where food is sourced has important implications for the economic, environmental and socio-cultural sustainability of tourist destinations. Based on where food is sourced and the mode of transportation, food miles is calculated for an upscale urban hotel in Hong Kong over a 12-month period. Greenhouse gas emissions associated with these food miles are computed. Over three-quarters of the food and beverages procured travelled via sea, the most energy efficient mode of transportation. Follow-up interviews with the hotel's procurement and executive chefs reveal the motivation behind these purchase decisions. While quality of food is the main driver for chefs, the procurement department take quality and cost into consideration. These different motivations provide potential conflict in sourcing food sustainably. Another issue raised is that food being procured from nearby countries may have questionable health and safety standards. Just because food can be procured closer to the destination does not necessarily mean it is the most sustainable option.     

Are all tourism markets equal? Linkages between market-based tourism demand,quality of life,and economic development in Hong Kong

Tourism markets are heterogeneous, and their performance and effects can be better understood when considered separately. This paper investigates the linkages between tourism demand from several markets and quality of life, using Hong Kong as a case of study. The literature has, initially only considered a unilateral relationship running from aggregate tourism development to residents' quality of life, and a bilateral connection has only recently been recognized. The study contributes to the literature by considering a market-segmented (mainland China, Japan, the U.S., and other markets) approach to tourism demand, using a relatively underemphasized objectively-based method, and by providing building blocks for theoretical propositions. The methodology consists of unit root and cointegration testing, together with the application of the Three-Stage Least Squares method with the Seemingly Unrelated Regression approach on time-series data. The identified market-based differences can help academia and industry in better understanding the diverse markets and building a competitive edge.     

Optimizing Room Capacity and Profitability for Hong Kong Hotels

This study estimates optimal guestroom capacity for the Hong Kong hotel industry during 2010–2013 using a single-period inventory model. Using Hong Kong hotel operational data for the period 2000–2009, we identify an issue of serious overcapacity of Hong Kong hotels for 2010–2013, the severity of which ranges from 30.6 to 40.7% above the optimal hotel guestroom counts derived from our study. We further estimate an optimal advertising budget as a percentage of total revenue (3.78%) in maximizing profitability. Attention is called for stakeholders to carefully reexamine existing and future hotel development plans and work on pushing up future room demand. The implications of our study are also discussed.     

Competencies of training professionals in the Hong Kong hotel industry

ABSTRACT

This study aims to investigate the competencies of training professionals in the hotel industry in Hong Kong. A survey questionnaire was adopted. Seventeen competencies were derived by factor analysis. Six essential competencies are identified, whereas “people skills and commitment” and “awareness of quality” are the most important competencies, while another 11 competencies are highly preferred. This study provides original criteria for hoteliers and human resources professionals to facilitate the recruitment process and aid training professionals in developing core competencies in hotel industry employees. Theoretical and practical implications of the findings are presented.     

Air Quality in Hong Kong: A Study of the Perception of International Visitors

This paper reports on a study of the views of 1304 international travellers about their perception of air quality in Hong Kong. Findings indicated that the respondents generally did not perceive the air quality in Hong Kong as a concern when they chose to travel; they had a neutral view of this issue. However, after their visit they considered Hong Kong's air quality in both indoor and outdoor environments as worse than in their home countries. Many visitors were willing to pay an additional departure tax to fund improvements. The findings of this study have implications for decision-makers in formulating more sustainable planning policies to deal with this important environmental issue.     

User preferences for web site attributes: A study of the Hong Kong Disneyland

The Hong Kong Disneyland will be open in 2005 and the theme park is very likely to have an official web site. In order to determine the nature of a model/ideal official web site that would serve the promotional purpose, this study is conducted with two objectives. First, the study makes an attempt to understand the information types that the target markets, namely local Hong Kong residents, Western visitors and Chinese visitors, would like to have on the future Hong Kong Disney web site. Secondly, this research examines whether e‐ticketing is feasible for the web site. Using a questionnaire and a convenience sampling method, 198 responses were received. Empirical results indicate that the respondents all agreed that the suggested attributes should be listed in the web site. In addition, no significant difference was found among different groups of respondents on homepage information. However, significant differences were found among the interviewees’ views regarding products/services information, and ticketing information. To communicate effectively, the adoption of EDI (Electronic Data Interchange) is recommended in a value‐chain system for achieving successful e‐commerce.     

Impact of financial/economic crisis on demand for hotel rooms in Hong Kong

The main objectives of this study are (1) to identify the factors that influence the demand for hotel rooms in Hong Kong and (2) to generate quarterly forecasts of that demand to assess the impact of the ongoing financial/economic crisis. The demand for four types of hotel room from the residents of nine major origin countries is considered, and forecasts are generated from the first quarter of 2009 to the fourth quarter of 2015. Econometric approaches are employed to calculate the demand elasticities and their corresponding confidence intervals, which are then used to generate interval demand predictions. The empirical results reveal that the most important factors in determining the demand for hotel rooms in Hong Kong are the economic conditions (measured by income level) in the origin markets, the price of the hotel rooms and the ‘word of mouth’ effect. Demand for High Tariff A and Medium Tariff hotel rooms is estimated to have experienced negative annual growth in 2009 due to the influence of the financial/economic crisis, whereas that for High Tariff B hotel rooms is thought to have grown in 2009 after having decreased in 2008. The demand for tourist guesthouse rooms is expected to be the least affected by the crisis. Overall demand is predicted to recover gradually from 2010 onwards.