Hong Kong's 25.25 million visitor arrivals last year brought a substantial boost to the economy, with total expenditure associated to inbound tourism reaching $117.3 billion, the Tourism Board says.

The board said the financial contribution from inbound tourism to Hong Kong's economy in 2005 and 2006 should exceed projections by around $10 billion.

The tourism industry's focus on high-yield visitor segments has resulted in a rise of around 30% in arrivals to conventions and exhibitions in 2006, compared with 2004. Arrivals by family visitors also grew 13% compared with 2004, with visits by children aged 16 and under increasing by 30%.

Visitors from South Korea grew 11.9% last year to 718,758; the UK (516,495, up11.2%); and the Philippines (454,036, up 16.1%). High-performing emerging markets included the Middle East (up 24.2%) and the Netherlands (up14.8%). Arrivals from the Mainland also rose 8.4% to over 13.5 million. 

Balanced portfolio

The board's chairman Selina Chow said the increased spending and growth from targeted segments reflect the emphasis on high-yield visitors.

"We will continue to focus on attracting high-yield visitors in order to increase the contribution made by tourism to the overall economy," she said.

"While we will strive to maintain a balanced portfolio of visitors, we will also continue to target markets and segments with the highest potential in our marketing activities overseas."

Although facing increasing competition from Mainland cities and Macau, the board will work closely with their tourism authorities and trade to make Hong Kong an essential component in all combo and multi-destination itineraries, she added.