Factors Affecting Demand for Tourism in Hong Kong

Summary This study developed a set of seven demand models that identify the major factors associated with changes in tourism to Hong Kong. They included a model for each of the major countries that provide Hong Kong's incoming tourists. The significant parameters include those measures commonly used to assess the financial crisis that hit Asia in 1997-1998: gross domestic product, relative consumer prices, exchange rates, and interest rates. But, some other factors such as the change in Hong Kong sovereignty and seasonality were also found to be very significant.