Short-haul tourist arrivals fall 15% amid strong Hong Kong dollar, fewer flights

Hong Kong’s short-haul visitor arrivals plunged by 15 per cent in June despite an overall growth in traffic, as higher fuel costs linked to the Middle East conflict reduced flight capacity and weaker regional currencies dampened travel demand, tourism authorities have said.

The Hong Kong Tourism Board said on Thursday that the city received 3.72 million visitors last month, up by 7 per cent from a year earlier, driven largely by a 10 per cent rise in mainland Chinese arrivals to 2.88 million.

But the number of non-mainland visitors fell by 4 per cent to 837,962, with the decline in short-haul travellers partially offset by a 16 per cent increase in long-haul arrivals to 277,034.

The board attributed the decline to elevated aviation fuel costs, which had prompted some airlines to cut capacity, as well as currency depreciation against the Hong Kong dollar in short-haul markets.

Fuel prices surged following the outbreak of the US-Israeli war on Iran, forcing carriers across Asia to raise fares, impose surcharges, suspend routes or trim capacity.

Malaysia-based budget carrier AirAsia cut 10 per cent of its capacity and suspended underperforming routes at the height of the fuel crisis, although it expects to fully restore capacity by the end of August.

While jet fuel prices have retreated from an April peak, they have edged up again in recent weeks.