Further rate hikes may place already expensive Hong Kong hotels on thin ice, prompting players to make moderate adjustments and seek out alternative strategies. Prudence Lui reports

Hong Kong hotels have been blamed for aggressive price hikes in recent years, but given the volatile global economy along with the implementation of China’s new tourism law last October that impacted Chinese outbound, hoteliers are now feeling the pinch and making mild rate adjustments for 2014.

Harbour Plaza 8 Degrees in Kowloon, for instance, has opted for a marginal room rate increase and the same meeting package rate as 2013 to stay competitive. Its general manager, Christina Cheng, explained: “The supply of hotel rooms and (event) venues has been increasing in Hong Kong (and) there are now fewer Chinese governmental events being held due to China’s new travel policy.

“The MICE segment has become more competitive with increased venue vacancies in the market. However, we have so far received a good number of MICE enquiries pertaining to 1H2014, most of them pending confirmation.”

To combat the situation, the property has worked on designing attractive meeting packages that offer theme coffee/tea breaks, cooking classes for teambuilding, etc. (See other offers in Hong Kong on Take Your Pick Of These Offers)

Cheng added: “We are also focusing more on shorthaul markets such as South Korea, Japan, India and South-east Asia. We see great potential from these markets whose economy and MICE segment have been progressing in recent years.”

Courtyard by Marriott Hong Kong Sha Tin has projected a mild rate increase of four to six per cent. Its director of marketing, Chris Wong, said: “We remain conservatively optimistic considering there is still uncertainty in the region, like (the impact from) China Central Government’s new policies relating to leisure and business travel.”

Meanwhile, The Peninsula Hong Kong remains cautiously optimistic regarding rate growth. Its price adjustments for both room and meeting packages in 2014 will be in line with the market. A spokesman said: “We will adopt a moderate approach to attracting business from longhaul and regional markets through our new conference centre’s offerings. Currently, the outlook for 2014 is fairly positive. The pace of our group bookings (so far) is much stronger compared to the same period last year.”

Amway Hong Kong general manager, Louisa Chan, hopes to see less aggressive rate adjustments among Hong Kong hotels.

“Savings from rooms and venue rental rates allow us the flexibility to consider better quality land programmes, such as the engagement of top-notch outside speakers for our meetings,” said Chan.

PC Tours and Travel, general manager, Cary Chiu, welcomes the hotels’ decision to impose only mild rate hikes, as he feels that “Hong Kong is not a must-visit destination compared with other countries such as Thailand, so the savings may help” to entice clients who are increasingly budget-conscious.

While Hong Kong hotels are voicing intentions to make upward adjustments to their rates, Diethelm Travel Hong Kong’s general manager, Edward Chan, predicts a five to 10 per cent drop in prices this year due pressures from a growing hotel room supply.

“It is possible for large group bookings to bargain rates down. In fact, I’ve heard it only cost HK$2,000 (US$258) to book (a room at) The Peninsula last November.”

Hong Kong’s hotel room inventory will continue to expand in 2014 against a backdrop of weaker arrivals in 2013 and tighter corporate travel budgets this year.

Harbour Plaza 8 Degrees’ Cheng said some 5,804 additional rooms will come into the market by end-2014, bringing the total room count to 74,484 and exerting further pressure on existing hotels.

According to statistics from Hong Kong Tourism Board, MICE overnight arrivals from longhaul and shorthaul markets dropped 2.4 per cent (262,882) and four per cent (322,979) respectively between January and November 2013.

Jones Lang LaSalle Property Consultants, Hotels & Hospitality Group vice president for research and strategic advisory (Asia), Frank Sorgiovanni, warned that major industries such as banking and insurance will continue to see travel budgets being trimmed, resulting in shorter stays and pressure on room rates.

“Nevertheless, Hong Kong will remain a vibrant business and leisure hub and its hotel market will continue to trade well, although the pace of growth of five to 10 per cent is likely to temper. Despite continuing uncertainty in the global economy and operators’ expectations earlier this year of a decline in performance, upscale hotels in Hong Kong have (so far) continued to exhibit stable trading performance,” he added.

Take your pick of these offers

InterContinental Hong Kong

The hotel’s 2014 Meetings to Inspire package offers the use of Harbourview Function Room; a personal meeting butler; complimentary coffee, tea, distilled water, candies and dried fruit; special offer on LCD projector rental; stationery for each delegate and 10 per cent discount on I-Spa treatments, among others.

Valid till December 31 for a minimum of 20 pax, a full-day meeting is priced at HK$950 (US$122) per pax subject to 10 per cent service charge; half day at HK$850, half day without lunch at HK$700, breakfast enhancement at HK$200, lunch at Nobu InterContinental Hong Kong at HK$150, and Harbourside Buffet lunch supplement at HK$100.

Email enquiries to hongkong@interconti.com.

Kowloon Shangri-La

The hotel’s Meetings Go Well package with accommodation from HK$2,550 (subject to 10 per cent service charge) per room night includes one night in a deluxe room with daily buffet breakfast and complimentary in-room wired Internet and Wi-Fi. A full-day meeting package includes use of a private function room from 9.00 to 17.00, refreshments for morning and afternoon coffee/tea breaks, and lunch in a private function room or at Cafe Kool.

Valid till September 30 for single occupancy with a minimum booking of 10 rooms and maximum of 40, group bookings of 25 rooms or fewer can choose from a complimentary upgrade to a deluxe harbour view room for VIP, 25 per cent discount on all business centre services, or complimentary use of LCD projector with wireless microphones.

Group bookings of more than 25 rooms enjoy three additional perks, such as one complimentary round-trip hotel limousine airport transfer, complimentary coffee/tea throughout the event for 40 pax, etc.

Contact ksl@shangri-la.com for more information and bookings.

Harbour Grand Hong Kong

The hotel offers a full-day meeting package starting from HK$698 per pax, subject to 10 per cent service charge. Perks include use of a meeting room from 9.00 to 17.00, coffee and tea service throughout the meeting, refreshments for one morning and one afternoon coffee break, dedicated butler service, choice of lunch served in the same meeting venue (subject to venue availability) or international buffet lunch at Harbour Grand Café, stationery, bottled water and candies, among others.

A half-day package starts from HK$590 per pax and includes the above perks, except use of the meeting room is from 9.00 to 13.00 or 13.00 to 17.00 and refreshments are provided for one coffee break only.

Audio-visual equipment rental charges are priced at HK$1,200 net per port per day for wired or wireless Internet access in the meeting venue, and HK$2,000 net per set per day for portable LCD projector and screen.

Offers are valid from January 1 till December 31, for a minimum of 10 pax.

Email enquiries to hghk@harbourgrand.com.

Regal Airport Hotel

The hotel’s We CARE Residential Conference package is priced from HK$880 per pax per day for a full-day meeting and includes one night’s accommodation (on twin-sharing basis) and use of Pegasus, Polaris, Phoenix or London Suite.

Other We CARE options (chargeable per pax) include upgrading the entire meeting to a green meeting at HK$180, one extra coffee break with refreshments at HK$60,  free flow of coffee/tea through the meeting at HK$20, a 55-minute body massage at HK$388, a three-hour teambuilding activity at HK$1,000, upgrading the normal refreshment break to theme break  at HK$80, among others.

Offers are valid from now until December 31 for 16-60 pax per day.

Email enquiries to meet@airport.regalhotel.com.

Holiday Inn Golden Mile

The hotel’s Executive Meetings package for a minimum of 15 pax is offered at as low as HK$650 per pax (subject to 10 per cent service charge). Perks include the use of the conference room from 9.00 to 17.00, lunch menu choices (international buffet or Chinese style), morning and afternoon coffee breaks, and standard meeting equipment.

Email enquiries to reserv@goldenmile.com.

Ideas

A day in Hong Kong

Hong Kong boasts miles of scenic coastline and beaches, so small MICE groups may want to embark on a relaxing sea excursion post-meeting. Here’s a simple itinerary comprising cruise and land activities.

morning Be picked up at 10.30 from Central Pier 10 by private yacht charter, The Lazydays [tel: (852) 3488-1534], and be greeted on board with the aroma of fresh coffee, gourmet tea and full breakfast featuring bacon rolls and homemade pastries. During the hour-long journey to Saikung, sunbathe on deck to enjoy the fresh sea breeze and natural scenery along Hong Kong’s shorelines. Alternatively, have some light-hearted distraction by an Xbox with a Karaoke function. A Versatile assortment of books, magazines and board games are also available.

afternoon Cruise and berth at Tapmun Island (nicknamed Grass Island) tucked away in a remote corner of Hong Kong Sai Kung East Country Park. Here, enjoy a meal of fresh local seafood at New Hon Kee waterfront restaurant and have a chat with owner Pekky Lam, who will tell you the history, culture, and life of Tanka fisherfolk, the island’s inhabitants.
Outside of the waterfront village, the island is a hotspot for camping and hiking. After lunch, gear up for a teambuilding activity, such as treasure hunt, or divide into small teams and to run along the circular route dotted with ecological highlights like pebbled beaches and cultural icons like the Tin Hau Temple. While weighing anchor at about 16.00 on the stylish motor launch, enjoy snacks and free-flowing drinks including Prosecco, a selection of wines, beers and soft drinks as you return to the city.

evening Back in the city, choose from an array of F&B and entertainment outlets and party the night away.

Need to know

Refreshing changes, new experiences

Hotels are attempting to outperform one another with revamps. Hotel Nikko Hongkong (left) has refurbished its Nikko Floor and Toh Lee Chinese Restaurant. The in-room amenities for all 136 guest rooms are upgraded with a blue-ray player, iDock and trousers presser. The 180-seat Toh Lee welcomes all five upgraded VIP rooms; the restaurant now also uses partitions between tables in the main dining area. Meanwhile, on the other side of Victoria Harbour, the 454-room Cosmopolitan Hotel Wan Chai will complete its revamp of guestrooms, hotel lobby, gym and the hotel’s exterior later this year, blending Victorian style with oriental elements. Some of the new in-room features include long mother-of-pearl executive desk, built-in ironing board, ample storage space and ultra high-speed Wi-Fi.

Work, dine, relax all at once

Plaza Premium Lounge (email: hongkong@plaza-network.com) unveiled another pay-in lounge at Hong Kong International Airport’s West Hall last December. It operates 24 hours with special zones for relaxation, work and dining. Executives may stay connected with free Wi-Fi or complete a deal at the private workstations. Another highlight is The Market Place, which features F&B stalls ranging from a tea station serving Chinese milk tea to a noodle bar serving signature Hong Kong delicacies.

Further links with America

Air connectivity with the US is reinforced in 2014 following American Airlines’ announcement of DFW International Airport’s first flights to Hong Kong. The new daily service will start on June 13 using Boeing 777-300ER aircraft. Meanwhile, Delta Air Lines will launch a daily nonstop service from Seattle-Tacoma International Airport to Hong Kong on June 18 (tickets already available for booking). The service will operate via Airbus 330-200 aircraft with BusinessElite, Economy Comfort and Economy cabins.

Kung fu fighting, anyone?

The five-hour Wing Chun Kung Fu Experience Tour (www.shoestringtravel.com.hk) starts with a one-hour Wing Chun class at the school of Yip Man Martial Arts Athletic Association, followed by a stroll along the Avenue of Stars. Then, tuck into a delectable dim sum lunch before heading to the Hong Kong Heritage Museum for the Bruce Lee: Kung Fu, Art, Life exhibition. The tour is conducted in English with departures every Monday, Thursday and Friday at 9.50. A minimum of three participants are required per tour.

Dine like an elite

Newly opened restaurant Elite Dining (email: eld@elite-concepts.com) boasts a private dining room concept offering a seasonal Chinese menu. Located on the 31st floor of iSquare shopping complex, it features eight private rooms commanding panoramic views of Tsim Sha Tsui and Victoria Harbour. The premise could cater for a small group of four people (minimum spending of HK$800 per pax) to a maximum of 170. For private groups, the outlet offers a set menu for a minimum of six people to a maximum of 170.