Hong Kong on sale

Meetings in this Asian financial hub are now cheaper, as hotels slash rates to curb falling demand, writes Prudence Lui

It has been a challenging year for Hong Kong hotels due to a worrisome combination of dwindling arrivals from China and steeper competition from neighbouring destinations like Japan.

The Holiday Inn Golden Mile, for example, has seen its MICE business falling from 2.5 per cent of total business between January and July in 2014 to just 1.6 per cent. A more significant drop was seen in the corporate meeting segment while business from the incentive segment remained flat, noted general manager Anne Busfield.

Harbour Plaza 8 Degrees Hotel in To Kwa Wan reported a 20 per cent dip in year-to-date MICE business this year, while Courtyard by Marriott Hong Kong Sha Tin saw a 30 per cent decline in business.

Hotels have reacted by slashing room rates and rolling out attractive packages for meetings and events.

The Holiday Inn Golden Mile is dangling a 20 per cent discount on its events packages. For as low as HK$1,612 (US$208) per person per day, excluding service tax, corporate groups can enjoy accommodation in a deluxe room and use of a conference room from 09.00 to 17.00.

To further sweeten the deal, the hotel is giving guests the option of a buffet breakfast for HK$120 (plus 10 per cent service tax) or an upgrade to an Executive Club Room with Executive Club Lounge access – provided a minimum of 10 rooms with 10 meeting delegates is achieved.

For the period of August to December, Courtyard by Marriott Hong Kong Sha Tin brought the price of its residential meeting package down to HK$1,288 (plus 10 per cent service tax) from HK$1,488.

Busfield said these “reasonable rates and value-adds” are a “positive step for attracting MICE business into Hong Kong”.

While average room rates at Harbour Plaza 8 Degrees Hotel had fallen 17 per cent compared in the past year, the price of its meetings packages has risen some five per cent for the summer.

General manager Christina Cheng remains positive and prefers to be “cautious on rate strategy”. She believes that 2016 will bring positive growth.

However, DMCs in Hong Kong expect to see even greater discounts going forward.

MV Destination, general manager,  Clemson Lo, said: “Hotel owners have been making good money (all these years) and have been increasing rates. Hong Kong has become one of the most expensive destinations in the region. It will take time for the market to recover and I think rates will go further down for another year before returning to a reasonable level in two years’ time.”

Destination Management Company-The DMC’s managing director, Jenny May, observed that “hotels are suffering and offering special packages and deals”.

“We are seeing lower room rates, (complimentary) upgrades, reduced meeting package prices and so on. It seems that whatever you ask for, as long as it is within reason, the hotels will agree to them just to get the business,” May said.

But putting Hong Kong on sale is not an instant solution to the destination’s weakening demand.

Busfield said: “With large-scale incentives and conventions planning at least six to 12 month ahead, these promotions may not be able to address the present occupancy shortfalls in most hotels.”

May agrees, saying the attractive rates and offers are not enough to get all clients to give Hong Kong a nod.

“Nine out of ten times the client opts for another destination,” she lamented, blaming the lack of attractive experiences in Hong Kong for turning clients away to destinations like Bali, Singapore and Dubai.

She said: “There’s just nothing new to do here. What’s more, overseas visitors are put off by all the negative publicity arising from incidents like the Occupy Central protests and fights in the Legislative Council, the influx of Chinese travellers, and the number of shops now selling gold, cosmetics and milk powder. Sadly, it seems that it doesn’t matter how low the hotel rates go, clients just don’t want to come here anymore.”

{Insider}

Cary Chiu, general manager of PC Tours and Travel, offers three must-try activities

Hong Kong is your restaurant

Hong Kong is a gourmet paradise that nurtures versatile and outstanding culinary outlets, so a dine-around programme is a great way to sample all its delights. Such programmes are particularly great for large groups, as delegates can be split into small teams and sent off to explore different hotspots such as Lan Kwai Fong in Central and Knutsford Terrace in Tsim Sha Tsui.

Go sight-seeing

I recommend a private tour to Ping Shan Heritage Trail in Yuen Long which takes half a day. This includes strolling to the old ancestral hall and the two-storey Old Ping Shan Police Station which has been converted into a gallery for the local Tang Clan.

Learn to cook

Six Senses Cooking Studio is a good place to learn how to cook Cantonese cuisine. The chef will walk participants to a local wet market to pick fresh produce, and then lead a DIY cooking class at its studio in Kwun Tong. This activity is also ideal for teambuilding.

{Spotlight}

The recent opening of The Terrace, an outdoor venue on the second floor of The Harbourview hotel in Wan Chai, was met with much excitement among event planners. New outdoor event space has been lacking for some time now in the district, and it is challenging to secure attractive venues with sea views for small groups.

The Terrace is seen as a solution to these woes, as it offers unobstructed views of the Wan Chai waterfront and is a flexible space for up to 50 guests in a theatre setup or 80 people for cocktail receptions.

The 100m² venue is directly connected to the hotel’s existing Function Room 1 and 2, allowing event planners more space should they have larger groups.

The Terrace comes with a wood panel floor, well-knitted turf and much greenery, making it a suitable venue for garden themed parties in the day and at night.

Meanwhile, all its six function rooms on this floor were recently refurbished as part of the hotel’s plans to improve its business events product. Besides a hardware boost, the hotel has also invested in partnerships with several teambuilding companies to offer tailor-made programmes for its corporate clients.

One of the programmes on offer is an African drum course.

General manager, Harrison Leung, said: “What sets us apart from the big players is in our subtle offerings. Many venues have only four walls, but half of our space enjoys natural daylight and faces a harbour.”

The hotel is able to host teambuilding groups of 60 pax.

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