Since the retrocession of the British colony, Hong Kong could have been surpassed by Beijing, or supplanted by Shanghai in the hearts of tourists such as businessmen… Certainly not! The Pearl River Delta could have slowed down… Even less! The dragon continues to raise its head. The seventh tourist destination worldwide is doing very well. More than 25 million visitors in 2006 and 8.1% growth from one year to the next attest to the excellent health of Hong Kong tourism. Better still: this year, with 2.28 million visitors, the Chinese New Year allowed the archipelago to bat all the records for a month of February. Growth by 18.2 % is to the credit of clientele from continental China. While this population is important in number with 20 to 25% of arrivals, for the moment their contribution to the luxury hotel tier is still low.“The recovery is due to a number of reasons. There has been a lot of pentup demand since SARS. Travel from the PRC and business travel is booming. Hong Kong is still an important base for those doing business in China plus an increasing number of exhibitions and conferences taking place in the city are attracting delegates, exhibitors and buyers. The impressive results are demand driven. And demand has been the major factor in pushing up the average rate. Although the average rate in Hong Kong has increased significantly in the past two years, compared to other world cities in Europe and USA, the rate in Hong Kong is at a very healthy level. With its currency pegged to the US$, Hong Kong offers excellent value for money for visitors. In comparison with other areas of the world which have become very expensive due to soaring exchange rates, there is room for growth. Concerning the new supply...