Looking north

2014/11/5

From：Macau Business Daily

‘Korean fever’ is high and the yen is low. Enough reason for Macau residents to spread their wings, holiday-wise. Both destinations received 35 percent more MSAR visitors up to September vis-à-vis last year.

This year, South Korea and Japan have been two of the hottest destinations for Macau residents in addition to Thailand. Both of the north Asian countries received 35 percent more Macau tourists in the first nine months of the year, compared to the same period last year. Travel agents said the popular Korean culture and the dropping value of the Japanese yen are the major factors.
From January to September, some 43,000 Macau residents travelled to South Korea while another 20,400 visited Japan, either on tours arranged by travel agencies or through individual arrangements, according to the Statistic and Census Service Bureau (DSEC).
“The increase in the number of Macau residents to South Korea is due to strong Korean Fever; in addition, more flights available between Macau and South Korea is another reason. For example, Air Macau increased its daily flights between Korea to twice a day, while more flights are also offered by other airlines such as Jin Air,” the general manager of travel agency EGL Tours ( Macau) Co Ltd., Sabrina Iong Ut Iong, told Business Daily in a phone interview yesterday.
In addition, Mr. Siu Chi Shing, the general manager of Hong Thai Travel Services (Macau) Ltd., told Business Daily yesterday that South Korea can offer a variety of interesting spots in different seasons to attract tourists, as well as attracting them with its pop culture.
Japan tourism boosted by yen
Meanwhile, both agents told Business Daily that the increase in number of Macau residents visiting Japan is due to decline of the yen.
“Since the beginning of the year, the yen has kept falling. Although the Japanese authorities have increased consumption tax, the tax can still be compensated for by the cheap exchange rate [between Hong Kong dollars and the yen],” said Ms. Iong.
Mr. Siu, on the other hand, said residents may think Japan is more worth going to than Singapore or Malaysia, following the drop in the rate of the yen.
In the first nine months of the year, the yen has declined 9.6 percent, compared to the same period last year. Last Friday, the yen dropped to its lowest point in 7 years, requiring just HK$6.84 – HK$6.8 for 100 yen.
Asked by Business Daily whether the latest record-breaking low rate of the yen had attracted more customers for the Christmas holidays, both agents said no as the tours to Japan at Christmas were almost sold out two months ago, travel agencies have to pay a deposit for flights and hotels two months before, as well.

Getting yen in advance

In fact, the dropping value of the yen has also increased demand for yen cash as many residents want to exchange the currency before their trips.
P&W Money Changer Ltd, a currency exchange company in Macau, told Business Daily that Japanese yen is usually a hot item for the travel season. The company noted, however, that demands for the currency will always grow whenever the rate drops significantly.
“In addition to immediate users, many people want to buy yen in advance when the currency declines to a cheaper rate although they are only planning to go there later,” the company said, remarking that its stores have almost sold out of yen following the latest sharp decline in the rate.
On Sunday, two days after yen dropped below HK$7, Business Daily contacted a total of 15 currency exchange stores to check on their availability of yen. These stores are located in Macau International Airport (MIA), Taipa, Central Area, Areia Preta as well as near the Border Gate. Only four said yen was available – two in the airport offering an exchange rate of HK$7.5 for 100 yen, and two near the Border Gate, offering HK$7.2 for 100 yen.

Continuing trend?

Mr. Siu believes the trend to visit South Korea will last until next year. Although South Korea replaced Thailand as the most popular destination for Macau residents in the first nine months of the year, Ms. Iong noted that the number of tourists to Thailand is going up again.
“The decline in the number of tourists to Thailand was because of the unstable political situation in May, which led airlines such as Thai Smile Airways to cut down one flight between Macau and Thailand,” Ms. Iong said. “However, since the situation is stablising again we can see that the numbers of Macau tourists to Thailand is increasing. In addition, since October 26, Thai Smile Airways has also resumed the flight that was halted earlier.”
In fact, although the numbers to Thailand dropped by more than 30 percent year-on-year in the first nine months, it remained the second most popular destination for Macau tourists, followed by South Korea and Japan, respectively, excluding Mainland China, Hong Kong and Taiwan.
For now, Japan and Korea are very likely to retain their ‘most popular’ positions for the upcoming Christmas holidays. Mr. Siu predicts that tours of his company to the two countries may register growth of 20 percent year-on-year in the holiday, while Ms. Iong believes growth in her company will also be up ten and a few percent year-on-year.
In the first nine months, the two travel agencies have enjoyed the fruits of the trend. According to Mr. Siu, Hong Thai’s tours to South Korea and Japan increased by some 15 percent and 18 percent year-on-year in the nine months, respectively. Ms. Iong said EGL’s tours to the two countries also posted increases – of 10 percent and 15 percent year-on-year, respectively – during the period.

Copyright@Macau Business Daily