Hong Kong Airport Volume Up 8.3%

by Mary Swire, Tax-News.com, Hong Kong

16 June 2008

May saw an 8.3% year-on-year rise in Hong Kong International Airport's passenger volume, to 4.1 million, while cargo throughput and aircraft movements grew 6.7% to 314,000 tonnes and 4.3% to 25,810, the territory's Airport Authority has announced.

The growth in passenger numbers was mainly attributable to the rise in travel by Hong Kong residents and transfer traffic to and from South East Asia and North America. Transshipments to and from North America and the Mainland, as well as imports from South East Asia and exports to Europe, were the key drivers for cargo growth.

"May's performance was encouraging, but high fuel prices are a major continuing concern for the aviation industry. There are already signs of some airlines slowing down their expansion, or reducing their operation to contain costs," observed the authority's Chief Executive Officer Stanley Hui.

"The commencement of direct, weekend charter flights across the Taiwan Strait from July will have an impact on the number of passengers transferring through Hong Kong between Taiwan and the Mainland in the short to medium term, he added.

Mr Hui suggested that the Sichuan earthquake may lessen Mainland people's desire to travel, both internationally and to Hong Kong, adding the Authority will closely monitor the market in the coming months.

For the 12 months which ended in May, passenger and cargo throughput reached 49.3 million and 3.9 million tonnes, up 8% and 7.3% on a year earlier. Air traffic movements also grew 5.6%, to 301,335.

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