Economy Tourist prices continue decline

The average Tourist Index Price (TPI) for 2016 continued its downward trend from 2015, according to data released Friday by the Statistics and Census Service (DSEC).

The bureau said the decline last year reached 5.44 percent, down from the 0.86 percent decrease in 2015, which left the index at 130.86.

TPI reflects the price change of goods and services purchased by visitors, which tend to fall mostly in the market segments of food, alcoholic beverages, tobacco, clothing, accommodation, restaurant services, and entertainment and cultural activities.

According to DSEC, the diminishment in 2016 was driven by “significant declines” in the price indexes of accommodation (-21.2 percent) and transport and communications (-9.82 percent). At the same time, the price indexes of restaurant services (+2.27 percent) and food, alcoholic beverages and tobacco (+1.91 percent) both registered increases.

TPI for the fourth quarter of 2016 decreased by almost 4.5 percent year- on-year to 134.96 due to lower charges for hotel accommodation and travel, said DSEC in a statement.

Meanwhile, fourth quarter TPI increased by about 6.4 percent compared to the third quarter of 2016, led by the price index for accommodation which soared by almost one-quarter. DSEC attributes the surge to higher room rates during the National Day holidays, the Christmas period and the Macau Grand Prix.