Tourism prices held up even as visitors disappeared last quarter

Tourism prices in the first quarter largely resisted the collapse in visitor numbers brought about by the onset of the pandemic.
A price index of goods and services purchased by tourists dropped only marginally in the first quarter, even as the number of visitors more than halved over the first two months of the year.
According to data released yesterday by the Statistics and Census Service (DSEC), the Tourism Price Index (TPI) fell 1.05% in year-on-year terms to 136.47 in the first quarter of 2020. In comparison with the fourth quarter of 2019, TPI dropped by 2.17%.
DSEC attributed the minor dip to lower hotel room rates and the falling prices of handbags and ladies’ clothing. At the same time, rising charges for restaurant services and dearer prices of jewelry offset part of the decrease.
Among the various sections of goods and services, the price index of clothing and footwear dropped 13.5% in the first quarter while that of accommodation fell 5.8%. The price index for food, alcoholic beverages and tobacco rose 4% in year-on-year terms, while that of transport and communications rose 4.4%.
The Times reported yesterday that many clothing and footwear retailers across the SAR are offering high discounts this month, ahead of the government’s e-voucher launch on May 1.
Even so, the official data indicates that tourism prices in the first quarter are not reflective of the collapse in visitor numbers observed in Macau since the start of the year.
Visitor arrivals in the first two months of 2020 dropped 57% to 3 million, according to figures provided by the Public Security Police Force, which oversees immigration matters. The data for March, when more stringent border restrictions were introduced in Macau, Hong Kong and mainland China, shows that the number of daily tourists declined to near-zero levels.