Tourism prices rise with summer vacation demand

Rising prices for hotel accommodation, restaurant services and food products were responsible for a 0.9 percent hike in the Tourist Price Index in the third quarter of 2018, according to the latest data from the Statistics and Census Service (DSEC).

In a statement yesterday, DSEC reported that the Tourist Price Index, which reflects the change in prices of goods and services purchased by visitors, has increased by 0.9 percent to 130.78, despite the increase being dampened by falling prices of handbags, clothing and jewelry.

Notable annual rises were observed in the price index categories of accommodation (+5.57 percent) and food, alcoholic beverages and tobacco (+4.29 percent). On the other hand, the price index of clothing and footwear dropped 7.49 percent year-on-year.

In comparison with the previous quarter, the Tourist Price Index for the third quarter of 2018 increased by 0.71 percent, led by hikes in accommodation prices due to increased summer holiday demand. Meanwhile, seasonal sales of summer clothing and handbags drove down the price index of clothing and footwear by 7.91 percent quarter-to-quarter.

The average Tourist Price Index for the last four quarters ending in the third quarter of this year rose by 3.88 percent from the previous period.

For the first three quarters of 2018, the Tourist Price Index increased 3.28 percent year-on-year on the back of a 10.9 percent increase in the index for accommodation, a 4.46 percent increase in transport and communications and a 4.35 percent increase in food, alcoholic beverages and tobacco.