Tourist prices plunge in second quarter

Tourists walk past a clothing stores at Studio City casino resort

The Tourist Price Index (TPI) for the second quarter of 2016 has dropped by 7 percent year-on-year to 125.19.
According to data released yesterday by the Statistics and Census Service, a significant decrease in hotel accommodation charges and airfares resulted in the price index of Accommodation going down by 29.27 percent, with the year-on-year decline increasing since the fourth quarter of 2014.
The price index of Transport & Communications also plunged by 11.32 percent year-on-­year, while the price index of Restaurant Services and Miscellaneous Goods rose by nearly 2 percent.
In comparison with the previous quarter, TPI for the second quarter of 2016 has decreased by 8.25 percent.
The price index for Accommodation and Transport & Communications fell by 32.37 percent and 17.13 percent respectively as a result of the marked decrease in hotel room rates and airfares after the Lunar New Year.
However, by contrast, the price index of Clothing & Footwear rose by 4.74 percent quarter-to-quarter.
The average TPI for the previous four quarters ending with the second quarter of 2016 fell by 4.86 percent from the previous year period, with a significant decrease being observed in the price index of Accommodation (-18.32 percent) and Clothing & Footwear (-3.10 percent).
For the first half year of 2016, TPI went down by 6.83 percent year-on-
year. Within this figure,  price index of Accommodation and Transport & Communications decreased by 26 percent and 4 percent respectively.
The price index of Food, Alcoholic Drinks & Tobacco and Restaurant Services saw an increase of 2.4 percent and 1.7 percent respectively.