High-speed Rail Propels Hong Kong Hotels
New bullet trains zipping between Hong Kong and mainland China are set to make travel for tourists faster, cheaper and easier than ever - although finding a hotel room amid rising visitor numbers could well become that much harder.
New bullet trains zipping between Hong Kong and mainland China are set to make travel for tourists faster, cheaper and easier than ever - although finding a hotel room amid rising visitor numbers could well become that much harder.
Eight years in the making, Hong Kong's high-speed rail officially opened last month. The $11 billion project created the longest high-speed network in the world, connecting 44 cities in China to Hong Kong.
It's forecast to ferry 80,000 passengers a day - including business travelers and tourists - in and out of Hong Kong.
An immediate impact for travelers to Hong Kong: a steep drop in costs. A ticket on the bullet-train saves upwards of 70 percent compared to the price of an airplane ticket, while travel time remains relatively unchanged, according to an analysis by Bloomberg.
The sudden discount for passengers from central Chinese cities like Changsha, Wuhan and Zhengzhou could result in a heavy influx of tourists, along with millions of dollars in additional revenue, says David Marriott, Senior Vice President of Strategic Advisory for JLL's Hotels and Hospitality Group.
"While the bullet train has made it easier and more accessible to enter Hong Kong, finding a place to stay at a decent rate might get tougher," adds Marriott.
A growing market
Hotel rooms in Hong Kong were already in high demand. Overnight visitor arrivals from China to Hong Kong grew by over 6 percent in the first half of 2018 when compared to a year earlier, according to Hong Kong Tourism Board statistics.