The travel industry is optimistic about business during the Christmas and New Year holidays, as travelers are attracted by lower tour prices in spite of the economic slowdown.

The Travel Industry Council of Hong Kong said it has received a similar amount of levy income as the last holiday season, meaning turnover in the industry is steady.

"At the beginning of this month, we were worried, but we saw improvement in mid-December," the council's executive director, Joseph Tung Yao-chung, said.

He explained that cheaper tour prices have attracted Hong Kong people who love to travel.

Tung was also optimistic about the outlook for Chinese New Year, as many travel agents have been receiving enquiries and bookings.

According to the Civil Aviation Department, 177 extra flights have been approved to operate from Dec 20 to Jan 6. But that number is down about 25 percent, year-on-year.

Most of the flights are to Taiwan, Japan and South Korea.

Local travel agencies said South Korea and Taiwan became popular places this season.

"The weak Korean won (currency) attracts many Hong Kong travelers, while the chaotic political status in Thailand has driven tourists to Taiwan, where the tour prices are similar," said Steve Huen, executive director of EGL Tours Company, whose business is down about 10 percent compared with last season.

There is a month until the Chinese New Year, and Huen believes that's why fewer customers have opted to travel during Christmas.

Hong Thai Travel Services also recorded a double-digit drop in turnover, while its number of customers has decreased by 5 percent compared with last Christmas.

"We offer more cheaper and short-haul tours this year, as fewer Hongkongers planned to join long-haul tours," explained General Manager Susanna Lau.

Australia, however, is the only long-haul destination that has recorded growth in customer base, due to its weak currency.

In addition, Huen found customers more conservative in spending money.

In the past, only 20 percent of EGL customers would opt for budget tours, but now the portion has risen to 50 percent.

A local traveler who set off yesterday said he joined a budget tour and shortened his traveling time to cut expenses.

But another woman, who saved money for months so she could go to Japan, felt differently.

"Amid the financial crisis, we should go out and relax, and face the economic difficulty positively when we return," she said.

Lau said travel has become a necessity to Hongkongers, and the suppliers should provide more discounts and gimmicks to help them on their way.

(HK Edition 12/25/2008 page1)