Abstract
Tourism industry in Hong Kong is in a recovery stage in 2004 after the outbreak of Severe Acute Respiratory Syndrome in March 2003. This paper investigates how service quality, perceived value, satisfaction and loyalty are related to gain insight on the recovery situation based on data collected from travelers of a Hong Kong harbour cruise company in 2004. The structural equation modelling results support the hypothesis that service quality affects perceived value, satisfaction and loyalty directly. However, the results do not support the hypothesis that (1) perceived value affects overall satisfaction directly, (2) perceived value affects loyalty directly, and (3) overall satisfaction affects loyalty directly. Service quality has only indirect effect on loyalty through image and overall satisfaction. So in the tourism recovery stage, service quality is very important to create loyalty.