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Speech by Secretary for Economic Development and Labour

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Following is the speech by the Secretary for Economic Development and Labour, Mr Stephen Ip, at the luncheon hosted by the Joint Council of the Travel Industry of Hong Kong today (July 30) (English only):

Ronnie, Selina, friends, ladies and gentlemen,

It is a pleasure, as always, to be able to meet with so many members of the travel industry. And it is really a pleasure to be able to tell you how much I appreciate the opportunity to work with you again as partners in promoting the further growth of this most fascinating industry. Indeed, thanks to the invitation of the Joint Council of Travel Industry of Hong Kong (JCTI), I am happy to meet many old friends today whom I had already known since the days when I was the then Secretary for Economic Services.

Tourism features prominently in my policy portfolio as one of the key sectors which will be one of the major pillars of Hong Kong's economic development. The tourism industry has proved itself to be resilient and least affected by the global economic downturn. Despite the short term impact of the 911 incident, the industry has picked up its rhythm of growth in the last quarter of 2001 as business travel resumes and consumer confidence returns. We broke the record and received 13.73 million of visitors last year, an increase of 5.1% over 2000, amidst a 0.6% drop in tourist arrivals worldwide. In the first six months of this year, we have continued to record a strong growth of 12.8% in total tourist arrivals. Hong Kong has clearly outperformed many of our neighbours. According to the World Tourism Organisation, Hong Kong ranked 14th in terms of tourist arrivals in 2001. Our tourism receipts grew by 4.5% over 2000. The continued growth in tourist arrival and tourism receipts in a period of economic difficulties is particularly helpful to the employment situation. In 2001, the tourism industry employed over 360,000 people, representing an increase of 3.4% over 2000 and this trend is ongoing.

A major driving force behind this is the substantial increase in Mainland visitors with the relaxation in entry of business visitors in December 2001 and the abolition of the quota system of the Hong Kong Group Tour Scheme in January 2002. The prospect of a continued growth in the Mainland market continues to be promising. However, there is no room for complacency. It is necessary for us to continue the hard work over the past few years to sustain and further such growth, and to maintain Hong Kong as the most popular city destination in Asia.

There are considerable challenges ahead of us, particularly as our neighbours in the region have all been working very aggressively to promote tourism development in their own ways. However, I am a firm believer of the motto that "where there are opportunities, there are challenges". In particular, I will accord top priority to a number of areas, including to continue to work with the Mainland authorities to further facilitate entry of Mainland visitors, and to continue to promote service standards and cultivate a hospitable culture. Notably, as we bring into effect the system of industry self-regulation of inbound travel agents with the Travel Industry Council of Hong Kong in November this year and work with the trade to introduce a certification system for tour guides, we are on the track to heighten service standards and quality within the travel trade.

More importantly, we are determined to add to the range of attractions that we have to offer to our visitors, both to preserve our competitive edge, and to enable us to tap into new market segments. Apart from enhancement to some of the popular tourist areas, such as the Central and Western District and Tsim Sha Tsui Promenade, plans for a number of new tourism attractions have proceeded in full swing. By year 2005, we will see the opening of the Hong Kong Disneyland and Hong Kong Wetland Park, which will help Hong Kong tap into the new market of family visitors. The Tung Chung Cable car and development of complementary tourist facilities at Ngong Ping to be completed in the same year will enable visitors to experience the greenery of Lantau Island as well as serve as a link for different places of interest on the island.

We have also made some headway in putting to beneficial use our buildings of heritage value. We will, after the summer vacation, invite private sector proposals for preserving and developing the former Marine Police Headquarters at Tsim Sha Tsui into a tourism themed commercial development, drawing on successful experience like Covent Garden in London and Fanueil Hall in Boston. This project will, we hope, provide new impetus for preserving and showcasing to our friends overseas the unique heritage of Hong Kong, and will provide experience for similar projects to turn other historic buildings, such as the Central Police Station compound in Central, into exciting new attractions in due course.

I am sure many of you, who have been working closely with the Tourism Commission in the last three years, will not find these initiatives unfamiliar. Such work will continue, and work is in hand to bring forward other tourism developments, including a new tourism node at the tip of the former Kai Tak runaway with a new modern cruise terminal, development of the tourism node at Aberdeen with Ocean Park as the focus, and promoting further Sai Kung's position as the "back garden" of Hong Kong.

Whatever plans that the Government will take forward, however, one thing is clear: we need to have the full support of the tourism industry as our working partners. I am glad to know that our work has received strong support from the various industry sectors represented by JCTI. I also understand that the JCTI has begun the process of drawing up recommendations for the Chief Executive on the future development of tourism in Hong Kong with a forum for key stakeholders earlier this month. I am sure this will only be the beginning of a process of constructive dialogue and partnership, and look forward to continue working very closely with you in the months and years ahead.

Thank you.

End/Tuesday, July 30, 2002

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