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Following is the speech by the Financial Secretary, Mr John C Tsang, at the VIP MICE Luncheon in London today (October 5, London time):
Anthony (Lau), Distinguished Guests, Ladies and Gentlemen,
Good afternoon.
I am delighted to join you today.
It is always a great pleasure for me to talk about Hong Kong's tourism industry and especially our vibrant MICE sector. And I am not just referring to Mickey and his friends at the Hong Kong Disneyland, the board of which I currently chair. I must mention that the theme park and its two hotels have become favourite destinations for our Meetings, Incentive Travel, Conventions and Exhibitions sector, adding diversity and quality to an already colourful field of venues.
I shall talk more about this diversity a little later.
Today's luncheon is particularly special because we are right in the heart of London, perhaps the most popular destination for MICE events in the world.
While London and Hong Kong are very different places, we share many of the same qualities it takes to attract MICE events of all types and sizes.
Both cities are safe and welcoming multi-cultural places. We both have world-class services, numerous top quality venues, a business-friendly environment, international financial centre status and a unique cultural heritage.
To borrow a phrase from our friends in the real estate business, London and Hong Kong also have the three key elements – Location, Location and Location.
London is connected to markets throughout Europe by its transport infrastructure, modern telecommunications and deep historic roots.
Hong Kong too has an excellent transport network linking the city with huge markets in Mainland China and throughout Asia, our information and communications technology is state-of-the-art and our culture is a vibrant blend of East and West.
In recent years, Hong Kong has raised its profile as a major MICE destination by successfully staging a number of high-profile international events. These include the World Trade Organisation Ministerial Meeting and the Lions Clubs International Convention in 2005, the ITU Telecom World in 2006 and the biennial Asian Aerospace International Expo and Congress since 2007.
Homegrown events such as the Hong Kong Toys and Games Fair, our Gifts and Premium Fair, and the Hong Kong Jewellery and Watch Fair have expanded rapidly to become key global events.
Many smaller-scale events are taking place across Hong Kong all year round. Whatever the size, event organisers can have full confidence that their meetings, conventions and exhibitions will run smoothly and efficiently.
MICE events in Hong Kong also have a reputation for attracting good crowds. In 2009, we received more than 1.1 million (1.16 million) overnight MICE visitors. In the first half of this year, our MICE visitors increased 30 per cent (29.7%) compared with the same period last year to more than 650 000 (657 951). This figure reflects the economic robustness of our city and our region following the global financial crisis.
From an organiser's point of view, the bigger the attendance, the more financially viable the event. Clients and organisers go home happy and satisfied.
Our location in the heart of East Asia and on the southeastern tip of China makes Hong Kong an obvious place for large numbers of buyers and suppliers to meet and do business.
Our immediate hinterland includes the dynamic Pearl River Delta region, or PRD, which is often referred to as "The Factory of the World". At the same time, our International Airport has flights to 150 destinations around the world. Hong Kong-based Cathay Pacific Airways recently launched a new direct passenger service to Moscow, opening up new opportunities for MICE travel. We are within five hours of flying time to half the world's population and some 40 Mainland cities are within 3 to 4 hours from Hong Kong by direct flight.
Ladies and Gentlemen, Hong Kong is doing quite well as a MICE destination. But it is sometimes said that, if you are not going forward, you are not going anywhere.
In today's competitive environment, we must continue to strengthen our tourism industry and enhance the experience for our MICE visitors and organisers.
In terms of venues, we recently completed a HK$1.4 billion dollar (GBP 115 million) expansion at our Convention and Exhibition Centre (CEC), which is right in the heart of our city. This extension added about 40 per cent more exhibition space at the venue. Total exhibition space at the CEC is now about 83,000 square metres.
Outside the city, Lantau Island – which is home to the Hong Kong International Airport – is also developing as a popular destination for tourists, incentive travellers and exhibition organisers.
The AsiaWorld-Expo, which is next to our airport, offers 70,000 square metres of exhibition space. It has a modern, column-free layout, making it ideal for large-scale events such as the Asian Aerospace International Expo and Congress and even rock concerts and ice hockey games.
Lantau Island is also home to Mickey and the rest of the gang at Hong Kong Disneyland. With its themed hotels and the usual Disney delights, the park is popular for events such as corporate training, professional development and team building.
Another major theme park is Ocean Park in a spectacular setting on the South side of Hong Kong Island. It has long been a popular destination for tourists and for incentive travel. Three hotels are being built at Ocean Park and are scheduled for completion in 2012. This will further expand and diversify our MICE sector.
Please remember that it is really easy to mix business with pleasure in Hong Kong, so don't forget to include the whole family when you organise events or come to visit Hong Kong.
Despite our many tourist attractions, let us also not forget that MICE visitors mean business when they come to Hong Kong. And many of them have at least one eye on the markets in Mainland China.
For many decades, Hong Kong has been a place where entrepreneurs from the Mainland and from overseas converge. Both English and Chinese are official languages in Hong Kong, but English is the language of our business community, making it easy to communicate your ideas.
In recent years, the relaxation of travel restrictions on the Mainland has made it much easier for Mainland residents to visit Hong Kong for business and for pleasure.
Today, we are receiving record numbers of tourists and business travellers from across the boundary. Our MICE sector has been quick to seize the opportunities from this trend, by diversifying its exhibition portfolio. Some of our newer events cover areas, such as wining and dining, fresh produce, hotel room design and medical conferences – some of which I can’t even begin to pronounce! (The XXVII (27th) International College of Neuropsychopharmacology World Congress in June 2010. The World Ophthalmology Congress in 2008 and World Congress of Nephrology to be held in 2013.)
We expect the flow of people across the boundary to increase further following the signing in April of the Framework Agreement on Hong Kong/Guangdong Co-operation. This is a wide-ranging Agreement specifically designed to accelerate economic development in our neck of the woods. It breaks through the invisible barriers to cross-boundary trade and promotes a free flow of people, ideas and capital.
This will help attract more Mainland visitors to participate in international conferences and exhibitions in Hong Kong.
Another key area under the Framework Agreement is environmental protection – a priority for our city, our community and also for our visitors.
Because our air quality is often affected by emissions from across the boundary, it is crucial that we take a borderless approach to tackling the problem.
Cross-boundary environment strategies include jointly exploring emission reduction targets with our counterparts in Guangdong for the coming decade. We have also teamed up with our neighbours to monitor changes in air quality. And we are implementing the Cleaner Production Partnership Programme, which encourages Hong Kong-owned factories in the PRD to adopt cleaner production techniques.
In Hong Kong, vehicles and power plants are the major contributors to bad air. We have capped emissions of our power plants and encouraged greater use of gas in the generation of electricity. We have introduced controls on the emissions of motor vehicles. We are also promoting the widespread use of electric vehicles in Hong Kong, as well as in major cities across the boundary.
Our efforts have helped reduce ambient concentrations of various key air pollutants, such as sulphur dioxide, nitrogen dioxide and respirable suspended particles by between 10 and 22 per cent between 1997 and 2008. With the effort that we have made so far, it is not surprising that we have been enjoying outstanding days in the past few months.
We will continue to update our Air Quality Objectives in line with World Health Organisation guidelines, and co-operate under the Framework Agreement to improve air quality throughout our region.
On the subject of cross-boundary co-operation, Hong Kong is investing heavily in major infrastructure projects to enhance the physical connectivity between Hong Kong and the PRD region.
Earlier this year, work started on an Express Rail Link, or XRL. The XRL will plug Hong Kong into the Mainland's 1,600-kilometre high-speed rail network. When completed, the XRL will significantly reduce travelling time between Hong Kong and major cities in the PRD with trains travelling at over 400 kilometres per hour. Most of the XRL will be underground, minimising the impact on the environment.
Another major infrastructure project under way is the construction of a 29-kilometre Hong Kong-Zhuhai-Macao bridge. This bridge represents a new corridor of opportunity for trade and investment between Hong Kong, Macao and Zhuhai in the less developed western part of the PRD region.
We are also building a new cruise terminal that will be able to handle the world's largest cruise liners. With a natural deep-water harbour, spectacular skyline, great shopping and endless nightlife, Hong Kong is already a popular cruise destination. The first berth of the new terminal will begin operating in 2013.
Ladies and Gentlemen, the opportunities for the development of Hong Kong's MICE sector are huge and diverse. At the same time, competition for visitors in our part of the world is fairly intense too.
The Hong Kong Government is committed to taking the city's tourism industry to a new level, including promoting our MICE sector to the rest of the world.
In my budget in 2008, I earmarked HK$150 million (12.4 million Pounds) over five years to strengthen the promotion of MICE tourism.
Also in 2008, we launched the Meetings and Exhibitions Hong Kong Office. This is a global initiative which includes an office right here in London. Our goal is to offer a one-stop service centre for all our MICE organisers and visitors.
Members of the Hong Kong Tourism Board and the Meetings and Exhibitions Hong Kong Office who are here today will be happy to answer any questions that you may have.
In closing, I would like to take this opportunity to wish London all the best in your preparations to stage the biggest event of all, the 2012 Olympics. I'm sure that the London Games will be a great success.
Thank you very much.
Ends/Tuesday, October 5, 2010
Issued at HKT 21:43
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