********************************************
Tourism
86. Tourism has been making immense contribution to Hong Kong's economy. In 2013, visitors to Hong Kong exceeded 50 million, an increase of 11.7 per cent over 2012. Total spending went up by 14.8 per cent to $340 billion. Tourism, making up 4.7 per cent of GDP and employing over 250 000 people, has been driving the growth of many other industries, such as retail, catering and transport. I appreciate that an excessive number or over-concentration of visitors may exert pressure on our society. Government should strive to ensure that there is sufficient capacity to receive visitors.
87. In order to attract high-spending visitors to Hong Kong, thus bring about more economic benefits from tourism, we should continue to upgrade our tourist facilities, host attractive mega events and maintain an adequate supply of high-end hotel accommodation.
88. On tourist facilities, the construction of the waterpark at Tai Shue Wan in the Ocean Park and the "Iron Man Experience" in the Hong Kong Disneyland has commenced by phases. The terminal building and the first berth of the Kai Tak Cruise Terminal came into operation last June. Cruise lines and passengers have found the Terminal's facilities and services satisfactory. With construction works now in the final stage, the second berth is planned to be commissioned this year. "Kai Tak Fantasy" – International Ideas Competition on Urban Planning and Design is now under way, and it is our target to develop the site into a spectacular world-class tourism, entertainment and leisure hub.
89. As for hotels, Government is pressing ahead with the infrastructure works at the southern end of the runway and south apron of the former Kai Tak Airport. We are identifying feasible ways for the gradual release of the six sites facing Victoria Harbour within the "hotel belt" adjacent to the Kai Tak Cruise Terminal to the market starting from the end of next year. These prime sites can be developed into a distinctive hotel cluster with five-star accommodation as well as gourmet and entertainment facilities.
90. The hotel project at the Murray Building site has been successfully tendered. Upon commissioning, this hotel, together with the Ocean Hotel in the Ocean Park and the third hotel in the Hong Kong Disneyland, will provide altogether over 1 500 rooms, offering more diverse and novel choices of quality hotel accommodation.
91. Overnight business travellers are our prime targets. According to the Hong Kong Tourism Board (HKTB), the total spending of visitors attending conventions and exhibitions in Hong Kong reached $16.3 billion in 2013. Their per capita spending was close to $10,000, 21 per cent more than that of other overnight visitors.
92. As our neighbouring cities have been proactive in drawing convention and exhibition visitors in recent years, we must adjust our strategies from time to time. I shall allocate an additional $45 million for the HKTB to provide more attractive and targeted services and concessions for organisers and participants of conventions and exhibitions of various scales and types in the coming three years. Meanwhile, Government is studying the demand for convention and exhibition facilities in Hong Kong in the next 15 years.
93. We have to keep enriching our cultural, art and sports programmes which will, apart from enabling local residents to enjoy more, refresh our city's appeal to overseas visitors and attract them to come back again at different times. We shall provide additional funding of $50 million to the HKTB in the coming two years to strengthen even further its popular events, such as the Wine and Dine Festival, the New Year Countdown Celebrations and the Chinese New Year Night Parade. One way to do so is to introduce 3D projection mapping technology to help showcase the magnificent night view of the Victoria Harbour during mega events. Residents and visitors alike can enjoy this projection mapping show as part of the year-end festivities in 2014. We shall continue to seek to host mega events, including through financial support from the Mega Events Fund, on the Victoria harbourfront for the enjoyment of residents and visitors.
Business and Professional Services
94. Hong Kong has one of the most advanced services industries in the world. Professional services and other producer services contribute 13 per cent of GDP and employ about 500 000 people. The professional services industry in particular recorded high growth in recent years, contributing nearly 5 per cent of GDP. Government will continue to strengthen G2G ties with its Mainland and overseas counterparts, secure more liberalisation measures and forge more free trade agreements to help Hong Kong service industries access external markets, especially the Mainland market, under more favourable conditions.
Closer Economic Partnership Arrangement
95. In 2011, the Central Government announced the objective of achieving basically liberalisation of trade in services between the Mainland and Hong Kong through the Closer Economic Partnership Arrangement (CEPA) by the end of the National 12th Five-Year Plan period. HKSAR Government is working closely with the Ministry of Commerce, striving to further open up the Mainland market to Hong Kong. We shall work with Guangdong Province, aiming at early achievement of basic liberalisation of trade in services between Hong Kong and Guangdong this year.
Trade in Services Agreement
96. To tap into the services markets outside the Mainland, Hong Kong is actively participating in the plurilateral Trade in Services Agreement negotiations. We aim to reach a high-standard WTO plus agreement to secure better market access for our service industries. Twenty-two other parties are taking part in the negotiations, including eight of our top 10 service trading partners. These participating economies account for half of Hong Kong's trade in services.
Cross-boundary Professional Services
97. In recent years, arbitration and mediation have become the mainstream modes of resolving international commercial disputes. Building on our robust legal system and tradition, Government has all along been actively promoting Hong Kong's legal and arbitration services, and making its best efforts to advocate and develop mediation services, with a view to enhancing Hong Kong's position as an international legal and dispute resolution services centre in the Asia-Pacific region.
98. Last year, we completed the reform to modernise our trust law, making our trust services industry more competitive. Government will work with the industry to promote our strengths in this respect, and encourage settlors all over the world to choose Hong Kong as their base for trust administration.
99. Trade in Intellectual Property (IP) has great development potential. The Secretary for Commerce and Economic Development will continue to lead the relevant working group to devise measures to develop Hong Kong as an IP trading hub in the region. The objectives are to provide more financing and trading channels for enterprises, and promote the development of the creative and technology industries.
Small and Medium Enterprises
100. SMEs make up over 90 per cent of local enterprises and employ 1.3 million people, or half of the number of employees in the private sector. Despite the unfavourable global economic climate over the past few years, the number of SMEs and their employees has been increasing. This underscores SMEs' role as the mainstay of our economy and employment market.
101. The development of SMEs has always been high on my agenda, and I appreciate the different challenges that they face such as surging costs and keen competition. Over the years, Government has rolled out an array of appropriate measures to support their development. Given the uncertain external economic environment, I shall continue to lend support to local SMEs in financing, market expansion, brand building and productivity enhancement through the following seven measures –
(a) extending the application period for the special concessionary measures under the SME Financing Guarantee Scheme for one year to the end of February 2015. From its launch to the end of 2013, over 8 000 applications have been approved, benefiting over 5 500 enterprises with total loan guarantee of more than $27 billion;
(b) continuing the implementation of the Small Business Policy (SBP) scheme by the Hong Kong Export Credit Insurance Corporation to allow SMEs engaging in export trade more flexibility in taking out insurance cover. The SBP scheme has been well received since its launch in March last year. More than 700 applications have been approved with the value of total insured business amounting to over $1 billion. SBP policyholders will continue to enjoy waiver of the annual policy fee and up to 20 per cent premium discount;
(c) earmarking $50 million to support retailers on a matching fund basis for the use of IT and other technology solutions to increase productivity;
(d) promoting cloud computing applications among SMEs and providing training to help them adopt appropriate and affordable IT solutions;
(e) continuing with the Hong Kong Mortgage Corporation Limited's Microfinance Scheme. Up to the end of 2013, 106 applications have been approved under the scheme, with a total loan amount of over $28 million;
(f) continuing to make use of the dedicated fund and extend the network of the HKTDC Design Gallery to assist Hong Kong enterprises in developing brands, in upgrading and restructuring, as well as in exploring market opportunities in the Mainland; and
(g) continuing to identify suitable workspace for individuals and enterprises engaging in creative industries and help promote their work. The "Comix Home Base" converted from a pre-war building was open in July last year. The creative industries landmark "PMQ", a $500 million government project of revitalising the former Police Married Quarters on Hollywood Road, is coming on stream in the first half of this year.
102. We do have a good number of industries with potential for development. I have received many proposals from various organisations as well as Members of this Council on how to promote sectors with development potential, an example being a centre for retail and wholesale fashion businesses at the district level. I am supportive of such proactive and self-initiated efforts of the industry. Government will render appropriate assistance to industries with potential for further development.
(To be continued)
Ends/Wednesday, February 26, 2014
Issued at HKT 11:52
NNNN
