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Following is the speech by the Chief Secretary for Administration, Mr Henry Tang, at the opening ceremony of Vinexpo Asia-Pacific at the Hong Kong Convention and Exhibition Centre this (May 27) afternoon (English only):
Secretary Idrac, Ms Hˆmriard Dubreuil, distinguished guests, ladies and gentlemen,
Good afternoon.
It is my great pleasure to join you for the opening ceremony of this year¡¦s Vinexpo.
A warm welcome to you all, especially to those who have travelled from overseas to be here.
I am delighted that Hong Kong has been chosen to host the Vinexpo Asia-Pacific for a third time. This year¡¦s event promises to be the biggest and best so far.
Your presence is a huge vote of confidence for Hong Kong in hosting this important event, and strengthens our commitment to become a centre for trading in wine in Asia.
Our commitment was reflected earlier this year in our decision to reduce duties on wine down to zero. That makes Hong Kong the only duty free wine port among major economies. As you can imagine it was a pretty popular decision, but the decision was based on more than just benefiting the consumer, so that wines you can drink are now cheaper.
The decision was made because we wish to create an opportunity to develop Hong Kong into a regional hub for wine-related business activities. That includes events such as Vinexpo, as well as other wine-related economic activities - auctions, storage and distribution of fine wine. Tourism, brand promotion, wine appreciation, and, especially for some who are not so aware of this, actually wine education is a big business.
Zero duties on wine will help to create jobs for Hong Kong as we strive to meet a growing demand for wine in Asia, and in particular in China.
With duties removed, the related administrative arrangements will also be gone very soon. Barring any unforeseen circumstances, I hope, by tomorrow actually, the Legislative Council will go through the process of ratifying the zero duty, as well as the simplification of the procedures.
Currently, the Asian market represents only a few percentage points of global consumption. But judging from Asian interest in wine, I believe that there is huge potential for growth. Take the Mainland of China as an example. A strong economy, growing affluence and lifestyle changes offer tremendous prospects for the wine industry.
The trade expects Mainland wine imports to increase to as much as US$870 million by 2017, or 58% of the whole Asian market, excluding Japan. I have a feeling they are wrong. Based on Ms Dubreuil¡¦s figures and what my feeling is, I think the growth will be even bigger than that.
The market response to zero duties in Hong Kong has been very positive and very encouraging. Within two months, our wine imports increased by over 120% compared to the same period last year. In terms of value, it has increased by over 200%. Renowned companies are planning to expand their wine business in Hong Kong, and of the two well known auction houses, one has already held their first auction and the other one will be holding it on Saturday. More are being lined up.
Earlier this month I was fortunate to be able to visit France. I am pleased to say that the French Government has responded positively to a proposal to conclude a bilateral arrangement related to the wine industry. Under the arrangement, France would share with us its experience in promoting wine-related trade and tourism, as well as providing training on wine-tasting.
I also hope the considerable experience and expertise of the many companies present today will help us establish internationally recognised standards in Hong Kong for the handling of fine wine as an investment asset.
Ladies and gentlemen, I hope I have given you a taste of the new opportunities for the wine industry in Hong Kong and in Asia.
We already have the world-class infrastructure, logistics, financial and communication systems required and, more importantly, the discerning palate and ample appetite to become a wine trading and distribution centre in Asia.
We count on your knowledge and support in lifting the wine industry to new heights in Asia.
It just remains for me to wish Vinexpo every success. I look forward to the opportunity to welcome you back here frequently. Trust me, you will find your presence here worthwhile. I wish you good business and every success.
Thank you.
Ends/Tuesday, May 27, 2008
Issued at HKT 19:25
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