Hong Kong


	The Japan Times WORLD EYE REPORTS HONG KONG

©THE JAPAN TIMES	Wednesday, June 26, 2002

Hong Kong's economic jet engine at Asia's crossroads

Having begun operations in July 1998 in its new location on Chek Lap Kok, the Hong Kong International Airport (HKIA) has made clear progress since its relatively shaky beginnings. For the second consecutive year, HKIA was named The World's Best Airport by Skytrax Research in London, which received 1.4 million eligible nominations from travellers around the globe. It is also the number one international cargo airport in the world in terms of tonnage, and serves 33 million passengers a year.

With all these accolades, it is important to understand the context of Hong Kong's history and its importance as a regional trading hub. Hong Kong has been a major trading center for the last 150 years primarily because of magnificent Victoria Harbour, the largest container port in the world.

Dr. Victor Fung, chairman of Hong Kong SAR's Airport Authority

Because of the needs of consumers and markets, people are now demanding ever shorter response times for delivery services. In the past, delivery was generally expected within three months of an order. Now that has been moved up to three to four weeks. The whole cycle has shortened and become increasingly time sensitive. As a natural consequence, more goods today are moved by air.

"Today, 26 percent of Hong Kong's total trade by value moves by air," explains Dr Victor Fung , chairman of the SAR?s Airport Authority. "This trend is now very clear and we're seeing growth of almost 1 percent every year. You can see therefore that if Hong Kong is to maintain its status as a major trading center, it must also be a major air hub. We really see the airport as the major engine driving Hong Kong?s economy and its future economic growth."

This strategic importance becomes even clearer when you look at Hong Kong's geographic location. The SAR is considered by many to be the center of the vast manufacturing hub and region of the Pearl River Delta (PRD), with which it is very much integrated. Of the 2.2 million tons of cargo that pass through HKIA every year, 70 percent comes from factories which have been set up in the PRD by Hong Kong companies.

"The net result is that instead of a city which is serving a market of 6.5 million people, Hong Kong is truly servicing a region of 26 million people that inhabit the PRD," Dr Fung notes. "In every sense of the word, our mission is not only to be Hong Kong's international airport but to be the airport serving this entire region. This is how I conceptualize the airport and the role it has to play in our economy."

Dr Fung plans to coordinate efforts with the four other airports located in the PRD - Shenzhen, Guangzhou, Macau, and Zhuhai. "There will definitely be some competition," he explains, "but that is only natural. If you look deeper, it is much better for us because we can also do some things cooperatively. We have formed an organization called the A5, in which we are focusing on promoting the PRD as a whole."

One clear example of this is what HKIA is organizing with the Shenzhen airport on a bilateral basis. The Hong Kong airport has flights to 130 locations in the world, 90 of which are international destinations and 40 are in China. Shenzhen airport, on the other hand, flies to 60 cities in China, and only 4 international destinations.

"We have come into an alliance with Shenzhen, and plan to link the two airports with a high speed ferry, which only takes 20 minutes travel time," says Dr Fung. "An international traveler can land in Hong Kong and within one hour be on a plane from Shenzhen to another Chinese city, and vice versa. There is a lot that can be done that is mutually beneficial. We are trying to change the balance between cooperation and competition."

Sky Plaza is another major project - the gateway development of HKIA's SkyCity commercial district that will serve as a transport and commercial interchange. The building will be comprised of four office towers which will accommodate airline offices, airport related business, the Hong Kong World Trade Center and the Airport Authority's headquarters.

It will also house a world class retail and entertainment center which will cater to tour groups, passengers, visitors to the airport exhibition center, local residents and the 45,000 airport employees. The structure will be fully integrated with the new airport and its express railway station - with a transport terminal for coaches serving the network of cross border destinations, as well as the new Hong Kong Disney Theme Park that is due to open in 2005.

"Imagine after Disney opens in 2005 - we are very conveniently located only 15 minutes away," concludes Dr Fung. "I can conceive of families coming to Hong Kong, with the parent going to visit the exhibition center for work, and the children and rest of the family going to Disney park and enjoying the dining and entertainment facilities in Sky Plaza as well. I envision the whole airport facility as the new crossroads of Asia, and Hong Kong is definitely on its way to becoming that."

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