Business to run as usual in HK after June 30<\/p>\n
By Hyginus Hardoyo<\/p>\n
The Jakarta Post's Hyginus Hardoyo visited Hong Kong from
\nDec. 10 to Dec. 15, last year at the invitation of Cathay Pacific
\nand JW Marriott Hotel Hong Kong. His reports are written in three
\narticles on this page.<\/p>\n
HONG KONG (JP): The prospects for Hong Kong's business sector
\nwill likely remain bright over the next few years, despite the
\ntransfer of the territory's sovereignty from Britain to China at
\nthe stroke of midnight on June 30 this year.<\/p>\n
Local executives told The Jakarta Post they were optimistic
\nthat the handover, which will mark the end of Britain's 99-year
\nlease on the territory, will not invoke significant changes in
\nHong Kong, which has a population of over six million.<\/p>\n
The executives' confidence is completely in contrast to gloomy
\npredictions made by people from other parts of the world, many of
\nwhom fear that the transfer of sovereignty will hurt Hong Kong.<\/p>\n
Under a unique arrangement referred to as \"One country, two
\nsystems\", Hong Kong will become a Chinese special administrative
\nregion, which will be given a high degree of autonomy.<\/p>\n
Stephen Wong, public relations department manager of the Hong
\nKong Tourist Association (HKTA), said under such an arrangement,
\nHong Kong's capitalist lifestyle will remain unchanged for 50
\nyears after 1997.<\/p>\n
Noted businessman Tung Chee-hwa, who is acceptable to both
\nChina and Hong Kong, was elected last month as the chief
\nadministrator for the territory, taking office after Beijing
\nformally assumes control next July.<\/p>\n
\"We are fortunate to have Mr. Tung,\" Wong said. He said there
\nwould not be many changes, because Hong Kong will continue its
\nown political, social and economic systems.<\/p>\n
China will concentrate on manufacturing while Hong Kong will
\nfocus on services, including tourism, which now ranks second in
\nterms of foreign exchange earnings after textiles and garments,
\nhe said.<\/p>\n
China, for example, will boost the production of goods and
\nHong Kong, as a major transport and business hub, will trade
\nthem, he said.<\/p>\n
\"The year 1997 is only a comma for Hong Kong, not a full
\nstop,\" he said, \"and our focus is not on July, but after that
\nmonth.\"<\/p>\n
Tanya Reed, Cathay Pacific's corporate communication manager
\nin Asia and Peachie Dieken, public relations manager of the JW
\nMarriott Hotel Hong Kong, shared Wong's opinion.<\/p>\n
Both Reed and Dieken believed that China will not ruin Hong
\nKong because the territory, with its favorable business
\nenvironment -- ranging from low taxation, free trade, no exchange
\ncontrols to an excellent infrastructure -- functions as a goose
\nwhich lays golden eggs.<\/p>\n
\"The central government in Beijing will be responsible for
\ndefense and foreign affairs, though even in this area many
\ninternational arrangements, including air services agreements,
\nwill be handled directly by Hong Kong, subject to Beijing's
\noversight,\" Reed said.<\/p>\n
Hong Kong will have its own mini-constitution, which
\nguarantees the preservation of the territory's capitalist system.
\nThe mini-constitution is called the Basic law, a codified version
\nof the details in the Joint Declaration signed by Britain and
\nChina in 1984.<\/p>\n
The emphasis is very much on preserving Hong Kong as it is.
\nFor example, Hong Kong will retain its own currency; the border
\ncontrols between Hong Kong and the rest of China will remain and
\nEnglish will remain an official language, she said.<\/p>\n
\"Perhaps the key concept underlying the transfer is that the
\npeople of Hong Kong, wherever in the world they are from, will be
\nfree to stay, as will the multinational companies which many of
\nthem work for. In other words, business as usual,\" Reed said.<\/p>\n
Wong further said in general, Hong Kong people are very
\noptimistic about their future, with businesses running well and
\nstocks on the local bourse growing steadily.<\/p>\n
Many Hong Kong people who fled abroad during the Tiannanmen
\ntragedy in 1989 are now coming back because they see a wide
\nvariety of opportunities in Hong Kong, he said.<\/p>\n
Tourism<\/p>\n
Based on such optimism, Wong projected tourist arrivals to
\njump to 15 million this year, from an estimated 11.6 million last
\nyear and 10.2 million in 1995.<\/p>\n
Demand for hotel rooms is high, with some establishments
\nalready fully booked for June and July by those who are
\ninterested in witnessing the process of Hong Kong's sovereignty
\nhandover, he said.<\/p>\n
Among the luxury hotels enjoying the windfall during the June
\nto July period is the JW Marriott Hotel Hong Kong.<\/p>\n
\"Booking substantially jumps for that period,\" said Christ
\nTsoi, JW Marriott's marketing director.<\/p>\n
However, a good selection of rooms in most categories is still
\navailable. By next June, there will be at least 34,300 rooms in
\n89 hotels, Wong said.<\/p>\n
Most hotels are offering multiple-day packages, with minimum
\nstays ranging mainly from three to seven nights.<\/p>\n
Wong explained that inbound tourism contributed HK$75 billion
\n(about US$9.71 billion) to Hong Kong's economy in 1995, as
\ncompared to HK$88 billion from textiles and garments.<\/p>\n
HKTA data shows the territory's major source market in 1995
\nwas China, with 2.2 million arrivals, up 15.4 percent over the
\nprevious year. Taking the number two spot was North Asia (Japan
\nand South Korea), with two million visitors, an increase of 18.6
\nover 1994.<\/p>\n
The third largest market was Taiwan with 1.8 million visitors
\n(up 5.8 percent), followed by South and Southeast Asia with
\narrivals reaching 1.4 million (up 6.2 percent).<\/p>\n
Other major markets that showed an increase included Europe,
\nAfrica and the Middle East with 1.2 million arrivals (up 0.4
\npercent), and Australia, New Zealand and the South Pacific with
\n336,000 visitors (up 4.2 percent).<\/p>\n
Only the Americas showed a slight decrease of 3.9 percent for
\nthe whole year, with arrivals reaching just under one million at
\n986,000, according to the data.<\/p>\n
Tourist arrivals from Indonesia alone fell by 1.6 percent,
\n136,059 in the January to September period last year from 138,228
\nin the corresponding period in 1995.<\/p>\n
Wong also said to further promote Hong Kong as the most
\npopular travel destination in Asia, HKTA is now concentrating on
\nASEAN countries, including Jakarta, Surabaya and Medan in
\nIndonesia, Cebu in the Philippines, Chiang Mai in Thailand and
\nKuching in Malaysia.<\/p>\n
\"I hope not only Jakartans know about Hong Kong, but also
\npeople from other smaller cities,\" he said.<\/p>\n
In Hong Kong, where the work ethic is a driving force,
\nfestivals and fairs are a welcome part of life. The arts and film
\nfestivals, sports galas and food fairs all liven the local scene.<\/p>\n
Wong said this year's spotlight will include art and cultural
\nand performance groups from a number of countries, including
\nRussia.<\/p>\n
\"We invite overseas performance groups, including Indonesian
\ngroups, to come to Hong Kong. But we want really top class
\ngroups,\" he said.<\/p>",
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