HKIA ideally placed to benefit from China's entry to WTO

(HONG KONG, 28 September 2000) -- China's entry to WTO presents the biggest opportunity in Hong Kong's history, according to the Chairman of the Airport Authority.

In a speech today at the Union League Club in New York, Dr Victor Fung Kwok-king said China's accession to WTO will be "a defining moment in the mainland's further integration with the world economy - and the greatest economic advancement since the Mainland began its 'open door' engagement with the world in the late 1970s".

The implications for Hong Kong were "enormous", he said, as the world's biggest potential consumer market gradually opened to global business. At the same time, China's service sector will open to international participation in wholesale and retail, advertising, telecommunications and the Internet, financial services, professional services and - most significantly for Hong Kong International Airport (HKIA) - tourism, freight forwarding and logistics.

HKIA was ideally placed to benefit from China's entry to WTO, Dr Fung said. It enjoyed a perfect location next to southern China, in the heart of East Asia, and midway between our traditional trading partners in Europe and North America.

"Half the world's population lives within five hours flying time of Hong Kong," Dr Fung said, "and at the latest count, some 63 airlines were serving 130 destinations in 40 countries. Most importantly, we are the main gateway to China, with seven local carriers serving 40 mainland cities direct."

With more than 32 million passengers a year, HKIA is the busiest airport in Asia. It is the world's busiest international air cargo hub, handling almost 2.2 million tonnes per annum, with steady double-digit growth.

The airport enjoys state-of-the-art facilities that can already cater for the planned Airbus A3XX and other New Large Aircraft. New logistics facilities and sea-air cargo links at the airport will enhance Hong Kong's competitiveness as an air cargo hub. The AA recently awarded a license to develop and operate a Marine Cargo Terminal providing direct sea access to an initial14 river ports throughout the adjacent Pearl River Delta.

Tourism is another service sector that will open up under WTO. According to the World Tourism Organisation, China will be the world's most popular tourist destination by 2020, attracting 130 million foreign visitors during that year. Visitors to Hong Kong are expected to rise from 10 million to 57 million during the same period. The opening of the Hong Kong Disneyland in 2005 is expected to attract 3.4 million incoming visitors in the first year of opening, rising to 7.3 million per year by 2020. About 40 per cent of these visitors will be from the mainland.

China's entry to WTO added weight to the Airport City concept earmarked for the 45-hectare North Commercial District. This will be a virtually self-contained business community that could include, among other things, a major exhibition centre.

"I am very excited about the prospect China's WTO accession holds for Hong Kong and HKIA," Dr Fung said. "I believe it will set in motion Hong Kong's next economic transformation, creating new ways to add value, new jobs and new sources of wealth."

Note to editors: Dr Fung's photo can be downloaded from AA website.

Ref. PR-532