MR YIU SI-WING (in Cantonese): Chief Executive, the number of visitor arrivals last year has hit a new high, with the average hotel occupancy rate rising above 90%. Moving into the fourth quarter, with the commissioning of two major infrastructure projects in Hong Kong, namely, the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge, the hotel occupancy rate further went up. Recently some consortiums have converted several existing hotels for other uses, thus making the supply of hotels even tighter.

Some time ago, three sites in Kai Tak originally designated for hotel use were rezoned by the Government for other uses or residential use. This is proof that the Government has neglected the demand for hotels in the light of the development of tourism. A shortage of hotels will lead to high room rates, and this will take toll on the desire of overseas tourists to visit Hong Kong as well as the competitiveness of the tourism industry in Hong Kong in the region. May I ask the Chief Executive what solutions there are in the face of a shortage of hotels in the future?

 

CHIEF EXECUTIVE (in Cantonese): President, please allow me to slightly broaden the scope of the question asked by Mr YIU Si-wing. In fact, it is an indisputable fact that there is a shortage of land in Hong Kong. This shortage is most pressing whether for meeting the housing demand of Hong Kong citizens or meeting the demand for land of various trades and industries. Therefore, where land supply is tight, it may be inevitable to make a choice.

Insofar as the hotel industry is concerned, in the Policy Address I proposed the reintroduction of the revitalization scheme for industrial buildings. Back then―it should be 2010―the revitalization scheme was introduced for industrial buildings to undergo wholesale conversion, and some of them should have been converted for hotel use. I hope that the supply of hotels can increase through this channel, so as to slightly alleviate the very tense situation mentioned by Mr YIU just now. But in the long term, we must develop more land in order to meet the demands for land from the local tourism, hotel, as well as innovation and technology industries.

 

MR YIU SI-WING (in Cantonese): President, the Chief Executive mentioned the policy of liberalizing industrial buildings just now. In this connection, may I ask if discussions have been held with the relevant departments on ways to promote this policy and if there is a specific timetable?

CHIEF EXECUTIVE (in Cantonese): This revitalization scheme for industrial buildings being reintroduced should have been launched, and the Secretary for Development can confirm that it is now under way. Basically there should not be too much difference in the procedures compared with the previous one that has been implemented for six years and so, I believe the industry should generally understand how it works. But of course, every owner of an industrial building will make calculations and consider whether the building, after completing wholesale conversion, should be converted into a hotel or for other uses.