Motion of Thanks - Economic Development  (2015/02/17)

President, this year's Policy Address is longer than the previous addresses, but if you look carefully at the various policy areas involved, you will find that many of them are covered only superficially. One may well say that it is lacking in novelty value in all aspects other than the clear descriptions of Hong Kong's role under the Belt and Road Initiative.
 
As we all know, over the past two or three years, the political environment and law and order situation in Hong Kong have become increasingly complex. This is characterized by the "anti-locust campaign" which started two years ago; the subsequent protests targeting tourists such as anti-parallel trading protests and the "shopping tour" protests staged in Mong Kok; and such incidents as Occupy Central and the Mong Kok riot which shocked both China and foreign countries. Some friends of mine from the Mainland have recently asked me whether the Mong Kok riot was directed against Mainlanders. Clearly, this series of actions have caused some Mainlanders unnecessary anxiety, and brought disgrace on Hong Kong's previous image of being civilized, rational, hospitable and safe. As a matter of fact, these actions have directly impacted on our tourism-related trades like retailing, hotels, catering, transport, tourist attractions, and so on.
 
Since 2015, the business turnovers of these trades have fallen substantially, and the incomes of service industry workers who are paid on a commission basis have greatly decreased. Various sectors are gloomy about their future economic  prospects, and the current social atmosphere foreshadows an even more uncertain outlook for inbound tourism, which is closely related to Hong Kong's economy. The tourism sector is particularly disappointed that the Policy Address fails to put forward any practical proposals to assist the troubled tourism industry and its workers in riding out the storm.

As regards specific measures, the Chief Executive states in the Policy Address, "To move our tourism industry up the value chain, the Government will highlight the unique and diversified experiences Hong Kong offers and showcase our gourmet culture. It will also promote cultural and creative tourism, organize mega events, and draw more conventions and exhibitions to Hong Kong." If we take a look at the specific measures subsequently announced by the Commerce and Economic Development Bureau, we can see that the only new initiatives are the theme-based exhibition area featuring local comic characters to be set up at the Golden Bauhinia Square, "Lumières Hong Kong" to be funded by the Mega Events Fund, the "Big Station" due to open soon in the Central and Western District, and the FIA Formula E Championship to be held in October. As these new initiatives are either small-scale or short-lived projects, it is reckoned that they will not be very effective in opening up new visitor sources. They are only better than nothing. I cannot see what substantive help these projects are going to offer to our sluggish tourism industry and economy this year.

I have raised a question about this subject at a Council meeting, and learnt that most of the relevant initiatives other than the aforesaid projects are short-term measures, and the only medium-term development project is the West Kowloon Cultural District. However, as this project is within the purview of the Home Affairs Bureau and is positioned chiefly as a cultural promotion initiative, it is still uncertain whether it will be suitable for tourists. This goes to show that the Government has yet to come up with a medium-term plan for Hong Kong's tourism industry. When it comes to short-term measures, we can only hope that the authorities can consolidate the existing valuable resources to maintain the freshness of Hong Kong's appeal to visitors.

Hong Kong has an abundance of tourism resources, with a diverse range of cultural features and special delicacies available in different districts across the territory. As the existing major tourism spots have started ageing, the authorities should collaborate with the districts in identifying, packaging and promoting local projects with special characteristics. Given Hong Kong people's rich experience in travelling abroad, a district project well received by the Hong Kong public will 
usually be well received by visitors too. District tourism projects can showcase existing traditional festivities, crafts, special delicacies, and so on, and can also foster the development of eco-tourism through subsidies. It is worthwhile to tap into these tourism resources which do not require huge investments and yet are beneficial to people's livelihood. The authorities should proactively identify and lend support to such projects, and must not allow these resources to be wasted on the pretext of a free economy. If such projects are successful, they will not only manifest Hong Kong's characteristics, but also drive the economic development of the districts.

At the implementation level, the authorities can consider co-operating with the District Councils in identifying three or four districts with suitable conditions, and using the existing resources of the Hong Kong Tourism Board (HKTB) to build an incubation platform, through which appropriate amounts of funds will be allocated for improving ancillary tourism and transport facilities in surrounding areas according to proposals from local communities or stakeholders, and such projects can be incorporated into the HKTB's overall publicity plan. If, as in last year, the Government can provide the HKTB with additional funding this year, so that the HKTB can allocate several million dollars for support, such projects are bound to achieve better results than some lucky draws held last year.

Besides, this year's Policy Address has announced the establishment of a $500 million Sustainable Agricultural Development Fund, which is in addition to the $500 million Sustainable Fisheries Development Fund announced in the 2013 Policy Address. Both funds are concerned with developing related leisure and educational activities. I hope that the authorities will take the lead in getting the agriculture and fisheries sector to work with the tourism sector for planning out some distinctive tourism products, so as to attract both local people and visitors who have different needs, and enable Hong Kong's tourism industry to showcase more elements of uniqueness.

Of course, the current approach of attracting tourists by organizing mega events is correct, but then the Government should further integrate mega events with district activities and launch a systematic and targeted publicity campaign, so as to make people aware that there are different mega events or activities going on in Hong Kong every season and every month for short, medium and long-haul visitors with different needs to choose from. In fact, not only can these events or activities attract tourists, but they can also stimulate spending by local people, thereby creating synergies between local recreational activities and tourism.

Deputy President, one of the reasons why Hong Kong has been popular with visitors coming under the Individual Visit Scheme (IVS) is that Hong Kong boasts convenient transport and modern facilities. Yet, in terms of signage, free Wi-Fi facilities and coach parking spaces in tourist districts, we still have a fair way to go before we can catch up with some advanced tourism cities. I hope that the Government can expeditiously make plans to start improvement projects regarding the several aspects mentioned above. As long as meticulous attention is paid to every detail, it may not be necessary to conduct large-scale construction works or make significant investments, and still we can make visitors feel that Hong Kong is an attractive and unique city.

Deputy President, last year, in view of the impact of Occupy Central on the tourism industry, the Government provided the HKTB with additional funding to the tune of $80 million, and allocated $10 million for setting up a matching fund. This year, under the influence of a host of adverse factors, I reckon that the tourism market will be worse than it was last year. I hope that the Government can continue allocating additional funds and earmark at least $100 million for stimulating the weak market. Consideration can be given to allocating part of the funding in the form of a matching fund, and carrying out joint promotional activities in collaboration with tourist attractions, shops, hotels, travel agents, and so on, with a view to making the overall publicity campaign more targeted and effective. I believe that these efforts will surely be of real help to the businesses concerned.

Of course, if we can send a message that we welcome Mainland visitors in order to rekindle their interest in coming to Hong Kong, it will be more effective than spending money on publicity overseas. The SAR Government can consider taking the initiative when conditions are ripe to apply to the Mainland for opening up more IVS cities ― I hope at least three Mainland cities with relatively high spending power outside Guangdong Province can be opened up ― to send a message that we welcome Mainland visitors.

In this year's Policy Address, the Chief Executive has devoted quite a lot of space to the Belt and Road Initiative, and there are dedicated chapters or sections discussing how the financial services, trade and logistics, and high-end services industries, three of the four pillar industries in Hong Kong, can complement the national strategies to "go global" and "attract foreign investment". But as to how the tourism industry can complement the Belt and Road Initiative as a national policy, the Policy Address has not mentioned any specific measures at all, which goes to show that the Government has no planning for the medium and long-term development of the tourism industry. In March 2015, the National Development and Reform Commission, the Ministry of Foreign Affairs and the Ministry of Commerce jointly issued the Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road. If we read this planning document for the Belt and Road Initiative carefully, we will note that one of the objectives set out therein is to help to build the Guangdong-Hong Kong-Macao Big Bay Area. This presents a clear picture of the positioning of Hong Kong in the overall planning.

Actually, Guangdong Province and Macao have formulated their tourism plans based on their own resource advantages. Macao aims to become a world tourism and leisure centre, and transform itself from a pure gaming destination into a family vacation destination. The National 13th Five-Year Plan also expresses clear support for Macao to develop into a world tourism and leisure centre. Zhuhai, Qingyuan, Panyu, Nansha and Shenzhen in Guangdong are all pressing ahead with different kinds of tourism projects according to their own conditions, and many of their constructed tourist attractions rank among the best in the world in terms of areas, scales and facilities. The Wildlife Kingdom under construction will be the world's largest zoo. The Guangdong-Macao co-operation scheme on "facilitated travel for pleasure craft" will allow pleasure craft to sail between the two places and open up new avenues for interaction and co-operation in tourism. It is clear that Guangdong Province and Macao have moved ahead of us. The SAR Government cannot afford to fall behind.

As we all know, once the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link are commissioned, the time needed to travel from Guangdong to Hong Kong or Macao, or vice versa, will be significantly reduced, and it will thus be much more convenient for both local residents and overseas tourists to visit the three places. This will allow tourism resources to be fully utilized, and enable visitors to have more diversified travel experiences. In Hong Kong, owing to the absence of new tourist attractions for many years and the ageing of existing tourism facilities, we are not good enough to attract more tourists or make overseas tourists stay longer. Therefore, in formulating tourism plans, the Government should change its egotistic mindset, and take a broad view of the layout of the entire Guangdong-Hong Kong-Macao Big Bay Area having regard to the coverage of the Belt and Road Initiative. We should analyse the tourism resources in neighbouring regions, leverage our own advantages in more forward-looking tourism planning, increase investments in areas where we have a competitive edge, and avoid homogeneity competition. The three places should draw on each other's strengths to make up for respective shortcomings, seek complementarity of advantages, and provide visitors with travel experiences of different natures, so that we can expand the proportion of overseas visitors and prolong their stay in Hong Kong.

Recently, regarding the issue of regulation by the Travel Industry Council of Hong Kong (TIC), some members of the industry and shops have launched a non-cooperation movement and some unpleasant incidents have ensued. Under the existing relevant ordinance, the TIC is duty-bound to take regulatory action against improper trade practices such as "zero/negative tour fares" and coerced shopping, so as to protect the consumer rights and interests of Mainland tourists. If such incidents continue to occur and spin out of control, Hong Kong's image as a hospitable city will be tarnished. At present, there are many voices in society calling for the prompt establishment of a Travel Industry Authority. I hope that the Government can introduce a relevant bill as soon as possible, and explore the possibility of establishing a Tourism Bureau.

With these remarks, Deputy President, I support the Motion of Thanks.