Kai Tak Cruise Terminal
Individual Assignment for Tourism and Transport
Introduction The cruise industry has been growing between 1990 to 2005, recording an expansion of passenger level from 4.4 million to 13.9 million.1 The growth has led to cruise industries to build larger and diversified ships, and to provide more local ports, destinations and new on-board or on-shore activities that match demands of consumers.2 In order to cope with the global trend and become a leading regional cruise hub, the Kai Tak Cruise Terminal was built in May 2010 and will commence in June 20133, which will mark the starting point for Hong Kong in the cruise race.
Potential effects of the new cruise terminal to the tourism development in HK and concerned regions
#1 Economic effects The government projects that the Kai Tak Cruise Terminal will generate 75% financial benefits to HK and the total value-added contribution to the economy would be HK$860 million to HK$1.09 billion.4 Also with the multiplier effect, which is 2.5 to 3 in Hong Kong, if tourists spend HK$100 million dollars, this would add HK$300 million to Hong Kong’s Gross Domestic Product.4 In terms of employment, the government plans to develop tourism- related facilities such as hotels, shopping malls, conference facilities, etc. nearby the cruise terminal to increase competition.5 This will generate 6,900 to 10,900 job opportunities by 2020.5 Not only will the port bring benefits to Hong Kong, with close partnership between the Tourism Commission and regions such as Shanghai, Singapore and Thailand, cruise excursion itineraries in 2013 could include attractions of Hong Kong and nearby ports.6 Some officials were skeptic about the benefits brought by the terminal. In 2008, the Hong Kong Tourism Board recorded a HK$57 million dollar spending from cruise passengers, but it only equated a spending of HK$73 per head.9 People were unwilling to spend their money in Hong Kong because cruise lines are
Introduction The cruise industry has been growing between 1990 to 2005, recording an expansion of passenger level from 4.4 million to 13.9 million.1 The growth has led to cruise industries to build larger and diversified ships, and to provide more local ports, destinations and new on-board or on-shore activities that match demands of consumers.2 In order to cope with the global trend and become a leading regional cruise hub, the Kai Tak Cruise Terminal was built in May 2010 and will commence in June 20133, which will mark the starting point for Hong Kong in the cruise race.
Potential effects of the new cruise terminal to the tourism development in HK and concerned regions
#1 Economic effects The government projects that the Kai Tak Cruise Terminal will generate 75% financial benefits to HK and the total value-added contribution to the economy would be HK$860 million to HK$1.09 billion.4 Also with the multiplier effect, which is 2.5 to 3 in Hong Kong, if tourists spend HK$100 million dollars, this would add HK$300 million to Hong Kong’s Gross Domestic Product.4 In terms of employment, the government plans to develop tourism- related facilities such as hotels, shopping malls, conference facilities, etc. nearby the cruise terminal to increase competition.5 This will generate 6,900 to 10,900 job opportunities by 2020.5 Not only will the port bring benefits to Hong Kong, with close partnership between the Tourism Commission and regions such as Shanghai, Singapore and Thailand, cruise excursion itineraries in 2013 could include attractions of Hong Kong and nearby ports.6 Some officials were skeptic about the benefits brought by the terminal. In 2008, the Hong Kong Tourism Board recorded a HK$57 million dollar spending from cruise passengers, but it only equated a spending of HK$73 per head.9 People were unwilling to spend their money in Hong Kong because cruise lines are