Major Speeches
Speech by the Financial Secretary John C. Tsang at the Annual Gala Dinner of the Hong Kong Hotels Association (English only)
Mark (Lettenbichler), Distinguished Guests, Ladies and Gentlemen,
Good evening.
I am truly delighted to join you all tonight for this fabulous gala dinner.
The hotel industry is a strong and high value-added pillar of our tourism sector. Over the years, it has played a pivotal role in building Hong Kong into a world-class tourism destination. This owes in no small part to the steadfast efforts of the Hong Kong Hotels Association in upholding the highest standard of service and hospitality for its member hotels.
I am glad to learn that the hotel industry has been going strong. Last year, overall occupancy reached 86%, and at peak seasons, like last November and December, 93% of our rooms were booked. This is phenomenal by any standard. This momentum is continuing and we can look forward to another good year. An additional 14 new hotels came on stream, offering some 4,400 more rooms and creating thousands of new opportunities for hotel management and catering professionals as well as new blood to the industry. While it is a great pleasure here to celebrate with you the buoyant business situation of late, we must not lose sight of the need to continue to sharpen our competitive edge to deliver quality hotel service to meet our visitors’ diversified needs.
Since the hotel industry is a key component of our tourism sector and a key source for jobs in our community, you were close to my heart during my fiscal deliberation. As you all know, in my first Budget this February, I have proposed to scrap the hotel accommodation tax to help give the industry an extra boost and reduce your administrative cost. The proposal will come into effect when the Legislative Council passes an amendment bill, hopefully before the end of its current term in July.
I have also exempted the duty on wine and beer. You all know it is about more than making our favourite tipples a little more affordable. It is about jobs. Indeed, we see good prospects in developing Hong Kong into a regional hub for wine-related businesses, such as wine trading and distribution, fairs and exhibitions, wine appreciation, catering services, and more. And these businesses will create jobs in our community. Hotels are our close stakeholders of, and an important driving force for, these growing economic activities. I look forward to your imaginative initiatives in leveraging the wine duty exemption to grow your F&B (food and beverage) business.
In the longer term, we should seek to facilitate the development of hotel facilities to meet visitors’ needs. From 2002 to 2007, while the number of overnight arrivals grew by about 60%, the number of hotel rooms has only increased by about 30%. By including 10 sites which are “restricted to hotel use” in this year’s Application List, I hope it will give further incentive for the market to develop a wider variety of hotels.
Ladies and Gentlemen, in about 80 days, Hong Kong will be staging the Olympic Equestrian Events. Two weeks ago, we were proud to be the first city in China to welcome the Olympic torch back to our nation after its journey around the world. The whole community is working together to give our best when we welcome back the Olympic Flame in August and make the most of this once-in-a-lifetime opportunity.
I am confident that, with your Association’s capable leadership, the hotel industry will be doing everything possible to welcome our visitors and showcase our vibrancy to the world. Indeed, your hospitality to guests of different nationalities and with different beliefs is very much akin to the Olympic ideal of “One world. One dream”. We don’t just embrace this Olympic passion; it is an intrinsic part of what makes our hotels tick.
Ladies and Gentlemen, let us say “We are ready”, not just for the Olympics, but also for the future of our tourism sector, as we join hands together to deliver nothing less than quality service to our visitors.
Thank you very much.
May 16 , 2008
