Overview 

• As an externally oriented economy and international financial centre, Hong Kong is not immune to the global financial crisis and the ensuing global recession. However, with its sound fundamentals, Central Government backing and the natural resilience of the Hong Kong people, the city is well equipped to withstand the economic downturn.

• Hong Kong can rely on the unwavering support of the Central Authorities in its ongoing development as Asia’s world city and China’s pre-eminent international financial centre.

• Having endorsed the recommendations of the Task Force on Economic Challenge, the Government has announced that it will strive to promote six industries where Hong Kong enjoys clear advantages and which will add impetus to the city’s economic development. They are: testing and certification services, medical services, innovation and technology, cultural and creative industries, environmental industries and educational services. At the same time, the Government will continue to consolidate the strengths of the traditional four pillar industries and to sustain their development.
   
• ‘One Country, Two Systems’ has been successfully implemented in Hong Kong since Reunification in 1997.

• Fundamental strengths and core values remain intact - recognised in reports by the Governments of the United Kingdom and the United States, as well as the European Commission.
   
• The fast economic development in the Mainland has presented new opportunities for a broader and deeper financial market in Hong Kong.  We can support the Mainland in promoting the regionalisation and internationalisation of the Renminbi (RMB), and serve as its platform for foreign financial activities. 

• Much closer links with Mainland in many other areas including law enforcement, health and food safety, infrastructure planning, environmental protection, cultural and arts exchanges.

• HKSARG continues to play a full and active role in international forums and organisations such as Asian Development Bank (ADB), Asia Pacific Economic Co-operation (APEC), World Trade Organisation (WTO) and World Customs Organisation.

• HKSARG continues to negotiate bilateral agreements with foreign governments in many areas including air services, trade, visa abolition, investment promotion and protection, customs co-operation and others.

Fundamental strengths remain unchanged

• Rule of law upheld by an independent judiciary.
   
• Clean, efficient civil service.
   
• Civil rights and freedoms protected by law.
   
• Level playing field for business – local and international companies compete on equal footing.
   
• A free press and unfettered flow of news and information.
   
• Free flow of capital, with stable and freely-convertible currency.
   
• Regional hub for finance, trade, commerce, logistics and tourism.
   
• Respect for and protection of intellectual property.
   
• Hong Kong has one of the most effective anti-corruption agencies in the world – the Independent Commission Against Corruption. Hong Kong is ranked the 12th least corrupt place amongst 180 countries and places surveyed, and the second cleanest in Asia by the Transparency International’s Corruption Perceptions Index 2009.
   
• One of the world's safest cities – a law-abiding community that respects rule of law and the police.
   
• Multi-cultural, tolerant, pluralistic, well-educated and hard-working society.
   
• Hong Kong has one of the most effective anti-corruption agencies in the world – the Independent Commission Against Corruption. Hong Kong is ranked the 12th least corrupt place amongst 180 surveyed, and the second cleanest in Asia by the Transparency International’s Corruption Perceptions Index 2008.

Infrastructure and development

• Hong Kong International Airport opened in July 1998. In the past nine years, it has been voted world’s best airport by Skytrax seven times. Second passenger terminal officially opened in June 2007.
   
• World’s busiest international air cargo hub for the past decade. Handled 3.63 million tonnes of air cargo in 2008. Throughput more than doubled since 1997.

Major projects to improve flow of people and goods between Hong Kong and Mainland:

►Hong Kong-Shenzhen Western Corridor opened in July 2007;

►Second passenger rail crossing at Lok Ma Chau opened mid-August 2007;

►Construction of the Hong Kong Section of Guangzhou-Shenzhen-Hong Kong Express Rail Link  (XRL) is expected to commence in early 2010;

►The new eastern corridor between Hong Kong and Shenzhen, namely, Liantang/Heung Yuen Wai Boundary Control Point, is under study;

►The State Council approved the feasibility study report of the Hong Kong-Zhuhai-Macao Bridge (HZMB) Project in October this year. The construction of the HZMB Main Bridge commenced in phases on December 15, 2009. With the completion of the HZMB, Hong Kong will become part of the  “one-hour-radius transportation and economic zone.”

• The Government has invested about $21.6 billion to create a world-class integrated arts and cultural hub on a prime harbour-front site in West Kowloon. Planning and design work will be undertaken by the West Kowloon Cultural District Authority.

• Implementation of the 10 major infrastructure projects announced in the 2007 Policy Address will increase employment opportunities and economic benefits, and will give fresh impetus to our economic growth.  In addition to HZMB and Hong Kong Section of the XRL, site formation works for the cruise terminal development at Kai Tak also commenced in December 2009.

• Recent policy initiatives have emphasised quality living and focused on such factors as air quality, living space, cultural infrastructure and heritage conservation. Under the  “Conserving Central” plan as announced in the 2009 Policy Address, the Government will implement a series of heritage projects to conserve the social, historical and architectural characteristics of Central, and to provide a new lease of life and vitality to the district.
   
• An improved living environment is increasingly reflected in urban planning policies. A number of large-scale new development projects, such as the Kai Tak Development Project and the development of New Central Harbourfront, have been revised for greater inclusion of conservation or environmental aspects. The new urban renewal projects launched by the Urban Renewal Authority, e.g. the Kwun Tong Redevelopment Project, have taken on board more preservation and green features.
   
• The HKSARG will strive to maintain a balance between economic development and environmental/heritage conservation.

Tourism

• In 2008, the city proudly joined the rank of Olympic co-host cities – we won international acclaim for staging a state-of-the-art Olympic and Paralympic Equestrian Events. 
   
• Hong Kong successfully hosted the 5th East Asian Games (EAG) – the largest multi-sport event ever held in the city – from December 5 to 13, 2009. During the Games, over 1.11 million visitors came to Hong Kong, representing an increase of 5.7 per cent or more than 60 000 visitors as compared with the same period of the previous year, reinforcing Hong Kong’s position as the Events Capital of Asia. Hong Kong spent six years preparing for the EAG.

• The annual Hong Kong Rugby Sevens and flagship marathon, squash, badminton, volleyball, tennis, golf, cricket and dragon boat racing events have all reinforced the city’s position as a major center for sport in Asia.
   
• A total of HK$25.2 million will be granted in the first-round application of the Mega Events Fund to support six mega arts, cultural and sports events in Hong Kong.  These will add colour and vibrancy to the city and help attract more visitors to Hong Kong.

• Hong Kong became one of the first Michelin cities in China with the launch of the “Michelin Guide Hong Kong Macau 2009”. Its second edition “Michelin Guide Hong Kong Macau 2010”, published at the end of November 2009, has reinforced the city’s status as a prime destination for gastronomic delights. The latest guide recommended 245 establishments in Hong Kong (205 restaurants and 40 hotels) to readers.

• The Hong Kong Tourism Board (HKTB) organised the first Wine and Dine Festival from late October to early November 2009.  This mega event attracted some 70 000 visitors and showcased the city as a premier destination for gourmets and food connoisseurs.

Tourism infrastructure that boosts the city’s appeal:

►The opening of Hong Kong Disneyland and AsiaWorld-Expo Conference Centre in 2005;

►Hong Kong Wetland Park and Ngong Ping 360 cable car system launched in 2006;

►Ocean Park undergoing a $5.55 billion Master Redevelopment Plan which will double its number of attractions at the park from 35 to 70 by 2012; and

►Hong Kong Disneyland to be expanded in phases by mid-2014 into a park with three new themed areas and more than 30 new attractions added, bringing the total number of attractions in the park to over 100.

• About 70 per cent of Hong Kong’s 1 100 square kilometers is open countryside, and 40 per cent of the city’s total area are country parks. They are only a stone’s throw from the densely populated urban areas and exhibit a remarkable variety of scenery and landscapes, flora and fauna.

• Hong Kong National Geopark, covering about 5 000 hectares and made up of eight geo-areas distributed across the Northeast New Territories Sedimentary Rock Region and Sai Kung Volcanic Rock Region, was opened on November 3, 2009. Its star attractions are unique, hexagonal volcanic rock columns which are more massive and taller than similar formations at the famous Giant’s Causeway in Northern Ireland. The Geopark will help promote green tourism.

• Hong Kong’s strategic location at the heart of one of the world’s fastest growing economies, along with its sophisticated infrastructure, easy accessibility, business-friendly environment, professional expertise and vibrant lifestyle converge to become what is recognised as Asia’s premier destination for MICE (meetings, incentive travels, conventions and exhibitions).

• The hotel accommodation tax has been waived since 1 July 2008 to promote tourism and prolong visitors’ stay.

• A cruise terminal will be built in South East Kowloon on the former runway of the old airport at Kai Tak. The first berth of the new cruise terminal will commence operation in mid-2013, while the full-fledged cruise terminal building will be completed in 2014-15 or earlier.