IAPCO General Assembly and Annual Meeting
13-16 February 2014
Melbourne, Australia A Hong Kong Update
by Irene Law the Meetings & Exhibitions Hong Kong
Rising Opportunities in Asia
Developing Asia GDP growth averaged at 8.4% p.a. 2007 to 2012
Developing Asia GDP growth forecasts far ahead of most other regions:
• 2013: 6.3% Hong Kong • 2014: 6.5%
Developing Asia: 17% of global economy 2012
Growing Consumption in Asia
Household Consumption Expenditure Per Capita Growth (Annual %) 10
8
6 East Asia & Pacific 4 (Developing) US 2 Euro area 0
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-4 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 The China Factor
No longer “just” a production base Rising consumption — consumer goods imports up 45% a year (2010 & 2012) Growing middle class — about 230 million Urban population — to rise to 1 billion by 2030
It’s a “Buyers” Market! 1.2 billion+ mobile phone users 590 million+ internet users World’s largest car market Large luxury goods markets Demand for imported wine: Up 58% p.a. average (2006 to 2012) 100 million Chinese tourists by 2020
2002-2012 GDP: 10.4% growth per annum Trade: 21.1% growth per annum China: Outward Investment Trend
Hong Kong: Springboard for Mainland Outbound Investments Helping Overseas Companies Benefit
Some 58% of mainland’s cumulative outward foreign direct China investment goes to or via Hong Kong Hong Kong Hong Kong Helps Overseas Partners
Seize Asian Opportunities
Hong Kong Advantages
Strong Fundamentals
Dynamic Ideal People Location Unique advantage: Global Financial Centre
Most Competitive Financial Centre in Asia Pillar of the Hong Kong economy – Ranking City 16.1% of GDP 1 London Asia’s 2nd largest stock market 2 New York World’s 2nd largest IPO centre 3 Hong Kong (expected ranking by E&Y) 4 Singapore 1st and largest off-shore RMB 5 Zurich 6 Tokyo platform 7 Geneva Base for 70 of the world’s 100 largest 8 Boston banks 9 Seoul Asia’s asset management hub 10 Frankfurt World’s largest securitized derivatives
The Global Financial Centres Index (GFCI) 9, market in 2012 City of London Corporation, March 2013 One Country Two Systems
Rule of law and independent judiciary Stable currency (HKD pegged to USD at fixed rate 7.8:1.0 for 31 years) Level playing field and no foreign ownership restrictions Political stability and pro-business governance The World’s Freest Economy for 20 consecutive years English and Chinese are official languages Hong Kong negotiates and signs its own economic and trade agreements and is a full and separate member of the WTO & APEC Free flow of information Low and Simple Tax System
* There is no standard rate across the Mainland China. Shanghai is used as an example VAT/GST/Sales tax Hotel tax Capital Gains Tax NO Withholding tax on investments Estate duty Global taxation Wine and beer duty World Class ICT – Connecting
2nd in Asia Cloud Readiness Index (Asia Cloud Computing Association, 8th in the Global Sept 2011) Innovation Index Report (INSEAD 2012)
The safest place in Asia Fastest broadband for setting up data globally 49.2 Mbps centres (Data Centre Risk Index, Cushman $ Wakefield, 2012)
Highest mobile internet usage rate in Asia Pacifc (96% users online daily) (Google)
Mobile phone penetration rate >236.6% (Sep 2013, OFCA) Excellent Connectivity - Gateway to Asia
Key Asian markets within 4 Hours 5 Hours from half of the world’s population
Asia’s Logistics & Maritime Hub
Hong Kong International Airport : Cargo handled : 4.12 million tonnes (+2.4%) Passenger throughput : 59.9 million (+6.1%) Flight movements : 372, 040 (+5.8%) 100+ airlines 180 locations worldwide As of December 2013
Container Port 22.3 million TEUs (2013) 380 container liner services weekly 550 destinations worldwide
14 Kai Tak Cruise Terminal
First berth opened in 2013 Two multi-function event spaces at 3,000 sqm each State-of-the-art Meeting Facilities
Hong Kong AsiaWorld-Expo Convention & Exhibition Centre 70,000 sqm rentable space 91,500 sqm rentable space New Hotel Facilities
2017 278 hotels | 77,980 rooms 2013 226 hotels | 70,152 rooms 2009 167 hotels | 59,627 rooms New Infrastructure – Gateway to China
Guangzhou-Shenzhen-Hong Kong Express Rail Link
By 2015 : 45 mins Guangzhou Hong Kong 10 hrs Beijing Hong Kong
New Infrastructure – Gateway to China
Guangdong Province Area: 212,000 square kilometres Population: 110 million
Hong Kong-Zhuhai-Macau Bridge Length : 50 km Completion: 2016 Hong Kong Macau: 45mins
An Open City
Visa free to Hong Kong from 170 countries & regions
Easy access to Mainland China 144-hour Convenient Visa via 10 cities in Guangdong Province
Mainland visitors to Hong Kong Individual Visit Scheme 49 Mainland cities 270 million population Human Capital - Quality Education
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Two universities HKUST MBA – 1st in Asia World’s Top EMBA in 2011: in the world’s top 100 and 8th in the world Kellogg – HKUST EMBA (Times Higher Education (Financial Times Global Programme World University Rankings 2013/14) MBA Ranking 2013) (Financial Times 2012)
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49 International schools 3rd in the Global Index Hong Kong students ranked first in of Cognitive Skills reading literacy globally and Educational Attainment (Progress on International Reading Literacy (Economic Intelligence Unit 2012) Study 2011)
Latest: Chicago Booth First EMBA Starts in Hong Kong (June 2014) Hong Kong Superlatives
The city has 5 of the World’s 100 Best Restaurants 5 Michelin starred restaurants, with the world’s cheapest starred restaurant – Tim Ho Wan People in HK eat out more often than anywhere else, there is one restaurant for every 600 people! Ozone Bar on the 118th floor of the Ritz Carlton Hotel is the highest bar in the world
Over 50mn litres of wine imported in 2012 Mong Kok has world’s highest population density at 130,000/sq km Lamma Island - a population of only 5000, has 60 different nationalities living there
A hot travel destination 2013 total visitors arrivals 54.3 million (+11.7%)
MEHK makes things happen
Contact: Irene Law Email: [email protected] www.mehongkong.com
Thank You
See you in Hong Kong! IAPCO General Assembly and Annual Meeting 2014 Melbourne
MEHK Hosted Luncheon Lucky Draw
Six nights hotel accommodation (on twin-sharing basis) at the following properties: Mandarin Oriental Hong Kong Hotel, Kowloon Shangri-la Hotel, InterContinental Grand Stanford Hong Kong Hotel, with daily American buffet breakfast for two persons Round trip private car airport transfers between Hong Kong International Airport and residing hotel for two persons, plus private half-day “Hong Kong Island Tour” with one-way Peak Tram ride for two persons Sky100 Observation Deck admission tickets for two persons Discover Hong Kong Tourist SIM Card 5-day Pass for two persons
Hong Kong Tourism Board Stand Number: 3506