HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 595 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 11 November 1992 The Council met at half-past Two o'clock PRESENT THE DEPUTY PRESIDENT THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., Q.C., J.P. THE FINANCIAL SECRETARY THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P. THE ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, M.B.E., J.P. 596 HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE PETER WONG HONG-YUEN, J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHIM PUI-CHUNG REV THE HONOURABLE FUNG CHI-WOOD THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA THE HONOURABLE SIMON IP SIK-ON, J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE GILBERT LEUNG KAM-HO THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 597 THE HONOURABLE MAN SAI-CHEONG THE HONOURABLE STEVEN POON KWOK-LIM THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. THE HONOURABLE ZACHARY WONG WAI-YIN DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE CHRISTINE LOH KUNG-WAI THE HONOURABLE ROGER LUK KOON-HOO ABSENT THE CHIEF SECRETARY THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. IN ATTENDANCE MR RONALD JAMES BLAKE SECRETARY FOR WORKS THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR ANTHONY GORDON EASON, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS 598 HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 MR IAN ROBERT STRACHAN, J.P. SECRETARY FOR SECURITY MRS ELIZABETH MARGARET BOSHER, J.P. SECRETARY FOR ECONOMIC SERVICES MR PAUL LEUNG SAI-WAH, J.P. SECRETARY FOR RECREATION AND CULTURE THE CLERK TO THE LEGISLATIVE COUNCIL MR CLETUS LAU KWOK-HONG HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 599 Papers The following papers were laid on the table pursuant to Standing Order 14(2): Subject Subsidiary Legislation L.N. No. Dangerous Drugs Ordinance (Amendment of Fourth Schedule) Order 1992.............................................................................. 363/92 Supreme Court Fees (Amendment) Rules 1992 .............................................. 364/92 Sessional Paper 1992-93 No. 23 — Hong Kong Tourist Association Annual Report 1991-92 Address by Member Hong Kong Tourist Association Annual Report 1991-92 MR MARTIN BARROW: Mr Deputy President, I am pleased to table the Annual Report of the Hong Kong Tourist Association for the financial year 1991-92. By the end of 1991, Hong Kong had welcomed a record of more than six million visitors, and even though international travel had been seriously curtailed during the first six months by the crisis in the Middle East and recession in several of our major markets, the 1991 record represented a 1.7% increase over 1990. The tourism industry also generated total revenue of HK$40 billion — a modest increase of 1.0% over the previous year. It is a tribute to the industry's resourcefulness and competitiveness that we achieved growth in a year when economic conditions adverse to travel and expenditure persisted in many of our long-haul markets. This performance means that tourism continued to be the territory's third largest earner of foreign exchange, accounting for the equivalent of 6.3% of GDP. Arrivals from East Asia accounted for 62% of the total. This dominance reflected general economic growth in the region, as well as the Association's own strategic marketing emphasis in the area. 600 HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 Hong Kong's hoteliers achieved a healthy average room occupancy of 75%. This result was all the more impressive considering the fact that supply during the year increased by 3 000 rooms, bringing the territory's stock of rooms to 31 000. The continued investment in hotels indicated underlying confidence in the future of the tourism industry. After several years of rapid growth, however, we now expect to see a period of consolidation. The Association's marketing activities during the year included strengthening the "Hong Kong — Stay an extra day" marketing theme to promote an increase in the average length of stay in Hong Kong. This theme is pivotal to our marketing strategy. With more hotel rooms becoming available and the possible constraints on the number of arrivals due to the capacity of Kai Tak in coming years, we need to alter the perception of Hong Kong as a stopover destination. And it was pleasing to note that the campaign produced results last year. The average length of stay rose from 3.33 nights to 3.43 nights. This meant an additional 900 000 room nights. Having overcome the problems of 1991, we are viewing 1992 with optimism. Total visitor arrivals in the first nine months rose 17.8%. Even more significant was the growth in tourism receipts up 24.7% to HK$23.4 billion. Hotel occupancy has also been encouraging, reaching an average of 80%. We must not, however, underestimate the strength of the competition, nor the work that needs to be done if we are to retain our position as Asia's most popular travel destination. Top of the list, we consider the earliest possible completion of the new airport essential for future growth and prosperity. We could be welcoming up to 10 million visitors and earning HK$140 billion annually by the year 2000 with the facility fully functioning. It is vital, therefore, that there are no constraints on air traffic. The protection and preservation of our environment, both natural and historical, is also vital. The growing importance of environmental factors in a tourist's choice of a travel destination is documented and we must be keenly aware of the need for clean air, water and beaches, and a well-maintained countryside if we expect to offer the recreational facilities many of our Asian neighbours can provide. We have been working closely with the Immigration Department to reduce visa complications for visitors — notably from Taiwan and East Europe — and were delighted that many areas of concern have been eliminated, although delays still occur elsewhere overseas and there remains the perception that Hong Kong has unnecessary, restrictive policies. HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 601 Three other obstacles we view as serious threats to the growth of the tourism industry must be removed. One is the exorbitant Airport Departure Tax and we urge that it is, at least, reduced by half and waived completely for visitors arriving and departing on the same day. The other two are the need to maintain Hong Kong's law and order and the need to control inflation. Safety and cost are two major factors which influence the consumer's choice of a travel destination. If we can overcome these challenges, I have little doubt that Hong Kong will continue to be a major player on the international travel scene. Such developments as China's resumption of its position as a destination in demand, the opening of many new markets following the end of the Cold War politics or domestic reform, and increased direct flights to Hong Kong are particularly auspicious. And we hope that next year, at least, the recession in North America and Europe may have somewhat eased. We will continue our work to ensure that Hong Kong retains its prime-destination status. I invite Members to study the Annual Report. It outlines comprehensively the range of activities the Association undertook on behalf of the industry and Hong Kong in the past financial year. Thank you. Oral answers to questions Legislative programme 1. MR MARTIN BARROW asked: Will the Government inform this Council of its future plans towards legislation including: (a) how many Bills are to be submitted to this Council in 1992-93; (b) how many pieces of proposed legislation have failed to secure a legislative time slot in the 1992-93 Session as a result of the prioritization exercise conducted by the Chief Secretary's Legislative Priorities Committee; (c) how it plans to cope with bringing existing legislation in line with the Basic Law, as well as handling a large amount of new legislation; and (d) whether the Government has a schedule of the drafting status of all future legislation for the purpose of monitoring the drafting progress of Bills; if it does, whether that schedule could be made available to Member of this Council? 602 HONG KONG LEGISLATIVE COUNCIL — 11 November 1992 ATTORNEY GENERAL: Mr Deputy President, I shall reply to the four detailed parts of the question in the same order as they were put to me.