For discussion
on 21 June 1996


New Capital Account Subhead "Tourism Development Fund"

Members are invited to approve the creation of a new non-recurrent account subhead with a commitment of $50 million for setting up a Tourism Development Fund.


There is a need to enhance the attractiveness of Hong Kong as a tourist centre.


2. We propose to make a one-off grant of $50 million to the Hong Kong Tourist Association (HKTA) to set up a Tourism Development Fund to provide funding for feasibility studies on a number of projects recommended in the Visitor and Tourism Study (VISTOUR) Strategy Report, improvements to existing tourist facilities and development of new events.


3. Tourism is Hong Kong's second largest earner of foreign exchange. In 1995, Hong Kong welcomed a record of 10.2 million visitors who spent some $75 billion, representing a contribution of 8% to our gross domestic product. Some 70,000 people work on jobs dedicated to serving overseas visitors and another 274,000 in related jobs in the service sector.

4. To identify a long term visitor and tourism strategy for the further development of Hong Kong's tourism industry, HKTA commissioned in late 1994 Roger Tym & Partners to conduct a study on such a strategy and to recommend appropriate courses of action for its implementation. The findings of the report, now commonly known as the VISTOUR Strategy Report, were published in late 1995. The report made some 80 recommendations, and highlighted the need to enhance Hong Kong's attractiveness and competitiveness as a major tourism destination by developing new tourist attractions and facilities and improving existing ones.

Feasibility studies on new projects

5. Having considered the recommendations in the VISTOUR Strategy Report, HKTA has worked out an action plan to take forward seven major projects, in order of priority -

  1. Millennium Fair : A major trade and business event with particular emphasis on large scale exhibitions, indoor entertainment and cultural activities;
  2. Film City : A "Universal Studio of the East";
  3. Aquatic Centre : A watersports centre of international standard;
  4. Cruise Centre : A dedicated modern berthing facility and terminal for international cruise ships, for developing Hong Kong into a major cruise hub;
  5. Theme Park : Leisure and entertainment facilities ideally in the urban area;
  6. Festival Market Place : A waterfront centre with shopping and entertainment facilities; and
  7. New Peak : An additional vantage point overlooking the harbour.

A brief description of these seven projects is at Enclosure 1.

6. HKTA intends to use the Tourism Development Fund to undertake feasibility studies on the above projects, many ideas of which are new to Hong Kong. Specifically, the feasibility studies will cover the following aspects -

  1. preparation of inception and technical reports;
  2. environmental impact assessment;
  3. traffic impact assessment;
  4. financial viability analysis; and
  5. detailed investment proposals in respect of each of the projects.

After consideration, HKTA will take the investment proposals to the private sector and interested parties, both local and overseas, to encourage them to take over and invest in these projects. HKTA may also approach the Administration for assistance in the implementation of the projects.

Improvement to existing facilities and development of new events

7. In addition to the above feasibility studies, HKTA also intends to make use of the Fund to improve existing tourist facilities and develop new events. These include -

  1. installation of hi-tech interactive information kiosks at the new airport and major tourist attractions such as the Hong Kong Cultural Centre, Star Ferry and the Peak;
  2. environmental audits for the tourism industry (to see how best to coordinate the efforts in environmental protection and resource management for sustainable development in various sectors within the tourism industry);
  3. the installation of road signs and mapboards at major tourist lookout points;
  4. enhancement of the ambience at selected historic sites;
  5. installation of mapboards and directional signs along the scenic roads in Pak Tam Chung in Sai Kung; and
  6. development and staging of a Hong Kong Marathon as a new annual event to highlight the attraction of the Tsing Ma Bridge.

8. A brief description of the proposed improvement works and new events is at Enclosure 2.


9. HKTA estimates that it will require $39 million to conduct feasibility studies on the seven major projects and another $11 million to improve existing facilities and develop new events. A breakdown of expenditure is as follows -

Feasibility studies HK$ million
Millennium Fair8.0
Film City5.0
Aquatic Centre5.0
Cruise Centre6.0
Theme Park3.5
Festival Market Place3.5
New Peak8.0
Improvements to existing facilities and
development of a new event
Information Kiosks2.0
Environmental Audit2.0
Improved Signage & Tourist Information1.0
Enhancing Ambience and Attractiveness
at Selected Historic Sites
Scenic Drive1.0
First Hong Kong International
Marathon on Tsing Ma Bridge

10. HKTA will use any savings that may arise from the above projects to take forward other recommendations in the VISTOUR Strategy Report.

11. The estimated cashflow requirements of the Fund will be as follows-

$ million










12. The HKTA Board of Management will set up a Development Sub-committee to monitor the deployment of funds and the progress of the proposed feasibility studies, the improvement works and new events. The HKTA will also invite government representatives from relevant policy branches and departments, such as the Economic Services Branch, the Planning, Environment and Lands Branch and the Planning Department, to meetings of the Sub-committee to offer advice and guidance.


13. The HKTA briefed the Legislative Council Panel on Economic Services on the findings of the VISTOUR Strategy Report on 8 January 1996. It has also consulted the Municipal Councils, all 18 District Boards and members of the tourism industry. There was enthusiastic support for the strategy report from all sectors.


14. In his Budget Speech in March 1996, the Financial Secretary proposed to establish a "Tourism Development Fund" and, subject to approval of this Committee, to provide a one-off capital injection of $50 million to HKTA to take forward the recommendations outlined in the VISTOUR Strategy Report and to initiate studies for enhancing our tourism attractions.

Economic Services Branch

June 1996

Enclosure 1 to FCR(96-97)24

A Brief Description of the Seven Major Projects in the VISTOUR Strategy Report





Millennium Fair

South East Kowloon


A major business and trade event focusing on Hong Kong'

s service centre and international role as the Asian hub and Gateway to China. Major themes include :

---an area for large scale exhibition events related to trade and other economic activities in Hong Kong, China and the West Pacific Rim;

---a large park highlighting a range of Asian cultures; and

---an area for indoor entertainment and cultural activities.

We plan to hold it in 2001 at the Kai Tak site after the relocation of the airport.

Film City

Possible Locations:

Tsing Yi

Sai Kung


The concept is one of the "Universal Studio of the East" with special or working sets for film and television production. Visitors may see the actual film and/or TV production as well as experience the working sets and costumes. Dark ride, mini theatre, souvenir stalls and F&B outlets will also be available.

Aquatic Centre



A water sports centre of international standard for rowing, canoeing, water skiing, dragon boat racing and other water sports.

It requires 2,000 metres of unobstructed water sheltered from wind and strong current, plus land based facilities, such as launching facilities, boat houses, grand stand at finish to accommodate 2,000 to 4,000 spectators, TV towers, parking facilities, etc.

Cruise Centre

Urban Core


A dedicated modern berthing facility and terminal for international cruise ships, for developing Hong Kong as a major cruise hub. Key facilities include a dedicated cruise terminal with all port facilities, two berths, parking, and Infrastructure support/ link to the other part of the territory. There may also be some marine attractions, like maritime museum and aquarium, retail and dining facilities and hotel/service apartments.

Theme Park

Possible Locations:
Tsing Ma

South East Kowloon


Theme leisure and entertainment facilities in the urban area, including a "Virtual Reality" game attraction.

Festival Market Place

Urban Core


A waterfront centre providing shopping, leisure and entertainment facilities, emphasising food, beverage, lifestyle and live performances. The land requirement will be around 5 ha. for themed shopping outlets, dining and entertainment (including live performances) purposes.

New Peak

Urban Core


An additional vantage point overlooking the city and harbour to relieve the increasing pressure on Victoria Peak. Good and easy accessibility by funicular transport link is important. Provision of F&B and retails will enhance its appeal.

Enclosure 2 to FCR(96-97)24

A Brief Description of the Proposed Improvement Work and New Event





Information Kiosks

Urban Core


To set up some 20 interactive information kiosks at popular tourist locations to provide overseas visitors with up-to-date information on how to get around the city, major attractions, facilities as well as events.

Environmental Audit



To conduct an environmental audit of the local tourism industry and the development of an environmental strategy and action plan to encourage a coordinated, efficient and effective programme for the maintenance of a productive, profitable and environmentally sustainable tourism industry.

Improved Signage and Tourist Information


1996 and onwards

To introduce a new strategy on improved signage and provision of information, including a better design of themed tourism signposts, more display boards for tourist information at public buildings and the public, and more mapboards at popular tourist locations to facilitate overseas visitors.

Enhancing Ambience / Attractiveness at Selected Historic Sites

Urban Core


To organise a "Heritage Festival" together with the Antiquities and Monuments Office for the conservation and preservation of heritages in Hong Kong. To develop more walking tours covering these heritages.

Scenic Drive

Sai Kung


The proposed scenic drive is in Pak Tam Chung in Sai Kung. To make it a user friendly attraction, we will erect mapboards and directional signs and provide outdoor furniture. We will also plan improvement works to the service roads.

Hong Kong International Marathon on Tsing Ma Bridge

Tsing Ma Bridge

1998 and onwards

To organise an annual international marathon on Tsing Ma Bridge, taking place every year on the same Sunday. Possible partners are Hong Kong Amateur Athletic Association, the Regional Council, Hong Kong Sports Development Board, Mass Transit Railway Corporation and an event management company.

Last Updated on 2 December 1998