Hong Kong Circle
Hong Kong Economic and Trade Office in Washington D.C. Newsletter (Text Only Version)
December 2008
Stimulus Plan to Support SMEs and Prevent Job Losses
IMF Commends Hong Kong's Decisive Actions to Bolster Financial Stability
Hong Kong's Third Quarter GDP Up 1.7 Percent
International Arbitrator Expands Global Reach
Hong Kong Emerges as a Wine Trading Hub
Newly Refurbished Design Gallery
Gourmet Capital Stars in New Michelin Guide
American-born Chinese Medicine Practitioner Thrives in Hong Kong
Dear Friends,
In my inaugural letter to you since taking up the post of Hong Kong Commissioner, USA, I would like to begin by wishing you Happy Holidays.
Thankfully, I am no stranger to Washington winters having previously served as the then First Secretary in the Hong Kong Economic and Trade Office from 1991 to 1994.
Since the establishment of the Commissioner post in 1993, the Hong Kong government has placed special emphasis on its relationship with the United States – Hong Kong's second largest trading partner.
This is a relationship that I cherish and intend to expand upon as Commissioner by enhancing Hong Kong-US trade, economic, investment and cultural ties.
Beyond these areas, Hong Kong has emerged as a valued partner of the United States – from securing global maritime trade to combating money-laundering and public health issues.
In addition, we are unified by many common values. We are committed to a free and open society, buttressed by the rule of law and an independent judiciary, and belief in free-market principles. Though the latter may be challenged as the global economy faces one of the most severe financial crises in years, it is imperative that the ideals of economic freedom be preserved.
Hong Kong has demonstrated what the benefits of free-markets can achieve as what was once described as a "barren rock" has emerged as the freest economy in the world and an international financial and business center.
With regard to the current global financial crisis, governments around the world have taken extraordinary and unprecedented steps to stabilize markets and shore-up consumer confidence.
As an externally oriented economy, Hong Kong is not immune to the global downturn. Our economy grew by 6.4 percent last year but we have just reduced our economic forecast this year from 4 – 5 percent to 3 - 3.5 percent while our unemployment rate has climbed up to 3.8 percent lately. But since the Asian financial crisis a decade ago, Hong Kong has measurably reinforced its financial markets by improving risk management of banks and creating a more transparent regulatory system.
In response to the financial turmoil, over the past few months Hong Kong, under the leadership of Chief Executive Donald Tsang, has acted to lessen the impact of the crisis and ensure the stability of its financial system.
As a precautionary measure to bolster confidence in the banking system, the Hong Kong Government has guaranteed all deposits held in authorized institutions in Hong Kong and established a Contingent Bank Capital Facility to make available additional capital to locally incorporated licensed banks should they request it. Both measures will remain in force until the end of 2010.
Early this month, Chief Executive Donald Tsang unveiled a stimulus plan designed to stabilize our financial system, preserve employment, support enterprises and stimulate the economy.
Assisting Hong Kong through this tumultuous period, the Central Government will introduce a variety of measures intended to, among other things, reinforce the city's position as a global financial centre, expand the individual visit scheme, and foster economic cooperation and infrastructural links between Hong Kong and the Pearl River Delta Region.
The combination of measures will help us in overcoming the current financial crisis and turning risk into opportunities.
We remain confident that when the external environment improves, Hong Kong will quickly rebound.
I wish you a safe and happy New Year.
Sincerely,
Donald Tong
Hong Kong Commissioner, USA
Stimulus Plan to Support SMEs and Prevent Job Losses
On December 8, Hong Kong Chief Executive Donald Tsang announced that the government would provide up to US$12.82 billion in loan guarantees for enterprises and spur employment opportunities next year as part of its efforts to lead Hong Kong out of the global economic downturn.
Speaking after the second meeting of the Task Force on Economic Challenges, Mr. Tsang acknowledged that it seemed inevitable the local economy would face negative growth in 2009.
In response to the downturn, Mr. Tsang said that the government's priorities were to support small and medium enterprises (SMEs) to prevent job loss and to provide more than 60,000 employment opportunities next year.
Expand SME Credit Guarantee Scheme
To help enterprises secure loans, the government intends to implement the following measures:
* Substantially expand the recently introduced Special Loan Guarantee Scheme. The government will increase the maximum commitment to US$12.82 billion while continuing to provide 70 percent loan guarantees;
* Raise the loan ceiling for each company from US$128,205 to US$769,230, with US$384,615 being revolving credit;
* Allow the loan to be used not only as operating funds, but also for other purposes such as commercial overdraft and letter of credit;
* Allow all firms except listed companies to apply for the scheme, to enable more companies to benefit.
Job Creation
The Chief Executive announced that over 60,000 jobs were to be provided through expediting infrastructure projects, advancing recruitment of civil servants and creating temporary positions.
Mr. Tsang said the government would make the best use of funds approved to create jobs while promoting innovation and technology, promoting environmental awareness and encouraging citizens to enhance their competence and skills.
In addition, the government would complement the efforts of a number of non-governmental organizations (NGOs) in their expansion or removal projects. This would promote the development of NGOs while increasing employment opportunities in the medium term.
To facilitate job creation, Policy Secretaries would personally oversee licensing and approval procedures, expediting the process and better meeting the needs of the market.
Mainland of China Support
The Mainland government will introduce a number of measures which would help Hong Kong weather the global financial crisis.
Among the measures introduced is the gradual expansion of the scope of Renminbi (RMB) business by allowing eligible firms to perform RMB trade payment in Hong Kong thus enhancing Hong Kong's function as a global financial center.
In addition, it was agreed that the People's Bank of China should sign a currency exchange pact with the Hong Kong Monetary Authority and provide capital support to Hong Kong, if necessary.
Mainland organizations would also be encouraged to launch global financial business by using Hong Kong as a platform.
The number of Mainland residents visiting Hong Kong under the individual visit scheme would also be increased. Mainland tourist arrivals have had a positive impact on the economy. According to the latest figures, of the total Mainland arrivals in November, 55 percent arrived under the individual visit scheme, up 11.8 percent. This brought the cumulative arrivals under the scheme to 8.67 million in the first 11 months, a rise of 12.4 percent.
Delta Cooperation
Besides accelerating the Hong Kong-Zhuhai-Macau Bridge project, promotion would step-up for a rail project linking Hong Kong and Shenzhen airports, the Guangdong-Shenzhen-Hong Kong rail system and the revampment of the Huanggang and Man Kam To control points.
Business Opportunities
Mr. Tsang said Mainland authorities and Hong Kong would soon discuss further liberalization measures with a view to signing the Closer Economic Partnership Arrangement Six next year.
Mainland authorities would also implement measures to help Hong Kong-owned enterprises operating in the Mainland by further adjusting and refining the exports tax rebate rate and the labor system, facilitating domestic sale of goods and establishing a capital-raising guarantee system.
Remaining confident, Mr. Tsang said that given the economic growth of the past few years, Hong Kong was well placed to weather a short-term recession, while the five-year blueprint laid out in the 2007 Policy Address, including the 10 major infrastructure projects, would increase the competitiveness of Hong Kong in the long term.
Task Force on Economic Challenges
In response to the global financial crisis, the Chief Executive announced the establishment of a task force to continually monitor and assess the impact of the financial crisis and provide timely evaluation of its impact on the local economy and Hong Kong's major industries. The task force, chaired by the Chief Executive, is charged with proposing specific options for the Hong Kong government and business community to address the economic challenges.
Task Force on Economic Challenges: http://www.fso.gov.hk/tfec/eng/index.html
IMF Commends Hong Kong's Decisive Actions to Bolster Financial Stability
The International Monetary Fund (IMF) in its Staff Report on Hong Kong, commends the measures of the Hong Kong government to contain the contagious risks from the global financial turmoil and reiterated its support for the Linked Exchange Rate system (LERS).
The IMF projects Hong Kong's economic growth to fall noticeably in the coming months amid the still unfolding turbulence in the international financial markets. Consumer price inflation is expected to fall below 3 percent in 2009. In the long run, an economic growth rate of around 5 percent per annum is feasible given the consistent improvements in productivity and overall dynamism and adaptability of the economy.
The IMF recognized that Hong Kong's financial system had performed well and without significant market dislocations. It attributed the resilience to the government's efforts over the past several years to steadily establish a more robust system of financial supervision and regulation and a sophisticated financial infrastructure. The IMF commended the regulatory authorities for their ability to step up supervisory activities in recent months, substantial attention to contingency planning and continued willingness to explore areas for further improvement.
The IMF considered that the 2008-09 Budget and the supplementary package of measures introduced in July should help guard against a more dramatic economic downturn. The IMF called for continued fiscal stimulus in the 2009-2010 Budget with the government targeting fiscal balance or a modest deficit. It also advocated taking a more medium-term perspective, favoring fiscal stimulus through an acceleration of infrastructure investments and possibly a permanent reduction in direct tax rates. The IMF supported reforming the healthcare system and considered that the government had rightly recognized the problem and laid out options that ought to be considered.
The Financial Secretary, John C. Tsang, welcomed the IMF's commendations of the government's policies and measures, saying: "I am confident that Hong Kong's strong fundamentals, sound regulatory framework and prudent risk management by financial institutions will stand us in good stead in tackling the global financial turmoil. Meanwhile, we will continue to implement necessary measures to help those in need during this difficult period," Mr. Tsang said.
The IMF maintained its long-standing support of the LERS, which had proved to be an anchor of monetary and financial stability in Hong Kong over the past 25 years. The Hong Kong dollar continues to be valued broadly in line with economic fundamentals. The IMF also supported the range of actions taken by the Hong Kong Monetary Authority (HKMA) to increase the attractiveness and flexibility of its liquidity support facilities under extraordinary circumstances.
The IMF considered that the banking system remained sound. Hong Kong's banks had managed risk prudently, and were well positioned to handle a worsening in credit quality. The announcement of a time-bound, blanket deposit guarantee and a contingent bank capital facility were fully warranted in the current extraordinary global circumstances.
The Chief Executive of the HKMA, Joseph Yam, said, "I am glad that the IMF supports the range of actions we have taken to sustain confidence in the banking system. We will keep a close eye on global market developments and are prepared to take any further necessary measures to safeguard the stability of the system."
The IMF considered that recent progress in moving towards the adoption of a new competition law that was in line with international best practice would help enhance Hong Kong's competitiveness. It also supported the government's intention to make the minimum wage legislation uniform across employment groupings. The minimum wage should be set at a level to safeguard the interests of lower income workers without materially affecting their employment prospects and the flexibility of Hong Kong's labor markets.
The IMF considered that a broader expansion of communications and infrastructure in the Pearl River Delta would offer significant potential for further growth and development in the region. The IMF also recommended that the government continue to find opportunities to move forward the financial integration process with the Mainland of China and to play a catalytic role in the modernization of the Mainland's financial system and its integration with global capital markets.
The IMF mission visited Hong Kong from October 20 - 30 this year to conduct the Article IV consultation discussions.
The IMF's Staff Report is available online at http://www.imf.org/external/country/HKG/index.htm
Hong Kong Monetary Authority: http://www.info.gov.hk/hkma/
Hong Kong's Third Quarter GDP Up 1.7 Percent
Hong Kong's economic growth slowed notably in the third quarter of 2008, with GDP rising 1.7 percent, after a 4.2 percent increase in the second quarter, according to the government's Third Quarter Economic Report 2008.
Merchandise exports slackened to only a modest growth in the third quarter, the worst performance since the first quarter of 2002. While the U.S. market continued to pose the main drag, exports to other markets also saw different extents of slowdown as the impact of the global downturn increasingly set in.
Hong Kong's service exports still recorded a solid growth in the third quarter, though moderated from the second quarter. This was partly affected by a temporary fall-off in inbound tourism during the Olympic Games period. But more importantly, the slow-down was due to a further deceleration in exports of financial services amid the financial market distress on a global-wide basis.
Consumption spending still remained fairly firm in July and August, but slackened distinctly in September as the U.S. financial turmoil escalated into a full-blown global financial crisis causing the local stock market to plummet markedly. For the third quarter as a whole, consumer spending recorded only a marginal growth against an exceptionally high base a year ago when consumption grew by 10.6 percent.
Overall investment spending still recorded a modest growth in the third quarter. However, in the more recent period, companies have also turned more cautious in making new investments and in hiring new hands in the wake of a highly uncertain global financial and economic environment and as credit availability was tightened amid the global credit crunch.
Along with the economic slowdown, the seasonally adjusted unemployment rate rose marginally to a still relative low level of 3.4 percent in the third quarter. The most recent figures for the September – November reveal that the unemployment rate has since risen to 3.8 percent.
Job prospects have inevitably dimmed as the near term outlook was clouded by the unsettled global financial market situation.
Headline consumer price inflation fell notably in the third quarter to 4.6 percent, mainly reflecting the favorable effects of the government's one-off relief measures.
Underlying inflation tended to stabilize after July, as the tapering in food inflation offset the enlarged increase in private housing costs. CPI inflation notched down from 6.3 percent in both July and August to 6.1 percent in September, averaging at 6.3 percent in the third quarter.
The latest tourist arrival figures indicate that Hong Kong saw 2.42 million visitors in November, down 1.1 percent year on year, bringing cumulative arrivals for the year's first 11 months to 26.7 million - up 5.3 percent on the same period last year.
Hotel occupancy across all categories of hotels in November was 88 percent, down five percentage points.
The financial turbulence, which began in August last year stemming from the U.S. sub-prime mortgage problem, erupted into a full-blown global crisis causing significant clogs to financial markets around the world. The credit crunch that ensued has added woes to the already rapidly faltering global economy.
Following a series of unprecedented measures taken by various governments and central banks in the advanced economies, there are signs that stability is gradually returning to the global financial markets. However, the credit markets remain unusually tight and would take time to return to more normal functioning. The risk of a more prolonged and protracted global economic downturn has increased.
For many advanced economies, including the U.S. and EU, a recession is already under way. The export-dependent economies in Asia would all be affected to different extents. Amid such an uncertain and difficult external environment, Hong Kong's export performance is likely to remain rather lackluster in the near term.
Domestic demand would likewise slow in the period ahead. The substantial fall-off in stock market triggered by the global-wide stock market crash and the spillover to the property market, coupled with the less promising job prospect, will continue to restrain consumers' propensity to spend. Businesses are also likely to turn more cautious in making machinery and equipment acquisitions.
Taking into account the GDP growth of 4.3 percent in the first three quarters of the year, economic growth for the year of 2008 as a whole is forecast at 3 - 3.5 percent, revised down from the earlier range forecast of 4 - 5 percent. The economy in the rest of this year is likely to be rather subdued.
With global commodity prices retreating, especially those of food and oil, and with the rebound in the U.S. dollar since July, inflationary pressures from the external front are receding.
The expected slowdown in the Hong Kong economy will also entail lesser pressures from the domestic economy. But the earlier surges in private residential rentals might continue to feed through to consumer price inflation in the coming months.
With the favorable effects of the government's relief measures continuing in the rest of the year, the forecast headline consumer price inflation for 2008 as a whole remains unchanged at 4.2 percent. Netting out the effects of government measures, the forecast underlying inflation rate for 2008 is also maintained at 5.5 percent.
Economic Analysis and Business Facilitation Unit: http://www.eabfu.gov.hk/
International Arbitrator Expands Global Reach
In November, the Secretariat of the International Court of Arbitration of the International Chamber of Commerce (ICC) opened an office in Hong Kong, a move that should further raise Hong Kong's profile as a regional arbitration hub.
The ICC Court announced early this year that it would establish a branch of the ICC Court Secretariat in the city to administer regional cases. A liaison office, from which the regional director will be responsible for promoting ICC dispute resolution services in Asia, will open in Singapore.
"We are very excited by these two steps, which reflect our conviction that the Asia-Pacific region is of significant importance to the future of ICC Dispute Resolution Services, said Jason Fry, Secretary General of the ICC International Court of Arbitration. "Our desire is to respond to an increasing demand for the provision of high-quality services locally. ICC is a truly international organization and, as such, wishes to ensure its global reach to the international business community."
The ICC Court Secretariat administers arbitration on a day-to-day basis from Hong Kong, acting as the interface between parties, arbitrators and the ICC Court. The Secretariat team, headed by one counsel, follows each case with the help of state-of-the-art case management and information retrieval systems.
ICC Court figures show that there has been a steady rise in the number of commercial arbitrations over the past decade. Last year, the ICC Court handled a record 599 new cases, involving more than 1,600 parties from 126 countries and independent territories. Of those, nearly 18 percent of all parties in new arbitrations introduced at the ICC originated in Asia.
"With so much trade occurring in the region, it is inevitable that there should be commercial disputes. Businesses are increasingly aware of the benefits of alternative forms of dispute resolution, which is where dispute resolution providers come in," said Khong Cheng-Yee, Director of ICC Arbitration and Amicable Dispute Resolution (ADR), Asia.
"With the growing importance of Asia and the Pacific, it should come as no surprise that the ICC is setting up offices in the region," Ms. Khong added. "I believe these moves will bring ICC arbitration and ADR services closer to users in Asia, enabling us to better serve the business and legal communities in the region."
Companies often see arbitration as the preferred alternative to litigation, Ms. Khong said. "Arbitration usually ensures confidentiality of the process and the resulting awards." Independent arbitrators, she noted, may be selected by the parties and are able to conduct proceedings that are tailored to suit the parties' needs, an option not generally available in proceedings before national courts. Awards are enforceable against uncooperative parties in the 142 countries that are signatories to the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards – often referred to as the New York Convention.
The ICC Court Secretariat joins the Hong Kong International Arbitration Centre in providing dispute resolution services in Hong Kong, where the case load, reportedly, is fourth behind the Mainland of China, the United States and Europe. But what sets the ICC Court apart, according to Ms. Khong, is its 85-year experience in administering commercial arbitrations and its strong independent and international background, with rules updated regularly to ensure fair results. The ICC Court comprises more than 120 members from some 90 countries, all of whom are respected practitioners or in-house counsel in their own country and often beyond. The Secretariat has some 70 staff members, half of whom are lawyers; together, they speak more than 20 languages.
"Hong Kong has many of the ingredients to become a successful arbitration hub. It will soon be updating its arbitration law, which will be based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration. Its judiciary is reputed to be arbitration-friendly, non-interventionist, neutral and independent. Hong Kong also offers a large pool of legal expertise," Ms. Khong said.
International Chamber of Commerce: http://www.iccwbo.org/court/
Hong Kong International Arbitration Centre: http://www.hkiac.org/
Source: Hong Kong Trader, Hong Kong Trade Development Council
Hong Kong Emerges as a Wine Trading Hub
When the market gets tough, the tough get buying. This was how Acker Merrall & Condit Auction director John Kapon summed up the results of its second wine auction last month in Hong Kong.
Rivaling its inaugural sale earlier this year when the American wine merchant netted a record US$8.2 in sales, the company's latest sales event pulled in US$6.7 million, achieving the second-highest total for any wine auction in Asia. Sales at Acker Merrall's first wine auction, in May, set a record for Asia.
"We are very pleased with the excellent results, which achieved strong prices at all levels, in view of the current economic climate," Mr. Kapon said, who is also company president. "The sale was a clear indication that the wine market in Asia, and specifically Hong Kong, is still seeing very strong demand for the finest and rarest wines in the world."
About 300 collectors and traders attended the November auction, with nearly 90 percent of the 950 lots of fine vintages snapped up.
The top lot of the sale consisted of 12 original wood cases of Domaine de la Romanee Conti "Assortments" from 1990 to 2001, which sold for nearly US$275,000.
A full cage of Krug Grande Cuvee set a world auction record at US$76,171.
A special 30-lot consignment from the famed cellars of Swiss collector Wolfgang Grunewald, described as the "Who's Who" of the top Chateaux and Romanne Conti, sold out completely.
Highlights from the collection included a case of 12 bottles of 1990 DRC Romanée Conti, in its original wooden case, which went for US$137,359, and six magnums of 1990 DRC La Tache that fetched US$59,314.
Three double magnums of 1989 Château Pétrus, also in their original wooden case, sold for US$53,070.
The company plans to hold two auctions in the spring, with the next one scheduled for March 2009.
Last month, Christie's held its first wine sale in Hong Kong in seven years. A selection from the reserve cellars of Château Latour were among the 245 lots on offer. "We chose to offer those wines in Hong Kong because, since the removal of the wine tax, it's been a fantastically energized new market," David Elswood, International Head of Christie's Wine Department, told the International Herald Tribune.
In February, the Hong Kong government scrapped wine duties as a way of developing Hong Kong as the wine hub of Asia.
The government has since signed a number of deals with wine-producing countries to help promote Hong Kong's wine trade.
In October, it signed a Memorandum of Understanding (MOU) on Cooperation in Wine-Related businesses with Spain, the world's third-largest wine-producing country, and a main wine exporter to Hong Kong.
Wine imports from Spain in Hong Kong increased in value by 49 percent in the first five months since the abolition of the duty. Under the agreement, both sides pledge to strengthen cooperation in promoting wine trade, holding international wine-related events in Hong Kong, investment promotion and education, as well as promoting wine-related tourism and wine culture.
At the MOU signing, Secretary for Commerce and Economic Development, Rita Lau, said the two sides would also encourage the Great Wine Capitals Global Network, a network of eight internationally renowned wine-producing regions, including Bilbao-Rioja of Spain, to hold its annual meeting or wine-related events in Hong Kong.
The MOU signing was attended by the Spanish Minister for Industry, Tourism and Trade, Miguel Sebastián.
The Hong Kong government signed a similar pact with France and its Bordeaux region in August and October respectively, and is now in discussions with a number of other countries on similar arrangements.
Acker Merrall & Condi: http://www.ackerwines.com/
Source: Hong Kong Trader, Hong Kong Trade Development Council
Hong Kong will enhance its appeal as a center of excellence for meetings, incentives, conventions and exhibitions (MICE) in Asia, industry leaders from around the world were told at an exhibition industry conference in Istanbul, Turkey last month.
"Exhibitors and buyers benefit from the efficiency of Hong Kong, its first-class venues and strong exhibition support services," said Mary Chow, Special Representative for Hong Kong Economic and Trade Affairs to the European Communities.
Ms. Chow outlined a strong commitment to reinforcing Hong Kong's role as Asia's convention and exhibition capital, noting that the government, along with the Hong Kong Tourism Board (HKTB), the Hong Kong Trade Development Council (HKTDC) and the Hong Kong Exhibition and Convention Industry Association (HKECIA), are strengthening their collaboration and stepping up promotion efforts.
Ms. Chow was speaking at a business luncheon hosted by the HKTB, HKTDC and HKECIA during the 75th UFI (Global Association of the Exhibition Industry) Congress, 12-15 November.
Hong Kong, rated the world's freest economy for the 14th consecutive year by the Heritage Foundation, offers one of the best possible environments for businesses and investors, according to Ms. Chow. Its strategic location and the flow of Chinese mainland and international exhibitors and trade show visitors make Hong Kong a strategic platform for global business.
Each year, Hong Kong hosts more than 100 major exhibitions, attracting some 800,000 international and Mainland visitors. Authorities want to build on that. Ms. Chow noted that the HKTDC will launch a major incentive package to help bring in more international buyers to its trade fairs.
The US$15.5 million initiative, starting next month, will target buyers from emerging markets such as Russia, Eastern Europe, the Middle East, North Africa, Southeast Asia and the Mainland of China. Working with airlines and hotels, the HKTDC will offer various subsidized packages to bring in more trade buyers to the more than 30 HKTDC trade fairs.
The Hong Kong Tourism Board, meanwhile, is launching a new Meetings and Exhibitions Hong Kong (MEHK) office to promote Hong Kong overseas as a MICE destination and to provide one-stop support for event organizers.
"With the setting up of the MEHK office, I am confident that more creative solutions will be found to maximize our potential as a location of choice for MICE events," said Hong Kong Permanent Secretary for Commerce and Economic Development, Yvonne Choi.
The new office will target high-potential markets, including the Mainland of China, India, Korea, Japan, the United Kingdom and the United States. It also plans to cultivate new business contacts and build awareness of Hong Kong's MICE brand. UFI's 531 member associations include the world's leading trade show organizers, as well as major national and international associations of the exhibition industry.
Hong Kong hosted the UFI Congress in 2001, and since 2002, the HKTDC and the HKTB have jointly hosted a business lunch during UFI's annual Congress.
Source: Hong Kong Trader, Hong Kong Trade Development Council
Starwood Hotels & Resorts Worldwide has brought its global luxury lifestyle brand, W Hotels, to China, opening its first property in Hong Kong.
W Hong Kong is located in a waterfront sykscraper in West Kowloon, the city's vibrant new commercial, entertainment and cultural district. The opening adds to the stable of 26 W hotels, owned by Hong Kong's Sun Hung Kai Properties, in exotic destinations around the world.
It is the brand's third property in Asia and celebrates W Hotels' 10-year tradition of innovative design, signature amenities and warm, whimsical style.
"We are delighted to bring the W brand to China, continuing our global expansion into the world's most exciting and intriguing destinations," said Eva Ziegler, Global Brand Leader, W Hotels Worldwide and Le Méridien Hotels & Resorts.
"Hong Kong's dynamic mix of style, culture and modern design make it the perfect backdrop for the W brand. The abundance of world-class restaurants, art galleries and luxury retailers in the city contributes to Hong Kong's emergence as a vibrant international business and leisure destination."
W Hong Kong embraces the heritage and mysticism of traditional Chinese culture. The hotel's lead designers, Yasimuchi Morita of Glamorous Corp and Nic Graham of g+a, used generous elements of wood, stone, water, fire and metal to blend with the W brand's signature design elements. The hotel also showcases original works by several renowned artists, including Lee Bul from Korea, as well as Daniel Crooks and James Angus from Australia.
"W Hong Kong is certainly one more great reason to visit this exciting city," said SHK Vice Chairman and Managing Director Thomas Kwok. "Its positioning and attractions are unique additions to our extensive portfolio of first-class hotels in Hong Kong, and given Starwood's professionalism and passion for the W brand, we have great confidence in W Hong Kong's future. I am sure that the chic, contemporary design, convenient location, personalized service and overall lifestyle approach of the first W Hotel in Hong Kong will impress both our international and local guests."
Miguel Ko, President of Starwood Hotels & Resorts, Asia Pacific, said W Hong Kong was Kowloon's closest luxury hotel to Central, within easy reach of both the International Commerce Centre and the city's newest exhibition space, AsiaWorld-Expo.
"Hong Kong is one of the world's leading financial capitals and a major business and cultural hub, Mr. Ko said. "Its identity as a cosmopolitan center, where East meets West, is reflected in its cuisine, music and traditions; truly a great fit with what the W brand has to offer. We are excited about the tremendous opportunities and demand for the W brand in this exciting gateway city of Asia."
W Hotels: http://www.starwoodhotels.com/whotels/index.html
Source: Hong Kong Trader, Hong Kong Trade Development Council
Newly Refurbished Design Gallery
Some of Hong Kong's biggest names in design were on hand for the reopening of the newly refurbished Design Gallery at the Hong Kong Convention and Exhibition Centre.
A retail outlet allowing Hong Kong designers to showcase and sell original products and brands, Design Gallery was launched in 1991 by the Hong Kong Trade Development Council (HKTDC).
Hong Kong design and creative leaders on hand included Alan Chan, Alice Chan, Carrie Chau, Raymond Choy, Eddie Hui, Winson Ma, Vincent Wong, Alan Yip and Douglas Young. Many of the designers' own products are among the 140 designs and brands on display at Design Gallery.
Speaking at the launch of the "new-look" gallery, HKTDC Executive Director Fred Lam highlighted the importance of design to Hong Kong. Citing a study by the United Nations Conference on Trade and Development, "Creative Economy Report 2008," Mr. Lam said Hong Kong's creative sector was a new growth area of the economy, employing 170,000 people and contributing four percent to Hong Kong's GDP.
"Design is one of the most promising areas of the creative sector, exporting US$21.8 billion worth of goods to the world," Mr. Lam said.
A Design Gallery outlet opened last year at the Hong Kong International Airport. Mr. Lam unveiled plans for a second shop in the airport's restricted area, allowing even more travelers to enjoy last-minute shopping for Hong Kong-branded products before departure.
He also announced that a Design Gallery would open next year in Beijing.
Design Gallery offers Hong Kong designers more than a retail outlet for their products. It also serves as a test market for Hong Kong designers and their products, and offers business-matching services between overseas buyers and local designers.
The refurbished Design Gallery includes an expanded Designer's Corner, featuring the creative products of Hong Kong designers. Using multimedia displays, product design information, brand history and a biography of each designer, the section allows local and overseas consumers to discover the designers behind the designs.
Exporting Creativity
Hong Kong is the world's third-largest creative goods exporter, with the industry exporting US$27.6 billion in 2005.
Five thousand products from 140 brands and designers are marketed through Design Gallery and its online channels. Design Gallery attracts 400,000 visitors and handles more than 60,000 transactions a year.
Design Gallery: http://hkdesigngallery.hktdc.com/
Source: Hong Kong Trader, Hong Kong Trade Development Council
Gourmet Capital Stars in New Michelin Guide
Hong Kong has long prided itself as the culinary capital of Asia. Now the city has made an even greater imprint on the international food map with the newly released Hong Kong edition of the famed Michelin Guide.
"Hong Kong has elegant, top-quality hotels offering impeccable service, as well as restaurants featuring a wide variety of cuisines," said Jean-Luc Naret, director of the Michelin Guide.
Indeed, the city has been attracting top chefs to town, including celebrated Japanese chef Nobuyuki Matsuhisa, Michelin-starred French chef Alain Ducasse, as well as compatriot Joel Robuchon, who holds a record 18 Michelin stars.
For local restaurateurs, though, news of a Hong Kong Michelin Guide merely confirms what they have known all along. "Hong Kong's food scene is very sophisticated, said Christian Talpo, General Manager of Zuma Hong Kong.
The acclaimed Japanese restaurant-bar, originally from London, opened in the city last year because it saw Hong Kong as an obvious next stop. "People here like to eat well, eat good food. They're keen to experiment and will give you the benefit of the doubt. If they believe in you, you will do well."
Mr. Talpo said Hong Kong had an eclectic dining scene that attracted all types of clientele. But savvy Hong Kong diners, he said, generally look for value for money and quality.
"Hong Kong diners demand a high level of quality," said David Gwynne, Manager of another award-winning Hong Kong restaurant, 1/5 Nuevo. The dining establishment is part of Hong Kong-based restaurant group Elite Concept, which has six restaurants in the city. "Hong Kong has a lot of Asian fusion influence, making the place more dynamic, in terms of the scale of variety of foods," added Mr. Gwyne.
The Michelin Guide will not be the first to recognize Hong Kong's food scene. In May, New York-based Zagat Survey published its first guide to Hong Kong restaurants and hotels, providing ratings and information for tourists. Meantime, the Miele Guide, due to come out in the autumn, is also expected to feature Hong Kong restaurants.
According to Mr. Talpo, Hong Kong restaurants have the edge over their counterparts in Asia when it comes to the vast array of fresh ingredients available to them. "Hong Kong suppliers, who do not have to contend with duties or other red tape to bring in produce, are willing to go out of their way to provide us with the freshest ingredients available. I challenge any city in the region that will have a daily supply of fresh fish from Japan flown in daily."
Mr. Gwynne agreed and pointed out that the abolition of wine duties in Hong Kong has also been a boon to the local food scene, allowing local restaurants to offer a wide variety of good quality wine at competitive prices.
"It's great Michelin has taken an interest in Hong Kong. It's recognition of the sophistication of the city's dining scene," Mr. Talpo said.
Other proponents of Hong Kong's dining scene, like 1/5 Nuevo's Mr. Gwynne, is banking on the new Michelin Guide to further enhance Hong Kong's image as a gourmet paradise. "It's a testament to Hong Kong chefs, who have raised the quality of dining here to an international level."
Michelin Guide: http://www.michelinguide.com/us/index.html
Source: Hong Kong Trader, Hong Kong Trade Development Council
American-born Chinese Medicine Practitioner Thrives in Hong Kong
Alternative healer Steve Paine is one of only a handful of expatriate-listed and registered Chinese medicine practitioners in Hong Kong.
The American-born Doctor of Oriental Medicine and licensed acupuncturist runs a practice in Central, where he treats a range of conditions using "humankind's oldest and most complete medical system," comprising meditation, diet and exercise, acupuncture and herbs, as well as manipulation, massage and gentle warming therapies.
I've always had an interest in Chinese medicine because of the elegant thinking that lies behind it, the usefulness of its treatments, and the overwhelming popularity among those who use both Western and Chinese medicine. I also happen to think Chinese medicine is a treasure. It is based on taking good care of one's self and living a gratifying and productive life.
I was born in Connecticut, in the United States, and in 1988, graduated from university in New York and completed four years of Chinese medicine training in California.
I came to Hong Kong for my first two years of practice with noted integrative doctor Mosaraf Ali, now a celebrated Harley Street physician in London. I never intended to stay, but I found Hong Kong to be so exciting and dynamic, that after completing a postgraduate Chinese medicine program in Beijing, I returned and joined Dr Ali's integrated medical practice. Hong Kong became my permanent home in 1995, and my wife and I are raising our three children here. I live here and practice here because the city is filled with enterprising, hardworking, creative and dynamic people, who are making something useful and important of their lives.
Treating All Ages
There are about 7,500 listed and registered Chinese medicine practitioners in Hong Kong, roughly the same number as medical doctors. Of this number, fewer than 10 are Westerners. The clients who come to see me are mostly entrepreneurial, business and professional people, as well as their spouses and children. Broadly speaking, the areas of concern are headache, nerve and muscle pain, breathing, digestive and fertility problems; and for children, allergies, asthma and frequent colds.
Chinese medicine is the most popular, complete medicinal system next to Western medicine. It has been so widely embraced because it successfully treats a range of conditions with which Western medicine has had less success. Perhaps just as importantly, Chinese medicine practitioners are perceived as holistic health-care providers, who treat people as unique individuals, listen to their stories, and work with them as colleagues and mentors.
At my clinic, I treat men, women and children, specializing in musculoskeletal problems, infertility, anxiety and mood disorders, and chronic pain. Apart from my areas of specialization, I treat the spectrum of conditions for which one would normally consult a general practitioner of Western medicine.
Wellness Consultancy
My company also creates corporate wellness programs, aimed at reducing healthcare costs in the workplace and increasing employee productivity and retention. We do this by calculating an organization's current healthcare costs, and by conducting a needs-and-interests survey and a personal health assessment of its management and staff. We then help them craft their organization's wellness plan with clear goals and objectives, roles and responsibilities, itemized budgets, internal marketing strategies and evaluation procedures. My company is unique in being both a wellness consultancy and a service provider. Much of our work is done on-site at the client's offices, where the data is gathered.
Hong Kong is an excellent place to do business because of its low tax rate, first-rate transportation and communications infrastructure, and the compact nature of the Central business district. The city is extremely efficient, clean, and dealing with government departments is surprisingly easy and pleasant. I know of no other place in the world that is so well organized.
Secure Family Lifestyle
My children are young, so my primary concern is with their safety and education, both of which are excellent in Hong Kong. Our home is on a beautiful beach on Lantau Island in a safe and quiet neighborhood, surrounded by low mountains. At the same time, we have access to a city of six million, 30 minutes away. It's quite a juxtaposition, and gives us both action and rest.
I have been very fortunate in Hong Kong and I am expanding both my Chinese medicine practice and my wellness consulting business. I'm doing this in Hong Kong because there is both the demand and the resources in capital, and people to build companies that meet that demand.
Steve Paine OMD: http://www.stevepaineomd.com/
Source: Hong Kong Trader, Hong Kong Trade Development Council
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