AIRPORT CITY GROWTH PLAN ACCELERATED

To cement Hong Kong’s role as an international aviation hub, the Government is pressing ahead with the “Airport City” development strategy that promotes various economic activities with aviation as Hong Kong International Airport’s (HKIA) core business.

Financial Secretary Paul Chan made that clear as he unveiled his 2023-24 Budget today and highlighted the reason behind such a strategy.

“Hong Kong’s positioning as an international aviation hub is affirmed and supported by the Central People’s Government in the 14th Five-Year Plan and the Outline Development Plan for the Greater Bay Area.

“HKIA, which served about 70 million passengers in 2018-19, was the third busiest airport in terms of international passenger throughput around the globe. It was also the world’s busiest cargo airport for many years.”

Mr Chan stated that to support the recovery of air traffic due to the impact of COVID-19, the Airport Authority is rolling out a series of measures that include reducing or waiving airport charges, providing incentives to resume suspended flight services or launch new routes and organising large-scale promotion activities. 

Airport City

To enhance Hong Kong’s status as an international aviation hub, the Government and the authority are pressing ahead with the “Airport City” development strategy, Mr Chan announced.

Under the strategy, he emphasised that the airport will be developed into a node of various economic activities with aviation as its core business. 

Mr Chan said: “With the addition of new developments and new functions, HKIA will drive the economic growth of Hong Kong as well as its neighbouring regions.

“A number of infrastructure projects of HKIA will be successively completed and commissioned, including the SkyPier Terminal which will commence operation in the middle of this year and the entire Three‑Runway System which is expected to be completed by the end of 2024.”

The finance chief pointed out that such developments will significantly boost passenger and cargo traffic, creating tremendous opportunities for activities such as aircraft repair and maintenance, aircraft parts manufacturing and relevant research and development.

Apart from planning to construct a new aviation business park on Airport Island, he added that the authority is exploring with Zhuhai authorities the feasibility of building an aviation industrial park in Zhuhai to promote the development of the aviation industry in both places.

“Under the development strategy of the Airport City, the HKIA is also actively taking forward the integrated commercial development project of SKYCITY. Moreover, logistics infrastructure will be strengthened to further expand the business of high-value goods and e-commerce. 

“With its advantages in terms of geography, infrastructure and transportation, the site will be developed into a vibrant hub of commerce, conventions and exhibitions, tourism, lifestyle and logistics.”

Enhance aircraft leasing preferential tax regime

The Government has devised a plan to enhance the aircraft leasing preferential tax regime, striving to establish Hong Kong as an aircraft leasing and services hub, Mr Chan noted.

As such, it has conducted a trade consultation on the proposed enhancement measures that include allowing tax deduction for the acquisition cost of aircraft and expanding the scope of leases and aircraft leasing activities. The measures will further attract more aircraft leasing companies to establish a presence in Hong Kong.

International maritime centre

Given Hong Kong’s position as a prominent international maritime centre, the Government is committed to raising the industry’s competitiveness, Mr Chan stressed.

Such measures, he explained, comprise attracting more maritime enterprises to establish a presence in Hong Kong through tax concessions and promoting the development of smart port by setting up a digitalised port community system that will serve to enhance the efficiency of Hong Kong’s port and reduce its operational cost.

Promote international high-end maritime service industry

Additionally, in order to further promote the development of Hong Kong as an international maritime centre, the Transport & Logistics Bureau will set up a task force to put forward an action plan on effective strategies by the end of this year. 

One such strategy includes enhancing business sectors such as ship finance, marine insurance, maritime arbitration and ship management, thereby enabling Hong Kong to become a global high-end maritime service market.

A second plan calls for facilitating transformation of global maritime and port business towards zero emission.

Another plan of action entails promoting the development of smart initiatives and digitalisation in the maritime industry.

An additional approach involves promoting exchanges and collaboration among maritime industries in the bay area and those around the world.

Mr Chan elucidated that $20 million has been reserved to boost the city’s maritime services industry and increase the scale of Hong Kong Maritime Week.

“I will earmark $20 million to expedite studies on strategies for promoting the high‑end maritime service industry and enhance exchanges among industries in the international arena and the bay area.

“The scale of the annual flagship event Hong Kong Maritime Week will also be expanded.”

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