Hong Kong Pumps $4B Into Attractions, Accommodations

The next few months will be a milestone era in Hong Kong development as more than $4 billion worth of new tourist attractions, event venues and hotels are unveiled everywhere from the bustling financial district to the outer reaches of Lantau Island.

Among developments scheduled for completion before year end are Hong Kong Disneyland, a theme park with two resort hotels opening in September; Asia World Expo, a 753,000-square-foot convention center opening in December at Hong Kong International Airport, and new hotels from Mandarin Oriental and Four Seasons. Scheduled to open in early 2006 are Ngong Ping 360, a cable car ride and cultural theme park on Lantau Island, and Hong Kong Wetland Park, a nature preserve in the New Territories.

The Hong Kong Tourist Board is anticipating that next year will set new records for both business and leisure tourism arrivals and has launched a $60 million marketing campaign, called 2006 Discover Hong Kong Year. According to HKTB executive director Clara Chong, an estimated 27.1 million visitors are expected to pass through Hong Kong next year, up from the 23.9 million forecasted for this year.

"We will promote Hong Kong aggressively in the next two years, attract more arrivals and extend visitors' length of stay," said Chong, adding that visitor spending is anticipated to increase by 17 percent next year to reach a record $14.7 billion.

To increase U.S. corporate meeting and incentive business, said James LaValle, manager of conventions, exhibitions and corporate events for HKTB in Los Angeles, HKTB will launch a meetings-oriented version of then 2006 Discover Hong Kong Year promotional campaign at the IT&ME show in Chicago this fall, to be followed by a comprehensive direct-mail campaign.

"The new attractions will inject some new life into the incentive market and offer new venues for corporate events," said LaValle, adding that HKTB also is partnering with other destinations in Asia to boost incentive business. "Hong Kong has faced more competition from other destinations in Asia over the years and so it makes sense to offer Hong Kong as a dual destination with places like Beijing, Vietnam and Thailand."

LaValle said Hong Kong is experiencing a spurt of hotel growth, resulting in 30 percent growth in room inventory between the end of 2003 and the end of 2006. Despite the increase, however, rising demand so far has absorbed the new supply, he said.

According to HKTB figures, hotel occupancies for the first quarter of 2005 averaged 84 percent, about the same as the first quarter of 2004. But while occupancy was flat, average daily room rates stood at $114, up from $95 the year before.

While most new hotel development has been at the three-star level and is aimed at travelers from within Asia, a number of international luxury hotels also are part of the development wave, including Langham Place and Le Meridien Cyberport, both of which opened last year. This year, new upscale properties include two resort hotels located on site at Hong Kong Disneyland, the 400-room Hong Kong Disneyland Hotel, which will include one of Hong Kong's largest ballrooms, and the 600-room Disney's Hollywood Hotel, which will offer an art deco design and movie theme.

The new Landmark Mandarin Oriental will open at the end of August in Central, Hong Kong's main business district, and is geared toward the corporate market. The 113-room hotel, which will be part of The Landmark, a commercial complex, will feature 540-square-foot guest rooms appointed with 400-thread-count linens and plasma screen TVs. The hotel also will include a 21,000-sq.-ft., two-level spa.

Also located in Central and part of a mixed-use development, the Four Seasons Hotel Hong Kong, scheduled to open this fall, will offer 400 rooms, many with views of the harbor or Victoria Peak. Amenities will include a 24-hour business center, more than 26,000 square feet of meeting space, a full-service spa with 18 treatment rooms and two outdoor pools.

Meanwhile, major makeovers are in store for two of Hong Kong's most legendary hotels. A $110 million renovation of the 40-year-old Mandarin Oriental Hong Kong will add more suites and reduce the overall room count from 541 to 515. The project also includes the addition of a spa and redesigned guest bathrooms. The renovation will require the hotel to close between December 2005 and April 2006 and then again from December 2006 to April 2007.

A renovation of the InterContinental Hong Kong, set for completion in September, includes the addition of several luxury suites, including a five-bedroom presidential suite with its own rooftop swimming pool and 2,500-sq.-ft. terrace. A guest room refurbishment includes the installation of new entertainment systems and high-speed wireless broadband access.