061024en03003

	news.gov.hk
	From Hong Kong's Information Services Department

October 24, 2006

Tourism

Kai Tak cruise terminal set for 2012

Secretary for Economic Development & Labour Stephen Ip says the Government will focus on the development of a new cruise terminal at Kai Tak to help Hong Kong become a regional cruise hub. Its first berth is slated to open by 2012.

Mr Ip told the press today the worldwide cruise market continues to grow, with a 5.2% rise recorded in global passenger throughput. Hong Kong's cruise market demand has also surged 55.5% since 1999, to 2.15 million passengers last year.

A Tourism Board survey in 2004 found 52.4% of Mainland visitors are interested in cruise holidays. Of these, more than 80% will join conventional cruise trips from Hong Kong.

Cruising ahead: Secretary for Economic Development & Labour Stephen Ip says Ocean Terminal cannot meet cruise market demand, requiring the development of new facilities at Kai Tak.

Heavy demand

The annual berth utilisation rate of Ocean Terminal in Tsim Sha Tsui, which offers two berths accommodating vessels of up to 50,000 tonnes, rose to 76% last year from 71% in 2003. Between 2001 and 2005, some 11 cruise vessels had to berth mid-stream and at container terminals because Ocean Terminal could not meet market demand.

Mr Ip said Hong Kong needs an additional berth between 2009 and 2015, and one to two more berths beyond 2015 to capture the growth of the regional cruise market. New cruise terminal facilities could bolster Hong Kong's coffers by up to $2.2 billion a year by 2020, and offer almost 11,000 jobs.

Mr Ip said the six suggestions received in last year's study on whether there are feasible locations other than Kai Tak, could not meet the Government's requirements in full.

"It has always been the Government's intention to develop new cruise terminal facilities at Kai Tak, as it is the only site within Victoria Harbour with the capability to offer two or more alongside berths without reclamation. The outcome of the Kai Tak Planning Review Stage 3 Public Consultation indicated general support for the development of cruise terminal facilities at Kai Tak," he said.

"As the market cannot provide a better and faster suggestion than Kai Tak, the Government will focus on the development of a new cruise terminal at Kai Tak, and expedite the development process, with a view to completing the first berth by 2012."

Development plan

Development of the new facilities on the 7.6 hectares of land earmarked at the end of the former airport runway includes:

* berthing facilities - two alongside berths of 800 metres, an apron area, fender system and passenger gangways;

* support facilities - located mainly in the cruise terminal building, such as customs, immigration, quarantine counters, and baggage handling; and,

* a commercial area inside the cruise terminal building with a maximum gross floor area of 50,000 square metres for offices and retail facilities.

Mr Ip said the Government will adopt a market-driven approach in the new development. Selected through an open tender exercise, the successful bidder will own the 7.6 hectares of land for a 50-year period and form the site as well as design, build and operate the terminal.

A pre-tender consultation with relevant trades will be conducted in the first half of next year to expedite the pace of development, followed by invitation of tenders in the fourth quarter. The tender will be awarded in the second quarter of 2008. The estimated development cost, excluding that for the commercial area, is about $2.4 billion.