HONG KONG

ASIA’S WORLD CITY - AND LEADINGAVIATION HUB

TOP 6 ASIAN AIRPORTS (PASSENGER) IN 2001 -

% Domestic

1. Hong Kong 32.0M -

2. Bangkok 30.4M 24

3. Singapore 27.9M -

4. Narita, Tokyo 25.7M 4

5. Beijing 24.4M 76

6. Kansai, Osaka 19.7M 40

Airlines and Destinations at Asian Hub Airports

Airport Airlines Destinations

Hong Kong 67 142

Singapore 64 119

Sydney 43 67

Tokyo 49 65

Bangkok 79 111(Source : OAG, 2001)

As I speak for 3 minutes on stage,

another 180 passengers go

through HKIA

TOP 6 AIRPORTS (INTERNATIONAL CARGO)

IN 2001

• Hong Kong 2.1M Tonnes• Seoul 1.8M Tonnes • Narita 1.7M Tonnes• Frankfurt 1.6M Tonnes • New York JFK 1.5M Tonnes• Paris CDG 1.5M Tonnes

Equivalent to 4,000 elephants per day

BeijingBeijing SeoulSeoulTokyoTokyo

TaipeiTaipei

ManilaManilaBangkokBangkok

SingaporeSingaporeKuala LumpurKuala Lumpur

Hong Hong KongKong

JakartaJakarta

Hong Kong International Airport

STRONG HUBS

• “Great cities are all based on transport hubs”• Strength of home carriers

Great Cities of the Past

Ministers In Charge of Transport Are Most

Important!

A Successful Hub Requires a Strong Home Airline

London

Amsterdam

Dubai

Singapore

Hong Kong

Contribution of a Home Carrier

• Foreign exchange

• Local employment - high-skilled jobs

• Headquarters investment

• International brand name

• Promote tourism

• Multiplier effect

Airlines Offering Flights between Hong Kong and Selected Cities

Destination Direct Flights Connecting Flights Flights/Week

Bangkok 10 1 115

Taipei 6 - 233

Singapore 6 3 157

Tokyo 5 2 92

London 3 6 75(Source : OAG, 2001)

HONG KONG:– An open hub

Dominant Asian Hub Carriers

City Airline % of flights

Kuala Lumpur Malaysia Airlines 68.0

Seoul Korean Airlines 51.3

Bangkok Thai Airways 45.1

Singapore Singapore Airlines 43.0

Taipei China Airlines 29.0

Hong Kong Cathay Pacific 25.4

WHAT DOES THE FUTURE HOLD?

Continue to Enhance our Product, the

Network and the

Hub Status of HK

CHINA

• Huge potential– International traffic only represents 0.3% of population

now– If 3% of population travels, it means 7% of all world’s

traffic!

CHINA • WTO entry

• Hong Kong: a major & established gateway

• Direct services to 44 cities

• 4.5m mainland visitors to Hong Kong a year

• Growing tourism

AND…• Importance placed on infrastructure - new airport, links to

China, tourism projects etc• Remove restrictions on movement of goods and people• Increasing air services between the Chinese mainland and

Hong Kong SAR• China needs several hubs: HK already established• Consolidation around key international gateway hubs -

similar to patterns elsewhere• Enhancing HK’s competitiveness overall

BUT THERE ARE MORE CHALLENGES….

• Not a low cost base

• External environment

• Economic downturn

• Increasing competition

• Changing tourism trends

TO MAINTAIN OUR HUB STATUS

• Government / Industry co-operation

• Policy stability

• Aviation Industry Enhancement

• Continue to invest into the tourism and travel / transport related resources

• Develop infrastructure

– Showcase the importance

of cooperation between

Industry & Government

HONG KONG’S SUCCESS

Thank you!