HK hits record figures in 2004 investment activities
(Xinhua)
Updated: 2005-02-13 16:31

The year of 2004 was a record year for Hong Kong with all-time high figures in investment promotion, tourism, and passenger and cargo movements.

According to Mike Rowse, director-general at Invest Hong Kong, the government department tasked with attracting foreign investment activities to Hong Kong, assisted 205 foreign companies to set up or expand operations in Hong Kong in 2004, a surge of 44 percent over 2003.

In the first three quarters of 2004, Hong Kong attracted more than 24.8 billion US dollars in foreign direct investment, about twice as much as the whole of 2003.

The number of regional headquarters and regional offices also reached all-time highs, demonstrating that the city remained the preferred base in Asia for foreign companies to oversee their regional operations.

As of June 1, 2004, there were 1,098 companies that were regional headquarters and 2,511 companies that were regional offices in Hong Kong.

Rowse said the encouraging figures showed that investors still regard Hong Kong as the ideal location to operate their businesses in the region. "Hong Kong's fundamental advantages including the free flow of information and low tax regime remain major attractions for foreign companies."

He noted that Hong Kong retained its position as the world's freest economy for the 11th consecutive year in the 2005 Index of Economic Freedom.

Rowse added that the Closer Economic Partnership Arrangement ( CEPA) between Hong Kong and the Chinese mainland was one of the main considerations among foreign firms when making an investment in the city.

Out of 205 projects completed in 2004, 22 percent said CEPA was one of the reasons for their investments.

At the same time, visitor arrivals in Hong Kong jumped 40 percent in 2004 compared to 2003 to a higher-than-expected record of 21.8 million. Arrivals from the mainland passed 10 million for the first time.

Hong Kong Tourism Board Executive Director Clara Chong said it was truly a record-breaking year. The tourism industry had scarcely looked back since the start of the year, with every month 's arrivals setting a new high for that month.

Hong Kong's hotel occupancy rate reached 91 percent in December and 88 percent for the whole of 2004, the highest since 1996.

Hong Kong Tourism Board also recorded double digit year-on-year growth in all of its long and short haul region markets including such key markets as the United States, Canada, Australia and Singapore.

With the openings of Hong Kong Disneyland, the wetland park, the Tung Chung cable car project and other tourism promotions, tourist arrivals are expected to be even better in 2005, Hong Kong Tourism Board said.

The year of 2004 was also a harvest year for Hong Kong International Airport with double-digit growth over the previous year and new records set for passenger, cargo and aircraft movements.

The passenger number amounted to over 37.14 million, an increase of 8 percent over 2002 and a 35 percent jump over 2003. Cargo throughput topped 3.1 million tons, continuing on the growth curve with a 25.2 percent jump over 2002 and over 17.4 percent increase compared to 2003.

The growth was mainly driven by strong demand from the United States, Europe and the Chinese mainland, according to Hong Kong International Airport.

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