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Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)094







Question Serial No.







0667




Head :

152- Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)

Subhead (No. & title) :
















Programme :

(7) Subvention: Hong Kong Tourism Board




Controlling Officer :

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)




Director of Bureau :

Secretary for Commerce and Economic Development





Question :
What is the total amount of annual rental and administrative expenses for the local offices, worldwide offices and overseas representatives offices of the Hong Kong Tourism Board (HKTB)? Given the wide accessibility of internet nowadays, has HKTB considered replacing its offices around the globe with virtual offices to save on public expenditure and downsize its establishment?
Asked by : Hon. TSE Wai-chun, Paul
Reply :
The rental and administrative expenditure of the local office, the four Mainland offices, and 11 worldwide offices of the Hong Kong Tourism Board (HKTB) in 2010-11 is estimated at HK$37.45 million. As for the six overseas representative offices, they are appointed by the HKTB under contractual agreements to conduct marketing activities in specific source markets. The representative offices are responsible for their own operating expenses, while the HKTB shoulders the administrative cost associated with the maintenance of a dedicated team for preparing the annual work plan, submitting regular work reports and collecting market intelligence. The estimated expenditure in this regard in 2010-11 is HK$4.94 million.
Leveraging on the increased popularity of the Internet, the HKTB has already made wider use of information technology in its promotion work, such as enhancing the functions of its website and co-operating with travel portals and social media networks to market Hong Kong. This will enable tourists overseas to obtain tourism information on Hong Kong more conveniently. Nevertheless, in conducting its promotions in different source markets, the HKTB needs to maintain regular communication and liaison with the local travel trade and media in the respective markets. Therefore, it will be premature to replace the worldwide offices with virtual ones at this stage.
HKTB conducts regularly reviews on the set-up of its worldwide offices and representative offices to ensure that it matches the HKTB’s promotion strategies. In conducting the review, the HKTB takes into account the latest trends in different source markets, such as their long-term development potential, visitor arrival growth trends, the social, economic, political environment, as well as their airline carrying capacity. The HKTB will continue to closely monitor the market needs and technological development, and use the most suitable model for launching its promotion in different markets.

Signature










Name in block letters

MISS YVONNE CHOI







Post Title

Permanent Secretary for Commerce

and Economic Development



(Commerce, Industry and Tourism)







Date

18.3.2010






Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)095







Question Serial No.







0668



Head :

152 Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch

Subhead (No. & title) :
















Programme :

(7) Subvention : Hong Kong Tourism Board




Controlling Officer :

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)




Director of Bureau :

Secretary for Commerce and Economic Development






Question :
Which and how many major cruise industry events will see the presence of the Hong Kong Tourism Board in the coming year (i.e. 2010-11)? What is the projected expenditure in this respect? Moreover, in which and how many key Mainland cities will Hong Kong/Taiwan cruise itineraries be promoted? What is the estimated expenditure in this area of work?
Asked by : Hon. TSE Wai-chun, Paul

Reply :
In 2010-11, the Hong Kong Tourism Board (HKTB) will increase its presence in a number of major cruise industry events. This is to promote Hong Kong as a leading regional cruise hub and to step up publicity on the latest development of the new cruise terminal at Kai Tak to pave way for the commissioning of the first berth in mid-2013, and to attract cruise companies to deploy more vessels to Hong Kong. These events include the Cruise3sixty in Vancouver and the Seatrade All Asia Cruise Convention in Shanghai, both to be held in June this year; the China Cruise Industry Development Summit in the Mainland in October or November; and the Seatrade Cruise Shipping Miami in the United States in March next year. The HKTB’s estimated expenditure on this aspect is about $1.5 million.
The measure announced by the Central People’s Government last year allowing Mainland tour groups travelling to Taiwan by taking cruise vessels homeporting in Hong Kong helps further develop Hong Kong’s cruise industry. Leveraging on the measure, the HKTB has devised comprehensive strategies and collaborated with the relevant international cruise companies and the travel trade to launch promotion programme in a number of major Mainland provinces and cities, including the Guangdong Province, Shanghai, Hangzhou, Nanjing and Beijing. Such promotion programme includes partnering with the travel agents and the cruise companies to place advertisements in newspapers and travel magazines to publicise cruise tourism and the Hong Kong/Taiwan itineraries to Mainland consumers. The HKTB’s estimated budget on promoting Hong Kong/Taiwan cruise itineraries is about $1.1 million in 2010-11.

Signature










Name in block letters

MISS YVONNE CHOI







Post Title

Permanent Secretary for
Commerce and Economic Development

(Commerce, Industry and Tourism)









Date

18.3.2010


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