bsc (honours) hospitality business...

Sheffield Business School

BSc (Honours) Hospitality Business

Management

Title: Impacts of building a new cruise terminal in Hong Kong

Name : Leung Tsz Hung

Student No: 91206517 (SHU), 107013419 (IVE-SHAPE)

Month Year April 2011

Sheffield Hallam University

Sheffield Business School

Title: Impacts of building a new cruise terminal in Hong Kong

FULL NAME: Leung Tsz Hung

STUDENT No: 91206517 (SHU), 107013419 (IVE-SHAPE)

Supervisor: Professor Ray Pine

In partial fulfilment of the requirements for the degree of Bachelor of Science in

Hospitality Business Management.

Month Year April 2011


i

BSc (Honours) Hospitality Business Management

Leung Tsz Hung [91206517]

Executive Summary

Hong Kong is an international city that its special culture combined traditional

Chinese and Western which attract millions of people travel and hence benefits to the

tourism related service. As Hong Kong keeps developing their facilities for tourism,

the new airport was built at Lantau Island to replace the Kai Tal airport which use for

long years. Kai Tak felled into disuse, but now, there is a change for Kai Tai to rebuild

its image and back to a busy place. Hong Kong is located at the Southern of China

where surrounded by sea. It is an ideal place to develop cruise industry, and Ocean

Terminal is the only port where attracted Star Cruise Company to be a home port.

However, as the size of Ocean Terminal is not enough to anchor large vessels in the

recent years, a new terminal is needed as a development of cruise tourism. The

government already has their planning about cruise terminal ability in Hong Kong in

1994, and the result showed that there will be a potential market in Asia area.

Singapore already operated their terminal in 1991 and become one of the successful

ports. But, Hong Kong was late to develop a cruise terminal as the project was just

confirmed in 2009. However, it is the first step to the development. The cruise

terminal selected to build at Kai Tak where an airport with a runway was. The first

port will provide service in 2013 and the terminal will finish at about 2015.

The impacts of building a new cruise terminal in Hong Kong can defined into social,

environment and economic factors and they are affecting different situation to Hong

Kong. Also, positive impacts should be maximized and negative impacts should be

minimized. Due to the cruise terminal development in Hong Kong, social impacts in

Hong Kong is about the image and the life for both foreigner and local citizen. They

can share cruise experience and attract more local try cruise and promote cruise to

other travelers. Jobs also created to local people and hence benefits to the social


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market. The environment impacts will mainly with rejection by environment damages,

however, the protection method of cruise ships had improved that decrease the

possibility of pollutions. The use of Kai Tak area can also rebuild and reuse the airport

runway, the wastage would be minimized. In addition, green power will be use for the

operation of cruise terminal in the future. For the economic impacts, most of the

researches give positive results that increasing of the economic systems. It can be

optimistically believe that it can help to increase the number of tourists and the

incomes. And the benefits of the economic would be more than the researches.

Form those impacts, Hong Kong can be proved as one of the leaders in cruise

industries. From the favorite rate and the port called, Hong Kong has advantages on

attracting cruise tourism. It is a beneficial projects that affecting Hong Kong’s future

development at all means. Hong Kong is ready to handle cruisers for the travel here,

and giving them a memorial experience in the “Pearl of East”


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Table of Content

Executive Summary ........................................................................................................ i

Table of Content ........................................................................................................... iii

List of Figures ................................................................................................................ v

List of Tables ................................................................................................................. vi

List of Appendices ....................................................................................................... vii

Acknowledgements .................................................................................................... viii

1. Introduction ............................................................................................................ 1

2. Aim ........................................................................................................................ 3

2.1. Objectives .................................................................................................. 3

2.2. Context ....................................................................................................... 3

3. Literature Review................................................................................................... 5

3.1. Tourism Industry ........................................................................................ 5

3.2. Cruise Industry ........................................................................................... 5

3.3. Cruise ......................................................................................................... 6

3.4. Cruise Terminal and Port service ............................................................... 7

3.5. Impacts ....................................................................................................... 9

3.5.1. Social and cultural impacts ............................ 9

3.5.2. Environmental impacts ................................ 10

3.5.3. Economic impacts ........................................ 10

4. Research Methodology ........................................................................................ 11

4.1. Research background ............................................................................... 11

4.2. Applications in tourism research ............................................................. 11

4.3. Research method ...................................................................................... 11

4.3.1. Questionnaire ............................................... 12


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4.3.2. Survey .......................................................... 12

4.4. Limitation ................................................................................................. 13

5. Findings and Analysis .......................................................................................... 15

5.1. Introduction .............................................................................................. 15

5.2. Questionnaires analysis ............................................................................ 15

5.2.1. Part A ........................................................... 15

5.2.2. Part B ........................................................... 16

5.3. Summary of the findings .......................................................................... 26

6. Conclusion ........................................................................................................... 28

6.1. Impacts Confirmed................................................................................... 28

6.2. The ability of Hong Kong cruise tourism ................................................ 32

7. Recommendations ................................................................................................ 35

8. Reference ............................................................................................................. 36

9. Appendix .............................................................................................................. 39


v



List of Figures

Figure 1 .......................................................................................................................... 1

Figure 2 .......................................................................................................................... 8

Figure 2 ........................................................................................................................ 33

Figure 3 ........................................................................................................................ 33


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List of Tables

Table 1 ............................................................................................................................ 8

Table 2a ........................................................................................................................ 15

Table 2b ........................................................................................................................ 16

Table 2c ........................................................................................................................ 17

Table 2d ........................................................................................................................ 17

Table 2e ........................................................................................................................ 18

Table 2f ........................................................................................................................ 18

Table 2g ........................................................................................................................ 19

Table 2h ........................................................................................................................ 20

Table 2i ......................................................................................................................... 20

Table 2j ......................................................................................................................... 21

Table 2k ........................................................................................................................ 22

Table 2l ......................................................................................................................... 22

Table 2m ....................................................................................................................... 23

Table 2n ........................................................................................................................ 24

Table 2o ........................................................................................................................ 24

Table 2p ........................................................................................................................ 25

Table 2q ........................................................................................................................ 26

Table 3 .......................................................................................................................... 31

Table 4 .......................................................................................................................... 32

Table 5 .......................................................................................................................... 33

Table 6 .......................................................................................................................... 34


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List of Appendices

Appendix 1 ................................................................................................................... 39

Appendix 2 ................................................................................................................... 40

Appendix 3 ................................................................................................................... 41

Appendix 4 ................................................................................................................... 42

Appendix 5 ................................................................................................................... 44

Appendix 6 ................................................................................................................... 49


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Acknowledgements

I want to give special thanks for the help from Professor Ray Pine for his supervisions

and guidance that help me to have clear direction to develop this dissertation and keep

on trails, and, Miss Iris Cheung for the administrative needs.

Finally, I am appreciated to many people, including those who have done the

questionnaires on the internet and the travelers who have interviewed. For their time

and valuable answers, I can have further analysis on the topics.


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1. Introduction

Due to the figure designed by the World Travel and Tourism Council (WTTC) in 1996,

tourism is responsible for over 10% of global gross domestic product, and they

forecast to rise to over 11% early in the twenty-first century. It is clear that tourism is

a major force in the benefits of tourism in the world, which is an activity of global

importance and significance. (Copper, Fletcher et. al. 1998) Tourism is one of the

revenues to Hong Kong business market, expanding industries already done to

achieve and handle to increasing number of tourism been to Hong Kong. It is a model

about the Total Vacation Position, the larger triangle represents the total market and

the smaller is the cruise market. It should be a large market in cruise and attract more

and more countries to development their cruise industries.

Figure 1

(Dickinson & Vladimir, 1997)

Hong Kong is an international city that its special culture combined traditional

Chinese and Western attracted travelers. As the airport and the road system have

already developed and being saturated, the third tourism transport system for tourism

industry need to develop is the cruise service in Hong Kong. By the awareness and


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product improvement of cruise industry, more people willing to try cruising. About

36.03 million tourists recorded by the Hong Kong Tourism Board in 2010 and the

number will be increase due to the expanding of cruise market. (Appendix 1)

Ocean Terminal located at Tsim Sha Tsui is the only terminal for cruise service,

however, it mainly provides port services to the medium or low class of cruise ships

aboard. Although the facilities and attractions are inviting international cruise line to

be their port of call, the size of the Ocean Terminal is not enough the handle mega

vessels nowadays. It was news that the Queen Mary 2 by Cunard was come to Hong

Kong as their round-world trip. However, they only can abort at the Kwai Chung

container terminal. (Appendix 2) It was a joke that Hong Kong as an international city,

but there are no formal cruise terminal which can afford huge vessels. It may give bad

impression for the cruiser. So, a new cruise terminal is needed.

The government decided to build a new cruise terminal at Kai Tak area to achieve the

customer needs. The new cruise terminal will have two ports that enough to let the

largest vessel (The Oasis of the Sea) anchor. And the Kai Tak area will be developing

that provide hotel, shopping and catering services to the cruisers. The terminal is

being built now and will be operated at 2015. It is an important infrastructure that it

may create impacts to Hong Kong, we are looking forward that the terminal will bring

a new image to the world then come to a success.


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2. Aim

To find out impacts from the new cruise terminal in Hong Kong, in order to clarify a

potential cruise travel market with other countries in Asia area.

2.1. Objectives

Carry out a study of cruise market in Hong Kong and the Asia area

The future development potential of cruise terminal and tourism in Hong Kong

Analysis impacts that created by the terminal and hence to take further actions

Maximized positive impacts and minimized negative impacts and references

with other cruise terminal in Asia area

To prove Hong Kong has potential to be one of the leaders of cruise industry

2.2. Context

To expand the tourism market, Hong Kong government confirmed to build a new

cruise terminal at Kai Tak area in South East Kowloon. This dissertation will be

analysis the impacts of developing a new cruise terminal in Hong Kong.

First of all, the cruise market in Hong Kong has already developed to have basic

services to cruise line at Ocean Terminal. It is a home port of Star Cruise Company

that provides medium service with smaller vessels. However, Ocean Terminal is not

available to anchor the large vessels nowadays. As a reason, Kai Tak cruise terminal is

needed to handle large cruise line and the increasing travelers.

Second, the impacts for the cruise terminal are the main topic of this dissertation. This

study will research about the cruise impacts may be occur, and then analysis those


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impacts if they are benefits or damage to Hong Kong business and image. The

positive impacts will have discussion to prove if Hong Kong can achieve or not. The

other terminal can be references that the criteria Hong Kong should have as being one

of the leaders in cruise industry.

Third, it is common to have different voices when having infrastructures. New Kai

Tak cruise terminal also rejected by environment protection groups as it will damage

the nature coast and affect the transport system. To minimize the negative impacts,

contrary opinion should be listening and take further action to dismiss publics anxious

hence maximized positive impacts.

Last, some recommendations follows by the negative impacts that need to be consider

and conclude the summary of impacts that Hong Kong will have. It can also be

proved that the ability of Hong Kong can be a leader of cruise industry.


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3. Literature Review

3.1. Tourism Industry

Tourism is an activity which was served by a number of other industries such as

hospitality and transport (Swarbrooke and Horner, 1999) and it would tough the

impacts to a countries from the tourisms. Tourism is now a global industry involving

hundreds of millions of people in international as well as domestic travel each year.

(Mason, 2008) By the number of tourism recorded by The World Tourism

Organization (2011), International tourist arrivals were up by almost 7% to 935

million, following the 4% decline in 2009 – the year hardest hit by the global

economic crisis. However, recoveries in different countries are successful and their

main economic systems remain stable after the global crisis. Asia area has the most

effective number in their recovery from the record that13% increasing was the first

region to recover and the strongest growing region in 2010. International tourist

arrivals into Asia reached a new record at 204 million last year, up from 181 million

in 2009. And it shows a potential power to increase in the future. (Appendix 3)

In Hong Kong, tourism is the main income and further planning will be process to

attract more tourism to go Hong Kong hence the number of tourism are increasing

especially the mainland travelers after the Closer Economic Partnership Arrangement

(CEPA). It is a push to other tourism industries such as hotel, catering service,

recreation etc. in order to handle the increasing number of tourism.

3.2. Cruise Industry

Cruising is a vacation trip by ships. This definition excludes traveling by water for

purely business purposes, sailing on one’s own small pleasure craft, or travel on a


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vessel for primarily transportation purpose. A cruise is a leisure vacation experience,

with the ship’s staff doing all the work. (Mancini, 2004) The cruise industry has

grown and continues to grow enormously in scale. It is frequently regarded as a small

but significant sector of the tourism industry. (Gibson, 2006)

Ebersold (2004) have drawn attention to the growth of the industry in marketing term,

which has seen systematic and sustained expansion over 7 years. It also recorded a

huge increase percentage on the bed-day sold. In 2005, 11.1 million passengers are

expected to take a cruise with in more if the Cruise Lines International Association’s

member companies (Anon, 2005a), a projected 4.6%increase over 2004 figures. In

2004, 12 new ships were introduced, accounting for a 6.9% increase in capacity.

Hong Kong was formerly a British protectorate, but it was returned to China in 1997.

It retains a mix of Eastern and Western influences and a dynamism that reflects a city

on the cutting edge of a changing world. The city promotes itself as a shopper’s

paradise, but, in reality, there is more to this energetic, self-styled “cruise capital” of

Asia. To the Western tourist a visit to Hong Kong by cruise ship is a special

opportunity to savor its unique blend of sights and sounds. (HK Tourism, 2005)

3.3. Cruise

Cruise ship provides a mobile, consistent, and easily accessible location to act as a

home away from home while the tourist samples the port of call. The tourists adapt to

shipboard life and learn to relax into a vacation routine. (Gibson, 2003) Ward (2009)

also explained that cruise ships are really self-contained resorts, without crime, which

can take you to several destinations in the space of just a few days.


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Nowadays, ships are as a floating resort offering pleasurable activities, great food,

superb service etc. “Megaships”, a super-sized catamaran-like vessel that can carried

more than 300 passengers, appeared that far exceeded the size and scope of the

biggest ocean liners in 1990s, while smaller super-luxury vessels targeted people who

sought the very highest of experience.

Star Cruise is a Hong Kong based Cruise Company which provides medium class

services to the customers. Together with other small China based cruise ships, they

provide low-price package with short vacation and limit service of catering and

entertainment. It is popular for the new-cruisers, however, due to the size of the cruise

and the market in Asia area, it still far away with other international cruise brand.

3.4. Cruise Terminal and Port service

Port of call, or destinations, invariably offer a mix elements which, taken together,

have potency. It derives considerable income from cruise ships and destinations sell

themselves aggressively in order to attract cruise tourism. (Gibson, 2003)

However, it just can be placed as secondary port defined by Manuel (2003) that the

ports can be separated in two categories. Dickson and Vladimir (1997) have their idea

that ships were modified to be huge so as to provide more service and facilities to

entertain more customers. Kai Tak Cruise Terminal will operate in mid-2013. Dislike

Ocean Terminal gives basic reparation and maintenance service.

It will have two alongside berths and will be well equipped with supporting facilities

to accommodate the concurrent berthing of two mega cruise vessels (with gross


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tonnage of up to 220,000). It located at the East Kowloon waterfront and just 10

minutes away and is home to many of the world's best-known brands. (Hong Kong

Tourism Commission, 2006)

Table 1

Location Former Kai Tak Runway

Number of Berths 2

Length overall 360 meters

Length of apron area 850 meters

Gross tonnage 220,000 tones

Displacement tonnage 110,000 tones

Depth of water 12 meters - 13 meters (for

dredging)

Air draft restriction No

Customs, immigration and health

quarantine operation

Clear 3,000 passengers per hour

(Development parameters of the new cruise terminal, Hong Kong Tourism

Commission, 2006)

Figure 2

(Model of the new cruise terminal, Hong Kong Tourism Commission, 2006)


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It will be much bigger than the Ocean Terminal located at Tsim Sha Tsui and able to

handle the large vessels to be one of their ports. It will be improving the facilities on

both for the cruise operations and tourism, and it will be improved as a first port.

3.5. Impacts

Tourism, as a significant form of human activity, can have major impacts. These

impacts are very visible in the destination region, where tourists interact with local

environment, economy, culture and society. (Mason, 2008) It would have impacts

occurred from a project. The impacts may be benefits or effects to a hold county.

Tourism impacts can help to develop the system and the service quality of a place.

For develop the tourism attraction for the impacts, Hong Kong is going to build a new

cruise terminal in Kai Tak. Different impacts already created that may affect Hong

Kong. They can help to have improvement and correction to the idea planning and

come to a successful outcome.

3.5.1. Social and cultural impacts

The socio-cultural impact of tourism is manifested through an enormous range of

aspects from the arts and crafts through to the fundamental behavior of individuals

and collective groups. (Cooper, Fletcher et Al 1998) Hong Kong is going to build a

new cruise terminal. It would create social impact that job opportunities will be

creating from the building part to the service parts. Besides, the special culture in

Hong Kong can be promoted through more tourism to Hong Kong by cruise. Because

passengers on-board cruise ships interact with local communities, there is much scope

for both beneficial and adverse impacts. And the socio-culture impacts of cruising are

not confined to destination regions where ships visit. (Dowling, 2005)


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3.5.2. Environmental impacts

The environment, whether it is natural or artificial, is the most fundamental ingredient

of the tourism product. However, as soon as tourism activity takes place, the

environment is inevitably changed or modified either to facilitate tourism or during

the tourism process. (Cooper, Fletcher et Al 1998) Hong Kong new cruise terminal

will is a huge development and it would create environment concern about the coast

and the water flow. With the cruise industry is continued growth over the next decade,

it will be important to understand and address the potential impacts of cruising.

3.5.3. Economic impacts

In spite of the many altruistic and well-meaning reasons sometimes put forward to

support the case for the tourism development, it is the economic advantages that

provide the main driving force for cruise development. (Cooper, Fletcher et Al 1998)

Cruise terminal can bring an increase to the economy as more tourism come to Hong

Kong due to the by the government planning. Developing cruise would have a

considerable economic impact. Dowling (1998) has an example that US cruise

industry generates more than 450,000 jobs accounting for $15 billion in wages and

billions of incomes received.


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4. Research Methodology

4.1. Research background

Kai Tak area is confirmed to build a new cruise terminal as a part of cruise industry

development, it is need to know and analysis all the possible and potential impacts

that may affect the Hong Kong. Therefore, researches would be done for prove that

impacts of cruise terminal are effective. The details about the different researches

already done in this dissertation will be discuss and develop in the later parts.

4.2. Applications in tourism research

Some of the earliest applications of comparative studies in tourism were for purely

pragmatic purpose, namely to benefit from other countries’ experiences to help solve

practical problems (G. Pearce and W. Butler, 1993). The researches should be done to

find out the reactions from the citizen and the tourism in order to analysis the ability

to build a new cruise terminal if there are potential benefits to them. In this

dissertation, secondary and primary research will take to have a complete and

accurate data on both personal and objective side to have an all-round analysis. The

objective of those researches is to find out the impacts to the citizen and tourists about

the cruise tourism in Hong Kong and the building of Kai Tak new cruise terminal.

4.3. Research method

As the impacts may change over time and development, it should be monitored

continuously. G. Pearce and W. Butler (1993) have their ideas and the analysis of the

impacts can be done by quantitative and qualitative research. For the quantitative data,

there are two main ways to collect to have large amount of data for analysis use.

Questionnaires were done, and, surveys and case study could be done to receive


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qualitative data. Both data will be used to analysis to impacts of cruise terminal.

However, qualitative researches are time consuming and different to control, so in

some case, quantitative research could also be used as qualitative data because they

are more easily analysis and also can have objective results.

In the questionnaires and survey, rank-order, itemized rating and likert scale are used.

4.3.1. Questionnaire

To have a large number of analyzable data, questionnaires will be set for getting the

target information. The questions will focus on the impacts that may occur from the

new cruise terminal in Kai Tak. Those impacts factors are based on impacts about

tourism in three different segments (social, economic and environment) based on the

ideas by Cooper, Fletcher et Al. (1998), this questionnaires already put into the

internet at Qualtrics which is an internet engine for statistics and integrated the

numbers. I targeted 50 people in different aged area, for their different view, I can

have a more accurate data on the potential impacts that may affect their life.

Using questionnaire is an appropriate method that large amount can be received for

analysis. The result can have compare together to have different analysis and

expressions. Then, larger amount of data can be more objectivity. People with

different age, education and lifestyle will have different feelings on a same topic and

questions. So, averages for age groups are selected to have questionnaires. Larger

amount can arrange those data collected and analysis by different case in convenient.

4.3.2. Survey

The questions of survey are the same with the questionnaires. The target group of this


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survey is the cruise travelers at Ocean Terminal where is the only cruise terminal.

Those reactions are the most important as they have experience on compare with

different cruise terminal in Asia area or others. There 25 questionnaires were

completed, and 15 by mainland Chinese or Taiwanese and 10 by foreign cruise

travelers. Both of those groups are the main target of this research as they are the

“impacts” elements of the cruise terminal.

This survey would be combined qualitative and Quantitative.

The questionnaires can refer to the Appendix 4

4.4. Limitation

There are limitation that affecting the accuracy and processing of the questionnaires.

They are important to be acknowledged hence clarify the limitations then be solved.

Primary and Secondary research would have different limitation as follow:

For primary research:

Because of the time consumed and constraints limitations, sample size of

questionnaires is no enough to have greater research reliability.

Some interviewees answered questions with “Either agree or disagree”, which is

no meaning for the analysis

Due to the security reasons, some surveys were rejected and stop by the security

at the Ocean Terminal. Although I try to do survey at the Star ferry pier where

next to the Ocean Terminal, the accuracy of the questionnaires would be

insufficient.

Due to the language ability of the researchers, the survey only can access to the

visitors who speak Cantonese, Mandarin or English.

Questionnaires put to the internet with a comment box about their feelings,


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however, none of the interviewees had written anything. Further developments

about their feelings are limited as the interviewers cannot get any comment.

For secondary research

The data about the impacts and cruise terminal were collected from external

sources and accessible information. Lack of internal and official data might be

not accurate.

Some data were not up-to-date, those just can be a reference to the current figure.


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5. Findings and Analysis

5.1. Introduction

The questions asked were about the impacts that may influence the operation of the

new cruise terminal. The aim of those questions is defining the impacts that agree by

local citizens and the tourists. It can be said as if the interviewees giving comments to

a question, there should be impacts generally. And the mean of the questions can show

the level of agreement about different factors to see if there are possible impacts.

Those impacts are about different factors where 1-5 are about Social, 6-10 are about

Environment and 11-15 are about Economic. They are the main concern about the

cruise terminal in Kai Tak. The questionnaires and survey have the same question, and

totally 75 people were finished the questionnaires. The data from the survey were

input to the Qualtrics and get a total statistic about the results. The results received are

related to my estimation, and it mostly can define the problem that facing Hong Kong.

Each question will be discussed, and the total result attach into appendix 5.

5.2. Questionnaires analysis

5.2.1. Part A

Table 2a

As mention before, the personal data part is to identify the interviewees are in my

target group. Mainly, the internet questionnaires is for the local and survey for foreign

Question 15-25 26-35 36-45 46-55 56 or above Responses Mean

Age 13 16 23 11 12 75 2.91

Question Elementary High

School College Graduate Above Responses Mean

Educational

Attainment 4 12 25 23 11 75 3.33


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cruisers. They are appreciated that giving me their valuable answers. For the age, we

can see the mean point is about 3. In addition, the interviewees at the younger age are

more than older age. It can be define as more young cruisers appear in the cruise

market. As the development of cruise image and market, more travelers willing to try

cruise by the attractive advertising about their life on board. Different education will

have different feelings on the same topic. In the survey, the most comment and

reactions were given by the higher educated. They are most well-educated and usually

travel as they can afford. So, they can have more expression on the cruise terminal.

5.2.2. Part B

New cruise terminal will be one of the attractions

Table 2b

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 1 8 15 44 7 75 3.65

In the question, most answers reflect that the new terminal would be an attraction as

the mean point is 3.65. The development plan by the Tourism Board showed that the

Kai Tak area will be develop as rebuild the surround area to an attraction. Shopping

malls, theme park, Waterfront Promenade etc are the main structures of the Kai Tak

Urban area. It is an attraction to both local and tourism. The result can show the

ability to build a cruise terminal in Kai Tal, some reaction also said the Ocean

Terminal already have attractions, based on this comment, the new cruise terminal

should give better service to customer and hence be an attraction.


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The image of Hong Kong improve

Table 2c

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 7 23 28 17 75 3.73

Over 60% of interviewees agree that the cruise terminal can improve Hong Kong’s

image as they can attract more tourism and promote Hong Kong’s special culture. The

tourism image of Hong Kong’s already in high grading for the foreign travelers. Also,

it might be a landmark of Hong Kong that creates the world attention and hence the

impression of Hong Kong from other foreign travelers will be improved.

Create job opportunities

Table 2d

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 5 23 30 17 75 3.79

It must be create job opportunities from the construct part and operation parts. As

mentions by Dowling (1998), 450,000 jobs about cruise related industries created in

the case of US. Based on this record, the result should be equal to the real situation

that job opportunities will have created for the cruise terminal. It is a serious impact


18



for the social that bring benefits to the local workers.

Shared cruise experiences from others

Table 2e

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 10 31 28 6 75 3.40

The cruise market in Hong Kong is still in developing stage than other countries. The

cruise experience can be shared from other developed countries like Singapore. Most

of the results agree Hong Kong can gain experience from others and Hong Kong

already reference to the case of cruise terminal design in Singapore. It may have a

well balance to develop its owner terminal from others opinions. Comments also said

that Hong Kong has ability but develop too late.

Lack of recreation to the local citizen

Table 2f

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 11 42 10 11 1 75 2.32

There was a concern that the cruise terminal will decrease the land for public use.

However, from the planning of the cruise terminal, there are designed areas for


19



recreation to both local and tourism where should be a place full for attractions. In

addition, the areas was designed to have housing estate and park for local citizens at

the surround area near Kai Tak, it would not cut or decrease the land for public but

increase and improve the living quality for the people in Hong Kong.

Ideal environment to develop cruise industry

Table 2g

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 5 17 42 11 75 3.85

Hong Kong surrounded by sea and already is an important port for trading service and

shipping. It was developed its trading and terminal service long time ago. Almost all

interviewees agree Hong Kong has ideal environment, the reasons that Hong Kong

has its benefits for the location where the southern of China and near distance to other

Asia countries. It is a transportation network that Hong Kong can make use of their

benefits to develop an industry. Also, Victory Harbor is a famous sight that able to

anchor large vessels, it is able to attract more big ships pass through Hong Kong.

Easy to access by cruise


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Table 2h

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 1 6 20 36 12 75 3.69

The mean 3.69 means that more interviewees agree that Hong Kong is easy to access

by cruise. Same as the above question, Hong Kong surrounded by sea and already is

an important port for trading service and shipping. The location benefits to both

container terminals and cruise terminal that their ships can easy access to Hong Kong

as it surrounded by the Pacific Ocean, Indian Ocean and South China Sea where can

cover most countries in the world. The depth of the harbor is enough to let large

vessels pass through. Moreover, Ocean Terminal already provides basic service to

ships repairing; it gives convenient to all ships companies.

Increase loading to local transport system

Table 2i

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 2 6 33 25 9 75 3.44

It is an impact that the cruise terminal will increase the tourism number and hence

increase the loading for the local transport system. Most of the answers reflect that


21



concerning about the transport system can afford the increasing of tourism or not.

Also, the road system near Kai Tak was used for long time and its design may not

handle the increase of cars, coaches etc. It would be damage to the local system that

traffic jam and delay of transport may affect to the tourism and local live. Moreover,

the traffic on the sea may be one of the concerns as ships may pass through at the

same time, and create danger and treat to the ships.

Terminal and cruise vessels will bring pollutions

Table 2j

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 3 38 21 11 2 75 2.61

It is an environment concern by the green group that ships will create black smoke

due to air pollutions, and leak of oil and other wastage will become water and land

pollution. However, the result shows it may be a serious problem that the mean point

is lower than 3 which mean they are disagree that pollution may cause. An

interviewee told me that the modern cruise ships already develop an environment

system which can filter the pollution matters to protect the environment. We should

have confident to the cruise structure that will not damage the environment.


22



Cruise terminal would not damage the nature coast

Table 2k

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 12 34 12 15 2 75 2.48

The infrastructure near the sea or coast may damage the nature coast and may lead to

flooding due to the change of the coast. However, most people are disagree the new

cruise terminal will damage the nature coast. And the reasons from the survey

explained that the Kai Tak area was develop as an airport, so the nature coast should

be “damage” already. This planning also can well use of this “damaged area” to

re-build a new revenue sources. Also, the governments also have method to solve the

problem about addition project on the sea.

Attract more people try cruising

Table 2l

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 6 14 45 10 75 3.80

There are different types of travel method that planes, trains or cars are available to

the tourism industry. Cruising seem to be a luxury class of vacation that for high

expending-power group. But it is valuable methods of travel that attract more people


23



try cruising. About 55 interviewees are agree the new cruise terminal will attract more

people cruising, and it may be one of the point that attracting those interviewees to try

cruising in Hong Kong. From the survey, about half of them are first-time cruise, and

we can see the awareness of cruising is increasing. So, it will be real that the terminal

can attract people cruising from Hong Kong or to Hong Kong.

The revenue from tourism will be increase

Table 2m

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 6 24 28 17 75 3.75

3.75 of the mean point showed that most people tend to agree the revenue from

tourism will be increase when the cruise terminal built. The spending power of

tourism is becoming huge especially the Chinese. There is 210 billion of money spent

to the Hong Kong economic system in 2010 recorded by the Hong Kong Tourism

Board (Appendix 6). If cruise terminal built, it is optimistic to estimate that it will

increasing the tourists number and hence increase the money spent in Hong Kong.


24



International cruise line as a home port

Table 2n

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 0 8 25 26 16 75 3.67

There were cruise lines already use the Ocean Terminal as their home port. However,

as mentioned before, Ocean Terminal is not enough to anchor large vessels. The new

cruise terminal ideal to give more ports for large vessels anchored, it may attract more

international brands to try their new line to Hong Kong. It also can solve the problem

that those vessels anchored at container terminal. In addition, the up-graded

engineering service will be provide to the cruise ships, so the cruise line companies do

not need to worry their ships repairing and able to provide safe service to customers.

Related facilities gain benefits from the cruise terminal

Table 2o

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 1 5 29 30 10 75 3.57

Only 6 of those interviewees are disagree that cruise terminal cannot benefits to the

related business what offered service to the tourism. However, Dickinson and


25



Vladimir (1997) has compared a budget cruise and a land vacation, the result showed

that the average of spending money on land is about $204 US dollars. It can be an

objection to those disagreements, as a potential huge market of spending power from

the tourism. The industries can gain those moneys by the benefits from the terminal.

New cruise terminal is too expensive to build

Table 2p

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 4 37 19 12 3 75 2.64

More interviewees think the cruise terminal is reasonable to build as 41 of them

giving disagree. Although the building fee is about 7 billion HK dollars, the return of

revenues received from the cruise terminal and the tourism business will be much

higher than the budget spent. Some interviewees gave their idea that the government

should focus on the future benefits. The budget may be too high in this moment, but,

it is valuable to development a profitable infrastructure that gains image and moneys.


26



Building new cruise terminal is beneficial to Hong Kong

Table 2q

Question Strongly

Disagree

Disagree Neither

Agree

nor

Disagree

Agree Strongly

Agree

Responses Mean

Level of

agreement 1 5 17 38 14 75 3.79

It is the last question of the questionnaires and the research want to know the overall

agreement on the benefits or impacts to build a new cruise terminal. And the result of

this question reflected that most people do think building new cruise terminal is

beneficial to Hong Kong. It is a great idea to develop in a wonderful and attractive

place and the government will put a strong attention to this big project.

There are comment box for the interviewees that write down their comments or

recommendations about the new cruise terminal at Kai Tak. Although only 16 of those

have wrote their words, there are meaningful to the analysis and the project

development. They were attaching in the appendix part. (Appendix 5)

5.3. Summary of the findings

The questions are separated into three segments that included social, environment,

and economic impacts that may occur from the building of new cruise terminal in Kai

Tak. Most of them are focus on the positive impacts and the results are tending to be

positive results. Although many agreement is selected “Neither Agree nor Disagree“,

the mean point as have a clear direction that showing the level of agreement. Each of

the questions had developed a general analysis about the reasons and the effects to the


27



infrastructure. We can now clarify the possible impacts agreed by the interviewees

and confirmed as potential impacts. Further solution and recommendation is needed to

balance the impacts. Maximized the positive impact and minimized the negative

impact is the main mission to this dissertation and they will be discuss at the

recommendation part. And it will be an improvement for the cruise terminal.


28



6. Conclusion

In the 1990s, the cruise phenomenon reached the UK and then the rest of Europe and

Asia and the Pacific. Passengers are generally provided with full-board style

accommodation and can enjoy a broad range of on-board facilities. (G .C . K ESTER,

2002) It attracted more travelers to try cruising, and leading the explosion of the

cruise industries development. More cruise line and larger vessels appear in the cruise

market and hence more countries will spend their budget on building a cruise terminal

to attract and handle the increasing number of tourism.

As the worldwide cruise industry demonstrated an important trend of expansion over

the past decade, the Hong Kong cruise market has great potential for growth and

development in the future. Motivation, service quality and customer satisfaction are

essential to marketers and cruise companies. (Qu & Wong, 1998) As a reason, the aim

of this dissertation is analyzing the impacts that may occur from the cruise terminal

and hence prove Hong Kong can be one of the leaders in cruise industries.

This conclusion will defined into two parts that the first part will focus the impacts

that elaborated from the questionnaires and findings mentioned before. The second

part will develop cases and facts to prove Hong Kong can be one of the leaders.

Recommendation chapter followed to give advice to the negative impacts’ solutions.

6.1. Impacts Confirmed

At the above chapter about the analysis on different impacts from the questionnaires,

they can be separated into three factors of impacts. (1. Social impacts, 2. Environment

impacts, 3. Economic impacts) Each of them shard importance to the impacts that


29



may influencing Hong Kong. Those impacts already be agree or disagree by the

interviewees, and we can see the different level of agreement of the impacts for the

tourism. And the following parts will conclude those three factors of impacts.

Building a new cruise terminal will have a direct social impact to Hong Kong. The

first benefits are that the project will create job opportunities to the local company and

citizen and hence decrease the unemployment rate. According to consultancy studies

by the Hong Kong government, with the availability of new cruise terminal facilities

and appropriate marketing strategies, it may also support some 6,900 to 10,900

employment opportunities by 2020. (Hong Kong Tourism Commission, 2006) At the

period of building the terminal, building workers are needed to have different duty.

And the companies like shops, hotels, cruise operators etc will also be hiring for the

operation of the terminal. 6,900 to 10,900 employment opportunities should be a

conservative estimation by the government that the number of employees should be

more. Nation identity in an abstraction incorporating elements of the past, present and

future, which help to define and reinforce a feeling of community and belonging

amongst individuals and groups. (C. Henderson, 2002) Kai Tak area will provide wide

range of public place to the local and tourism. Both of them can share public place

and communication between them can create give a friendly impression about the

local. It would become one of the attraction such as the Ocean Terminal in Tsim Sha

Tsui and. Besides, cruise tourism is popular in Asia in this years, the cruise

experiences can be promoted and shared, liaises closely with the cruise market and

tourism industry on promoting cruise tourism and developing new itineraries. The

Hong Kong Tourism Board promotes Hong Kong as a "must-see" cruise destination in

the region. (Hong Kong Tourism Board, 2009) Hong Kong develop their cruise


30



industries can share the social image as attracting more cruisers to travel Hong Kong.

Hence, the image of international city can be improved.

The main concern is about the building of the new cruise terminal is about the

environment impacts. There are many voices and reject ideas from some

environment-concerning group, Lau (2004) and Chu (2006) also have ideas about the

environment concern. However, both the interviewees and Government also consider

the environment problem and they are optimistic to the cruise terminal would not

damage the nature environment in Hong Kong. Kai Tak area was an airport with

runway about 3390 meters in length. The runway extends out into the ocean, and as a

result the waters surrounding the approach are deep enough to support larger cruise

ships, up to 50 meters deep. (Leung, Miller, Pierce, Tsai, 2006) It also means that

almost none of the reclamations are needed. Using the railway also is an environment

friendly action that reusing a place for development and building wastage can

decrease as much as possible. New technologies were use on cruise ships, black

smokes and threat of leak of oil were prevented in order to protect the environment.

Hong Kong located at the southern of China and facing a large opportunities on cruise

tourism, transport systems also become an impact in Hong Kong that some of the

locals through the transport systems are not enough to handle large amount of cruisers.

Due to the develop plan, the roads and railways systems are undertaking improvement

for the traffic flow increase from the cruises. Government also has their planning

about the nearby area’s development to contribute the improvement of the Kai Tak

surround area’s environment.

The most positive impacts should be come from the economic benefits. From other

official or informal research, there are wide ranges of economical benefits created by


31



the cruise terminal that the first effect is to increase to tourism number to Hong Kong.

Those travelers will spend money on shopping, dining or other activities and hence

foreign income and currency will be earn in order to have economic benefits. The

cruise industry is an $8 billion industry now, with 1,400 percent growth rate since

1970. In 2010, almost 21 million people will take cruise estimated by The

International Council of Cruise Lines. Cruising probably will continue to grow at a

very high rate as a large number of new cruise liners have recently been placed in

service. (Berger, 2004) The market of cruise has already over their estimation and

keeps in high development. The revenue for the home port cities also can gain their

benefit from the tourism. The following is a table record by Dickinson and Vladimir

(1997) which showing the money gained by the cruise terminal and the land services.

Table 3

(The budget spend per diem basis, Dickinson & Vladimir, 1997)

As mentioned, about 2011 billion income of foreign tourism revenue was recorded in

2010 which is a huge number to the Hong Kong’s economic then improve the


32



economical system and investment industries. The data need to the increase when the

cruise terminal starts their operation. Hong Kong government had a proposal about

new cruise terminal done in 1994. They suggested the economic benefit will

contributions in present value terms in the region of $1.1 to $3.4 billion assuming a

real discount rate of 4% per annum or $560 million to $1.6 billion with an annual

discount rate of 10% per annum. (Hong Kong Tourism Association, 1994) And they

have a table about the scenario about no new terminal and new terminal.

Table 4

(No new terminal and new terminal scenario, Hong Kong Tourism Association, 1994)

We can see the different between them and hence the potential of the economic

benefits to Hong Kong. Due to the advantages of the new cruise terminal, Hong Kong

can be benefited and becomes one of the leaders in cruise industries.

6.2. The ability of Hong Kong cruise tourism

World position


33



Figure 2

( Tourists’ favorite overseas city, Gibson, 2006)

Above figure showing the position of Hong Kong and it would be one of the ability to

Hong Kong to develop tourism industries and the cruise terminal. Hong Kong places

at the front besides other Asia countries, and means it attracted the most tourists’

attention. It would be a key to success of the terminal.

Port Called

There are a system for the cruises and the ports. And no port was visited by all ten

cruise ships from same company, so separated ships to different port is needed.

Figure 3 (Number of ships passes through the area, Dowling, 2006)

Figure 3 represent the number of ships pass through the sea and Hong Kong has the

same number to the Caribbean.

Table 5

(Favored ports of call, round-the-world cruise, Dowling, 2006)


34



And Table 3 shows the number of calls in Hong Kong what just one port less than

other three countries. There is huge competitiveness to gain market share of cruise

industries.

Kai Tak area

A number of experts believe the Kai Tak Approach is a more suitable site for the

cruise terminal as its natural assets may allow for a more successful terminal. (Leung,

Miller, Pierce, Tsai, 2006) And the Hong Kong Tourism Board (2006) generates the

advantage.

Table 6

Natural advantages and modern infrastructure

Magnificent harbor - deep with no air draft limit;

With modern infrastructure, excellent connectivity and superior airlift capacity

to serve fly-cruise passengers;

Tourism industry with rich experience to serve cruise companies and

passengers on international standards;

Located at a strategic geographical position in Asia Pacific and offers diverse

choices for itinerary development

(Hong Kong Tourism Board, 2006)

It is an item that cruise terminal and cruise industries can be successfully develop in

Hong Kong.


35



7. Recommendations

Impacts both positive and negative are useful for the development of an infrastructure.

The Kai Tak new terminal should improve their positive impacts to maximize the

benefits to cruise industries and Hong Kong. Conversely, negative impacts must be

minimized. For clarify the impacts, all the information about the cruise terminal need

to be open for public. For the social factors, a platform for public is needed to share

their idea about the terminal. Their voice need to listen and hence find for the best

method to start operation. For the economic, the market needs to open for all business

and all people. Beside, private sector interest would encourage as their investment

power. The rejection of the terminal is about the environment. More consideration

about the protection about the environment needs to monitor either the preparation or

operation to maintain the high quality of environment in Hong Kong.

If the current opportunity is foregone, then Hong Kong stands to lose the opportunity

to develop further its cruise sector, and hence the chance to reinforce generally its

development of tourism (Hong Kong Tourism Association, 1994)


36



8. Reference

ANON. (2005, 15 March), Full steam ahead [online] Last accessed 3rd

March 2011 at

www.cruiseindustrynews.com

BERGER, A. A. (2004) Ocean travel and cruising: A culture analysis, New York,

Haworth Hospitality Press

CHU, Winston (2006) South East Kowloon Kai Tak International Cruise Terminal,

Hong Kong, Society for Protection of the Harbor

COOPER Chris, FLETCHER John et al. (1998) Tourism principles and practice,

second edition, UK, Longman.

Cruising from Hong Kong Tourism Board [Online] Hong Kong, Last accessed 3rd

April, 2011 at

www.discoverhongkong.com/usa/trip-planner/gethere-cruise-ships.html

DICKINSON, Bob & VLADIMIR, Andy (1997), Selling the sea: An inside look at

the cruise industry, New York, John Wiley & Sons, Inc.

DOWLING, Ross K (2006) Cruise Ship Tourism, UK, CAB International, Biddles

Ltd.

DWYER, Larry & FORSYTH, Peter (1996), Economic significance of cruise tourism,

Australia, Pergamon

EBERSOLD, W. B. (2004) Cruise Industry in Figures, Washington, US Department

of Transport.

G. PEARCE, Douglas & W. Butler Richard (1993) Tourism research Critiques and

challenges, UK, Routledge

G. PEARCE, Douglas & W. Butler Richard (1993) Tourism research, UK, LaserScript

Limited, Biddles Ltd

GIBSON, Philip (2003) Learning, culture, curriculum and college: A social

anthropology, Unpublished PhD, University of Exeter, Exeter.

http://www.discoverhongkong.com/usa/trip-planner/gethere-cruise-ships.html


37



GIBSON, Philip (2006) Cruise Operations Management, UK, Buttereorth-Heinemann

HALL, C. Michael (2001) Trends in ocean and coastal tourism: the end of the last

frontier?, New Zealand, Dunedin

HENDERSON, John C. (2002) Heritage Attractions and Tourism Development in

Asia: A Comparative Study of Hong Kong and Sinapore, Singapore, Nanyang Avenue

Hong Kong Tourism (2005) All about Hong Kong, [online] retrieved 27th

April, 2005,

Last accessed 6th

April, 2011 at http://www.discoverhongkong.com

Hong Kong Tourism Association (1998) Study on the cruise market of Hong Kong,

Summary of findings

Hong Kong Tourism Board [online], Hong Kong Last accessed 4th

April, 2011 at

partnernet.hktb.com

K ESTER, JOHN G .C . (2002), Cruise tourism, Spain, World Tourism Organization

(WTO)

KEANE, John (2004) A ‘Chinese’ View of Democracy: Looking at China, Hong Kong

and Singapore. Retrieves 6th

November, 2005, from John Keane web site [online]:

Last accessed 20th

March, 2011 at http://www.johnkeane.net

LAU, Edwin (2004) Hong Kong: Fragrant Harbor? Retrieved 22 November, 2005,

Last accessed 20th

March, 2011 at

http://darwin.bio.uci.edu/~sustain/suscoats/edwinlau.html

LEUNG, Wai-Mun, MILLER Michael, PIERCE, Michael and TSAI, Irene (2006)

Urban Planning and Development of Kai Tak Area, Hong Kong, Civic Exchange

MANCINI, M. (2004) Cruising: a guide to the cruise line industry. 2nd

ed. Clifton

Park, New York, Thomson/Delmar Learning

MANUEL, B. (2003) Worldwide Cruise Ship Activity, Spain : World Tourism

Organization

http://www.johnkeane.net/

http://darwin.bio.uci.edu/~sustain/suscoats/edwinlau.html


38



MASON, Peter (2008), Tourism impacts, planning and management, UK,

Buttereorth-Heinemann

Metagini (2008) Hong Kong Kwai Chung [onlne] Last accessed on 28th

March, 2011

at http://metagini.com/location/Hong%20Kong/Kwai%20Chung/52455/Pictures

QU, Hailin & WONG, Elsa (1999) A service performance model of Hong Kong cruise

travelers motivation factors and satisfaction, Hong Kong, The Hong Kong

Polytechnic University

SWARBROOKE, J and HORNER, S. (1999) Consumer Behavior in Tourism,

Butterworth Henemann

Tourism Commission (2006) Develop Hong Kong as a leading regional cruise hub,

[online] Hong Kong, Last accessed 1st April, 2011

www.tourism.gov.hk/english/ctkt/ckkt.html

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March, 2011 at www.tourism.gov.hk

WARD, D. (2009) Complete guide to cruising and cruise ships 2009, UK, Berlitz

Publishing

World Tourism Organization UNWTO (2011) Facts & Figures [online] Last accessed

5th

April, 2011 at http://unwto.org/en

http://www.tourism.gov.hk/english/ctkt/ckkt.html

http://www.tourism.gov.hk/

http://unwto.org/en


39



9. Appendix

Appendix 1 (The number of tourists to Hong Kong)

RELEASE OF PROVISIONAL VISITOR ARRIVALS FOR 2010

The Hong Kong Tourism Board (HKTB) announced today (7 January) that provisional total arrivals in 2010

reached 36.03 million, a 21.8%-increase compared to 2009. These were made up by approximately 22.47

million Mainland arrivals (+27.0%), 8.72 million short-haul (excluding Mainland) arrivals (+16.5%), and

4.84 million long-haul arrivals (+9.6%).

Commenting on the satisfactory growth in 2010 arrivals, HKTB Chairman Mr James Tien said: “Hong

Kong’s tourism experienced a strong rebound in 2010 after the severe blow dealt by the financial tsunami and

human swine influenza in 2009. The result could be attributed to the collaborative effort between the SAR

Government, the local travel trade and the HKTB in rolling out various promotions, such as the Hong Kong

Dragon Boat Carnival, the Wine and Dine Festival and the New Year Countdown Celebrations, as well as the

policies implemented by the Central Government to facilitate individual visits by Mainland residents.

“Looking into 2011, Asia will be the key driver in the global tourism growth. The HKTB will maintain our

close partnership with the travel trade to uphold Hong Kong’s image as an international, cosmopolitan city.

Meanwhile, we hope the Central Government will extend the Individual Visit Scheme to even more Mainland

cities, such as the major cities in the three provinces of Northeast China, and to the entire Zhejiang and

Jiangsu provinces. We also hope that the measures for individual visits by both Guangdong residents and

non-Guangdong residents residing in Shenzhen could be extended to other cities in the province, so that we

could bring even greater momentum to the growth of Mainland arrivals.”

(Full breakdown on arrivals by markets for December 2010 and January-December 2010 will be released

later this month.)

Source from the Hong Kong Tourism Board new release at 7 January 2011


40



Appendix 2

Queen Mary 2 at Hong Kong container terminal

Hong Kong's cruise sector to soar with new terminal (Global travel industry

news, 2008)

Feb 26, 2008

Hong Kong - Hong Kong's fabled skyline helped lure about 27 million visitors to the

territory last year, but passengers on the luxury liner Queen Mary 2 saw a slightly

different vista when the mega-vessel docked in the territory. Instead of soaring

skyscrapers and green hills, the vessel's passengers saw mountains of metal shipping

containers and skeleton-like cranes when the 151,400-ton ship docked at the city's

container port at Kwai Chung.

Yet the Queen Mary 2 is not unique in being too big to dock at the territory's existing

Ocean Terminal passenger liner facility in the heart of the Tsim Sha Tsui tourist

district.

Sean Kelly, chief executive of Modern Terminals, the terminal operator which

handled the Queen Mary 2, said the Kwai Chung terminal companies tried to handle

the passenger vessels, but it was not always possible because the terminals were busy

with container ships.

About six cruise liners a year have to jostle with container carrying ships to tie-up at

the Kwai Chung container terminals.

Queen Mary 2 arrives at Kwai Chung container terminal (Metagini, 2008)


41



Appendix 3

The economics of tourism in the world

Multi-speed recovery for international tourism in 2010

Boosted by improved economic conditions worldwide, international tourism has

recovered faster than expected from the impacts of the global financial crisis and

economic recession of late 2008 and 2009. International tourist arrivals were up by

6.7% compared to 2009, with positive growth reported in all world regions.

Worldwide, the number of international tourist arrivals reached 935 million, up 58

million from 2009 and 22 million more than the pre-crisis peak level of 2008 (913

million).

While all regions posted growth in international tourist arrivals, emerging economies

remain the main drivers of this recovery. This multi-speed recovery, lower in

advanced economies (+5%), faster in emerging ones (+8%), is a reflection of the

broader global economic situation and is set to dominate 2011 and the foreseeable

future.

“The recovery in international tourism is good news, especially for those developing

countries that rely on the sector for much-needed revenue and jobs,” said UNWTO

Secretary-General, Taleb Rifai. “The challenge now will be to consolidate this growth

over the coming years amid a still uncertain global economic environment”.

Asia (+13%) was the first region to recover and the strongest growing region in 2010.

International tourist arrivals into Asia reached a new record at 204 million last year,

up from 181 million in 2009.

(Source from World Tourism Organization, Press release, 2011)


42



Appendix 4

Survey Questionnaire

The researcher is conducting a survey concerning the impacts that may

influence the New Kai Tak Cruise Terminal in Hong Kong. To enable the researcher

to make the further development and analysis for this topic, it would be very much

appreciated if you feel free to finish this questionnaire.

Information given will be treated in confidence and for academic use only

Thank you very much

Part A. Personal Data

Age:

□15-25 □ 26-35 □ 36-45 □ 46-55 □ 56 or above

Gender

□Male □ Female

Educational Attainment

□ Elementary □ High School □ College □ Graduate

Part B. Perception of the Respondents

Base on your experience, select the best choice that reflects your level of agreement.

1

STRONGLY

DISAGREE

2

DISAGREE

3

UNDECIDED

4

AGREEE

5

STRONGLY

AGREE

STATEMENTS 1 2 3 4 5

1. Hong Kong new cruise terminal will be one of the

attractions

1 2 3 4 5

2. Hong Kong will improve image by the new cruise

terminal

1 2 3 4 5

3. Building and operating cruise terminal would create

job opportunities

1 2 3 4 5


43



4. Hong Kong can shared cruise experiences from others 1 2 3 4 5

5. The planning of the terminal do not consider the

recreation to the local citizen

1 2 3 4 5

6. Hong Kong has an ideal environment to develop cruise

industry

1 2 3 4 5

7. Hong Kong is a destination that easy to access by

cruise

1 2 3 4 5

8. New cruise terminal will increase loading to the local

transport system

1 2 3 4 5

9. Terminal and cruise vessels will bring pollutions 1 2 3 4 5

10. New cruise terminal damage the nature coast 1 2 3 4 5

11. Cruise terminal can attract more people try cruising 1 2 3 4 5

12. The revenue from tourism will be increase when new

cruise terminal built

1 2 3 4 5

13. Hong Kong will attract International cruise line as a

home port

1 2 3 4 5

14. The related facilities near the new cruise terminal will

gain benefits from the cruise terminal

1 2 3 4 5

15. New cruise terminal is too expensive to build 1 2 3 4 5

16. Overall, building new cruise terminal is beneficial to

Hong Kong

1 2 3 4 5

Part C Comments

Other comments or recommendations about the new cruise terminal at Kai Tak:

The End Thank you

Remark:


44



Appendix 5

Initial Report (Results) Last Modified: 04/02/2011

1. Age

# Question 15-25 26-35 36-45 46-55 56 or above Responses Mean

1 Age 13 16 23 11 12 75 2.91

2. Gender

# Question Male Female Responses Mean

1 Gender 41 34 75 1.45

3. Educational Attainment

# Question Elementary High

School College Graduate Above Responses Mean

1 Educational

Attainment 4 12 25 23 11 75 3.33

4. Hong Kong new cruise terminal will be one of the attractions

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly

Agree Responses Mean

1 Level of

agreement 1 8 15 44 7 75 3.65

Variance 0.72 Deviation 0.85

5. Hong Kong will improve image by the new cruise terminal

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 0 7 23 28 17 75 3.73


6. Building and operating cruise terminal would create job opportunities

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly



45



1 Level of

agreement 0 5 23 30 17 75 3.79


7. Hong Kong can shared cruise experiences from others

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 0 10 31 28 6 75 3.40


8. The planning of the terminal do not consider the recreation to the local citizen

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 11 42 10 11 1 75 2.32


9. Hong Kong has an ideal environment to develop cruise industry

# Question Strongly

Disagree Disagree

Neither Agree

nor Disagree Agree

Strongly


1 Level of

agreement 0 5 17 42 9 73 3.75


10. Hong Kong is a destination that easy to access by cruise

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 1 6 20 36 12 75 3.69



46



11. New cruise terminal will increase loading to the local transport system

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 2 6 33 25 9 75 3.44


12. Terminal and cruise vessels will bring pollutions

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 3 38 21 11 2 75 2.61


13. New cruise terminal damage the nature coast

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 12 34 12 15 2 75 2.48


14. Cruise terminal can attract more people try cruising

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 0 6 13 45 10 74 3.80



47



15. The revenue from tourism will be increase when new cruise terminal built

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 0 6 24 28 17 75 3.75


16. Hong Kong will attract International cruise line as a home port

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 0 8 25 26 16 75 3.67


17. The related facilities near the new cruise terminal will gain benefits from the cruise terminal

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 1 5 29 30 10 75 3.57


18. New cruise terminal is too expensive to build

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 4 37 19 12 3 75 2.64



48



19. Overall, building new cruise terminal is beneficial to Hong Kong

# Question Strongly

Disagree Disagree

Neither

Agree nor

Disagree

Agree Strongly


1 Level of

agreement 1 5 17 38 14 75 3.79


20. Other comments or recommendations about the new cruise terminal at Kai Tak:

Hong Kong already a potential market on cruise industry, and they should be develop 10 or 20 years

ago for getting more customers

It's too late for the development

The new terminal should have more shopping centre for the tourism, similar to the Citycate providing

outlet for brands

The government should focus on the future benefits. Although the budget may be high, the revenue for

the tourism should be much high than the budget 10 years later.

I don't know Hong Kong is going to build a cruise terminal

I have experience on Qm2 that was a great experience. I hope Hong Kong can attract more line like

QM2, and I think I will cruise again here.

Great development that can keep on track to the market

Environment is the main concern in this project

New style of traveling is needed in Hong Kong

Kai Tak was an airport and this report can "reuse" the airport, fewer pollution will be create as i think

Government should balance the good and bad impacts

Why Hong Kong develop cruise terminal so late, Singapore already has success case

The cruise terminal should consider more about the environment problem, and it should benefits to

both tourism and local people

The facilities surround the terminal should be enough for tourism to stay for a day

If more international cruise line brand can come to Hong Kong, the immigration of those tourism

should be well consider to maintain HK's image

The problem is how the cruise terminal can attract more tourism. The tourism board should give more

information to promote HK and get more business from tourism

Total Responses 16


49



Appendix 6

2010 TOTAL TOURISM SPENDING REACHES

ALL-TIME HIGH OF OVER HK$200 BILLION

The Hong Kong Tourism Board (HKTB) announced today (3 April) that the Total Tourism Expenditure

Associated to Inbound Tourism (TEAIT) in 2010 reached a historic high of HK$209.98 billion, 32.7% more

than in 2009. Also showing increase was the per capita spending of overnight visitors, which surged by

16.6% to HK$6,728, while that of same-day, in-town visitors rose by 2.7% to HK$1,846.

HKTB Chairman Mr James Tien said: “Last year, we welcomed 36.03 million visitor arrivals to Hong Kong,

21.8% more than 2009. The increase in arrivals, along with the strengthening of most currencies against the

Hong Kong dollar, which stimulated visitors’ spending, led to remarkable growth in the total tourism

expenditure. Looking into 2011, we expect further growth in arrivals to 39.64 million, provided that the

global economy remains stable and the Mainland maintains its robust economic growth. Another contributory

factor would be the implementation of measures to facilitate individual visits by both non-Guangdong and

Guangdong residents in Shenzhen. All these are projected to give a further boost to the tourism receipts to

around HK$244.40 billion in 2011.”

Total Spending by Overnight and Same-Day Visitors

In 2010, the total spending by overnight visitors amounted to HK$135.14 billion, which represents a

significant growth of 38.4% over 2009. As for the per capita spending of overnight visitors, this increased by

16.6% year-on-year to an average of HK$6,728.

All market regions achieved remarkable growth in their respective overnight per capita spending figure in

2010, with especially outstanding performance by the long-haul regions, which showed increases of 30% or

more. Furthermore, the per capita spending figures of individual long-haul markets were either close to or

above the average of all overnight visitors. As for the short-haul regions, the per capita spending of overnight

visitors from North Asia and from South and Southeast Asia also made an impressive leap of 27.8% and

17.7% respectively.

Among all overnight visitors, those from Mainland China continued to have the highest per capita spending

at HK$7,453, 12.6% more than in 2009. The higher spending not only reflected the rapid economic growth of

the Mainland, which stimulated spending and outbound travel, but also underlined Hong Kong’s position as

one of the first-choice destinations among Mainland travelers.

(Source from Hong Kong Tourism Board, 2011)

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