Hong Kong well placed to further develop cruise ship business

Big-spending projects tend to invite attacks rather than praise. The new cruise terminal at Kai Tak is an example. First touted in 1998 with the lofty goal of turning Hong Kong into Asia's cruise hub, the HK$8.2 billion complex was finally put in place in June last year. But as soon as the red carpet was rolled out for the first vessel, logistical issues surfaced. The latest concern is the low usage. With only 28 ship visits scheduled this year and 55 next, critics fear it will become a white elephant.

Whether the criticism is justified is open to debate. Admittedly, the Kai Tak terminal is far less busy than some of its counterparts in the Mediterranean and Caribbean. Tucked away at the old airport runway in East Kowloon, the three-storey complex can hardly rival the existing one in Tsim Sha Tsui in terms of convenience. Insufficient transport links and a lack of accompanying facilities make the new site even less tourist-friendly. While there are some tourist attractions in districts nearby, the old airport remains largely deserted. Until all facilities planned in Kai Tak are up and running, Ocean Terminal will continue to have the edge.

Few world-class facilities and venues mature overnight. Our terminal has been operating for only 16 months. Designed by architect Norman Foster, it was built with state-of-the-art facilities capable of accommodating the largest cruise ships in the world. It is good that ship calls are rising steadily, up from nine in the first six months to a total of 28 this year. The number is expected to rise further to 55 next year, after Royal Caribbean Cruises picked Kai Tak as the home port for its Voyager of the Seas vessel between July and October.

The importance of the cruise business as an engine of tourism growth has long been recognised. In 2012 the industry estimated that its economic output in America and Europe added up to nearly US$93 billion. Given Hong Kong's strategic location and tourist attractions, we are well placed to further develop the market. Now that the hardware has been put in place, it should be given time to reach its full potential.