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Clifford Lo

HONGKONG is set to lose most of the accommodation which has made it attractive for budget travellers under fire safety regulations which come into force in September.

  Of the 600 guesthouses currently operating in the territory, only 20 per cent have taken steps to implement safety measures required by the Hotels and Guesthouses Accommodation Ordinance and are likely to be granted licences.

  The rest have either neglected the licensing conditions or started improvement work but are unable to meet the September 1 deadline.

  Principal Assistant Secretary for Home Affairs Francis Lo Chi-wai warned yesterday that guesthouses failing to comply with the requirements by the end of next month would have to stop operating.

  But Mr Lo admitted the Government's intention to get tough with the guesthouses would hit tourism.

  ''There will be a short term impact on the guesthouse industry. I have to stress the short term because in the medium and long term . . . the demand will still be there and of course there will be new interested operators coming into the market,'' he said.

  Mr Lo said staff would be inspecting all guesthouses after the ordinance came into effect and those found operating without licences would be liable to a maximum fine of $200,000 and two years' jail, plus a daily fine of $20,000.

  The death of two tourists in two separate fire accidents in Chungking Mansions in 1988 prompted the Government to introduce legislation to regulate guesthouses.

  Following the enactment of the ordinance, operators were given a two-year exemption period, during which officers from the licensing authority inspected the premises and advised them individually on the necessary work needed.

  They were required by the ordinance to put in fire preventive facilities such as water sprinklers and smoke extraction systems, and to widen fire exits if necessary.

  One guesthouse operator in Causeway Bay said she would close her business because she could not afford to spend the $200,000 necessary to comply with the regulations.

  The operator, Kwok Yau Lan-hing, of Waung Hing Hostel said: ''To meet the requirements, everything such as the installation of fire extinguishers, widening the corridors and reconstruction of the structure, has to be done again. It will cost at least $200,000.''   She said the regulations were too strict and unreasonable. ''I opened this guesthouse almost two years ago and didn't see any problem. I think the problem guesthouses are those in Tsim Sha Tsui, like Chungking Mansions.''   Her 1,400-square-foot apartment was converted from a residential flat two years ago, when she spent about $300,000 for decoration at the Great George Building in Paterson Street.

  It now has six bedrooms, two bathrooms, a kitchen and living room and can house up to 11 tourists, mainly mainland Chinese and Taiwanese. The charge is from $200 to $250 a day.

  Mrs Kwok, 58, said: ''It's really a huge amount. I don't think it is worthwhile to do it. At present, I pay about $15,000 for the rental and can only manage the business but make no profit.''   Another operator next door, Chen Tai Ing-chiao, who was unable to find tenants for her flats, has now spent about $1 million to meet the government regulations.

  ''I had no other choice because no one wanted my flats which were too old and local banks would not grant loans for a new buyer.

  ''I have no idea how and when I can cover this huge expenditure. If I put up the charge, the customers will not come.''   One mainland tourist Wu Xu said he would be happier staying somewhere safer but he had to accept what he could afford.

  ''It is small and crowded and there is only one fire exit. It is also difficult to find fire-fighting facilities here.''   But he added: ''You have to take this risk because you pay a small amount of money for accommodation. If you want better security, you have to pay more.''  The Hongkong Tourist Association threw their weight behind the Government's move.

 The association spokesman Penny Byrne said: ''Fire safety is of paramount importance and our primary concern. For the interest of tourists and the reputation of the Hongkong tourist industry, they should bring them [the hostels] up to standard.''      She said she did not believe their closure would greatly influence the tourist industry because they were small establishments providing only a small percentage of rooms.



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How a run-down flat in Hong Kong’s infamous Chungking Mansions became a haven for ethnic minorities

Chungking Mansions

Fire bill to hit budget travellers