Numerous opportunities arise thanks to strengthening ties

Growing trade ties between Israel and Hong Kong are paving the way for many companies seeking opportunities. One byproduct of this is Israel's national carrier adding a fifth flight from Chek Lap Kok to Tel Aviv.

Yair Berrebi, El Al's general manager for Asia and Oceania, said the airline felt justified in having chosen Hong Kong over cheaper rivals as its Asian hub. 'From 18 points of sale in the region, we are seeing more and more Asian passengers, especially Chinese, on flights to and from Hong Kong, Beijing, Bangkok and Mumbai,' Mr Berrebi said.

Alongside the rise in business travel, spurred by bilateral agreements between Hong Kong and Israel, is the growth in religious tourism as more Christians make pilgramages to Jerusalem, Galilee, Bethlehem and other biblical sites.

The signing of a bilateral agreement between ministers in Beijing last September gave Israel favoured-country status as a travel destination for mainland citizens, Mr Berrebi said. This was good news for passenger numbers from Beijing and Shanghai, but Hong Kong still had ample potential due to its flight links with the mainland and Asia-Pacific.

'I feel Hong Kong is one or two steps ahead and people prefer to do business here. We could have put our hub anywhere but the natural choice was Hong Kong,' he said.

Diamonds still seem to form the cornerstone of Israeli business life in Hong Kong, despite the increase in hi-tech companies. And the economic slowdown hasn't taken the shine off the confidence of dealers such as Elad Assor, who runs the local branch of diamond manufacturer A. Schwartz & Sons.

'We always have to look long-term, and Hong Kong is the place to be for the future even though business has been more difficult than before,' Mr Assor said. 'If you stay here, then things will pick up.'