Saving the golden goose of tourism (2 October 2007)

A great deal has been made in recent months about the potential threat Macau poses to Hong Kong's tourism industry. As chairman of the Hong Kong Tourism Board, let me make it absolutely clear that I am not that worried about Macau. Rather, I worry about Hong Kong.

Hong Kong's popularity as a destination depends not upon the success or failure of our neighbours in the region but on the way we present ourselves to the outside world. It appears that, as our prosperity increases, we are becoming complacent.

There has been a steady stream of complaints from tourists who say the service they get in shops and restaurants is not as good as it was before. As the unemployment rate falls, our service sector appears to be struggling to find high-quality staff. Our standards are falling and we are naive to expect that visitors will not notice.

Already, in the first eight months of this year, we have received more than 640 complaints from visitors - many of whom have noticed a declining quality of service. That trend was confirmed last month by a Hong Kong Polytechnic University survey, which found both local and non-local shoppers were becoming less satisfied with the standards of service in shops and restaurants. Researchers say there has been a steady decline in satisfaction since July last year.

Luckily, the huge majority of people who come to Hong Kong on holiday still have a thoroughly enjoyable time. In some unfortunate cases, however, we give the impression that we now take for granted the visitors we were so pleased to see back in 2003. We should not forget it was tourism that, in the dark days of 2003, turned our economic fortunes around. There is an obvious danger in taking its benefits for granted, and we must ensure this trend is reversed immediately.

We should embrace Macau as a partner in the effort to bring more international tourists to our doorstep. We have our own different strengths and appeals and, by working together, I believe we can double our appeal to overseas visitors.

Macau has its casinos, heritage sites and unique, Mediterranean-influenced cuisine. Hong Kong has its world-class shopping and fine dining, cosmopolitan nightlife and arguably the best family theme parks in the region. Combine those attractions and you have a highly persuasive argument for a visitor to stay longer.

The rewards of co-operation are potentially enormous. How to achieve those rewards is a matter that I and other members of the Tourism Board will be discussing with our counterparts in Macau when we meet this month. An important element of our co-operation will be the division of business travel to the two destinations. Macau is apparently growing in stature as a venue for corporate meetings while Hong Kong is the favoured location for conventions and exhibitions. This division provides scope much crossover business.

This could be a win-win scenario for both Hong Kong and Macau, but only if we ensure that Hong Kong remains a place where visitors are made to feel welcome - and where we invest properly in the quality of our service industry. Macau, too, has been feeling the strain in this respect as its visitor numbers expand at an unprecedented rate. It is a crucial challenge, and one that we must both rise to.