Chief Executive Tung Chee Hwa has announced plans to invest up to HK$2 billion (US$256 million) on a HK$4 billion (US$512 million) second exhibition centre near the airport by 2005. The project, which is expected to reinforce Hong Kong’s competitiveness as a trade fair centre, is also expected to create 5,000 jobs and HK$10 billion (US$1.2 billion) of economic benefits in its first decade of operation.

Deputy executive director of the Hong Kong Trade Development Council, Frederick Lam, welcomed the proposal. “With the huge increase in trade that will go through after China’s World Trade Organisation entry, there will be even greater demand for exhibition facilities,” he said. “This is a crucial step in reinforcing Hong Kong’s role as a trade fair centre, and with the right co-ordination between the two exhibition centres, Hong Kong will become even stronger as a business hub.”

Chairman of exhibition organiser Paper Communication Holdings Mr Leung Tin-fu also said that the new centre would enhance Hong Kong’s role as a trade fair centre in the Asia-Pacific region.

“In recent years, new exhibition facilities have been springing up in many major mainland cities,” said Mr Leung. “The new centre on Lantau Island will help Hong Kong regain its competitive edge.”

To be completed in two phases, the new exhibition centre will take up around 50,000 sq metres (538,200 sq feet) and is due to be completed by 2005.