InvestHK's director-general Mike Rowse points to 2004 record investment promotion figures, up by 44 per cent over 2003
Cargo throughput topped 3 million tonnes in 2004, an increase of 8% over 2002 and 35% over 2003

2004 was a record year where figures in investment promotion, tourism, and passenger and cargo movements were at an all-time high.

According to the director-general at Invest Hong Kong, Mike Rowse, the Government department tasked with attracting foreign investment activities to Hong Kong, assisted 205 foreign companies to set up or expand operations, a surge of 44 per cent over 2003. Over HK$4.66 billion (US$602 million) was invested. 

The number of regional headquarters and regional offices also reached all-time highs demonstrating that the city remained the preferred base in Asia for foreign companies to oversee their regional operations. As at 1 June 2004, there were 1,098 companies that were regional headquarters and 2,511 companies that were regional offices.

Mr Rowse said the encouraging figures showed that investors still regard Hong Kong as the ideal location to operate their businesses in the region. "Hong Kong's fundamental advantages including the free flow of information and low tax regime remain major attractions for foreign companies."

He noted that recently Hong Kong had retained its position as the world's freest economy for the 11th consecutive year in the 2005 Index of Economic Freedom.

Mr Rowse added that the Closer Economic Partnership Arrangement (Cepa) between Hong Kong and the mainland was one of the main considerations among foreign firms when making an investment in the city. Out of 205 projects completed in 2004, 22 per cent said Cepa was one of the reasons for their investments.

Surge in visitor arrivals, passenger and cargo numbers

Visitor arrivals jumped 40 per cent in 2004 compared to 2003 to a higher than expected record 21.8 million. Arrivals from the mainland passed 10 million for the first time. Hong Kong Tourism Board (HKTB) executive director Clara Chong said: "It has truly been a record-breaking year. The tourism industry had scarcely looked back since the start of the year, with every month's arrivals setting a new high for that month."

Hong Kong's hotel occupancy rate reached 91 per cent in December and 88 per cent for the whole of 2004 - the highest since 1996. HKTB also recorded double digit year-on-year growth in all of its long and short haul region markets including such key markets as the US, Canada, Australia, South Korea, Singapore, Malaysia and India.

With the openings of Hong Kong Disneyland, the wetland park, the Tung Chung cable car project and other HKTB promotions, arrivals are expected to be even better in 2005.

2004 has been a harvest year for Hong Kong International Airport (HKIA) with double-digit growth over the previous year and new records set for passenger, cargo and aircraft movements.

Passenger number amounted to over 37,141,000, an increase of 8 per cent over 2002 and a 35 per cent jump over 2003. Cargo throughput topped 3 million tonnes, continuing on the growth curve with a 25 per cent jump over 2002 and over 17 per cent increase compared to 2003.

"The growth was mainly driven by strong demand from the US, Europe and the Chinese mainland," according to HKIA.

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Hong Kong's investment promotion reaches all-time high in 2004