A model of Hong Kong's new world-class cruise terminal, which should be operational by 2012

Hong Kong's Kai Tak Airport is to be developed into a HK$2.4 billion (US$308.5million) world-class cruise terminal by 2012 to meet a surge in cruise-related demand in the next decade.

Already, Hong Kong's cruise demand has risen over 55 per cent since 1999 to 2.15 million passengers last year, while the worldwide cruise market continues to grow with a 5 per cent rise in global passenger throughput.

"The development of the new cruise terminal facilities is important for Hong Kong to capture the growth of the cruise industry in the Asia-Pacific region, and sustain its development as a regional cruise hub," said Secretary for Economic Development and Labour Stephan Ip.

Regional cruise hub

The Government will launch an open tender in the fourth quarter of 2007 to look for bidders with experience in operating cruise services. The successful bidder will at its own cost form the 7.6 hectare site as well as design, build and operate the facility for a period of 50 years. The successful bidder is also expected to complete construction on at least one of the two 400-metre long cruise berths which can accommodate "mega" vessels weighing up to 100,000 tons by 2012.

To be competitive and reinforce its position as a regional cruise hub, Hong Kong urgently needs to beef up its terminal facilities.

A Tourism Board survey in 2004 found that over 52 per cent of Chinese mainland visitors - over 12 million mainland visitors to Hong Kong in the first six months of 2006 – are interested in cruise holidays. Of these, more than 80 per cent will join conventional cruise trips to Hong Kong. The city's sole cruise ship terminal, Ocean Terminal in Tsim Sha Tsui, has reached capacity and cannot handle ships exceeding 50,000 tonnes.  

Mr Ip said Kai Tak is the perfect location for a new cruise terminal. "It is the only site within the Victoria Harbour with the capacity to provide two or more berths without reclamation."   

New cruise terminal facilities could bolster Hong Kong's coffers by up to HK$2.2 billion (US$282m) a year by 2020.