Business confidence seals a year of growth (hktdc.com)


	Hong Kong rings in 2008 with great optimism as a Gallup Poll reports that the city tops an international optimism league

	The number of visitor arrivals are likely to jump 10 per cent, making 2007 the city's most successful year for tourism

US companies have given a strong vote of confidence to Hong Kong's business outlook, culminating another year of vibrant economic performance.

The annual AmCham Business Outlook Survey, released in December, revealed that many member companies are preparing for growth and further investments in Hong Kong. This positive sentiment is largely credited to Hong Kong's ability to offer a business-friendly environment, and for positioning itself to remain competitive within the region.

The survey, conducted by Nielsen on behalf of AmCham, was held for the 18th consecutive year. With positive outlooks for the economy and the business environment in Hong Kong over the next three years, most respondents felt that their annual business forecast would improve. In preparation for growth, a number of companies are planning to expand their businesses and hire more staff. Those companies with regional headquarters in Hong Kong also plan to expand their presence here.

The year began well for Hong Kong, which was named the world's freest economy for the 13th consecutive year by the Heritage Foundation because of its low taxes, openness to investment and lack of trade tariffs.

International kudos

The international kudos continued in the lead up to July 1, 2007 – a date marking both the 10th anniversary of Hong Kong's return from British to Chinese rule, and a decade of robust growth. Milestones included Hong Kong being ranked first in the Economic Freedom of the World report (by the Fraser Institute and Cato Institute of the US), and seventh in the world for Foreign Direct Investment.

Hong Kong was also recently named the most competitive city in China, beating Shanghai, Beijing and Shenzhen, according to a research by the China Institute of City Competitiveness. The survey assessed the social and economic factors of 289 cities in the minalnd.

The business community celebrated Hong Kong being named Asian City of the Future by the Financial Times' fDi magazine. The influential Japanese think tank the Japan Center for Economic Research also announced that Hong Kong would continue to grow stronger, naming the city number one for competitiveness out of 50 economies and one of the world's most competitive economies in the next decade.

By mid-year, Hong Kong's economy had recorded its 16th consecutive quarter of distinctly above-trend growth (6.1 per cent), and in the third quarter, GPD had grown again by 6.2 per cent year on year. Merchandise exports grew notably, particularly to the Chinese mainland and emerging markets.

Trade fair business booms

Hong Kong's status as a trade fair capital remained firm. In 2007, the Hong Kong Convention and Exhibition Centre was again voted Best Convention and Exhibition Centre in Asia Pacific. The city's newest exhibition venue, AsiaWorld-Expo, marked its first anniversary by announcing plans for expansion, citing strong business results and a very promising outlook.

Buyers from around the world continued to flock to Asia's trading hub. In the peak trade fair season of October and November, overseas attendance at nine trade fairs organised by the Hong Kong Trade Development Council rose by an average of 10 per cent. Visitors valued the wide choice of goods and exhibitors they encounter in Hong Kong (particularly in specialty products), its dependable intellectual property rights protection, and efficiency as a business and transport hub.

The year in which Hong Kong was again voted Favourite Overseas City by the UK's Guardian Unlimited also saw record tourism figures. The number of visitor arrivals in 2007 is likely to jump 10 per cent to a better-than-expected 28 million from a year ago, making 2007 the city's most successful year for tourism. Arrivals in the first 11 months reached almost 25.38 million, exceeding the 25.25 million total for the whole of 2006.

World's best airport

Hong Kong International Airport (HKIA) was again recognised as the world's best airport in the annual Skytrax survey of nearly 8 million passengers globally. In November, the Airport Authority (AA) announced passenger throughout had exceeded 4 million for the month, up 10 per cent on November 2006. AA Chief Executive Officer Stanley Hu said that at its current growth rate, HKIA's annual passenger volume would soon reach 50 million. “We are ready to meet this demand and committed to delivering top-quality services and facilities,” he said.