A comprehensive approach should be adopted in evaluating the long-term economic benefits brought by the Kai Tak Cruise Terminal, instead of focusing on the rental receipts collected from the terminal operator.
Secretary for Commerce & Economic Development Gregory So told lawmakers today the construction of the terminal is a long-term investment which promotes the development of cruise tourism and local tourism, and also the hotel, retail, transport, and food and beverage industries.
The associated support services for its operation also create job opportunities for Hong Kong people.
According to an estimate in 2010, the economic benefits brought by the cruise industry as a whole will range from $1.5 billion to $2.6 billion per annum by 2023.
In 2013 more than 22,700 transit cruise passengers used Hong Kong's various berthing facilities, and 145,596 passengers of traditional cruise itineraries with destinations embarked or disembarked in Hong Kong.
It is anticipated the number of ship calls in 2015 will more than double to about 60, among which many will homeport in Hong Kong.
The average per capita spending of transit cruise passengers is about $1,500, while that of cruise passengers embarking or disembarking in Hong Kong is about $4,700, illustrating the substantial economic benefits the cruise industry brings to Hong Kong, he said.
The terminal building has an ancillary commercial area totalling 5,600 square metres, the leasing of which is managed by the terminal operator.
To draw in more visitors and increase its utilisation rate, the operator rents out venues for events on days when there is no cruise ship berthing at the terminal, Mr So said.
The proposed conversion of some parts of the terminal park into a "Bar Street" will reduce the recreational space available for public enjoyment and has implications on planning restrictions, traffic arrangements and its integration with other facilities and the neighbourhood, he added.
