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CEO of luxury yacht enterprise: Hong Kong has great potential for yacht tourism
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As the Events Capital of Asia, Hong Kong has continued to be the ideal hub hosting prestigious international conferences. The Leaders of Luxury Summit 2024, held from 26 to 28 November at the Regent Hong Kong in Tsim Sha Tsui, has brought together leaders representing around 500 luxury brands from 16 countries and regions to discuss the latest development and future trends in the industry. With the support of the Hong Kong Tourism Board (HKTB), this inaugural Summit was held in Hong Kong to showcase the city as a global hub for luxury goods and services, with top luxury brand leaders invited to share their insights.
Alberto Galassi, CEO of world-renowned luxury yacht enterprise Ferretti Group, attended not only the Summit in Hong Kong, but also the annual Hong Kong International Boat Show 2024 at Sai Kung.
Galassi explains that in today’s luxury market, the brand is more important than the product itself, and that Hong Kong plays an important role in the global luxury brand market. With a sizable office at the Landmark, Ferretti Group is the first luxury yacht company to set foot in Hong Kong and has been listed on the Hong Kong Stock Exchange since 2022. Last year it became the first dual-listed yacht company, in both Hong Kong and Milan.
Hong Kong’s unique advantages favour the development of yacht tourism and private aviation business
Galassi shares that ever since his first visit to Hong Kong way back in 1985, the city has always had a special place in his heart, what with its spectacular architecture, skyline and harbour. As the epitome of luxury and style, Hong Kong has become the global capital of luxury goods and services. He sees great potential in developing yacht tourism in Hong Kong as it is blessed with so many exquisite islands and pristine beaches. Yacht tourism can also create flourishing economies as in Italy and southern France, where people can travel on yachts to dine or shop, he says. He hopes to see more yacht-related infrastructure in Hong Kong to realize the city’s unique advantages.
Apart from yacht tourism, Hong Kong’s private aviation business also has great potential for development. Amy Yang, Vice President Marketing, APAC & IMEA of the world’s largest private jet company VistaJet, points out that Hong Kong has excellent infrastructure to promote the development of private aviation, such as the Hong Kong Business Aviation Center which is conveniently located at the southwest of the airport and takes only 15 minutes for guests to complete check-in procedures before departure.
Yang notes that Hong Kong has always been a key market in the company’s global business, and she is excited that the Hong Kong government is investing in the infrastructure to expand the private jet terminal to accommodate more flights and meet the rising demand for private aviation. “With its strategic location bridging the east and west, and serving as the gateway to mainland China, Hong Kong presents many business opportunities,” she says.
Yang reveals that among VistaJet’s clients, Hong Kong is the most popular destination in Asia where business travellers often bring their families along to experience its urban vibe and its traditional Chinese culture, and have fun in the countryside.
Hong Kong is an ideal place to host international events
As CEO & Publisher of Robb Report Hong Kong, the leading voice in the global luxury market and the organizer of the Summit, Tak Man explains that this first-ever Summit has brought together industry leaders from 16 countries and regions around the world. Hong Kong is selected to host the Summit not only because of its leading position in the luxury goods and services market, but also its international connectivity, such as visa-free entry for tourists from many countries, good language and communication ability, and a high-quality hospitality industry, making Hong Kong an ideal location to host large-scale international events.
Hong Kong has a business-friendly environment and the largest number of ultra-high net-worth individuals
In his welcome address at the Leaders of Luxury Summit 2024, Dr Pang Yiu-kai, Chairman of the Hong Kong Tourism Board, highlights Hong Kong’s unique advantages that are essential to luxury brands, including its strategic gateway position, business-friendly environment, and the fact that Hong Kong is one of the cities with the largest number of ultra-high net-worth individuals (UHNWI) in the world.
Pang points out that Hong Kong boasts state-of-the-art infrastructure and a unique aviation network, whereby all major Asian markets are within four hours’ flight time to Hong Kong, and half of the world’s population can reach Hong Kong within five hours. In addition, mainland China occupies a huge share of the luxury consumer market and is projected to account for 25 percent of worldwide luxury sales by 2025. Hong Kong can serve as an ideal springboard into this rapidly expanding market.
Hong Kong’s business-friendly environment is also a key factor, including the status of a separate customs territory with tax-free policies on sales that allow luxury brands to offer competitive prices to attract shoppers, not to mention its low corporate tax rate that improves returns and profits for luxury brands. This advantageous framework is supported by world-class professional services in legal, intellectual property, financial and logistics services to facilitate smooth operations for luxury businesses.
He cites the Knight Frank Wealth Report 2024 which projects Hong Kong’s ultra-high net-worth individuals to grow by 22.4 percent by 2028, driving strong demand for luxury goods and experiences. Coupled with the government’s focus on fostering a “mega events economy,” the city is attracting top-tier MICE (Meetings, Incentives, Conferences, and Exhibitions) events. Between 2024 and 2026, these events are expected to bring over 180,000 mainland Chinese and international business visitors, driving consumption growth in the luxury industry.
