New tender for Kai Tak terminal in tourism 2.0

Ayra Wang

The government will launch a new tender exercise for the operation of Kai Tak Cruise Terminal next year and review the terms and conditions of the tenancy agreement to enhance its attractiveness and competitiveness.

This announcement is part of the new development blueprint for Hong Kong's tourism industry 2.0, which includes 133 measures aimed at creating new tourism products, attracting global visitors, facilitating intelligent and convenient travel and enhancing service quality.

The government will also launch an action plan to grow Hong Kong as Asia's hub for international cruises, including 17 measures in five strategies.

Speaking at a press conference yesterday, Secretary for Culture, Sports and Tourism Rosanna Law Shuk-pui said she expects the new operator of the terminal to focus on driving more ship deployment and make good use of the terminal space.

"The current operator of the terminal has always focused more on maintaining a safe and stable operation of the terminal, offering services such as providing replenishment," Law said.

"But now we hope the terminal could attract more cruises to berth in Hong Kong as a home or transit port, and operators should also explore other suitable ways to make use of the space of the terminal, besides introducing merchants."

Law said the government will add new terms that adapt to the current situation in the tender.

The bureau said in the blueprint that the operator of the terminal must make "tailor-made" transport arrangements for every ship call and the Transport Department will introduce two new franchised bus routes to Tsim Sha Tsui and MTR Kai Tak station.

The bureau will also discuss with the Transport Department and terminal operator to improve transport arrangements at the terminal while enhancing facilities and services for tourists.

The bureau vowed to utilize the terminal as an important venue for conferences and conventions, cultural events and leisure activities, as well as leverage synergies between the cruise terminal and nearby venues such as the Kai Tak Sports Park.

The current operator of the terminal, Worldwide Cruise Terminals, was granted a 10-year contract to operate the terminal in 2012. The government extended the contract in 2022 to May 2028.

Jeff Bent, managing director of Worldwide Cruise Terminals, said that it is reasonable for the government to launch the tender exercise in 2025 and hopes the tender result can be announced by the end of the year.

He admitted that the cruise business recovered slowly after the pandemic while expecting the performance to return to pre-pandemic level in 2026 or 2027.

Bent added that the company is taking bookings for 2027 and will continue to conduct promotion and publicity.

The blueprint also aims to establish a "Sha Tau Kok cultural tourism zone" to connect with nearby natural attractions and to work with Shenzhen authorities to bring Hong Kong tour groups to the border of the mainland metropolis. Law said she included her views of the tourism sector in the blueprint, which was not finalized until last weekend.

"We aim to increase the tourism sector's economic value contribution by 60 percent to HK$120 billion in 2029, compared to HK$75.3 billion in 2023," Law said. She also expects the industry's employment to grow to 210,000 in 2029 from 145,600 last year.

"I'm optimistic that what we set in the blueprint is achievable."

She said developing Sha Tau Kok -with nearby attractions in Lai Chi Wo, Ap Chau and Kat O into a tourism zone - aims to promote in-depth ecology tours of the area's historical and cultural villages.

Sha Tau Kok, Hong Kong's northernmost town, is the last remaining major settlement in the Frontier Closed Area.

The bureau said the Hing Chun Alliance Heritage Trail in northeast New Territories will be launched in phases by 2027, along with ongoing adjustments to pier and land transport services to enhance linkage to and from Sha Tau Kok.

The government is negotiating with Shenzhen authorities to let Hong Kong tour groups visit Chung Ying Street on a "group in, group out" basis and to jointly organize an inspection tour of the town for mainland travel agencies.

The Development and Security bureaus are also expected to complete the study for the Sha Tau Kok control point redevelopment project next year.

ayra.wang@singtaonewscorp.com