Economic Aspects of Cruise Terminal

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Economics Aspects
Facts:

• Two Berths accommodating two largest vessels in the world, with displacement of 110,000 tonnes • Estimated cost: HK$8.2 Billion • Terminal Building and first berth to be commissioned in mid 2013 • Second berth will be commissioned in 2014

Economics Aspects
Benefits: Short-term & Medium-term effects • By 2023, the followings are estimated to be created: 1. HKD 15b to 26b of accumulated economic income sources by the value-added approach  Between HKD 1.4b and 2.2b are generated per annum 2. Around 5300 to 8900 employment opportunities Long-term effects • Lengthen the stay of cruise liners and tourists in Hong Kong through collaborative efforts with the travel trade in developing more diversified shore-excursion programmes. • (adding the Kai tak development surrounding facilities and how they drive the prosperity of the surrounding district) More detailed

• Strengthen the co-operation with nearby ports to enhance the regional cruise market’s potential.

Economics Aspects
Potential Challenges and negative impacts: Short-term & Medium-term effects • According to South China Morning Post investigation, government projections of the financial benefits appear to be overestimated by as much as 75%. • Because of the delay of the project, the total cost increased nearly one billion dollars compared to the original plan due to retendering and ASD government requirements.  Referring to the inflation index 2009(2%) and 2010(2.7%). Long-term effects • Maintenance cost in cash flow out is estimated to be roughly 221.9 Million per year from 2013. This could be subject to change due to per-year inflation. • Increase in air pollution level contributes to the HKD 1.7b economic loss due to poor air quality each year.( where and how to get the data?) • F

• Employment • Estimation (10 seconeds) • Bring the prosperity of Kai Tak Development area and the surrounding district. 土瓜灣, 彩虹,( • Economics benefit • GDP growth (10 seconds) •...
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