Travel to Hong Kong

The Hong Kong Museum of Art is located at 10 Salisbury Road, Hong Kong Island, Hong Kong and is a museum dedicated towards the Chinese Cultural Heritage. The museum is also caters for both international as well as local art in Hong Kong. The Hong Kong Museum of Art was at first formed in 1962 by the Urban Council as the City Hall Museum and Art Gallery and was located at the City Hall, which lies in Central. Later in 1991, the Hong Kong Museum of Art was shifted to its current location, 10 Salisbury Road, Hong Kong Island, Hong Kong. The present location lies near the Hong Kong Space Museum and the Hong Kong Cultural Centre in Tsim Sha Tsui.

The Hong Kong Museum of Art is run by the Hong Kong Government. The Leisure and Cultural Services Department of the Hong Kong Government is responsible for the management of the Hong Kong Museum of Art. The Flagstaff House Museum of Tea Ware, located in the Hong Kong Park is a branch of the Hong Kong Museum of Art. The Hong Kong Museum of Art has a frequent rotation of displays, much of eh exhibits include sculpture, calligraphy and paintings mainly from Hong Kong and China but also from the rest of the world.

After a good and maybe even a tiring day spent at the museum a splendid idea would be to head off to a Hong Kong Spa for some relaxation. One good Spa in Hong Kong is the Chuan Spa Hong Kong.

Hong Kong situated at the south east coast of China is a popular traveler's destination. It has turned to be a commercial center. There are many shopping centers to shop and good hotels where you can taste the most fabulous delicacies. Hong Kong also has a rich cultural heritage with Portuguese and European influences. British ruled over it for 99 years as it was a British colony. Hong Kong enjoys a perfect blend of traditions of both East and West. Travelers from across the globe try to find cheap flights to Hong Kong and enjoy the places in it.

There are many places to visit in Hong Kong. Victoria Peak, The Star Ferry, Nathan Road, Disney land, Hong Kong Museum of Art and Repulse Bay are some of the must see places in Hong Kong. You are a first time visitor to Hong Kong or you might have traveled there in the past, you will always be benefited if you have much knowledge about the international flight and also about the place. You can get a detailed picture of more places of interest in Hong Kong if you browse internet and read the cheap airfare and other travel information given in online travel services companies.

If you want to see everything that Hong Kong offers, you will have to spend a substantial amount of money to experience the wonders of the place. Once you succeed in getting a cheap flight to Hong Kong, you will be able to manage your funds and spend more in Hong Kong. If you search the internet you can find many online travel services companies that offer cheap airfare. With a little research you will learn some tips of where and how to find a cheap airplane ticket.

Though you will find the travel services companies offering discount international flight and cheap airfare throughout the year: you must be more vigilant enough to find when it is the cheapest. There are some seasons when you can get cheap airfare and cheap flight to Hong Kong. To take an example, you will find that less travelers travel to Hong Kong in the month of December because near Christmas time, people prefer to celebrate in their homes. So you can avail cheap flights to Hong Kong at this time as many airlines offer cheap airfare on different flights.

With a good search in the internet you will not only be able to book a cheap flight to Hong Kong but also be able to gather a lot of information about the place. You will get the information of the hotels and restaurants in Hong Kong and many things related to Hong Kong. This will make your visit easy going and you will be able to book a cheap flight and enjoy your trip to Hong Kong.

Towards the south of China rests Hong Kong an archipelago of 260 islets, renowned as one of the heavily populated regions of the World. Notable for its striking landscapes and soaring skyscrapers, Hong Kong is a major financial capital as well as a cultural and business center in the world. Hong Kong is the birthplace for several popular music genres including Cantopop. The term Cantopop is derived from Cantonese Popular Music also known as Hong Kong Popular Music (HK-pop). Cantopop is influenced by a wide variety of popular genres such as Chinese music, Rhythm and Blues (R&B), electronica (electronic music), pop, jazz and rock.

If you prefer classical music, you would not want to miss the Cantonese Opera – a type of traditional musical drama. Originally an art form bestowed from the Cantonese culture of Southern China, Cantonese Opera is a fine fusion of singing, music, acrobatics, martial arts as well as acting. To gain an insight into Hong Kong culture, you can indulge in the bravura performance of the Hong Kong Philharmonic Orchestra. While inspiring and promoting musical appreciation amongst local inhabitants the Hong Kong Philharmonic Orchestra claims to have a century old history entertaining 200,000 music aficionados with 150 performances every year.

Other than the Hong Kong Philharmonic Orchestra, there are various orchestras based in Hong Kong such as SAR Philharmonic Orchestra, City Chamber Orchestra of Hong Kong, Hong Kong Chinese Orchestra and Pan Asia Symphony Orchestra in addition to Hong Kong Sinfonietta. Not only music, but also many types of dance styles ranging from ballet to flamenco and even tango are performed and practiced throughout Hong Kong. Institutes such as Alan Li Dancing Studio, Angela Lau Dance Studio, B Major Flamenco Club, Academy of Dance and Feliz Primavera Tango Shoes, among others, teach diverse dancing styles whilst enriching the performing arts of Hong Kong.

Moreover to observe scores of alluring musical and dancing performances, you can drop by at Hong Kong Arts Centre, Hong Kong Academy for Performing Arts or the Leisure and Cultural Services Department’s (LCSD) performing venues, where you can savor various shows of visiting and local performers. To study dance forms and also watch the performances, try the institutes such as Hong Kong Dance Company, City Contemporary Dance Company or Hong Kong Ballet. You can also capture the vibrant festivals hosted all year around in Hong Kong including the Hong Kong Arts Festival scheduled in February and March, the International Arts Carnival in the summer and the Thematic Arts Festival in October and November.

You can enjoy a host of music from classical to contemporary and many dance forms from traditional to modern, while staying at a comfortable Hong Kong hotel such as the Cosmopolitan Hotel. You can take pleasure in an array of amenities and services while savoring some of the most delectable cosmopolitan dishes at a Hong Kong hotel, with the advantage of having convenient access to many performing venues in Hong Kong.

Hong Kong is a central hub for business in Asia. It is extremely popular for a variety of reasons, including political stability, economic freedom and tax benefits. Hong Kong has one of the lowest tax rates in the world for a developed country, and has an intricate and effective tax system that allows companies to conduct business without being overpowered by their tax liabilities. Indeed, Hong Kong is rated as the world's 3rd friendliest tax system by Forbes (Tax Misery & Reform Index 2009).

Corporate Tax in Hong Kong

Given the large number of companies that operate in Hong Kong or have a Hong Kong offshore company, an understanding of Hong Kong tax implications begins with corporate tax.

In Hong Kong, any company conducting business on or offshore can be liable to corporate tax. Profits sourced in Hong Kong are taxed at a low rate of 16.5%, and unincorporated businesses are taxed at 15%. Profits that are sourced overseas, also known as ‘offshore profits', benefit from a zero tax rate, even when remitted back to Hong Kong. Profits derived from operating ships in Hong Kong are treated as ‘offshore profits' and are not liable to tax, but profits derived by professional reinsurers for reinsuring offshore risks will be taxed at 8.25% -i.e. half the corporate tax rate.

To note: offshore payments for intellectual property usage are liable to tax at 4.95%, goods sold by Hong Kong consignment agents on behalf of non-residents are also liable to tax on 0.5% of gross proceeds. On the other hand, bank deposit interest, interest on Tax Reserve Certificates, interest income on long-term debt instruments, dividends and capital gains are free from tax.

With the low tax rates there are also other regulations that protect business from unjustified taxes. Hong Kong is fully committed to its double tax agreement with thirty three nations, including PRC, Thailand and Belgium, to relieve companies from having to pay two taxes on one set of profits, as a result of multinational enterprise and multiple jurisdictions. For full details on Hong Kong's double tax agreements, see the website for the Inland Revenue Department of Hong Kong (IRD).

Companies that conduct business through a branch in Hong Kong or are incorporated in Hong Kong cannot offset losses against the profits of other members in a group of companies –through consolidated accounting systems, however the Hong Kong jurisdiction allows losses to be carried forward indefinitely. Assets are depreciated at authorized prescribed rates of depreciation, for example, computer equipment can be depreciated at 100% in the first year.

The general procedure for corporate taxation after incorporation in Hong Kong is straightforward. Typically a Hong Kong incorporated company will be tracked by the Hong Kong authority and sent a tax return at year end. Even when no tax return is issued to a company, they are responsible for notifying the government of any profits liable to tax. In standard practice, estimated tax assessments will be issued provisionally during the tax year based on historic profit information. A final assessment will then be released after filing of the tax return.

It should be noted that the Hong Kong tax year begins on April 1st. Also, companies liable to tax in Hong Kong are required to fulfill accounting and auditing standards i.e. be audited by a firm of Hong Kong accountants.

Other Taxes

In Hong Kong, people also benefit from zero sales tax, zero value added tax and zero annual net worth taxes.

Hong Kong is a country that exudes a level of confidence that is hard to ignore, from its eclectic collection of shopping destinations, budget to luxury accommodation options, divine dining opportunities and a host of tourist attractions. Nothing beats Hong Kong’s countryside for its natural beauty, easy access and marvellous facilities. The level of development and modernity of this nation far exceeds most of its Asian counterparts, with Hong Kong standing as one of the most sought after destinations to visit from across the globe. 

With everything that dazzles and mesmerizes its visitors, Hong Kong stays true to its roots and is very Chinese to its core. This metropolis is a abounding with energy and serves up an irresistible concoction of delights for the discerning traveller to appreciate. Travel to Hong Kong and you will find that this country has four distinct seasons spread through the year. Spring is from March to May, summer from June to August, autumn from September to November and winter from December to February.

Exploring the ancient culture and history of Hong Kong is truly a worthwhile experience, with a host of museums and galleries found across the city there is much to be explored. Hong Kong also offers museums of special interest, such as those specialised around space and medical science. Notable and famous museums include; 

Dr. Sun Yat-sen Museum, Hong Kong Heritage Museum, Hong Kong Museum of Coastal Defence, Hong Kong Museum of History, Hong Kong Science Museum and Hong Kong Space Museum. Whilst those that are of special interest include; Hong Kong Museum of Medical Science, Law Uk Folk Museum, Hong Kong Film Archive, Hong Kong Maritime Museum, Hong Kong Racing Museum and Hong Kong Railway Museum.

Art galleries in Hong Kong are also plentiful, and provide a unique and keen perspective in to the world of art seen through the eyes of both international and local artists. The Plum Blossom Art Gallery, No Borders Contemporary Art Gallery, Galarie du Monde, Scheoni Art Gallery International and Mischmasch Gallery are just a few of the wide array of galleries awaiting the tourist to explore.

Make a trip to Hong Kong and enjoy sights, sounds and smells that are truly unique from the rest of the world. To find a hotel in Hong Kong that matches your taste, style and personal requirement can be daunting task. However, with the affordable accommodation available at Hotel Jen (http://www.hoteljen.com) , the task of finding your ideal Hong Kong China hotel is made easy. This exceptional hotel in Hong Kong offers a host of facilities to enjoy, whilst an array of dining opportunities coupled with the convenience of accessing key tourist destinations spread across the city is open to the discerning guest.

Small in size but amazing in scope, Hong Kong is a tourists' paradise, swarming with sparkling city vistas, vibrant nightlife, mouth-watering cuisines and colorful culture.

Celebrate your journey with international festivals in this summer season and enjoy the cheap flights to Hong Kong from 11 June- 31 August, especially for Summer Spectacular, an exciting year-long sequence of festivals and events that offers visitors an assortment of unique traditional Chinese festivals and Western cultural celebrations.

Indulge yourself in a superb summer of pleasure packed with scorching action, cool attractions, great events plus a host of sensational shop and dine offers with the help of various Hong Kong Flights.

The activities lined up for the Hong Kong Summer Spectacular are:

Hong Kong Disneyland: Stitch and Friends Summer Hangout- Stitch (of Disney's "Lilo and Stitch" fame) and his friends will hold a summer party filled with dance, laughter and music at Hong Kong Disneyland from June 11 to August 29.

Ocean Park Summer Splash - Slip down Ocean Park's 11-meter high and 54-meter slide, said to be the longest and tallest in the world, from July 1 to August 31. Smaller kids get their own 28-meter long jumbo slide. Massive water gun fights, foam parties and exclusive shows will also be held.

International Arts Carnival - Music, dance, drama, puppetry, mime, magic, acrobatic and theatrical shows will be held from July 9 to August 15 at key locations in Hong Kong.

Lan Kwai Fong Beer and Food Festival- Restaurants, bars and food stalls in Lan Kwai Fong will serve delicious food and drinks from July 17 to 18.

Hong Kong Book Fair - To be held from July 21 to 27 at the Hong Kong Convention and Exhibition Center, this event will not only sell books and publications -- it will also provide seminars and other literary activities.

Hong Kong Dragon Boat Carnival- Entertainment and dining options will be available at the Victoria Harbor as locals and tourists watch the world's best paddlers compete for glory at the Hong Kong International Dragon Boat races from July 23 to 25.

Ngong Ping 360 Shaolin Showcase- Highly trained Kung Fu masters from Shaolin, China will perform acts with their iron fists and weapons at the Ngong Ping Village from July 24 to August 15.

12th Ani-Com and Games Hong Kong- This event attracts hundreds of thousands each year and is packed with animation, comics, toys and limited edition collectibles. It will be held from July 30 to August 3 at the Hong Kong Convention and Exhibition Center.

Food Expo - This annual gastronomic extravaganza, to be held from August 12 to 16 at the Hong Kong Convention and Exhibition Center, is a must for those who are interested in the latest food offerings from around the world.

Hong Kong Computer and Communications Festival - This festival of all things digital will be held from August 20 to 23 at the Hong Kong Convention and Exhibition Center.

Summer Pop -- Live in Hong Kong- The city's top groups and artists will be featured in a musical extravaganza to be held on the last week of August.

This summer of fun also features superb sales in all the major shopping precincts. The city offers an unrivalled shopping experience as stores and malls present fabulous shopping offers. Hong Kong also provides you with an unparalleled dining experience, as the wide variety of dining districts offer a unique ambiance, a selection of world-class cuisines and special summer menus. Adding to the fun are the ‘Visa go Hong Kong Super Shopper featuring sensational prizes, a special MTR Tourist Value Pack and a host of other wonderful offers.

This extravaganza will feature many great attractions sure to make your visit to Hong Kong a memorable one. Thus Hong Kong Summer Spectacular is the best deal offer for travelers giving the travelers an opportunity to take advantage of the various cheap Hong Kong flights.

Hong Kong is one of the leading commercial centers of the world. Since its return to the folds of China in 1997 after more than 150 years of British rule, the island has strengthened its position further in the field of business and education. In addition to Macau, Hong Kong is the second special administrative region of the People's Republic of China. It boasts political and economic systems that are quite dissimilar from those of mainland China. International students generally prefer to study in Hong Kong because it offers them dual advantages of tapping immense career opportunities both in the island and mainland China. The tax system in Hong Kong is not that stringent too.

Another advantage of studying in this leading financial hub is the availability of a good number of scholarship programs for foreign students every year. The top universities in Hong Kong offer college scholarships, government grants, engineering scholarships, graduate student scholarships, PhD scholarships, loans, etc. All these international scholarships are conferred on the basis of academic capability and financial requirement of a student. Some of the top universities in Hong Kong include University of Hong Kong, Chinese University of Hong Kong, Hong Kong University of Science and Technology, Hong Kong Baptist University and Hong Kong Polytechnic University.

The University of Hong Kong has been rated among top 25 universities of the world by a prestigious British educational publication. Set up in 1910, the university has left many renowned American universities far behind. It is well-known all over the world as the ultimate knowledge center. The University of Hong Kong keeps building on its potencies with pioneering research and training methods that nurture multifaceted graduates with excellent leadership abilities.

The Chinese University of Hong Kong (CHUK) was the first center in this island to initiate a student exchange scheme. Established in 1963, the university is now the foremost choice of foreign students who want to study in Hong Kong because it has formed partnerships with more than 200 institutions for its exchange schemes. Every year, some 600 students get a chance to go abroad as a part of these schemes. CHUK also obtains over 800 students from foreign institutes in return. Counted among top 50 universities of the planet, it strives to fulfill the mission of blending tradition with modernism and bringing China and the western nations together.

The list of top universities in Hong Kong remains incomplete without the mention of Hong Kong University of Science and Technology (HKUST). Offering one of the most sought-after global MBA programs, the university boasts more than 9,000 enrolled students who grab high-paying jobs even before the completion of their programs. In many cases, the average annual salary for graduates is more than $100,000. HKUST with a sprawling 140-acre campus is located amidst picturesque scenes of downtown Hong Kong and the South China Sea.

International students considering a study in Hong Kong can also opt for the Hong Kong Baptist University that is ranked among top 100 Asian universities by the Times Higher Education. Founded in 1956, HKBU has a huge teaching staff with above 600 full-time and 1000 part-time lecturers and professors. A wide variety of courses ranging from medicine and communications to visual arts are offered by the university.

Hong Kong is home to excellent tourist destinations and is a perfect holiday gateway for the families and honeymoon couples. It is a city which never sleeps and has some chaotic business centers of the world. To have an idea about the most preferable things-to-do while being in Hong Kong, just go through this article. You can always book cheap flights to Hong Kong with the help of an online travel agency.

Weather of Hong Kong

Hong Kong has four seasons, featuring winter, summer, fall, and spring. If you want to visit the city during a warm and sunny weather, book flights to Hong Kong during October to December. Those who book Hong Kong flights on the regular basis feel it is best to visit the city during the spring season.

Places to be Visited in Hong Kong

Booking flights to Hong Kong will satiate your urge of expediting a city which has numerous sights to explore. Hong Kong offers you traveling through coves to coastline, enjoying a dazzling nightlife to shiny daylight, and endless entertainment. Go through the article to know how to make the best of your holidays once you've booked flights to Hong Kong.

Victoria Harbor and Peak

Victoria Harbor is Hong Kong's greatest tourist spot. It is a jewel which leaves the overseas travelers spell bound with its beauty. Those who keep on booking flights to Hong Kong, visit this particular tourist spot for sure. To have a bird's eye view of the Victoria Harbor and the entire Hong Kong Island, you need to trail on the Victoria Peak. You can visit this peak during the day time to check out the crowded Victoria Harbor or at night to enjoy dazzling beauty of the city.

Giant Buddha

Your journey to Hong Kong won't be considered complete if you haven't visited the Giant Buddha. This statue sits serenely on Ngong Ping plateau amidst the stunningly beautiful mountains. If you're booking Flights to Hong Kong with an online travel agent, make sure your schedule surely includes a visit to this holistic place.

Star Ferry

Amongst the top-rated things-to-do in Hong Kong, riding in a Star Ferry stands on the apex. There are several green and white ferries which are only means of transport from the Central District on Hong Kong Island to Tsim Shs Tsui. While riding on the ferry, you can enjoy the magnificent view on both banks of Victoria Harbor.

Tsing Ma Bridge

One of the world's longest span suspension bridges, Tsing Ma is a landmark of Hong Kong city. This engineering marvel is not only beautiful but one of the busiest bridges in the world. Once the Hong Kong Flights lands at the international airport and you take a car to travel to the main city, you get an opportunity of traveling over this bridge.

Shopping and Eating in Hong Kong

Hong Kong is a place to have unique shopping experience. This place is full of markets and malls to choose from sheer assortment of products. Funky local markets and glitzy malls lure you to buy some souvenirs for your loved ones. Hong Kong is also known as culinary capital of Asia and houses more than 11,000 restaurants. There are pre-defined food districts in the city where you can enjoy specific cuisines as per your choice. Book Cheap Flights to Hong Kong to have an exceptional shopping and culinary experience along with holidaying.

And the best view of Hong Kong Island skyline is from the Kowloon waterfront - the Avenue of Stars at Tsim Sha Tsui.Avenue of the Stars is the local version of the Hollywood Walk of Fame and celebrates the movie stars of Hong Kong cinema. It is located on Kowloon's seaside promenade and offers fantastic views, day and night, of the Hong Kong skyline and Victoria Harbour. The Avenue can be reached from the Tsim Sha Tsui MTR station or the Star Ferry terminal.

A Symphony of Lights (best viewed from the Avenue of the Stars) is a spectacular light and laser show, from more than 40 buildings on both sides of Victoria Harbour, synchronized to music and staged every night at 8:00pm. On Monday, Wednesday and Friday, the light show is in English. Other nights it is in Mandarin or Cantonese. Spectators can tune their radios to FM103.4MHz for English (FM106.8 for Cantonese or FM107.9 for Mandarin). During one of Hong Kong's many festivals there may also be spectacular fireworks (esp. Chinese New Year).

Victoria Peak - Enjoy the fantastic view of Hong Kong from the lookout on Victoria Peak. The view encompasses Hong Kong Island, Kowloon and Victoria Harbour and is excellent viewing day and night. Take the Peak Circle Walk or go directly to the Lugard Road Lookout for fabulous views over the harbour. There are more great vistas from the Lions View Point Pavilion and the viewing terrace at the Peak Galleria, as well as the Peak Tower Sky Terrace. There are many walking tracks around the peak that offer nice views of all sides of the island. There are two shopping malls: The Peak Tower and The Peak Galleria, which provide restaurants, a supermarket, and souvenir shops. In addition, you can visit Madame Tussauds - The world-famous wax museum now features more than 100 incredible wax likenesses of stars, world leaders and sports heroes displayed in five totally interactive themed settings within the Peak Tower complex. The famous old peak tram runs from Central [Lower Peak Tram Terminus on Garden Road] to the Peak or take the scenic bus to the Peak [Bus 15 from Exchange Square bus terminus (MTR Hong Kong Station Exit D), 30 minutes to Victoria Peak].

Hong Kong Disneyland located on Lantau Island and is best reached via the MTR Disneyland Resort Line from Sunny Bay Station. Hong Kong Disneyland is smaller than other Disney parks but offers some unique attractions such as "Festival of the Lion King" stage show, "Golden Mickey's" stage show, "Mickey's PhilharMagic 3D" show. The park is very busy around Chinese New Year but has short queues most of the year.

Ocean Park is an amusement park on the southern side of Hong Kong Island. The park has many rides including roller coasters.There are many aquariums and the most popular attraction is the giant pandas. Ocean Park is committed to promoting and supporting animal conservation in the Asia region. [Bus 629 from MTR Admiralty Station Exit B].

Happy Valley Racecourse [near Causeway Bay MTR station or tram to Happy Valley Tram Terminus] horse racing season runs from September to May and has the most convenient and impressive location, races take place on Wednesday nights [$10 entrance fee, take your passport and you can get in at tourist price of 1 HKD]. The South China Morning Post newspaper (on Wednesday) contains a racing guide section for Happy Valley. Most expatriates congregate at the beer garden (near the finish line) as the racing commentary is in English.

Ten Thousand Buddhas Monastery is a famous Buddhist monastery and is located on the mountain behind Shatin Pai Tau Village nearby the KCR Shatin railway station (5 minute walk). This is one of the best temples to visit. The complex comprises five temples, four pavilions, a pagoda, a veranda, over 12,000 Buddha statutes and, of course, monkeys. At the opposite side of the main temple is the 9-storey Pagoda, which was selected as the symbol of Hong Kong printed on the HK$100 note.

Ngong Ping 360 is a 25 minute cable car ride, with a fantastic view of the island, from Tung Chung to the culturally themed Ngong Ping Village high atop a mountain plateau on Lantau Island. View the "Walking with Buddha" multimedia facility that takes you through the life of Siddhartha Gautama - the man who became Buddha - and his path to enlightenment. Five minutes walk from Ngong Ping Village, you'll find the Po Lin Monastery and the serene Giant Buddha, the world's tallest outdoor seated bronze Buddha statue. From Ngong Ping Village, you can take a bus or taxi to explore other parts of Lantau Island, including the famous stilt houses of Tai O Fishing Village or the magic of Hong Kong Disneyland. [MTR Tung Chung Station Exit B and walk 5 minutes to the Tung Chung Cable Car Terminal]

Golden Bauhinia Square (also known as The Expo Promenade) outside the Hong Kong Convention and Exhibition Centre on the Wan Chai waterfront marks the most significant occasion in Hong Kong's history - the return of the former British colony to the People's Republic of China. See all the pomp and ceremony of the official daily flag raising (7.50am) at the Golden Bauhinia Square [MTR Wan Chai Station Exit A5].

Aberdeen Harbor is home to hundreds of people living on fishing junks take a sampan (boat) ride or take in the view from one of two magnificent floating restaurants where you can taste delicious fresh seafood. [Bus 70 from Exchange Square bus terminus (MTR Hong Kong Station D), get off near Aberdeen Promenade].

Ping Shan Heritage Trail (in Tin Shui Wai, New Territories) is a kilometre-long trail through three villages and contains some of the most significant historical buildings in Yuen Long District of the New Territories including Hong Kong's only ancient pagoda (Tsui Shing Lau) which is believed to date back more than 600 years. [MTR Tin Shui Wai Station Exit E]

Harbor Cruise on Victoria Harbor, one of the world's busiest and most impressive natural harbors, is a great way to take in the sights of Hong Kong. The Symphony of Lights cruise is very popular.

Kowloon Walled City Park was originally the site of a walled Chinese fort. After Hong Kong Island was ceded to Great Britain in 1842, the fort's role was to police the Chinese side of Hong Kong Harbour. Later the Chinese abandoned the fort. The Chinese and British authorities finally agreed to clear the site in 1987 and transform it into this beautiful Chinese park and garden. [Take a taxi from MTR Lok Fu Station to the entrance on Tung Tau Tsuen Road or Bus 1 from Tsim Sha Tsui Star Ferry bus terminus to Tung Tau Tower Road (opposite the park)]

Wetland Park is an ecological park with a network of board walks built over the marsh land and bird watching towers. There is a visitors centre and museum. The museum has many interactive exhibits ideal for children and some live animal habitats. [KCR West Rail to Tin Shui Wai Station then Light Rail 705/706 to Wetland Park station]

Introduction

Today, Hong Kong has been known as one of the successful in East Asian for economy in terms of business and trade. Hong Kong has create the reputation not only recently but far before that. The influence of being one of the British colonies from 1841 to 1997 has been seen as the main factor on what is Hong Kong today. We can see some similarity between Hong Kong, Singapore, Australia and New Zealand which all the colonies are now been well in terms of country development.

It has been a great scenario to see the development and the growth in Hong Kong and how its can survive during the economic crisis in 1997 and once again in 2008. Although it can’t be deny that some slow in the economic growth been monitored during this period, anyway the magnificence is to see how Hong Kong keep its economy surviving until today comparing to other developing countries.

We are going to discuss from the historical background of Hong Kong, the factor that keep Hong Kong to be always competitive as economy power, the influence and impact after the handover to China and future of Hong Kong business.


Historical Background

Hong Kong has been a unique colony as East Asian economy power to the British since been found in 1841. Before that, Hong Kong is a part of China. History began when in 19th century, Chinese tea has boom in Britain (Szczepanski, 2009). The demand is high but British are unable to deal with Qing Dynasty for better transaction rather than pay with gold or silver. As a result, British decided to introduce opium from India to China for an exchanged for tea. China government is not agreed with these and destroyed a lot of opium own by British. The British has declared war due to this and won the First Opium War thru Treaty of Nanking in 1841. Here is when the interference of foreign power started in Hong Kong. At the beginning Hong Kong is just become a military staging point to British around the area.

The strategic geographical location of Hong Kong has been the main reason of it economy growth since then. Since during the colonial area, Hong Kong has been know to its free-market, private-enterprise and capitalistic system which benefits a lot of traders in terms of a free port, low taxes and limited government intervention to the economic and social affairs.

Therefore during the early stage of colonial period, British is very concern about Hong Kong potential of being free port and the possible treat can be to Hong Kong due to its location, surrounding by area that are still in China control. Anyway in 1898 British are able to lease Kowloon from China after won the Second Opium War. And in 1898, British sign the Second Convention of Peking, where all island surround Hong Kong are under British control for 99 years which are known as New Territories.

In year 1984, the Sino-British Joint Declaration has been signed to agree that Hong Kong, Kowloon and New Territories shall be given back to China as well. China has made a promise to implement One Country, Two System regime where allowing Hong Kong people are free to continue and practice capitalism and politic freedoms for 50 years.

Above we can understand that Hong Kong has established the relationship with Europe country especially British for such long time. The experience and understanding of dealing with European countries has made a great success for Hong Kong textiles and garment industries in the economic growth. Although Hong Kong has been officially handover to China on 1st July 1997, the strong fundamental based that Hong Kong have has make its able to sustain in the Asia economic crisis 1997.
Evolution of Hong Kong Economy

In early stage, Hong Kong as other islanders, the economy is based on fishing and agriculture. Anyhow within the colony Hong Kong as adopt a journey in being developing country towards manufacturing and service industrial base. Formerly Hong Kong has been made as a military port to monitor British interest in East Asian, acting as an international financial centre.

Historically Hong Kong has been incorporated into China during Qin Dynasty (221BC to 206BC). During year 1941 to 1945, Hong Kong has been occupied by Japan. This period has been a falling in all of the initial economy and trade activities in Hong Kong.

In early 1950’s, monitoring a lot of immigrants from mainland China especially from Shanghai move to Hong Kong (Yu, 1999). These cheap refugees have brought together with them the skills and capital along with them that helped Hong Kong to revive the economy. Following this pattern, foreign companies also have relocated offices from Shanghai to Hong Kong where this movement has make a changes in Hong Kong from territory entrepot trade to industrial and manufacturing.?

Early industrialization in Hong Kong only involves producing small items from buttons, artificial flowers, umbrellas and textiles. In the beginning of 1960’s, was a turning point for Hong Kong economy when the industrial and manufacturing is performing well and growing strong since. This is the period whereby the textile industry experienced a boom. The positive impact of the industrial development and growth in 1960’s was the development of multi storey building in Hong Kong. The potential of being an economy power from the industry has increase a massive number of immigrants from mainland China to Hong Kong where all of them acquire a place to start their life in Hong Kong. Hong Kong which is an island conceptually only has limited space for housing or building development. Therefore the multi storey building has been the best solution for this problem due to land scarcity. It helps the construction sector in Hong Kong to make it as one of the main economy source.

In 1997, China has decided to open their market for outsider. Anyway the China system is still far behind compare to what has Hong Kong established especially in terms of financial services, real estate, insurance, brokering and banking. Hong Kong has taken this opportunity as a gateway and resource for both China and foreign investor to success in their business. While China is starting to improve its skilled workers, Hong Kong already one step ahead to focus more on preparing themselves towards post industrial level in business and financial service sector.


During Asian Crisis 1997
 

Asian Financial Crisis (AFC) originally started in Thailand on 2nd July 1997 just after Hong Kong officially been hand over to China on 1st July 1997. Hong Kong as one of the power house economy in Asia also has no exception being affected by the crisis. It has been mentioned that Hong Kong was not well prepared to survive during the crisis. The crisis has spread quickly in Asia, where we can see financials problems in Japan and many corporate companies goes bankrupt in South Korea. During the crisis, phenomena seen are the falling stock markets prices, rising of interest rate, inflation, unemployment and growing social inequities.


The Surviving Factors for Hong Kong

                Even though Hong Kong was handed to China, the impact of AFC in 1997 was not totally felt by Hong Kong. Hong Kong, during the recession the concerning factor was very much on the instability of the exchange rate (Floyd, 1998). The Hong Kong Monetary Authority (HMKA) took actions forcing the interest rate higher than normal and intervened in the stock and future markets to cut off all the currency speculators.

            Among other key factors that save Hong Kong from disastrous affect of AFC was sound corporate governance, good supervision in the banking and financial system, large foreign reserve and strong commitment from China to stabilize the financial health.

            Besides of all the surviving factors mentioned earlier, Hong Kong as several natural competitive atmospheres such as Hong Kong has been successfully in manufacturing like electrical goods and services economy which like in finance.

                Hong Kong stock market has the potential to play a vital role of rising capital for China and plays an international role in the world economy. Influences of western law and openness to trade have played a great part in Hong Kong success today. Hong Kong in has a labor force of 2.8 million (1998) and low rate of unemployment (2 percent) to add value on this they have a skillful labor who can work for longer hours independently. Low tax rates in Hong Kong attract many international companies to make investment example the tax rate for local companies are same as per foreign companies. Other tax benefits are no value added/ sales tax, no capital gain/ withholding tax, no estate duty and no global taxation.
Hong Kong Economic Link to China and Growth Factors

Hong Kong was described as a “barren island with hardly a house upon it” (Chan, 1991, p.21) when was established 160 years ago by the then-British Empire as a key port for the pursuit of British interests in China (Zhu, 2005). The visiting American journalist coined it “dying city” in 1951 (Ho, 1992). However, by 1971, the per capita income of Hong Kong had reached HK$6,096 and placing it second behind Japan in East Asia (Riedel, 1974). Since then, Hong Kong has been growing in average rate of 6.5 per cent between periods of 1987-1991 (Chau, 1993). In year 1992, Hong Kong GDP has reached HK$ 742, 582 million and has emerged as one of the richest economies in Asia (Chau, 1993). This stellar economic growth and performance has triggered development economist to search for an explanation (Yu, 1999).

Hong Kong is a good case study of the economic growth factors (Sung & Wong, 1998). There are three factors drives Hong Kong economic growth, namely, innovation, imitation and technology transfer. According to Sung & Wong, 1998, innovation is defined as effort to develop a new technology to improve productivity factor, invention a new product or improvement of the quality of some existing products. Imitation is defined as a learning effort and improvement of the technology developed by other firm. Based on Yu’s survey (1995), 88 per cent of the manufacturers imitated and supplied similar garments that already appeared in the market while only 8 per cent of them are attempting to make unique and novel products. On the technology transfer, this can be due to technology spillover through firm-to-firm or person-to-person contacts (the contagion effect) (Findlay, 1978). It is believed that Hong Kong growth can be attributed to accumulation of primary factors such as physical capital and labour force, technological progress, and human capital accumulation (Sung and Wong, 1998). The manufacturing sector in Hong Kong is learning by doing effect by conducted joint ventures with foreign firms to obtain foreign technology “know-how” from multinational corporation that have taken advantage of Asia’s low production costs (Engardio and Cross, 1992)

When China opens up its economy to foreign trade and investment on 1979, Hong Kong is China largest investor. The cumulative direct investment in China from 1979 to 1995 was US$78.6 billion (Sung and Wong, 1998). In 1995, the real investment of Hong Kong to China reached peak in 1994, with US$12.5 billion. Besides, outward investment of Hong Kong to China, Hong Kong is receiving capital from China as Hong Kong remains the prime destination of China investments. However, China’s direct investment is much smaller than Hong Kong’s direct investment in China. For illustration, in 1995, China’s direct investment in Hong Kong is just 17.7 percent or US$1.37 billion of Hong Kong’s direct investment in China. The imbalances of investments are due to the factors of many multinational companies are using their Hong Kong subsidiaries to test China investment environments as Hong Kong has the expertise.

As Hong Kong moving up the economic “value ladder”, the abundance of cheap labour which drives the growth during Hong Kong early industrialization period is slowly diminishing. Labour-intensive manufacturing had relocated from Hong Kong to China due to significant wage and rental differentials. With the relocation of the labour-intensive processing to China, Hong Kong manufacturers can focus on skill-intensive operations and services such as product design, production management, sourcing, order taking, financing and marketing (Sung and Wong, 1998). The relocation of the manufacturing sector in Hong Kong had spurred the entrepot trade between Hong Kong and China. From 1979 to 1996, China’s trade via Hong Kong with third countries had rose from US$1.2 billion to US$120 billion. With the entrepot trade with China, Hong Kong had served as middlemen between China and the rest of the world, where Hong Kong acquires the technology and finance for China firms in return of Hong Kong development and growth (Sung and Wong 1998).


Future of Hong Kong

The future of Hong Kong is depends on how well it can be integrated with China (Floyd 1998). Through out the years of British rules, Hong Kong economy has become internationalized and Hong Kong city has become one of the most international cities in the world (Vogel, 1989). With this, China had recognized Hong Kong’s economy as an important asset for the China’s development (Hook and Neves, 2002). To maintain Hong Kong positions as international hub for trade and finance and the main gateway to China after the reversion of Hong Kong, China had implemented the “one country, two systems” policy. Hong Kong capitalism will be allowed to continue and it will benefit the economic reform process in China (Floyd, 1998). On the economic front, Hong Kong had increasing important to East Asian economies as Hong Kong’ trade with Japan and China is rising. However, it is speculated that a resurgent of Shanghai would compete with Hong Kong directly or even replace Hong Kong’s role in China’s future economic development (Wong, 2004).

Hong Kong survivable in the future depends on how well it alert to opportunities, flexible and adaptable to the fast changing environment (Yu, 1999). Hong Kong producers have conducted joint ventures with multinational corporations, learnt foreign technologies and imitated their products. To continue enjoy healthy economic growth in future, Hong Kong economy needs to diversify and go through structural change from manufacturing to services (Clark, 1945). When the labour intensive relocated to China, Hong Kong manufacturers had become property developers and transforming their former factory sites into commercial complexes and make investment in real estate (Yu, 1999).

China must maintain the government principles of “one country, two systems”, “a high degree of autonomy” and “Hong Kong people administering Hong Kong” way beyond the 50 years of Sino British Joint Declaration 1984 of no intervention in Hong Kong administration. With this, the business and entrepreneurship are given the freedom to operate and remain as the main driver in economic transformation and adaptive to environment changes. Riedel (1974) has remarks that “Hong Kong entrepreneurs are left free to do what they can do best…”


Conclusion

Hong Kong economy evolution was influenced by historical, geographical, cultural and technology driven factor. Historically, being a colonial of British, has prepared Hong Kong in the early stage for capitalism and free market society. Geographically, it was strategically located in East Asian, easy gateway for China, Taiwan, South Korea & Japan for international financial and trade center. Culturally, Hong Kong people are hardworking, high ethic and independent. Furthermore Hong Kong is gifted with technologically driven factors such as good financial system, communication; good infrastructure and government back up on research and development.

During the Asian Financial Crisis, Hong Kong managed to overcome the crisis due to solid governance and financial system plus a strong foreign reserve. After the handover to China, Hong Kong capitalism still prevails and the people are still enjoy democratic atmosphere. Under the “One Country, Two Systems” concept, China will continue to fully support Hong Kong liberalization economy which ensure the free market as well as the investor confidence on Hong Kong’s future.

In future, Hong Kong needs to be more alert, sensitive and adopt flexibility to the changing economic environment to grabs the investment opportunities. This is will ensure Hong Kong future prosperity and continuous growth.