After Hong Kong’s return to China in 1997, it has in many ways assumed the role of serving as a bridge between China and the world while developing itself into one of the most important trade and investment centers in Asia. Due to recent economic events, Hong Kong is facing new economic challenges. Nevertheless, projec
After Hong Kong's return to China in 1997, it has in many ways assumed the role of serving as a bridge between China and the world while developing itself into one of the most important trade and investment centers in Asia. Due to recent economic events, Hong Kong is facing new economic challenges. Nevertheless, projects aimed at increasing trade and travel in this region are set to increase growth in the near future.
Infrastructure Projects For Economic Growth
As Hong Kong is an important trading partner and source of overseas direct investment for China, the central government has been involved in the development of several projects that are aimed to enhance trade and tourism between Hong Kong and the rest of the Western Pearl River Delta region, where Macau, Guangzhou, and Shenzhen are located.
Cross-Boundary Projects
The governments of Hong Kong, Macau, and Guangdong are working together to complete the construction of the Hong Kong-Zhuhai-Macau Bridge (HZMB). It is a 42-kilometer bridge and boundary crossing facility that, when completed, will extend over the Pearl River estuary and link the three places. A 6.7-kilometer underwater tunnel is also being built as part of this project to prevent the obstruction of this busy water channel.
Another significant ongoing infrastructure project is that of the construction of the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL). Projected to run from West Kowloon to neighboring provinces Shenzhen, Dongguan, and Guangzhou, this will become part of a 16,000-kilometer national high-speed rail network that will significantly shorten traveling time to and from the city.
Although these two projects are currently experiencing delays due to reasons such as technical and construction difficulties or cost overruns, they are expected to be significantly important to the future economic development of this city. Since these infrastructures are expected to reduce transportation costs and travel time in the region, this would open up new opportunities for sectors such as tourism, logistics, and commerce, as well as reaffirm Hong Kong's reputation as a global logistics and transit hub.
Local Projects
Hong Kong remains a popular tourist destination for both international and Chinese tourists. According to the local tourism board, more than 59 million people visited Hong Kong last year. To accommodate future air traffic growth in passengers and cargo transport, plans are underway to expand the HKIA by adding a third runway. Construction is set to begin in 2016 and be completed in 2023.
The local government has also initiated efforts to improve the local transportation system. Under its railway development strategy, two railway projects are expected to be completed in 2016, while another line will finish construction in 2021. Further expansion of the network will continue until 2031 to cover areas inhabited by the majority of the population.
Increase in Security Needs
As the numbers of people moving to and from Hong Kong is set to increase in the near future, it would be important for the government to focus their efforts in strengthening security along its borders. “Given the increased terrorist threats around the globe, smart video surveillance for homeland protection will continue to rise in demand,” said Lawrence de Guzman, VP of APAC at Vicon Industries.
Ongoing large-scale infrastructure projects will bring forth new opportunities for Hong Kong but it'll increase potential security threats as well. Authorities would need surveillance systems that can provide them actionable information to aid in managing and preventing critical events from occurring. “There will be a requirement for increased immigration at border crossings, and improved transportation infrastructure for highways, tunnels, and toll roads. Companies able to provide advanced analytics with their systems to assist the operators in managing all their video feeds will be better positioned,” said Bob Ruggles, Business Development Manager of APAC at Pelco by Schneider Electric.
“Systems able to track tourism activity and monitor crowd gatherings in places, where there should be a constant flow of people, could be utilized by various government departments for both security and marketing,” Ruggles added.
Currently, many border control points in Hong Kong are now being equipped with thermal cameras. It has proven to be effective in enhancing the surveillance capabilities of the checkpoint, as well as maintaining the health of people in the area as it can record temperature readings and become a tool for handling disease outbreaks.
Bridging the Way Into the Future
Since the main driver of Hong Kong's economy is international trade, it has not been immune to the widespread effects of both the global and China's economic slowdown. It is by building on and enhancing business and trade relationships with neighboring city centers in the region, that Hong Kong can regain its foothold and bring in more opportunities for local businesses and for the security industry.