XN000022-1972-06-22 — Page 12

12.

Thursday, June 22, 1972

Mr. Akers-Jones said the argument that high shop rents are having an

adverse effect on the tourist trade also cannot be substantiated.

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"The total number of visitors in 1971 was 907,295 and although this

was 2.2 per cent less than in 1970 (an exceptional year because of Expo '70

in Japan) it represents an increase of 18.6 per cent over the 1969 figure,"

he pointed out.

Referring to another suggestion in the petition that rents for business

and factory premises have increased from four to 10 times during the past two

years, Mr. Akers-Jones said this is not borne out by the facts. The statistics

prepared by the Commissioner of Rating and Valuation and published recently

in his 1972 Property Review show that the rental index for shops in the

metropolitan area rose over the three-year period from 1968 to 1971 from 100.00

to 129.62 (136.18 for Kowloon only). For flatted factories the rental index

over the same period rose from 100,00 to 156.69, the highest increases being

in Tsuen Wan where the index in 1971 was 187.64. Average renta for offide

accommodation of all grades rose from $1.27 per square foot in 1968 to $2.66

in 1971 an increase of slightly over 100 per cent.

Referring to the fact that post-war domestic premises were subject to

rent increase control in the early sixties and again since 1970, but post-war non-domestic premises have never been subject to any controls, apart from the

Tenancy (Notice of Termination) Ordinance, which provides for six months' notice to

quit, Mr. Akers-Jones said that the situation with regard to business premises

is however quite different.

"Not