XN000022-1979-10-17 — Page 5

3 -

WEDNESDAY, OCTOBER 17, 1979

HE REPORTED THAT CONCURRENT WITH THE GROWTH IN THE INDUSTRY THERE HAD BEEN SUBSTANTIAL NEW CAPITAL INVESTMENT, INCLUDING NEW HOTELS ON PRIME SITES WHICH WOULD ADD 5 000 ROOMS OVER THE NEXT THREE YEARS TO THE 14 000 ROOMS CURRENTLY AVAILABLE.

DURING THE YEAR, THE ASSOCIATION OPENED NEW OVERSEAS OFFICES IN CHICAGO AND OSAKA. T WAS CONTINUING WITH ITS +COURTESY+ CAMPAIGN TO UNDERSCORE TOURISM AS A SERVICE INDUSTRY.

REFERRING TO SUGGESTIONS IN THE PRESS AND ELSEWHERE THAT WE WERE IN DANGER OF PRICING OURSELVES OUT OF THE TOURIST MARKET, MR. NEWBIGGING SAID HONG KONG HAD TRADITIONALLY MAINTAINED GREAT FLEXIBILITY IN ALL SECTORS OF ITS ECONOMY IN ITS PRICE STRUCTURE RELATIVE TO WHAT ANY INDUSTRY COULD BEAR. THE TOURIST INDUSTRY WAS NO EXCEPTION AND THE RESULTS OF THE PAST YEAR TESTIFIED TO THIS.

+HOWEVER, AT THE RISK OF BEING REPETITIVE, VISITORS WILL ONLY BE PREPARED TO PAY IF THEY FEEL THEY ARE RECEIVING GOOD AND COURTEOUS VALUE FOR MONEY, HE SAID.

FIRST FACTORY AT TAI PO INDUSTRIAL ESTATE

TO START PRODUCTION SOON

******

THE FIRST OF THE 24 FACTORIES ALREADY ALLOCATED SITES AT THE TAI PO INDUSTRIAL ESTATE IS EXPECTED TO START PRODUCTION BEFORE THE END OF THE YEAR, AND BUILDING OF OTHER FACTORIES HAS BEGUN.

THIS WAS DISCLOSED BY THE CHAIRMAN OF THE HONG KONG INDUSTRIAL ESTATES CORPORATION, THE HON. LI FOOK-WO WHEN HE TABLED THE CORPORATION'S LATEST ANNUAL REPORT IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

ABOUT 60 PER CENT OF THE 24 INDUSTRIAL SITES WERE ALLOCATED TO LOCAL COMPANIES AND THE REST TO OVERSEAS FIRMS. TOGETHER, THEY PROPOSED A TOTAL MINIMUM INVESTMENT OF ABOUT $600 MILLION OF WHICH ABOUT HALF WOULD BE FROM OVERSEAS, MR. LI SAID.

HE SAID THE CORPORATION'S MAIN TASK OF FORMING LAND AND PROVIDING THE INFRASTRUCTURE AT TAI PO, AND AT THE SECOND ESTATE AT YUEN LONG, HAD GENERALLY BEEN ON SCHEDULE.

AT TAI PO, SOME 34 HECTARES OUT OF THE 45 HECTARES OF INDUSTRIAL SITES COMPRISING STAGES I AND II, HAD BEEN FORMED. A THIRD STAGE OF CONSTRUCTION, APPROVED IN PRINCIPLE BY THE GOVERNMENT, WOULD PRODUCE ANOTHER 20 HECTARES, HE SAID. LONG, THE FIRST SITE SHOULD BE AVAILABLE FOR LEASING EARLY IN 1980.

AT YUEN

ABOUT 45 PER CENT WITHIN STAGE OF THE 34 HECTARES OF LAND FORMED AT TAI PO HAD BEEN SUBSTANTIALLY COMPLETED WITH ROADS AND SERVICES. SOME 15 HECTARES, MAINLY IN THE SAME STAGE, HAD BEEN OR WERE EARMARKED TO BE GRANTED. THE ROADWORKS AND SERVICES TO STAGE II WERE BEING CONSTRUCTED.

/MR. LI