A Monthly Roundup of News and Events in Hong Kong
April - May 2009  

business in hong kong


IBM to set up Cyberport ‘cloud computing’ lab

The Hong Kong Special Administrative Region Government recently welcomed the decision by IBM, one of the world’s leading information technology (IT) companies, to set up a “cloud computing” laboratory at Cyberport.
Cloud computing refers to Internet-based computer applications.

“The move fully demonstrates Hong Kong’s advantages as a center for innovation in information technology,” said Acting Government Chief Information Officer Stephen Mak.

“Services based on cloud computing will undoubtedly be one of the major trends in IT over the next few years. IBM’s decision to locate a critical cloud-computing laboratory here is a tribute to the innovative talent of Hong Kong people,” Mr. Mak said. “It underlines the favorable environment we provide, with our sound legal system, good protection for data and intellectual property rights, and world-class ICT [information and communication technology] infrastructure.”

Mr. Mak said he is confident IBM will find Cyberport an ideal place for the laboratory. “Cyberport provides state-of-the-art infrastructure and a tenant mix that can facilitate collaboration amongst IT businesses,” he noted.

“Hong Kong has developed some of the world’s leading online services. We are confident that our laboratory in Cyberport will help provide next-generation cloud collaboration to IBM’s LotusLive portfolio of online services, as well as a gateway to the key emerging markets of Asia,” said General Manager of IBM Lotus Software Bob Picciano.

The laboratory will build on the email technology and expertise of Outblaze Limited, a Cyberport company whose email assets have been acquired by IBM.

Swiss chocolatier comes to Hong Kong

Hong Kong's chocolate lovers can now indulge in the decadent sweets of one of Switzerland's premier chocolate makers, Francesca, which opened a boutique and regional headquarters in the city on May 8.

Francesca is hoping to provide Hong Kong’s private and social organizations, corporations and individuals an innovative and intriguing alternative in gifting. The company’s product and service range is varied and can be tailored to suit different clients' needs.

Founder Cornelia Maeder, who was born in chocolate-loving Switzerland, is enthusiastic about Francesca’s prospects in Hong Kong, despite the turmoil in the global economy.

“We love Hong Kong. We are delighted to be part of this wonderful community,” she said. “The business environment is inspiring and offers incredible opportunities.”

To reach out to its target audience in the region, the company has been working closely with luxury brands and spas, holding joint events, seminars and classes. Encouraged by the positive response, Ms. Maeder has plans to open more boutiques in Hong Kong.

“Hong Kong offers great opportunities, especially for small- and medium-sized businesses to launch a new brand. We choose to be based here in Hong Kong because it is the best strategic location from which to capture Asia's potentially huge market,” Ms. Maeder said.

Director-General of Investment Promotion at Invest Hong Kong Simon Galpin welcomed the company’s commitment to the territory. “The opening of Francesca in our city is an exciting illustration of the business opportunities in Hong Kong. We have long been known as one of the key gourmet capitals of Asia, but to welcome a reputable chocolatier whose main business is to provide personalized chocolate gifting services is unique indeed,” he said.

Easter boosts April airline passenger traffic

The combined April traffic figures for Cathay Pacific and Dragonair show passenger numbers rising compared to the same month last year — helped by the Easter peak — while cargo and mail tonnage showed another significant drop.

Cathay Pacific and Dragonair carried a total of 2,251,526 passengers, an 8.8% increase compared to April 2008. The Easter holiday in 2008 fell in March, skewing comparison figures for March and April 2009. The load factor increased 3.2% to 82.6%. Capacity for the month, measured in available seat kilometers (ASKs), rose 1.1%. For the year to date, the number of passengers carried has increased 0.2%, against a capacity rise of 0.3%.

The two airlines carried a total of 123,179 metric tons of cargo and mail in April, down 13.3% year-on-year. Capacity, measured in available metric ton kilometers, fell 12.2%, while the load factor dropped 1.9% to 65.7%. For the year to date, metric tonnage has fallen 17.3% and capacity has dropped 13.6%.

Airport Authority launches relief package

The Board of the Airport Authority (AA) announced a relief package of up to US$57.69 million to assist airlines and other operators whose business at Hong Kong International Airport (HKIA) has been adversely affected by the global economic downturn. The relief package comprises US$25.64 million in charge reductions and up to US$32.05 million in interest-free, 12-month deferred payments.

Airlines operating at HKIA are being offered a 10% reduction in both landing and parking charges until December. In addition, to alleviate cash-flow issues during the recession, 50% of rental payments for airline lounges, office premises, counters and storage can be deferred until April 2010, when they can be repaid through interest-free installments .

The majority of retailers and caterers at HKIA pay the AA a license fee that adjusts with airport passenger volume. Licensees pay less as passenger throughput declines. The average license fee has dropped approximately 4% over the last few months.

AA Chief Executive Officer Stanley Hui said HKIA is suffering from the flagging global economy. Traffic volumes started declining in August, with the first quarter of 2009 showing year-on-year decreases in passenger throughput, cargo volume and aircraft movements of 7.1%, 22.8% and 6.6%, respectively.

In response, AA began implementing a series of cost-control measures — including headcount freezes — in the last quarter of 2008. Mr. Hui said the AA will stay vigilant on costs as the economic slump continues. He added that the relief package was introduced after consulting with various airline industry representatives, and the AA will continue to work side by side with its business partners.

In 2000, the AA reduced both landing and parking charges 15%. The reduction has remained in effect since then.

 



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Copyright
ã 2009, Hong Kong Economic & Trade Office in New York