Government's Role in Sustainable Tourism Development in Hong Kong

The importance of safeguarding local and small businesses is highlighted, with the government formulating policies to provide special treatment for them to survive in a competitive market. Additionally, policies should be formulated to increase employment opportunities for the people. Furthermore, it is emphasized that local values, cultures, traditions, norms, and beliefs should be held strongly by the community, with children being educated about their own culture to resist foreign influences.

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Executive Summery
The report has been created for the purpose of studying the segment of tourism of Hong Kong.
The major objective of the report is analyzing the purpose of the Tourism Commission of Hong
Kong also the economic, social, as well as the impact related to environment of the work of
Hong Kong’s Tourism Commission. The study also showcases the advantages and disadvantages
of utilizing historic buildings to attract tourists and visitors. Holiday, events, and hospitality
sector of Hong Kong tourism is also been evaluated in the report. A few tourism projects and
various stakeholders’ engagement is also comprised in this report. The study is significant as it
offers deep insight within the Hong Kong’s industry of tourism. It was also ascertained that there
is major economic, social, as well as impact related to environment both in positive as well as
negativity of the tourism segment. This notably contributes to the city and eventually nation’s
GDP and service and boosts opening for business of the local people, however it also enhances
struggle within the local marketplace because of that the small business owners of the local
community were threatened. Suitable proposals have been provided for the purpose of
minimizing the negative effect in this study’s end.
Table of Contents

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Executive Summery.....................................................................................................................................2
Introduction.................................................................................................................................................4
The Tourism Commission............................................................................................................................5
Organizational Structure.............................................................................................................................6
The Vision of Tourism Commission..........................................................................................................6
The mission of Tourism Commission.......................................................................................................6
Role and Function of Tourism Commission.............................................................................................6
Tourism Project and Their Stakeholders......................................................................................................7
Types of Stakeholders..............................................................................................................................8
Tourism Project Examples.......................................................................................................................8
Tourism Project Example.........................................................................................................................9
Stakeholders Relationship.........................................................................................................................10
Impact of Tourism Commission’s Work.....................................................................................................11
Social and Cultural impact.....................................................................................................................11
Economical impact................................................................................................................................11
Environmental impact...........................................................................................................................12
The Historic Buildings – Pro’s and Con’s....................................................................................................13
Pro’s associated with the usage of historic buildings............................................................................13
Con’s associated with the usage of historic buildings............................................................................14
A Case Study in Hong Kong........................................................................................................................15
Social Impact.........................................................................................................................................16
Economical Impact................................................................................................................................16
Conclusion.................................................................................................................................................17
Recommendations.....................................................................................................................................17
References:................................................................................................................................................19

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Introduction
The industry of tourism has a remarkable contribution in the development and growth of the
economy as it is becoming very evident. Today, most of the countries that have good
opportunities in the industry are moving in the tourism field for gaining considerable revenue for
growing and developing the economy. The main strength of the economy of Hong Kong is the
industry of tourism. This industry is an important contribution in the GDP of Hong Kong. Its
single contribution is very large as in 2017 the share of this industry in GDP of the economy of
Hong Kong was 16.7%. The industry of tourism contributes to the GDP as well as in
employment. (Vu et al. 2015). Among the overall employment of 7.2%, 271,800 persons or more
are employed in this industry. Though there is declination in the popularity of industry and
tourism has decreased in Hong Kong in 2015. The popularity is growing again day by day and
the number of tourists is increasing.
For attracting more visitors who come through the historic building, conserving heritage or other
cultural events, development of different types of tourism product is needed. Offer on the
products of tourism should be enhanced by the tourism commission of the city. The tradition,
style, culture, lifestyle of Hong Kong is represented by the tourism industry. More centers for
attracting tourists should be developed by the city. Green tourism finance on heritage and
historical heritage of the city should also be developed and encouraged and more venues for
performances should be constructed. The following are the major and important developments in
the tourism industry: Green tourism, Hong Kong’s Lantua Island that includes Disney Theme
Park, facilities of resort, water sport in Sai Kung, heritage, a new Aberdeen tourism node united
with growth of the Ocean Park , area for dining and cultural in Central. In order to boost the
industry of tourism in Hong Kong, a scheme of centralized and focused market should also be

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devised by the tourism commission of the city. The standard of services provided determines the
favorable result of the industry. For enhancing the standard of services the, tourism commission
must focus on its quality. Developing tourism and conserving heritage has an intense relationship
between them. (Tsui and Fung 2016) Tourists visit the sights of cultural heritage where the place
is conserved. Visitors who come to the place are attracted to the heritage that reveals the values,
traditions, and cultures of the places. Visitors won’t visit the place and they would be less
attracted if the tourism commission is unable to conserve the heritage place. The duties and
responsibilities of the tourism sector of Hong Kong have been highlighted in this study.
Association of stakeholders has also been focused in this study. Effect of work of tourism sector
like impacts on economy, social and culture and environment and challenges as well as
advantages of utilizing the historical building has also been included. (Agapito and Chan 2019).
The Tourism Commission
For maintaining the position of the city as leading city of destination for the tourists in Asia, the
tourism commission has been established by the government of Special Administrative Region
of Hong Kong in 1999. The establishment of tourism commission was controlled by the
Commerce and Economic Development Bureau of Hong Kong. The work of the commission is
supporting the growth of the new events and attracting and improving the facilities of tourists for
making Hong Kong a premier spot for the visitors. Commissioner of tourism of Hong Kong is
the head of the tourism commission. The duties of the commissioner are to map out the strategy
for developing tourism and scheme proposed by the government.

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Organizational Structure
A wide cross-section of the industry of tourism is represented by the HKTB board that consists
of 20 members. Hong Kong SAR Government appoints the members of HKTB for three years
terms and involves operators in hotels, carriers for passengers, licensed travel agents, operators
for tour, operators for restaurants, and retailers. (Su 2017). The headquarter of HKTB is in Hong
Kong that has a universal channel of 7 representatives and 13 offices.
The Vision of Tourism Commission
Developing and endorsing the city as Asia’s premier city globally and great destination for trade
and leisure tourists are the vision of the commission.
The mission of Tourism Commission
The main mission of the tourism commission is making the city a leading destination for visitors
by supporting the growth of new occasions and attracting and improving the facilities for tourists
as well.
Role and Function of Tourism Commission
The tourism commission plays a major role in developing and promoting the sector of tourism of
the city. Its key role is improving the facilities for the tourists for attracting more visitors.
Growth of new occasions and attractions has also been supported it for making Hong Kong a
leading destination for tourists. The tourism commission is in charge of the following main
works.
 Establishing a connection with the Travel Industry Council of Hong Kong
 Formulating the governmental policies of the industry of tourism
 Creating cooperation of tourism Taiwan and Macao and different countries

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 Building a connection with the authorities of mainland for developing and promoting the
industry of tourism
 Managing the functioning of project on new developments like Ocean Park
 Managing hotel supplies
 Formulating a scheme for projects of new tourism
 Managing and handling emergency occurrences that includes hotels too
 Controlling and monitoring the work of the tourism industry
 Managing and cooperating the growth and approval of green heritage and cultural
tourism
 Coordinating and planning the facilities of region-wide tourism
 Working on Secretary on agents of travel to the TICF Management board and advisory
Committee as well
 Managing the travel agents that has been registered in the organization of the Travel
Agents ordinance
 Managing the works of Park expansion and Disneyland Resort of Hong Kong as well
 Cooperating in implementing Young Ambassador Scheme of the city
Tourism Project and Their Stakeholders
Stakeholder can be termed as a party who has interest towards the business is. Therefore, “a
cluster or a person who is exaggerated through the organization’s achievement or who has the
potential of affecting the success of the organizations’ objectives is a stakeholder. (Mak, Cheung
and Hui 2017)

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Types of Stakeholders
Generally there are two types of stakeholders - Internal Stakeholders and External Stakeholders.
The board of director or Managing Director, the workforce, trade alliance or trade unions, other
crucial functional segment of the organization like marketing, finance, information technology,
human resource, etc. and the physical location of the business like various branch offices can be
considered as the internal stakeholders. (Chan et al. 2015). Whereas, the creditors, the
shareholders, the consumers, the suppliers, the competitors, the trade bodies, the government, a
private individual, local communities, worldwide regulatory organizations (like IATA and
WTO) are the external stakeholders. It is possible for stakeholders to impact the organizational
functions. A number of the stakeholders are associated directly in the business, therefore can
notably have a say in any business decision. (Fok and Law 2018). In case, if the business
decision is not according to their importance, they can become obstruction in the decision
making process, which eventually result in failure to accomplish the planned business goals. A
few stakeholders facilitate in creating the organizational strategies and actions that help in
accomplishing the target. There are several stakeholders, who decide the organizational product
and/or services. The task of a handful of stakeholders is influencing the environmental as well as
the social disclosers of the organization.
Tourism Project Examples
1. Hong Kong wetland park – It is situated at Tin Shui Wai and is Hong Kong’s one of the first
and key green tourism facilities. It was inaugurated on 20th May, in the year 2006 for the
public. The park gives a chance to appreciate the city’s natural heritage for the nature lovers
in a pristine and outstanding site. (Chiu, Chan and Marafa 2016). The park is operated and
maintained by joint initiative of Fisheries, Conservation as well as Agriculture department.

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The wetland park comes with amenities like Kid’s Area, Indoor Playing Area, Wetland
photograph, Swamp exploration are to name a few. The Hong Kong tourism commission, the
government, staffs working at the park, the visitors, the conservation, fisheries and the
agricultural departments, the local society and lastly the city residents are the wetland park’s
stakeholders.
Tourism Project Example
2. The Tourism Project of Aberdeen: Aberdeen Tourism Project is considered as the main
tourist spots of Hong Kong. In 2006, the tourism commission employed an advisor for
creating a theoretical plan for the Tourism Project of Aberdeen. (Chan, Peters and Marafa
2015). The objective was developing exclusive traits of the conventional fishing water body.

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A financial advisor was also being employed by the tourism commission for assessing the
theoretical design’s monetary as well as viable achievability as it involved various
commercial basics. The regime continually funded the development facility to improve
Aberdeen‘s present tourist spots further. In this case, the tourism commission, the financial
consultant, the government, the staffs, the visitors, the local society and lastly the residents of
the city are considered as the stakeholders.
Stakeholders Relationship
Rapport amongst the stakeholder is crucial in a business. If the association is healthy and well-
built within the stakeholders, the organizational actions take place efficiently and hence the
organizational targets can also be finalized and attained in future. In above mentioned cases, the

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tourism commission and the tourists are the key stakeholders. To have satisfaction, visitors were
offered with the sufficient and apt amenities that the tourism commission offered. In case the
interests of the visitors were not met, these two main stakeholders will not have a healthy
rapport. The local society was also bough together by the tourism commission for providing
sufficient and apt visitor amenities. If the affiliation within the stakeholders is evaluated through
Mendelow’s Power/Interest Model, it can be positioned in the quadrant of high power/high
interest. It will be positioned in such quadrant as these stakeholders share high power and high
interest and may fetch alteration or discontinue the management’s plan in case not contented.
Impact of Tourism Commission’s Work
Local neighborhood, environment, city’s economy, city’s culture and social facet get affected by
the work that tourism commission does. The following aspects can be helpful in analyzing the
work done by the tourism commission:
Social and Cultural impact
The social and cultural impacts are linked with the concerned approach and activities,
communication within the people and cultural backdrop of the city’s people. The city’s culture,
city people’ mind-set, and behavior, city’s tradition reflects the tourism commission’s work. All
of these facets show a noteworthy effect on social as well as cultural side. (Cheung and Tang
2015). In case the tourism commission brings in visitors to a sensitive region, it can be damaging
for the city and city’s people. Such moves might also result in losing the city’s culture. This can
be beneficial for maintaining city’s culture and its cultural places for increased wealth.

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Economical impact
Generally, the industry of tourism is deemed as helpful regarding its impact on the country. The
tourism commission’s work adds s in to the city’s GDP extensively. The work tourism
commission does brings service within the economy and this move is indeed a positive indication
towards the city’ economical expansion and improvement. Because joblessness is one of the
main severe concerns for any country, the Hong Kong tourism industry adds to generation of
employment. Approximately, 5% of the total service is being provided by the tourism industry of
Hong Kong. (Cheung, Mak and Dixon, 2016). Additionally, the business helps in local business
promotion. It improves people’s standard of living. On the other hand, Tourism has a few off-
putting traits to the city’s economy. As a reason of the tourism industry’s progression, the city
inhabitants’ living cost would elevate. Along with the tourism sector’s expansion, outside
business also take entry into the city as the there are chances of high profits. Therefore, it has
both positive and negative impacts on the city. In case the external businesses get entry within
the local market, the financial system will develop for business and hence, service will be
created. It eventually will boost the city’s GDP. The negative aspect of such expansion might be
that as the external businesses enter into the local marketplace, there is a possibility where the
market’s small businesses might perish resulting in the small business owners and their
workforce may get jobless.
Environmental impact
Additionally, it has a major environmental effect. The tourism commission’s work might have an
effect on an area’s carrying capability. The quality of air, water table, vegetation, water bodies,
natural occurrences, as well as natural world can get affected because of the tourism
commission’s work. For the purpose of developing the city’s tourism industry, various ventures

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should be extended. The growth of the projects might decline air as well as the water quality.
There is a possibility where this might also have an effect on the natural world due to high rate of
deforestation.
The Historic Buildings – Pro’s and Con’s
There are plentiful of advantages in case of utilizing the historic constructions, however a few
disadvantages are also there.
Pro’s associated with the usage of historic buildings
One of the fundamental components of city resurrection efforts is the conservation of heritage
buildings. The advantages of utilizing historic building may be classified into a number of
groups like financial advantages, financial sustainability, as well as energy saving benefits, labor,
environment friendly- less dissipate, and other advantages. (Yung and Chan 2016). The
economic advantages are benefits gained through business from staying within a heritage
building. In case, businesses are settled within the heritage building, it will be helpful for the
business in generating further income as heritage buildings draw more tourists. It will also help
in raising the employment rate. It progressively helps in growing tourism. Once the tourism
further enhances, tourist comes for visiting and therefore the government eventually generates
more profits. This also advances base of the municipal tax by restored buildings. (Wong, 2016).
The historic buildings create more service in comparison to new constructions. The historic
buildings are way more labor-demanding than the newly constructed buildings. It recruits more
effort in opposition to the machine and consequently boosts the employment rate. Very less
enery is used by the historic buildings than the new ones. Additionally, least amount of waste is
being produced by the historic building vs. the new buildings. This also facilitates in supporting

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the progress of present infrastructure and prevents worsening. It is already proved that the
historic building saves energy. The energy needed for operating a historic construction for 40
years is equal to the energy needed for establishing a new building. It is also apparent that a new
building generates way more dissipate in compared to the protection of historic buildings.
Conservation of historic building is also advantageous as the demand for more land is growing
and therefore new building will be erected for fulfilling the demand of bigger land. It also boosts
service rate and people’s socio-economic status. Such as, Water Supplies Department/ Red Brick
House (1895) Grade I Building, Yau Ma Tei Theatre Grade II building (1930), and Engineer’s
office of the Former Pumping Station.
Con’s associated with the usage of historic buildings
Along with various advantages of utilizing historic building it can also bring numerous
challenges. The complex structure of the historical building is the major challenge among them.
The complex structure of the historical building might need costly and modified design which is
complex in techniques for adapting. Such as, Baltic Flour Mill (1950).Consensus of given
monuments required for every jobs of demolition, alteration, and extension to a building given
that affects nature as a monument of remarkable architecture or historical interest. A criminal
offense would be considered if the agreement is not obtained as it is needed. It would be
impossible to defense any proceedings of criminal if one is unaware of the monument if it is in
the list or not. It can be difficult to adapt for providing and accessing the people who are
especially able. Standard accommodation required by the historical monuments to adapt
wouldn’t be easy for requirements of acoustic of instances and thermal performance, standard of
air inside, etc is another challenge. (Lam 2015). The main challenge among them for using
historic building is the safety and significance of historical importance. Improvement of the

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performance and safety of historic building to maintain the historical importance of the building
is highly challenging. (Mak 2019). The conditions which are unforeseen are a huge challenge as
well.
A Case Study in Hong Kong
There are various building of historical significance in Hong Kong which is utilized for
hospitality events, functions, leisure, and tourism. (Hsia and Chau 2018). There has been a huge
effect on the economy of the city by the historical monument or declared building. Large number
of tourists are attracted to these historical monuments or declared buildings every year which is
an important contribution to the financial condition of Hong Kong. “Rock Carving” is one of the
popular and declared buildings of the city situated at big Wave Bay, Hong Kong Island. A police
officer first located and reported the building of Rock Carving situated at big wave bay was in
1970. The scatterings of mass of ancient rock carving were seen along the coastline of Hong
Kong. The pattern on these rock carvings is generally geometric and consists of pictures of
animal and human. It is almost impossible to the find the one who has carved these rocks. The
method, the time and the reason is difficult to know as there is no evidence for making these
ancient rock carving. But it could be predicted that these group of rock carving surely had a big
history as stated by the weathering of ancient rock carvings. The rock carving is located on
headland that embraces the wonderful bay like other rock carvings except Shek Pik and Wong
Chuk. It could be observed from the given proofs that the one who carved the rock was largely
dependent on sea for living. it must have been estimated for guarding from the people who
travels by the sea as well as for appeasing the strength of the sea. (Chan, Hsu. and Baum, 2015).

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Social Impact
It could be said the rock carving has an important effect on social though it is difficult for
measuring the social effect of historic monument and declared building. The population of the
Hong Kong who was surviving at the islands’ coastal region and their history has been displayed
at the rock carvings. The way people were living at that particular time can be seen in the pattern
of the rock carving. The ancient culture of the city has also been displayed there. There has been
development of understanding of intercultural that allows the community to know about the
style of living, their standard, morale, beliefs, values, etc as many tourists are attracted to it every
year. (Shen 2017). When people visit the historic monument from different countries, the local
community people help them by assisting thus friendship develops. It also strengthen ties by
bringing foreign specialist while conferences in Hong Kong. Invasion in the private life the local
community is a however a drawback. Current ideologies are also imposed on the people of local
community.
Economical Impact
It is always regarded as advantageous from the economical side. It grows the GDP of the city by
creating new job opportunities for the people there. The rate of unemployed people reduces as it
provides a various opportunities for them. The growing revenue of the Government results in
spending on the infrastructures of the community which provides the facility of better
transportation, water drinking, electricity, etc (Qiu et al. 2019). It has also improved the system
of education many of them aim to study different languages. However, it also has some negative
effect on the economy. It results in shutting the small businesses as huge amount of visitors are
attracted to it and because of which rivalry among them increases and the players from outside
also invaded the small markets.

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Conclusion
The industry of tourism of the city is well-organized and functioned. It has an important
contribution in the economy of Hong Kong. There has been establishment of tourism
Commission for enhancing the function the tourism industry properly. Hong Kong has been
made a leading destination for the tourists by the Tourism Commission. There has been
development of many projects regarding tourism some are in progress. For satisfying tourists and
attracting more visitors, it has enhanced the standard of services of the tourism. It has also
preserved many buildings where new employment is created using energy very less and
producing wastes very less. The industry of tourism has an important effect on social and
economic. It has been observed that in the GDP of the tourism sector, the share of Hong Kong
was 16.7% in 2017. Intercultural understanding has also been developed by it; however, the
negative effect is undeniable. Culture of the local people is threatened by it as the cultures of
their own are brought down by them and dominates their culture. The rivalry in the local market
has also been increased that has a negative effect on the small businesses there.
Recommendations
The cooperation among the people of the city as well as the government is essential for
minimizing the negative effect on the society and economy. Protecting national interest and
supplying good facilities to the tourists is the duty of the government. For safeguarding the local
and small business, policies should be formulated by the government. Special treatment should
be provided to them for surviving in the market of competition. In order to increase the
opportunities of employment for the people, policies be formulated by the government. (Galí,
Camprubí and Donaire 2017). The business based on foreign policies must employ some amount
of people in their companies.

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The values, cultures, tradition, norms and beliefs should be held strongly by the local people of
the community. Children should be educated to become aware of their own traditions and
culture, so that, they will not get influenced by the foreign traditions. They must know the
significance of foreign languages and take interest in them without forgetting their own local
language and its values.

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