biz.hk Dec 2012

Ho lid Gu ay Tr ide t av o el Pa ck ag es

Journal of The American Chamber of Commerce in Hong Kong

ECONOMIC ENGAGEMENT WITH ASIA-PACIFIC

ROBERT HORMATS US Under Secretary of State

www.amcham.org.hk

December 2012

ble a l i a v A h

Marc

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Your Best Guidebook for Settling in Hong Kong Living in Hong Kong is a compendium-style all-you-need-to-know guide for newcomers to

school, getting settled when arrived and enjoying life in Hong Kong. This consumeroriented book is designed as a sort of “hotline� with useful phone numbers and contacts to other sources of help.

Living in Hong Kong bookshops in Hong Kong. AmCham members often buy the book for their relatives and Americans), the book is one of the best-selling publications for AmCham.

Contact: AmCham Publication Department Advertising Manager: Regina Leung Direct Line: 2530 6942 Email: rleung@amcham.org.hk

December 2012

Contents

Vol 44 No 12 Richard R Vuylsteke

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08

Publisher

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Editor-in-Chief

COVER STORY

AVIATION

BEIJING DOORKNOCK

GOVERNMENT RELATIONS

Managing Editor

US Under Secretary of State Robert Hormats speaks to AmCham about US foreign policy as well as economic engagement with countries in the Asia-Pacific region

President and CEO of United Continental Holdings Jeff Smisek shares his insights on a changing air travel industry

An AmCham 17-member delegation arrives in Beijing for an annual meeting with government officials

A team of senior executives travels to Bangladesh to meet with officials to discuss further business growth potential

Daniel Kwan Kenny Lau

Advertising Sales Manager Regina Leung

biz.hk is a monthly magazine of news and views for management executives and members of the American Chamber of Commerce in Hong Kong.

Its contents are independent and do not necessarily reflect the views of officers, governors or members of the Chamber.

Advertising office 1904 Bank of America Tower, 12 Harcourt Rd, Central Hong Kong Tel: (852) 2530 6900 Fax: (852) 2537 1682 Email: amcham@amcham.org.hk Website: www.amcham.org.hk Printed by Ease Max Ltd 2A Sum Lung Industrial Building, 11 Sun Yip St, Chai Wan, Hong Kong (Green Production Overseas Group) Designed by Overa Creative Co Unit 1613 16/F, Workingbond Commercial Centre, 162 Prince Edward Road West, Kowloon ©The American Chamber of Commerce in Hong Kong, 2012 Library of Congress: LC 98-645652 For comments, please send to biz.hk@amcham.org.hk Single copy price HK$50 Annual subscription HK$600/US$90

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AMCHAM NEWS AND VIEWS 04 Chairman’s Memo

BEIJING DOORKNOCK 20 Knocking on Doors in Beijing

James Sun recaps AmCham’s advocacy work with the governments of Hong Kong, Mainland China and the US

07 New Business Contacts 36 executives joined AmCham’s business network last month

An AmCham delegation arrives in the Chinese capital for an annual meeting with government officials

GOVERNMENT RELATIONS 24 Challenges to Growth in Bangladesh

69 Mark Your Calendar

A team of senior executives travels to Bangladesh to meet with officials to discuss further business growth potential

AMERICAN TOPICS 40 An AmCham-Style Thanksgiving Celebration Friends gather for a hearty celebration of a “terrific” American holiday

2012 TRAVEL GUIDE 46 The Perfect Sanctuary for Body & Soul – Banyan Tree The tranquility of resorts in Vietnam, Shanghai and Thailand

48 Travel on Your Own Terms

COVER STORY

08 US Economic Engagement with Asia-Pacific US Under Secretary of State Robert Hormats speaks to AmCham about US policy in the region

10 China, Freedom of Information and the TPP Robert Hormats in an interview talks about bilateral relations with China and trade treaties

HUMAN CAPTIAL 28 A Global China: How Do You Win in a War for Talent?

Speakers and panelists engage in lively discussions on talent management in the China market

32 Lead Your Employees by Purpose

AVIATION

How employee engagement creates a better chance of survival in difficult economic times

12 Building the World’s Leading Airline President and CEO of United Jeff Smisek shares his insights on the changing air travel industry

HOSPITALITY & TOURISM 16 Cruise Tourism Set to Take Off Hong Kong Tourism Commissioner Philip Yung outlines the progress of the new Kai Tak Cruise Terminal

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TRADE & INVESTMENT 34 Prospects of US Fine Wine in China The challenge of tapping into China’s wine market

38 Green Program Runs a Good Course Exporting US green technologies to China under GEEP

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Free and Independent packages of CX Holidays suit a variety of taste

51 Micronesia: The Last Frontier of Exotic Tropical Experience Paradise-like islands along the Pacific carved out for sun-seekers

54 Off the Beaten Trail Country Holidays for adventure and happiness in the wilderness of earth

56 Plan Your Dream Holiday – Cruise Travel A cruise vacation opens the door to every corner of the planet

58 Skiing – The King of Winter Sports Taking part in outdoor recreational pursuits on snow and ice

AMCHAM PUBLICATIONS 64 2012 Index of Articles A guide to articles on business issues published in biz.hk

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Chairman’s Memo

Board of Governors Chairman James Sun Vice Chairman Richard Weisman Treasurer Peter Levesque Executive Committee Janet De Silva, Frank Lavin, Anita Leung Philip Leung, Belinda Lui, Alan Turley Governors Evan Auyang, Sara Yang Bosco, Brian Brenner, Tom Burns, Walter Dias, Rob Glucksman, Toby Marion, Thomas Nelson, Andrea Richey, Colin Tam, Elizabeth L Thomson, Frank Wong, Shengman Zhang Ex-Officio Governor President

Robert Chipman Richard R Vuylsteke

Chamber Committees AmCham Ball Apparel & Footwear Business Briefing China Business Communications & Marketing Corporate Responsibility

Rex Engelking Andre Leroy Donald Meyer Frank Wong Susan Reingold Robert Grieves

Energy Dominic Yin Entrepreneurs/SME Donald Austin Environment Bradley Punu Financial Services Catherine Simmons Brock Wilson Food & Beverage Hospitality & Tourism Human Capital Information & Communications Technology Insurance & Healthcare

Veronica Sze Damien Lee Janet De Silva Peter Liu

Rex Engelking Owen Belman Hanif Kanji Intellectual Property Gabriela Kennedy Amy Lee Law Clara Ingen-Housz Pharmaceutical Stephen Leung Real Estate Alan Seigrist Senior Financial Forum Alvin Miyasato Senior HR Forum Jacqueline Algar Sports & Entertainment Raymond Roessel Taxation Evan Blanco Trade & Investment Patrick Wu Transportation & Logistics Brian Miller Women of Influence Jennifer Van Dale Young Professionals Sherry Lin

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Dear Fellow Members: In my last Memo, I wrote that I would report to you on our mid-November Beijing Doorknock. As leader of the delegation, I am pleased to say that this Doorknock trip was our most fruitful and productive one since we re-started the annual visit three years ago. For two packed days in Beijing, we arranged nearly a dozen meetings with senior Central Government officials, think-tank leaders, and business executives. We were particularly pleased that we had the opportunity to meet with many top-ranking officials including Guo Shuqing, Chairman of China Securities and Regulatory Commission; Zou Yong, Deputy Director General of the Department of Regional Economy, National Development and Reform Commission; and US Ambassador Gary Locke.

You will find a full report of our Doorknock trip in this issue, but I want to highlight that our discussions were truly open, candid, and substantial. The topics included Hong Kong competitiveness, internationalization of the Chinese currency, business opportunities under China’s 12th Five-Year Plan, and US-China economic relations, just to name a few. I would like to specially thank all our delegation members who took time out of their busy work commitments to participate and also contribute their professional expertise to make this delegation visit a success.

biz.hk 12• 2012

The Beijing visit takes on even greater significance when I connect it with two other key advocacy initiatives – our Washington Doorknock in June and our meetings with senior government leaders in Hong Kong. This “triangular” relationship is not one-dimensional but multi-faceted. By building rapport over time with decision-makers and relevant stakeholders across all three areas, we continue to position ourselves as a knowledgeable and trusted partner. This is a familiar role for AmCham. We played key roles in the past on major issues like China’s accession to WTO and Hong Kong’s reunification with China.

Through these visits, we demonstrated that we stand by our past commitments and seek to further expand our influence.

Our discussions with government leaders in Beijing, Washington, and Hong Kong are all rooted in substantial concerns. Moreover, these are – in one way or another – related to the best interests of all AmCham members, whether they are about the quality of Hong Kong’s business environment, investment opportunities on the Mainland, or US taxation policies. In Beijing, we also took the opportunity to extend invitations to many of our hosts to speak at AmCham events, including our China Conference next year (scheduled for 10 May). Our goal again next year is to bring high-caliber and influential speakers to this AmCham signature event.

I would also like to take this opportunity to say a few words about the

biz.hk 12 • 2012

adjustment of membership dues announced early this month. While we all recognize that Hong Kong is a terrific place for doing business, it is also becoming more costly. The fact is that the last AmCham membership dues increase was almost six years ago. While every effort has been made to keep costs under control, a balance needs to be struck between maintaining and expanding our high-quality services and having the resources available to provide them. I can assure you that careful consideration has been taken to keep the increase reasonable and affordable.

One friendly reminder: We have sent you an important letter along with the Dues Adjustment notice. Please note that the letter explains how you can receive frequent flyer mileage and also be eligible for lucky draws if you renew your membership by December 31. You may also renew at the old dues rate if you renew your membership before the end of the January 2013.

Finally, I wish you a happy holiday, and a healthy and prosperous 2013.

James Sun Chairman

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New

Business Contacts The following people are new AmCham members: Amer Sports Sourcing Limited

City University of Hong Kong

LGS Hong Kong Limited

John Liu Director, Center for Transport, Trade and Financial Studies

Tracy Ho Director of Operations

Jacinta Sheahan VP & GM, Global Corporate Payments , Hong Kong & Taiwan

CLS Communication HK Ltd

Loeb & Loeb LLP

Karen Chan Business Development Manager

Lawrence Venick Partner

Banque Privee Edmond de Rothschild S A

Conference Board Inc, The

Management Development Services Ltd

w w w. a m c h a m . o r g . h k

Darcy Mercier Vice President, Sourcing - Apparel & Gear

American Express

Jimmy Chow Director

Birdie International Limited John Zendano Owner

Over 500 pages in three major sections, including a complete guide to chamber services, corporate sponsors and AmCham Charitable Foundation. This directory lists over 1,800 members from over 700 companies and organizations.

Bloomberg LP

ISBN 978-962-7422-18-1

C & A Sourcing

LC 98-645651

Kate Wheatley Head of HR, APAC

Alice Lee Council Manager

Cook Medical Anthony Wilkinson General Manager

DLA Piper Hong Kong

Cathay Pacific Airways Ltd Odette Umali Learning and Development Executive

Citi Oliver Goh Intermediary Client Executive Head

Citibank NA Kenneth Hammond Vice President, Regional Operations, Citi Realty Services - Asia Pacific

Oracle Systems Hong Kong Limited Catherine Wong Sales Director, Systems Sales Sylvia Lee Managing Director, Hong Kong

William Marshall

FXCM Asia Limited Elsa Chow Unit Leader, Human Resources Jeffrey Birtwistle Unit Leader, Quality Safety Management Angel Hung General Manager Christian Brenninkmeijer Unit Leader, Finance, IT, Logistic, Integrity Andrew Turner Unit Leader, Quality Assurance Sourcing Jeff Macho Chief Sourcing Officer

Robin Ball Managing Director

Siju Daniel Managing Director

Google Inc Vaishnavi Jayakumar Policy Associate Andy Yee Government Affairs Manager

Hong Kong University of Science & Technology Yan Xu Associate Dean

Pfizer Corporation Hong Kong Ltd Andy Wan Compliance Officer

S. Goldberg & Co., Inc Jonathan Spearman Director

Startex Education Soner Tarim President

Tradecard Asia/Pacific Ltd Andy Ng Vice President, Business Development

Hongkong International Theme Parks Ltd George Gross Chief Financial Officer

UniGroup Worldwide - Hong Kong Ltd Joseph Lai Manager of Customer Delivery

ISG Catherine Sylvie Hermant Account Manager

KPMG

Zurich Insurance Group (HK) Keith Thomas Global Corporate CEO, Asia Pacific

Frederico Barros Director, IT Advisory

View our other members at:

http://www.amcham.org.hk/index.php/AmChamMembers.html

biz.hk 12 • 2012

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COVER STORY

US Economic Engagement with Asia-Pacific Robert Hormats

On December 7, US Under Secretary of State Robert Hormats paid a special visit to Hong Kong. Speaking to an AmCham audience of about 100 at the Bloomberg office in Central, Hormats outlined US policy on economic engagement with the Asia Pacific region

By Daniel Kwan

S

oon after his re-election, President Barack Obama spent a week in November visiting Southeast Asia countries, including Thailand, Cambodia, and Myanmar. The general consensus was that the President’s visit – his fourth to Asia in as many years – was made to underscore his “pivot to Asia” or “rebalancing” of America’s foreign policy to the Asia-Pacific.

That message was reinforced on December 7th by Under Secretary of State Robert Hormats when he visited China and Hong Kong. Hormats half jokingly told an AmCham audience in a late Friday’s gathering that his frequent flyer miles – he had made six trips to the region in the past nine months – testified to the level of commitment of the US government.

Says Hormats: “President Obama and Secretary [Hillary] Clinton signaled in a large number of speeches America’s foreign policy shift toward Asia, really beginning about four years ago by focusing more attention on the Asia Pacific

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region….This is a reflection of, and a response to, the dramatically changing nature of the global economy and of the enormous role Asia is playing in that dramatic change.”

Hong Kong was the final stop of Hormats’ latest China tour – the 10th in his capacity as Under Secretary of State for Economic, Energy, and Agricultural Affairs. Just before arriving in Hong Kong, he was the keynote speaker at US Ambassador Gary Locke’s first Ambassador Investment Forum in Beijing. The Beijing forum - which was jointly organized by the Embassy, the American Chamber of Commerce in China, the US Chamber of Commerce, and the Chinese Council for Promotion of International Trade (CCPIT) - was attended by more than 150 Chinese top investors and US state and city representatives.

Collaboration with China Carrying on from the investment theme in his Beijing speech, Hormats

said in Hong Kong that while there are differences between the US and China on issues such as intellectual property rights, market access, and state-owned enterprises, there are much room for the two countries to collaborate closely. “[T]his is an important point to make – that when we look at China’s Five-Year Plan, there clearly are elements there that are designed to improve the Chinese economy, make China a more harmonious economy, make China a more balanced economy,” Hormats said.

“But if one looks more deeply at this, there are a number of things that China wants to do, a number of China’s priorities, that can increase opportunities for closer collaboration between our two countries, and particularly, between the American business community and Chinese companies and the Chinese government,” he added.

These opportunities cover areas such as healthcare systems, clean energy, and environmental protection technology – sectors in which US companies are market leaders. In

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addition, both countries can also carry out dialogue in areas like food security and undertake programs to strengthen the roles of small- and medium-sized enterprises.

While the Chinese market presents vast opportunities, Hormats cautioned that China would shoot herself in the foot if the government imposed restrictions over the sourcing of technology to promote the so-called “indigenous innovation” by Chinese domestic enterprises. “[T]he bottom line is that while we will press for specific changes that benefit our economic interests, American economic interests, we will also look for broader areas of common interest with China where we can develop the interests of China and the United States together, and we believe there are a growing number of opportunities for doing that as well,” he said.

“This is, I think, going to be a very important part of Chinese-American collaboration – to identify areas where we, as the Chinese call it, can engage in “win-win” solutions – solutions that enable China to achieve its goals but also enable the United States and China to work together on goals that benefit both of our economies. We see this as a hallmark of progress in the future if we can engineer the kinds of dialogues that we think we can in order to focus on these common mutually beneficial objectives,” he added. (For more of Hormats’ comments on China, see sidebar)

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Asia links On the US’s relations with ASEAN, the Under Secretary pointed to the November visit to Asia by the President and Secretary Clinton as well as fast-growing of trade as proofs that the Obama administration is focusing much of its attention on strengthening economic ties with ASEAN. According to Hormats, US exports to the ASEAN countries together last year exceeded US$76 billion, up 42 percent since 2009.

This makes ASEAN the sixth largest destination for US exports after the EU, Canada, Mexico, China, and Japan.

A highlight of Hormats’ speech was on Myanmar (or Burma). In July, the Under Secretary led the highest level US government economic mission to the country in the last three decades. While confirming Myanmar presented enormous opportunities, Hormats made it clear that the country still had a long way to go to recover from decades of economic isolation.

“There is still much work to be done.

And it is critically important that US companies undertake the due diligence required in such a complex political and social environment before investing there.

But together, the US government and the US business community can further engage [Burmese] President Thein Sein’s government, his ministers and his senior officials, and the private sector, and others in Burma in a way that promotes both US economic interests in the region and the ongoing reform process in that

country,” Hormats said.

In explaining the US’s efforts to strengthen economic ties with Asia-Pacific countries, Hormats added that lowering trade barriers was one of the US government’s goals and that it was determined to enter into more foreign trade agreements with countries in the region. In addition, the US is actively participating in a wide variety of regional institutions and fora such as the East Asia Summit, US-ASEAN Business Forum, Asia-Pacific Economic Cooperation (APEC), the Lower Mekong Initiative, and the Asian Development Bank in order to engage in discussions and cooperative projects with its regional partners and allies.

Using KORUS, the US-Korea Trade Agreement, as an example, Hormats said trade deals like this gave strong boosts to exports and helped create jobs at home and abroad. “This FTA also is supporting job-creating investment by Korean firms in the United States, such as a Korean auto parts manufacturing investment, which was quite substantial, in fact, $50 million in a facility in Alabama.

And the successful US-Korean FTA renews our determination to lower barriers to trade and enhance opportunities for investment throughout the Asia Pacific region,” he told the audience.

TPP and Hong Kong Hormats defended the much debated Trans Pacific Partnership (TPP) saying the pact meant much more

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China, Freedom of Information and the TPP The following is a summary of an interview with the Under Secretary and the Q&A session with the audience after Mr Hormats delivered his speech:

James Sun and Robert Hormats (right)

than boosting economic growth.

Through the TPP, the US’s goal is to set “21st century standards” that other economies may emulate.

“Our goal is not simply to create more growth, as important as that is, it is also to foster better, more responsible, and more sustainable growth by also establishing strong protections for workers and for the environment. Better jobs with higher wages, safer working conditions – including for women, migrant workers, and others often excluded or marginalized in many economies – will help build a sounder foundation for future prosperity and social harmony,” Hormats said.

“Our optimism on TPP is largely based on what we’ve seen to be the continued development of Asia Pacific economic cooperation in APEC and in other fora. We think this is part of a broader effort and we’re optimistic that it will achieve results,” he added.

The Under Secretary also specially referred to Hong Kong in his speech saying the city can play a partnership role to the US in APEC. He highlighted the city’s credentials with its open trade and rule-based system that gives Hong

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Kong a powerful position in regional discussions.

“Among the economies of APEC, Hong Kong’s role is very substantial and very powerful, because it’s based on principles, it’s based on practice, it’s based on a commitment to the rule of law, and therefore, Hong Kong’s voice is a very robust one when it comes to trying to shape the rules of global trade in the region, particularly the utilization of APEC as a forum for discussing ways in which the rules and the practices of this region can evolve in a constructive way,” he explained.

On cooperation in APEC, Hormats identified three areas that – if left unchecked – could adversely affect the economies in the region. They are the prevalence of counterfeit pharmaceuticals, trafficking of wildlife parts both into and within Asia, and the restrictions on food exports by individual countries.

Again, he underscored Hong Kong’s unique importance: “I also want to within the context of the wildlife issue to single out Hong Kong for its major efforts that it has made to stop illegal trade in ivory and rhino horns through very active seizures in this area.”

Business community In summary, the Under Secretary emphasized the contribution the business community can make and how economies in the region can benefit through cooperation.

“In all of the areas of economic engagement I’ve mentioned – whether key bilateral relationships or the emerging importance of multilateral institutions such as APEC – the bottom line is that this engagement can create jobs in the United States and in all of the partner countries engaged in this process.”

“And at the center of this, as I said at the outset, is the business community.

The business community has been the vanguard of this effort. And if all these efforts are to move ahead and succeed, it is going to be the business community which is going to have to be the most dynamic factor in this process,” he said.

“And I think, and I’m hopeful, that that will be the case. We as a government want to encourage continued cooperation with the business community, and we want to provide a maximum amount of support.”

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Q: How would you describe the current state of relations between China and the US? Hormats: The economic relationship is quite good. We have a JCCT (Joint Commission on Commerce and Trade) meeting coming up. We have down the road a meeting of the S&ED (Strategic and Economic Dialogue). There are great opportunities for the US and China to work together. There are a number of economic issues that are very important that have to be addressed: intellectual property, trade secrets, protection of some sectors of the Chinese economy against foreign investment in those sectors. But we also see many opportunities in their 12th Five-Year Plan. China wants to pay attention to environmental issues, improving the service sector, dealing with health issues, food safety and food security – a wide range of things. We think there are good opportunities.

Q: During your recent visit to China, have you heard complaints from the Chinese side about the difficulties Chinese companies face in investing in the US? Hormats: The Chinese officials want to understand better some of the regulations, rules, and procedures in the United States. Chinese companies have invested in the US. For example, Haier made a big investment in the US as you know.

CNOOC and a number of companies have made big investment. I don’t think there are any major impediments. I think that as more Chinese companies get used to investing in the US, there will be a learning curve and Chinese companies will move up on the learning curve.

The Committee on Foreign Investment in the United States or CFIUS is a very small part – [it represents] a sliver of the amount of Chinese investment that have come into the US. A lot has been

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made of CFIUS but it’s only a very small portion of what’s actually come into the US. I don’t think that people should dwell on that or be overly preoccupied by CFIUS. So a lot of investment has come in and I expect a lot more will come in.

Q: You talked about regional connectivity in your speech. Can you comment more on that? Which governments in the Asia-Pacific you think are really taking great steps in improving connectivity and communications?

Hormats: It’s hard to pick one but if you press me, I would say South Korea.

South Korea has been extremely effective in broadening the percentage of population that benefits from various kinds of connectivity and information exchange. Virtually every kid in South Korea has access to a huge amount of information. They have done very well.

With the profusion of cell phones all around the region, a lot of people gather information utilizing cell phones or 4G technology. It is a growing opportunity – not just for big companies but for small and medium-sized enterprises too because it gives them access to information that they otherwise would not get.

There are parts of the region where people don’t have access to modern technology but the numbers are increasing very dramatically. There are more netizens in China than the citizens in the United States. It just gives you a sense of the magnitude the changes that are going on.

We as a country were founded on the notion of freedom of information, the ability of people to connect with one another, and the free flow of ideas. We think it’s helpful from an economic point of view and also for the society because people can communicate. It’s very hard to sever the Internet. There

are those who believe that you can cut one part of the Internet off because there are certain things that you don’t like to be transmitted over the Internet that also has the other parts be open and thriving and allow the flow of information that you don’t mind being transmitted. It’s very hard to do that.

There is one Internet. If you start interfering excessively in the flow of information, it can be very harmful to the ability of people to do business, the ability for scientists to collaborate around the world, the ability of innovators in one country to connect with innovators in another country to develop new ideas. This flow of information to want more and more people in an unfettered way is not only a socially important objective but is also important to dynamic growth.

Q: What’s so special about the TPP compared with other trade treaties?

Hormats: The whole idea [behind TPP] is to increase opportunities for expanding trade but also to set higher standards. The idea behind the higher standards was first of all to improve sustainability of economic growth by having more people contributing and therefore more people participating.

Two it will enable to deal more effectively with environmental issues.

Three, it will add transparency. We think this is good for businesses in general because it will ease the ability of businesses to trade and to invest throughout the region, and to avoid distortion.

For instance, one element is state enterprises. What we are concerned about are that there are state enterprises that from time to time – in some cases, quite substantially – receive inordinate benefits from their governments either in financial support, exemption from anti-trust rules, or other measures that give them artificial competitive advantage in international markets and in their own domestic market. This puts them in an advantage vis-à-vis private sector companies that don’t receive these artificial incentives.

All that we are asking for is a level playing field.

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AVIATION

Building the World’s Leading Airline United’s Response to a Changing Air Travel Industry The merger of United and Continental two years ago has created the world’s largest airline by number of destinations and scheduled passenger-kilometer flown. A target of 2013 has been set to bring the two airlines – each with a different set of culture and values – into one single entity. Jeff Smisek, President and CEO of United Continental Holdings Inc, shares his insights on the challenges of building – not just the world’s largest – but the leading airline Jeff Smisek

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n late 2010, US-based airlines Continental and United merged to become a single air carrier, bringing together two networks of air travel, with very minimal domestic and no international route overlap, to form an extensive route network of over 5,000 daily flights to 372 airports on six continents with non-stop or one-stop service from “virtually anywhere in the United States.”

One single entity “Bringing two airlines together is

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By Kenny Lau

unlike any deal I ever worked on,” Jeff Smisek, President and CEO of United Continental Holdings Inc and also an experienced lawyer in merger & acquisition deals, said at a recent AmCham luncheon in Hong Kong. “It is a lot more complex and time-consuming than I’d ever imagined it would be.”

“It takes literally years to bring airlines together,” he says, highlighting the sheer scale of complexity of the merger. “Not only are you merging technology platforms, facilities and fleet but you are merging people and cultures. It is particularly difficult in

this industry because airlines tend to have a lot of pride in their past, because they tend to be very difficult businesses, and because they tend to lose money, lots of it.”

The goal of the merger is to create a business as opposed to running an airline, Smisek stresses, noting a business model in which airlines in the past have typically priced below their cost and tried to make it up on volume.

“Airlines have never been a business and have never earned in excess of their cost of capital…That is not a good business plan.”

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“The first thing we need to do is to operate a business,” he says, adding that airlines in recent years have emerged meaner and leaner as a result of industry-wide consolidation and capacity discipline of individual carriers. “US carriers are making money today at the same fuel prices they were losing huge amounts of money in 2008. That’s because we’ve learned to better match capacity to demand.”

Continental and United operationally remain two separate airlines with very little crossover, due to a number of technical reasons and partly because of existing contracts and other labor agreements made prior to the merger.

They are scheduled to become a single legal entity some time in 2013, after more than two years of intense preparation where there has also been some “teething” problems.

“This year was a tough year: a

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tough year for you as a customer and a tough year for our co-workers, because of the integration,” Smisek acknowledges. “While we have done most of the heavy lifting, it is never easy to merge two large airlines’ operations, technology systems, loyalty programs, websites and apps seamlessly; and it often creates inconvenience to customers.”

“We had unacceptably bad operational performance this summer and we are fully aware of that,” he says. “By the end of August, we were able to get our operations back on track, and today we are exceeding our on-time goals for both domestic and international performance.”

Asset management One of United’s key focuses down the road is better asset management, Smisek adds. “This is a business that

has been under-invested for too long.

Hong Kong, for example, has suffered the brunt of that many times because some of our Boeing 747-400 aircraft have not been very operationally reliable. We are now fixing that.”

All of United’s remaining 747s will soon be an exclusive aircraft type deployed only for routes in and out of San Francisco, where maintenance will be streamlined to become more efficient and cost-effective, thus providing higher dispatch reliability of the four-engine fleet; in the meantime, global satellite-based WIFI systems will be installed in about 300 mainline aircraft (including the 747s) in 2013 and another 400 in 2014, for better customer experience onboard.

United will also be taking delivery of a large number new airplanes and retiring the old ones, including 50 brand new Boeing 787 dreamliners and 25 Airbus A350s, in addition to a recent

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order of 50 Boeing 737-900s and 100 Boeing 737 MAX. “You will see those investments in 2013 and beyond as they start to come in,” Smisek points out. “And you will see us continuously invest in not only our products, whether it is WIFI, airplanes or technology, but also our co-workers on things or places that you rarely get to see, such as a healthcare facility in Chicago where our co-workers can get healthcare right at the airport.”

Customer service Hardware, he says, is only half of the equation to the success of an airline. “Our 787s, fitted with flatbed and economy plus seats, where you get higher humidity and more oxygen to make people feel better are clearly a superior product, but we’ll also need to make sure that we consistently deliver reliable, good service.”

“You can be on a brand new airplane flying on time and still be miserable if you encounter an agent or flight attendant who is not very courteous or helpful,” he reasons.

“You can be on a older airplane that might even be late and still have a

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good flight if you’ve got people who are at the airport empathetic trying to solve your problem and flight attendants who are friendly.”

“At United, we are focusing on our operation and reliability, but none of it will matter if we don’t provide good customer service,” Smisek believes.

“We don’t care about being the world’s largest airline if we can’t deliver service; we happen to be the world’s largest but what we want is to be the world’s leading airline. That’s why we are spending so much time and effort on improving our customer service.”

To shorten the time it takes for customers to go through an airport and be onboard an airplane, United will focus heavily on automation and customer self-service to make the check-in process as “slick and fast” as possible through technology as “most travelers just want to get on the plane” without having to deal with someone at the airport.

“You bet we can” Nevertheless, frequent travelers often believe Asian airlines are far more superior to their American

counterparts in terms of service, a competition in which US carriers are simply falling behind. It is an issue to which Smisek is not hesitant to respond. “Right now are we as good as Asian carriers in service? No, we are not. I will admit that. But can we get there? You bet we can.”

“One of the things that US carriers have failed to do is to actually enforce customer service standards,” he explains. “It can be done; it just takes the will, focus and personal responsibility and accountability of co-workers to deliver that level of service, and you have to give people the tools and training they need.

“Cultural change takes time but you can do it by being direct, open and honest with your co-workers, listening to them, inspiring them, treating them with dignity and respect, and actually doing what you say you’ll do.”

“Are we there yet? No, not even kind-of,” Smisek speaks frankly. “But we are making good progress, and we will get there…we are going to get there on the quality of our product and service and making sure we are operationally reliable and we get you where you want to go on time and safely.”

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HOSPITALITY & TOURISM

tourism industry,” Yung says, noting cruise travel is becoming very popular in the Asia Pacific region. “Our aim is to have Hong Kong as one of the cruise hubs in this part of the world.”

The new Kai Tak Cruise Terminal will be complementary to Ocean Terminal, which can accommodate small- to medium-sized vessels and is centrally located in the major shopping districts of Tsim Sha Tsui, he adds.

“The two cruise terminals will go hand in hand together, and with Kai Tak we will be able to accommodate the largest cruise ships in the world.”

“With the new Kai Tak Terminal and expansion planned for Ocean Terminal, we are well placed to provide even better service to cruise lines and passengers, reinforcing our position as a key travel destination in Asia Pacific,” Yung says confidently.

Timeline Photo: Thinkstock

Cruise Tourism Set to Take Off The commissioning of the first berth of Kai Tak Cruise Terminal next year will be an important milestone in the development of cruise tourism for Hong Kong. Tourism Commissioner Philip Yung shares his thoughts about the directions of the industry in an interview with biz.hk

By Kenny Lau

T

he Kai Tak Airport, decommissioned in 1998 and once a strategic gateway of air travel renowned for steep-turn flight approaches over Kowloon City, will once again be “a very important element in Hong Kong’s tourism portfolio.”

The Government in October 2006 announced a plan to develop a new cruise terminal (one of the 10 major infrastructure projects highlighted in the Policy Address in 2007) at the southern end of the former Kai Tak

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runway in an area of about 7.6 hectares, at an estimated development cost of about HK$2.4 billion (at 2006 price level).

“This will be a very important milestone in the development of Hong Kong’s cruise tourism,” Commissioner for Tourism Philip Yung says in an exclusive interview with biz.hk.

“The project has been progressing very well, and construction is now in full swing. Our plan is to have the terminal building and the first berth to be commissioned in mid-2013.”

The overall progress of construction

of the new cruise terminal is satisfactory, Tourism Commission states in a report to the Legislative Council in October. The concrete platform of the first berth is almost done; preparatory works for passenger gangways at the first berth started in September, while reconstruction of seawall and apron for the second berth are in progress.

Structure of the terminal building itself is near completion and constructions inside are underway.

“We are trying to make every effort to make sure cruise tourism will be an important part of Hong Kong’s

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The Government initially invited tenders in an open bid in November 2007 for the development of the new cruise terminal at Kai Tak and anticipated operation of the first berth by February 2012, for which an operator was to “design, build and operate” the new facility on a 50-year term.

However, submissions of the time were “rejected” due a lack of conformation to certain requirements under their proposals.

Instead of relying on a third-party to fund the construction of the project, the Government in late 2008 took a different approach and “proceeded to fund, design and build the new cruise terminal,” which will be leased to a cruise terminal operator upon completion.

The Legislative Council gave the “go-ahead” in 2009 and construction work is now scheduled for completion by the end of 2015, with a target of having the first and second berths commissioned in mid-2013 and 2014 respectively. Construction of the cruise terminal building and other facilities was approved in April 2010.

In early 2011, tenders were invited “for the tenancy of operating and

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managing the new terminal.” Operators of the new cruise terminal will be responsible for “traffic arrangements within the transportation area, security arrangements, tenancy of the ancillary commercial area, and promotion of the cruise terminal, apart from arranging the berthing of cruise vessels as well as embarkation and disembarkation of passengers.”

The lease of the new cruise terminal will be on a 10-year term initially, with an option to extend for another five years; and thereafter is another open tender for leasing the facilities.

Worldwide Cruise Terminals Consortium (WCT), a joint venture between Worldwide Flight Services, Royal Caribbean Cruises Ltd and Neo Crown (of Shun Tak Holdings), has been awarded the right to operate the new terminal.

“These are all leading brands and are very experienced in running commercial premises,” Yung notes of the newly formed consortium. “The three together with their background, experience and professional knowledge, will be an effective and efficient operator of the new terminal.”

Outlook The new Kai Tak Cruise Terminal will be a state-of-the-art facility to meet rising demand of the cruise travel industry and is poised to form the backbone of Hong Kong’s cruise tourism together with Ocean Terminal. The Tourism Commission, along with Hong Kong Tourism Board (HKTB) and other key industry stakeholders, are now focusing on sources of prospective passengers, Yung points out.

“Our strategy is two-fold: One is the tourists from Mainland China, particularly in the southern part of China, given the proximity and a huge population with rising living standards; the other is what we call fly-cruise passengers from places further away from Hong Kong who would fly in and connect onto a cruise ship here for destinations in Mainland China or Southeast Asia.”

Philip Yung

In particular, HKTB has launched a “co-op” marketing fund on a “50:50 basis” to encourage cruise lines to make use of Hong Kong as a part of cruise travel itineraries through strengthened marketing and advertising activities, while an industry forum for cruise line executives and itinerary planners, representatives from neighboring ports and the travel trade, with a focus on itinerary development and regional cooperation, is being organized for January 2013.

“It is a part of our preparation for the commissioning of the new cruise terminal and an important step to facilitate the development of cruise tourism in Hong Kong,” Yung says of the January forum. “The aim is to look at the future direction of cruise tourism and what role Hong Kong can play in the development. We will also take the opportunity to showcase Hong Kong as a cruise hub and what kind of excursions we can offer to passengers during their stay here.”

Earlier in the year, representatives from Tourism Commission, HKTB and WCT met with a number of major cruise companies at the annual Cruise Shipping Miami Conference “to explore the possibility of enhancing their ship deployment to Hong Kong.”

In September, HKTB Executive

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Director Anthony Lau told an audience of over 200 delegates about Hong Kong’s new cruise terminal development and local major attractions at the Seventh China Cruise Shipping Summit in Tianjin.

“The rising demand for cruise travel from the Mainland is something that no cruise operator should overlook,” Yung said at the Third Seatrade All Asia Cruise Convention in Shanghai also in September, noting more than 500,000 Mainland visitors taking cruises from Hong Kong’s port in 2011 alone. “The number of cruise ships received by the ports on the Mainland has increased by 17.5 percent in 2011, reaching over 260 calls.

“We are keen to see more cruise operators catch this trend and deploy more ships to the region. Being a regional cruise hub, Hong Kong definitely stands to benefit from the growing demand for cruise travel on the Mainland.”

Source market Mainland tourists are now Hong Kong’s largest source market, making up about two-thirds of the total visitor arrivals in 2011, Yung points out, highlighting on-going discussion with Mainland authorities on development of cruise itineraries and a recent announcement that Mainland tour groups on cruise travel from Hong Kong to Taiwan can visit Japan or Korea in the same cruise journey before returning to the Mainland.

“This is a very important step because an increasing number of Mainland tourists are now looking to visit a lot of other places as well,” he says, adding that a number of measures are already in place to facilitate the development of Hong Kong’s travel trade under Closer Economic Partnership Arrangement (CEPA) including one that allows local travel agencies to operate outbound tours from Mainland to places other than Hong Kong or Macau.

Mainland China is undoubtedly an important market but other markets would not be neglected, Yung

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Photos courtesy of Hong Kong Tourism Board

stresses. “What we want is a diversified tourism portfolio, and we attach great importance to attracting visitors from other places as well… both India and Russia are prime examples,” he says. “In fact, 70 percent of HKTB’s marketing budget is spent on nonMainland markets; and within the Mainland market, we are now focusing more on second-tier provinces and cities.”

Equally important, Yung adds, is “developing new shore excursion programs featuring Hong Kong’s mega events and other attractions in partnership with cruise companies and shore excursion operators” and “upgrading hospitality programs for cruise visitors to enrich their experience in Hong Kong.”

“East Kowloon, for example, is an interesting area with its traditional characteristics; Kowloon City has a

number of traditional shops; Lei Yue Mun is a fishing village famous for seafood,” he points out. “These are possible places where land excursions can cover and are all very close to the new cruise terminal.”

“We have to first make sure that operation of the new Kai Tak Cruise Terminal is smooth and that it provides high quality service to passengers, then we can offer interesting itineraries to passengers,” Yung says. “And it will take some time for a new terminal to establish its position and to win confidence from cruise lines.”

“Tourism will continue to be a major driver for the Hong Kong economy,” the Commissioner adds.

“We welcome all visitors, whether they come from Mainland China or other places, because Hong Kong is a friendly city.”

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BEIJING DOORKNOCK

Knocking on Doors in Beijing

Li Bo (second from right)

November was a special month. A new leaf was turned as both China and the United States elected their new leadership, and soon thereafter a team of senior Hong Kong-based business executives – led by AmCham Chairman James Sun – arrived in the Chinese capital for the Chamber’s annual Beijing Doorknock. The following is a summary of the visit

By Daniel Kwan

N

ovember 19-20, Beijing.

This was the third year of AmCham Hong Kong’s reinstated “Doorknock” trips to Beijing. Similar to the Chamber’s annual Washington Doorknock trips each June, the goal in both cases is to bring senior AmCham executives into face-to-face discussions with senior government officials who have responsibilities for government policies and specific decision-making for their business sectors. Each trip “knocks on officials’ office doors” and the effort in Beijing was rewarded this year with 10 excellent meetings (see box on p23).

“Once again our delegation was drawn primarily from the financial services sector,” says AmCham Chairman James Sun, who led the 17-member delegation to Beijing (see

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box). The Doorknock group also included high-tech, media, and energy sector representation.

The delegation’s talking points focused specifically on China-Hong Kong issues, especially goals found in China’s 12th Five-Year Plan.

“We wanted to exchange views about Hong Kong’s current and future roles in achieving the Plan’s objectives, and we were pleased that all our meetings were very animated,” Sun says.

“The Chinese officials truly engaged us in candid discussion. We learned a great deal about their expectations for China’s continued reform and internationalization. We also explained how AmCham member companies were interested in helping China companies go global, as well as assist with service industry development in China through gaining more market access,

especially in South China.”

Originally scheduled in March, the Doorknock visit was postponed to the fall, taking into account the leadership changes underway this year in China, the US, and Hong Kong. But being able to knock on the right doors at the right time was a difficult call, as the exact dates of the 18th National Congress of the Chinese Communist Party where the new leadership was elected were not announced until late October. “We were fortunate that we placed our bets correctly,” Sun says.

The two annual Doorknock visits – AmCham’s signature advocacy initiatives – are in fact closely linked. By visiting policymakers in both Beijing and Washington, the Doorknock teams – made up of Chamber leadership and experts on strategic issues – bring Hong Kong perspectives on specific

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issues to the table. The engagement has proven to be useful and productive. In Washington this past June, the Doorknock team packed 35 meetings into five days. Thanks to the assistance of the China Council for the Promotion of International Trade (CCPIT), the same efficiency was repeated in Beijing with over 10 meetings scheduled in two days (notwithstanding Beijing’s userunfriendly traffic).

New doors knocked Taking a page from the Washington Doorknock game plan, this year’s Beijing delegation also scheduled visits to two influential think tanks in order to cultivate on-going communication links throughout the year on selected issues. The delegates visited

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the Development Research Center of the State Council and the China Center for International Economic Exchanges. The former is a longestablished research body dedicated to the study of long-term economic and development policies, and the latter is a respected financially independent think tank set up by former VicePremier Zeng Peiyan to advise the government on issues such as globalization and to undertake special consultancy projects.

The delegation also met with officers of the National Development and Reform Commission, which in many ways combines think tank activities and actual implementation actions in China. “We were especially pleased to meet with the NDRC and the think tanks this year,” Sun says. “We encouraged their officers and scholars to contact AmCham when they visit Hong Kong so that we can set up roundtable discussions here with our members.”

As in previous visits, the Doorknock delegation visited the US Embassy and was honored to meet with US Ambassador Gary Locke and members of his country team in a roundtable discussion. Locke, who has often interacted with AmCham

2012 AmCham Beijing Doorknock delegates James Sun, Managing Director, Charles Schwab, Hong Kong, Ltd Richard Vuylsteke, AmCham President Philip Leung, Managing Partner, Commence Technology Partners Belinda Liu, Managing Director, Public Policy, Asia-Pacific, Time Warner Inc Colin Tam, Executive Chairman, Crystal Vision Energy Limited Alan Seigrist, Chief Financial Officer, The Executive Centre Catherine Simmons, Head of Government, Regulatory and Industry Affairs – Asia Pacific, State Street Bank and Trust Co Brock Wilson, Vice President, Private Bank, Credit Suisse Leland Sun, Managing Director, Pan Asian Mortgage Company Limited Lili Zheng, Managing Director, Co-leader and US Tax Services, Deloitte AP ICE, Ltd Lisa O’Connor, Initiative Director, Asia Pacific, SWIFT Mark Austen, CEO, Asia Securities Industry and Financial Markets Association Ltd Danny Yiu, Tax Partner, Financial Services, PwC Beijing Matthew Hosford, Managing Director, Chief Risk Officer, Banco Santander SA-HK Branch Daniel Kwan, Editor-in-Chief, AmCham William Lin, China Affairs Manager, AmCham Dickson Lai, China Affairs Executive, AmCham

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Hong Kong, both in Beijing and Hong Kong (when he was US Secretary of Commerce), gave an update of economic developments in China and highlighted a number of initiatives under way to facilitate Chinese investment in the US. The lively discussion also covered IP protection, market access for US companies, and Hong Kong’s regional role.

“The Beijing Doorknock’s special objective – to understand Hong Kong’s opportunities under China’s 12th Five-Year Plan and the benefits for businesses here – was driven home by the strong group of financial services industry executives participating this year,” says Richard Vuylsteke, AmCham president.

“Financial reform, internationalization of the Chinese currency, and Shanghai-Hong Kong financial roles all figured prominently in our discussions. We were fortunate to meet some very prominent officials who spoke directly to these issues.”

It was especially encouraging when the delegation learned soon after its arrival in Beijing that its request was granted to meet with Guo Shuqing, Chairman of China Securities Regulatory Commission. The meeting was particularly engaging, as Guo briefed the delegation on China’s securities industry and shared his insights on its future development. He assured the delegation that Hong Kong has an irreplaceable role to play as China continues reforms and further opens its financial sector. In particular, he stressed how Hong Kong can help constructively by bringing in professional assets management talent to China, where currently investment activities are denominated by retail investors.

Another pleasant surprise during the Doorknock was the meeting with Li Bo, Director General of Monetary Policy Department II, People's Bank of China. At the opening of the meeting, Li told the delegation that he knew AmCham Hong Kong very well. He had in fact been part of a student program sponsored by the Chamber 20 years previously, when he was a

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Guo Shuqing (second from right)

Long Guoqiang (eighth from left)

mentation would encourage market speculation.

Next steps

Sun Tong (second from left)

college student at Renmin University of China, and was still actively in touch with many alumni of that program. Li, who has advanced degrees from Stanford and Harvard, was highly articulate in laying out his analysis of the internationalization of the Renminbi, of Hong Kong’s roles vis-àvis Shanghai as China’s international

financial centre, and about the next steps in channeling the outflow of Chinese capital.

According to Li, one critical factor the PBoC considered in weighing its policies was whether a policy was driven by demand from the real economy. A policy would not have the Central bank’s support if its imple-

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The two days in Beijing represent a key step in a year-round program of engagement. In 2013, AmCham will follow up on many of the ideas and initiatives that were raised during Beijing meetings and work to translate them into action. Among these are targeted “mini-Doorknocks” to South China, hosting AmCham’s annual China Conference on May 10th, and continued engagement with Chinese executives who want their companies to “go global.”

“We are already working to integrate many of our activities with Invest HK and Hong Kong Trade Development Council to assist

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Chinese companies trying to invest overseas,” Vuylsteke says. “Moreover, James Sun and Philip Leung, who chairs AmCham’s China Affairs Group, have been working vigorously over the past 12 months to link with Chinese chambers both in Hong Kong and China toward the same ends. I expect the coordination to become even more productive next year.”

“AmCham’s annual Beijing Doorknock is just one part of our China agenda,” Sun says. “This year we’ve had great success with China-related events, in particular the China Conference and with our justconcluded Doorknock. Yet much more needs to be done to involve even more of our member companies and to help with their China concerns. We will work to respond and deliver.”

Doors Knocked Gary Locke, US Ambassador Long Guoqiang, Director General of Research Department of Foreign Economic Relations, Development Research Center of the State Council Xu Hubin, Secretary General, China Council for the Promotion of International Trade Sun Tong, Deputy Director General of the Department of Taiwan, Hong Kong and Macau Affairs, Ministry of Commerce Qian Lijun, Director General of Department of Exchange and Cooperation, Hong Kong and Macau Affairs Office Wang Zhaoxing, Vice Chairman, China Banking Regulatory Commission Guo Shuqing, Chairman, China Securities Regulatory Commission Li Bo, Director General of Monetary Policy Department II, People’s Bank of China Chen Yongjie, Deputy Secretary General, China Center for International Economic Exchanges Zou Yong, Deputy Director General of Department of Regional Economy, National Development and Reform Commission

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GOVERNMENT RELATIONS

early 2012. It was led by Apparel, Footwear and Textile Committee Chair Andre Leroy, AmCham Board Liaison Thomas Nelson, who is managing director and VP global product procurement at VF Asia; and was supported by Ming-Lai Cheung, AmCham’s government relations & public affairs manager.

Why Bangladesh?

Meeting at BGMEA (Bangladesh Garment Manufacturers & Exporters Association): Mr Md. Shafiul Islam, President of BGMEA (center)

Challenges to Growth in Bangladesh In mid-November an AmCham delegation of senior regional and global executives traveled to Bangladesh to meet with government officials to evaluate further business growth potential

By Richard R. Vuylsteke

“W

ant to fix Bangladesh in your mind?” says a prominent expatriate banker in Bangladesh.

“Think of Iowa. Then put half the population of the United States there.

And then have the Mississippi River flood and have a third of the population move where the other two-thirds live.

That’s Bangladesh.”

Challenging, but not all grim. The same banker says, with several other businessmen standing nearby nodding in agreement, that “the people here are

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great – friendly, good workers, and they now have a long track record of improved GDP. They want to succeed!”

One of the biggest successes for Bangladesh is its growing RMG (ready-made garment) sector, which accounts for roughly 80 percent of the country’s exports. Given the changes in recent years in China’s manufacturing environment, including challenges to lower-end RMG production, it is no surprise that many global brands and retailers are looking elsewhere in Asia to expand their investments, including Bangladesh.

Hong Kong isn’t known as “Asia’s

World City” for nothing. A case in point is AmCham’s Apparel, Footwear, and Textile Committee, where many of the members have worldwide sourcing roles in the ready-made garment (RMG) manufacturing and retail sectors. An ongoing requirement for these executives is to conduct ongoing evaluations and review processes concerning where around the world their companies should source products, invest in manufacturing, and expand or contract operations.

In response to member interest in targeting visits to alternative sites to China, AmCham planning started in

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The Committee decided to send delegations to several Asian countries in 2012-2013, under the AmCham umbrella, to meet with government officials and others concerning plans and capabilities for scaling up RMG manufacturing. The first choice was Bangladesh, given the already great importance it had to many AmCham member companies.

These brands and retailers expressed strong interest in the delegation because many of them had grown their businesses in tandem with the substantial growth in Bangladesh.

They were interested in seeing this growth continue and move to the next level of sustainable development.

Bangladesh’s garment export industry took off in the late 1970s – grounded on a century of domestic production experience – and since then has established itself as a wellknown global exporter. Although Bangladesh has annually increased its share of global RMG exports, the question is whether the country is truly ready for substantially increased investment by global brands.

One way to find out was to meet with senior government officials as well as talk with business people on the ground.

By early November, 26 companies had expressed support for AmCham’s talking points with the government. It was a strong selection of companies as they represented an estimated 30 percent of the country’s US$19 billion RMG exports.

As the Committee developed talking points, the AmCham office was coordinating with the US Embassy in Bangladesh and with

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Meeting at Ministry of Commerce: Commerce Minister Ghulam Muhammed Quader, MP (center)

Meeting at Ministry of Finance. From left: Additional Secretary Monoj Kumar Roy, AmCham President Richard Vuylsteke, Finance Minister Abul Maal A Muhith, AmCham Bangladesh Executive Director Abdul Gafur, Additional Secretary Jalal Ahmed, and Tony Wong, Chief Operating Officer, PVH Far East Limited

AmCham Bangladesh Executive Director Abdul Gafur, who promised to assist with arranging government appointments and to set up dinner meetings with local and expatriate business executives.

From the beginning, this was not planned as a one-off trip. The Committee’s goal was to develop an ongoing working relationship between the Bangladesh government and private sector organizations to help build an even stronger and more sustainable export environment.

Talking points The delegation – a total of 17 companies were able to send senior company representatives to the Doorknock – focused on four main talking points: (1) middle-level management education and training, (2) sustainable factory models, (3) periodic review of local minimum wage, and (4) infrastructure development.

These points were covered in meetings over two days with the US Embassy country team, the BGMEA (Bangladesh

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AmCham Bangladesh delegation

Garment Manufacturers and Exporters Association), the Finance Minister, the Commerce Minister, the Export Promotion Bureau, and the Board of Investment. Dhaka’s infamous traffic jams made it impossible to schedule more than three meetings per day.

In each meeting, the AmCham president made opening remarks concerning the purpose and scope of the delegation’s visit and then turned the discussion over to various spokespersons in the delegation to inform interlocutors of AmCham company concerns. The topics: Mid-level Management.

The rapid expansion of sourcing interest in Bangladesh has put a great deal of pressure on human resources and the gap between locally available managerial expertise versus expatriate expertise is not keeping pace with needs. Current limitations on the number of expatriates allowed work visas increase the risk of doing business.

The delegation asked what currently was being done to address these matters.

Businesses expressed a broad spectrum of managerial needs, extending from tertiary level business and engineering degree programs for mid-management and above; to community college or diploma level business certificate programs for mid-management and below; to technical level certification of key areas, such as textile engineering and

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textile chemistry.

The delegation asked if the government had any incentive programs to encourage collaboration between the private sector and public to enhance the education, well being, and livelihood of local employees. They also asked what role their own companies could possibly play, such as making introductions and connections with overseas schools and organizations that could educate a larger pool of local managerial talent.

As one delegate put it, “Our goal is simple. We want to create a more balanced and healthier dynamic between the needs of industry and the sustainability of the Bangladeshi apparel manufacturing Industry.”

Sustainable Factory Models. The delegation also expressed concerns about factory-level regulations and how to achieve standards of international best practice in factory operations. While Bangladesh is seen as having a good foundation of laws and regulations with regards to factory operating environments, experience has shown that implementation is woefully inconsistent.

Special reference was made to tragic incidents of fire and other accidents in recent years, which have placed the spotlight on health and safety practices and underlying factors such as factory operating environments and worker awareness.

The delegation emphasized that they

had made the trip in order to urge overall improvement of responsible competiveness of the industry as a whole, and to work towards lasting and industry-wide solutions. Some of the key challenges: • Standards. How can the industry work to improve on the execution of factory standards so they are aligned with international best practice?

• Worker welfare and safety. How can the industry move towards improved health and safety performance and towards a goal of ‘no more casualties’ from incidents of fire? How can this be taken beyond the realm of a relatively small number of factories that meet high standards and make it a standard for the broader industry?

(Sadly, only a week after the delegation returned to Hong Kong, Bangladesh experienced a horrific garment factory fire that killed more than 100 employees.)

• Management. How can improvements be made on factory management capability with regards to enforcement of regulations, operational efficiency, and health and safety? The delegation emphasized that worker and mid-level management awareness required ongoing training.

Periodic Salary Review. The delegation urged the Bangladeshi government to consider an annual review of the local minimum wage – one that takes into account inflation and the consumer price index. While the mechanisms to adjust the minimum wage are varied, the delegation asked that a transparent mechanism be adopted.

Regular, periodic review would help companies to budget and make better planning, for if there were predictability in the frequency of wage reviews, there would be less uncertainty that could lead to worker unrest and closure of industry. Such a review would help address the basic needs of the workers and would assist employers and buyers to work toward a constructive framework to improve efficiency in the textile and garment sector.

In short, the delegation recom

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mended a periodic wage review as a way to eliminate the cost in human suffering, loss of property, disrupted production, canceled orders, as well as the damage to the image of Bangladesh as modern textile country.

Infrastructure. Bangladesh has a host of challenging infrastructure problems. Although many projects are

under way, including highway, rail, and port development, the timelines for completion are often exceptionally vague. Many projects, including key road development between Dhaka and the port of Chittagong, are far behind schedule.

Seaport facilities, airports, inland transportation, rail, canal, highway, and public transportation are all rich areas for expanded investment – and this is seen as necessary for the expansion of Bangladesh’s export capabilities.

Moreover, problems with power supply availability and energy costs as well as water supply and effluent treatment need more rapid resolution.

Government officials expressed their keen awareness of these challenges, while the delegation was able to emphasize the importance of adequate infrastructure to company decision-making about business investment and expansion of operations in Bangladesh.

As one delegate said, “I believe the leaders recognize the pace of development with certain critical projects needs

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to be faster – it’s just getting it done in their complicated structure that’s a problem.”

Business perspectives Executive Director Gafur and his team arranged two large dinner functions

ladesh on the committee level to continue pursuing the delegation’s four talking points with government and business organizations.

“Our four talking points should continue to be emphasized,” said one delegate after returning to Hong Kong.

“We need to continue asking questions regarding our points as that will put pressure on the government to do something.”

The AmCham committee has created a working group to continue its engagement with the Bangladesh government and key organizations such as the BGMEA on the talking points, initially emphasizing increased fire safety issues. Additional AmCham trips, large or small-scale, are also possible in 2013.

In the press

– one hosted by AmCham Bangladesh President Aftab ul Islam, and the other by the FICCI (Foreign Investors’ Chamber of Commerce & Industry).

Each event included more than 60 business leaders who provided invaluable insights into the political and private sector environments.

“Connecting with Gafur was one highlight of this trip,” says Walter Colgan of Freudenberg & Vilene International. “He did a fabulous job organizing the meetings. We will also join the AmCham Bangladesh Chamber as we continue to support the development of the Bangladesh RMG industry.”

Indeed, one of the next steps is to link AmCham HK with AmCham Bang-

Get involved The AmCham HK Apparel, Footwear and Textile Committee is planning other delegation trips to Cambodia and Myanmar in the first half of 2013, following the model of the Bangladesh delegation.

Interested? Contact Ming-Lai Cheung at the AmCham office or Andre Leroy, Chairman of the Apparel, Footwear and Textile Committee.

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HUMAN CAPITAL

A Global China:

How Do You Win in a War for Talent?

The annual AmCham Human Capital Conference was held on December 4th at the Renaissance Harbour View Hotel. More than a dozen speakers and panelists engage in lively discussions on the topic of talent management in the China market. Below is a summary report of selected panels of the conference

By Kenny Lau

I

n the rounds of lively discussion at the annual Human Capital Conference hosted

by AmCham in early December, China as a country of continuous economic growth where talent is also scarce was a key topic among human resources professionals.

The question is: How could a country with a population of 1.3 billion and a slowing economy be facing a shortage of workers? The reality is that China’s demographics and roles as a manufacturing economy are changing rapidly, Janet De Silva of Richard Ivey School of Business suggests.

The impact as a result of a shortage of talent in the China market is likely to be deeper in 2015 and beyond as numbers of “entrants” to China’s workforce start to decline. By 2020, it is possible that China will have 228 million fewer people in the workforce than required to operate effectively, De

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Clare Allum, HC Conference chairperson

Silva points out.

The landscape of human resources of China is also becoming more complex: it is shifting from a manual labor-based manufacturing powerhouse to a service-based economy where “made-in-China” is no longer cheap. Low-cost manufacturing jobs are now being relocated to other parts of Asia as Chinese manufacturers move up the value chain.

In addition to a “huge shift” into a service economy, China also has a growing middle class consumer market without a tradition of a service sector to meet such demand, further complicating the balance of supply and demand of talent in a country poised to become, quite possibly, the largest economy in the world by 2030 as recently forecast.

“It used to be for returning graduates that a job with a prestigious multinational company in China

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was highly sought after,” De Silva notes. “This is no longer the case as Chinese enterprises have gained tremendous strengths globally and within Asia.

“Fresh graduates are now asking why they would want to work at the Chinese subsidiary of a multinational company when they could work at the global headquarters of a Chinese firm.”

Talent shortage By 2020, China will have almost 200 million college graduates among its working population, notes Henry Huiyao Wang, Director General of Center for China & Globalization and a senior fellow at Harvard University. “It is an enormous shift from 200 million migrant workers of the past 30 years to 200 million graduates of the next 30 years.”

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As more Chinese enterprises go global, the need for talent is only going to grow. It is estimated that China will need 75,000 managers with international qualifications to fill positions at the corporate CEO level in the next 10 years but now only has about 5,000 qualified professionals, Wang who is the morning keynote speaker points out. Of the 1.6 million engineers in China, only one-tenths are skilled to work for a multinational company.

Localization It is a dilemma where quantity and quality are equally problematic, notes Francis Mok, President of Hong Kong Institute of Human Resource Management. “The demand for local talent in China is on the rise and is growing exponentially, but the supply is getting smaller because the

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Janet De Silva and Peter Liu

Didier Guillot

majority of graduates do not have the specific skills,” he says. “In fact, companies are now setting up their own academies to provide training, knowledge and skills.”

In the long term, companies cannot rely on expatriates to meet their talent needs, for which “localization is a must in order to maintain sustained growth because you are selling in the local market,” he adds.

The challenge of operating in China is finding and developing people who are able to be effective in a local context, lead local employees while embracing values and a culture of compliance and being able to interact at a global level, notes Berthold Alfes, Senior VP – Supply Chain Center Asia Pacific at Bayer MaterialScience.

“It is not easy,” he says. “It requires you to keep

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people in the company and provide them with an environment that keeps them motivated and committed to the company where they see they are provided with what they need.”

China is a rapidly growing market in which capability of the talent pool is “way behind” the speed of growth in that the level of experience of senior leaders in particular simply does not match those of their counterparts in more mature markets, notes Shanthi Flynn, Executive VP, People, Asia Region for Walmart Asia.

As a result, companies operating in China are all struggling with playing catch-up in fulfilling their HR needs, and some can only do so by importing expatriate talents.

People have to be highly adaptable in order to be successful in China, Flynn suggests. And there are “lots and lots” of dimensions to talent that it is not just about whether you are a local or from abroad but merely about a talent at its core competency level that is adapted to fulfill the needs of a specific market.

This small pool of talent is nevertheless “incredibly expensive” because their specific skills and experience are highly prized, and there are so few of them that it is actually cheaper to bring in an expatriate than to hire a local in some cases. Hence, companies have seen a “tremendous” need to grow their own local talent.

rotation of different jobs and assignments within your company in ways that they are exposed to various aspects of your business.”

Career opportunities

The 90 percent

One of the needs among companies operating in China is to have leaders who have “local connection, background and deep roots in the part of the world,” Bin Wolfe, Managing Partner, People, Asia Pacific at Ernst & Young, suggests. “How do you retain your top talent when they see corporate decisions are not made locally?”

More importantly, there needs to be a focus on nurturing a global mindset by giving people exposure and opportunities outside of their immediate markets, she adds. “It is about giving people a piece of what they don’t normally get on their job every day.”

Human resources management is indeed all about people and how to touch people’s heart, says Patrick Yeung, CEO of Dragonair. It is also about providing opportunities for employees to grow and, when ready, take up more responsibility in higher positions. “People are definitely a factor for success of an organization. You have to be creative and think of ways to engage and retain them, and money is only part of it.

“You start by recruiting the best raw talent, then developing them from bottom-up through

However, not everybody in an organization can be of high talent or potential, and how the other 90 percent of employees is equally, if not more, important, Eric Zwisler, President of Cardinal Health China, suggests. “It is not just people who are going to be invested in but people who are not in that 5 - 10 percent group that we also have to pay attention to.”

“Developing the 90 percent and a middle management class is incredibly important because that’s often where the picture is incomplete,” he says. “It is about managing both the good and the bad, and it needs to be done in a way responsible to the organization.”

And, “you need to first listen to people because everybody has different needs,” says Frank Cancelloni, CEO Asia Pacific of Locoste/Devanlay, noting tangible as well as intangible benefits as important deciding factors in the war for talent. “The brand of a company can help but it needs to have a vision and values that there is an opportunity for growth and development of your people and your workplace.”

“What we are facing in China today is a supply

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Cecilia Young, Joseph Tse, Laura Parkes, Tony Jackson and Mitya New

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90 THE

PERCENT

“Developing the 90 percent and a middle management class is incredibly important because that’s often where the picture is incomplete.”

and demand issue,” he says, adding that the demand for talent in China is so significant that employees in China can easily leave for another job with a substantial pay raise. “The bad news is that in the coming few years we are unlikely to see any improvement.

“You don’t decide to build a generation of talent overnight, and it will take not a few years but a generation to build up a pool of talent that can match the demand we have today.”

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Louisa Wong

Lead Your Employees by Purpose Professional managers often complain how their staff have different agenda and acting in silos.

While such differences can be papered over when times are good, cracks easily emerge when challenges come. Louisa Wong, founder and Executive Chairman of Bó Lè Associates, points out managers should lead the employees so that they follow the company purpose and not individuals.

Companies who do that can reap great benefits in employee engagement and have a better chance of survival in difficult times biz.hk: Why is a purpose important for a company?

Wong: Today, leaders have a very tough job. You need to direct the company to achieve business targets while balancing employee engagement and revenue generation. Most importantly, you need to form a vision for the business, creating a direction in which the company will expand and develop further. This is where a good business purpose is invaluable; a purpose unites a business, providing a common objective that plots the intended course of the company. It also fosters engagement, allowing employees to become part of something bigger than the sum of its parts. Furthermore, a unified purpose shows both customers and shareholders the fundamental direction of the business, and in turn builds brand value and loyalty. biz.hk: How will you define a purpose?

Wong: A core company purpose is a question of “why does this firm exist?” It is an idealistic motive or reason for the company’s existence, defining why it operates. In a company with a well-defined purpose, every product it produces, every new industry area it

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expands into, every daily activity, will be geared towards achieving a unified objective. A company purpose is an ideal or goal above and beyond tangible results, encompassing the core of the business, and is always briefly attainable but unachievable.

For example, a pencils producer may list their purpose as “provide writing tools to help further the education of children”. This goal is briefly attainable but unachievable in the long term, and also explains how the company will better the world or society that it operates in. It also has zero financial consideration – all businesses exist to generate revenue, but the goal of simply earning money is not a direction. How the firm earns money is where the importance of purpose lies. biz.hk: What are the benefits of having a purpose for a company?

Wong: The biggest benefit that a good company purpose brings to the table is employee engagement.

Studies have shown that there is a positive correlation between company purpose statements and work performance, highlighting the importance of a purpose in influencing corporate citizenship. Engaged

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employees not only perform at a higher level at work, but they are also less likely to desert the company in times of economic turmoil.

As well as improving employee engagement, a company purpose helps build brand reputation and loyalty. By displaying commitment towards bettering others, it displays the company’s strong moral principles, encouraging customers to buy from the company as well as potentially attracting new talents to its cause.

Additionally, following a company purpose can make succession planning easier. Often, there is confusion and uncertainty following the departure of a senior executive, as there is the perception that direction has been lost within the company. However, a good company purpose ensures continuity: not only will the replacement executive have an objective to build a strategy towards, but employees will still have the overarching goal of the business to follow, and investors can remain confident that the company retains the same ambitions.

Overall, there are key benefits to having a company purpose. Not only can it be an effective compass for the company’s future direction, but it also increases employee engagement as well as acts as a great marketing tool to for brand development. Companies that have yet to establish their core purpose should do so. By having a purpose, leaders can solidify the company internally and chart a specific direction, efficiently and effectively guiding the future of the business. biz.hk: How to identify the purpose of a company?

Wong: The purpose of a company can also easily be identified – the purpose of the founder. For a lot of companies, their purposes originated from or started with their founders. These purposes actually never changed even though there have been many CEOs that are subsequent to the founders of the company. biz.hk: Isn’t maximizing profits enough as a business objective for companies?

Wong: In a competitive and difficult marketplace, a company that has a very clear purpose – which is shared by all its employees, and identified by its customers and consumers, and its partners – will have a better chance of survival. A purpose alone will not help a company to find a [successful] business model.

If the business model doesn’t make sense, having a purpose doesn’t help.

But if the operation and the business model are ok, and it’s just that the economic situations or certain outside forces are not helping you, the fact that your company has a clear purpose will give you a better chance of survival. It is because your employees, suppliers and partners can understand that there is a purpose for the company to exist and they will be

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willing to go an extra mile – maybe there will be no bonus or even salary cuts, or extra credits from your suppliers.

And even if the conditions are such that the company would not last, I think a company that has a clear purpose will have another chance to start again. biz.hk: Nowadays, many companies are now crossborder businesses. Should they have more than one purpose?

Wong: No, definitely not. I think that’s when companies get confused that they want to adapt their purpose to different offices in different cities. We have 25 different offices operating in seven or eight different countries with diverse cultures from Indonesia to China, from the Philippines to Taiwan. And now we also have partners from Japan. But a company purpose should not change overtime because you feel that you need to adjust to the local politics or culture. Our company purpose doesn’t change. It’s because your business model is pretty much the same in different markets.

Say you run a coffee business. So you want to serve a good cup of coffee. Depending on the local economic situations, you may price it differently. You may have different flavors and tastes in different markets. But at the end of the day, you still want to have happy customers to come in, socialize, and have a cup of good coffee.

That won’t change. So the employees who buy into it won’t change either. If you change, then that’s not your [company’s] purpose. biz.hk: How do conglomerates find a company purpose for their different businesses?

Wong: The purpose doesn’t always have to relate to your business. A company purpose is more about interacting with the community. A conglomerate may have businesses in F&B, properties, entertainment, and even airlines. A company purpose doesn’t have to be a business model related one. A conglomerate can find its purpose in relation with the community it serves and operates in. It should ask the question, ‘how profits are being generated’, and through these profits, what good has it made or done with the community it serves.

Louisa Wong is one of the industry's most respected search professionals. She has over 26 years of recruiting experience, specializing in CEO searches particularly in the sectors of Finance, Consumer and Manufacturing & Engineering. Bó Lè Associates is the largest executive search firm in Asia, No1 in China and Indonesia and also in the top three in Vietnam, the Philippines and Malaysia. – Editor’s note

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TRADE & INVESTMENT

Robert Mulder

Photos courtesy of HKTDC

Prospects of US Fine Wine in China US wineries exported US$62 million of wine to China in 2011, up 42 percent from 2010, and the lion share of it came from California. But tapping into the China market is no easy task. Daniel Kwan finds out more from US wine exporters and promoters who attended the 2012 International Wine and Spirits Fair in Hong Kong

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or Robert Mulder, a distributor of fine California wines, the maturation of Chinese wine aficionados is “welcome” news.

Chinese consumers are beginning to “graduate” from buying just price points to real appreciation of fine wines. In Mulder’s own words, it’s not

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about “getting drunk” anymore.

Shiny new toys Mulder has been coming to the Wine and Spirits Fair in Hong Kong for five years. Organized by the Trade Development Council, the trade fair has grown to become a major showcase

for wine producers who are eyeing the Mainland market. As Chinese consumers look increasingly to the West about lifestyle changes, western wines have become their next “shiny new toy.”

But the Chinese market is a difficult nut to crack – especially for Californian wines. Chinese consumers

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are not shy about their affection for French wines and are willing to spend big money on expensive purchases from Europe. According to figures by VinExpo, French labels, especially Bordeaux, dominate the foreign wine market in China, with a 45 percent market share.

Even for the “New World” wines, countries like Australia and Chile are doing exceptionally well in China. The truth is that California wine makers are latecomers as far as selling abroad is concerned. Few Californian wineries exported anywhere before the 1990s.

When they do, China is often not their first choice. Interest in China picked up after the Beijing Olympics in 2008 and the growth in recent years was partly driven by the slump in domestic sales too.

This rise in interest coincides with the “growing up” of Chinese wine lovers. Says Mulder: “They learn about wines very quickly and their palates adjusted very quickly – it’s not about just getting drunk anymore! It’s about enjoyment and about a lifestyle. It’s about showing their friends that they understand a good glass of wine.”

“Over the past three or four years, the [Chinese] consumer’s taste buds have gotten to know the difference between good wines and bad wines.

Now, they come to trade shows looking

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for better quality wines,” Mulder adds.

There are other driving forces behind the growth in export to China.

In recent years, Chinese investors have added California wineries to their shopping list. In addition to buying up real estate, factories and natural resources, Chinese businessmen now come to areas like Napa Valley and Lodi looking for investment opportunities. With their connections back home, they believe that they have an edge in the competitive marketplace.

Jeff Williamson, Project Director of California State Trade and Export Promotion, should know. He says, “We have a lot of very smart businessmen coming from China saying, ‘we know what it would take to sell and we need the products. We need to be able to tell the market we have a California wine, and then we can localize the marketing for that.’”

China barriers Marketing however is only one factor. Toby Marion of Golden Gate Wine in Hong Kong knows from experience that selling to China is not easy, especially for small wineries and distributors. Marion, who has been selling fines wines of California, Oregon, and Washington State to China since 2004, suggests that a lowering of wine duties and simplification of import procedures would help.

According to Marion, China introduced rather complicated documentation standards about three years ago requiring exporters to provide detailed product information and certification.

“For every single label, every single vintage – you have to submit an original certificate of origin from the wineries, and stamped by a government agency, as well as the original hygiene certificate or chemical analysis – also stamped by a government agency,” Marion says.

“This is very costly and timeconsuming, and effectively makes it difficult for Hong Kong to be an efficient place for re-export. What it means is that you only want to do a small number of labels in large quantities

Toby Marion

directly from America, Italy or France into China.”

Although Hong Kong launched a pilot scheme two years ago to improve customs facilitation for wine entering the Mainland market through Hong Kong, Marion believes cutting short the clearance time alone was not enough to turn Hong Kong into a wine hub for China.

The fact is that China’s cumbersome wine tax system includes import duty, VAT and sales tax. Together, these add up to a combined 48.2 percent tax that must be paid at time of import. This is a serious consideration that makes small winemakers and distributors think twice about selling there.

“The money involved is not large for big corporations but for entrepreneurs and small traders, it is significant,” he notes.

Another huge problem is that the Renminbi currency is not convertible. This means the importers can only get permission to remit in US dollars the CIF (Cost, Insurance and Freight) value of the import. The tax, costs and profit can only be remitted much later after the declaration of the onshore profits.

This translates into huge working capital requirements.

Although a lot of small wineries have chosen to partner with big distributors

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and agents, it also inevitably means a much smaller share of the profits and less control over their brands.

Mulder of CA 88 agrees that China’s high taxes make it more difficult for California wines to compete considering that major labels from countries like France are spending huge amount on advertising to lure Chinese consumers and they enjoy various forms of support from governments.

“California wines can compete with any wines in the world and it is very well known,” Mulder says. “But for California wines to be competitive in China, possibly eliminating some of the high duties in China will help because we pay almost 50 percent between the VAT and all the different duties.”

“That will give us more of a level playing field with other countries that may have minimal duties,” he adds.

Californian experience On the positive side, Williamson of California State Trade and Export Promotion sees great potential for California wines considering that

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many Chinese have had great experience with California but that advantage has not really been capitalized on before.

“What we often don’t leverage as effectively is that California is a big place for the top students in China and Hong Kong to attend some of finest universities in the world – whether it’s the University of California or other top institutions,” Williamson reckons.

“These are generally people who have achieved good business success here so they are in positions of influence. They have been to California, and they come back to China and are now taking on important roles in companies and socially as well. They can introduce new products and services in ways that other people can’t,” he adds.

At the end, however, success still depends on getting the basics right.

Understanding the customers, their tastes and cultures, and the local market are just as important in China as in anywhere else. The name chosen

by Mulder is a good example. Knowing that Chinese consumers have a natural aversion to brands with names difficult to pronounce or even to understand, Mulder have picked perhaps the most

Jeff Williamson (right) and Johnson Chan

recognizable name for Chinese consumers – “88” – which means good fortune in Chinese.

“We understand that the young Chinese customers may not know what a Chateau may represent because they don’t understand it. If our bottle is standing next to another supplier, we feel that the customer will go to our bottle because it is familiar to them, and they will recognize it and feel safe to buy it,” he says.

And that is a good business tip worth toasting for, ‘gan bei!’

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Kerry Bonner

Green Program Runs a Good Course

Kerry Bonner is Manager of Green Export Enabler Program (GEEP) – a dedicated scheme to promote the export of US green technologies to China. In Hong Kong for the Eco Expo Asia, Bonner talked to biz.hk about GEEP, opportunities for US companies, and shared her recommendations for firms interested in the Mainland market

biz.hk: Can you tell us about the GEEP program?

Bonner: The US Department of Commerce has a program called “The Market Development Cooperator Program” and we were awarded US$392,000 in October 2009 for the “Green Export Enabler Program” or GEEP for short. In addition, we received double matching fund provided by the El Camino College Center for International Trade Development (CITD). The Department of Commerce funding helps American companies to export in certain areas and certain sectors. We use a seven-step export enabler program to help American companies in the green technology sector to export to the China market. Through GEEP, US firms receive training, counseling, market intelligence, matchmaking, and follow-up assistance. It is a three-year program and is now approaching an end. biz.hk: Is the program exclusive to Californian companies?

Bonner: No, because it is federal grant money

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and is open to other states. In fact, we have the State of Oregon participated in these three years as well as companies from other states. Besides California, Oregon has been a great beneficiary of the program. biz.hk: What has the GEEP program achieved in the past three years?

Bonner: As of now, we have achieved US$4.5 million of exports to China. If you go to MDCP’s website, you will see our visit in 2010 when we took a side trip to Shenzhen before attending the 2010 Eco Expo Asia in Hong Kong. In total, the grant from the California side and the US federal side is $1.2 million. biz.hk: Can you share some successful examples of GEEP with us?

Bonner: We had a company of bio-diesel product from San Diego area that invited people to come to his booth before he came to Eco Expo Asia 2011. He met with a young Hong Kong distributor here and he was able to sell two demo units. He is

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now following up and considering to have these two gentlemen be his distributors for China.

We have another gentleman who has a technology for use in drainage systems or sewage.

Connected to satellite, the technology will issue warnings if water in the sewage is rising so that water departments will send out crews to work on it. This company sold two units to the Hong Kong drainage system. So they are following up on that too. biz.hk: American companies can use trade shows like the Eco Expo Asia to test the market in Asia?

Bonner: Hong Kong is a trading city. My clients told me that they are getting people from all over the world – from Macao, Africa, the Middle East, and the US and Europe, and many of the visitors are interested in their products. We used to just measure sales to China or Hong Kong, but we have moved the parameters [to Asia]. Like in last year, we had two clients who sold some products to Malaysia and we were able to count that now because they met them here at the show. We had other clients who met people in Europe and they were able to pursue opportunities there. You never know who’s coming to your booth. biz.hk: Can programs like GEEP and attending trade shows like the Eco Expo Asia really help American companies to export?

Bonner: Yes, let’s not forget 95 percent of American companies don’t export. With this kind of funding and support – each company get $1,500 from GEEP (as long as their services and products are 51 percent US content), we can take companies to markets that they normally would not think of. In addition, the Hong Kong Trade Development Council puts in four-night complimentary accommodation and discounted airfare, and that makes [the Eco Expo Asia] a very attractive package. It’s almost zero cost. Companies are hesitant [to export] because they are just trying to get established in the US market. But who knows?

Sometimes you may be more successful outside the US. biz.hk: Will there be similar programs like GEEP available next year?

Bonner: There is a new MDCP awarded to the Innovation Center for Energy and Transportation (iCET). iCET is an independent non-profit that maintains an office in Beijing as well as the in the US. It has strong ties with central and local governments and major state-owned enterprises in China. This MDCP is geared towards Tianjin.

They have a partnership with the Tianjin government

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and they want to open a showcase area there so that American companies can demonstrate their clean tech products and services such as electric cars and other transportation related technologies.

Chinese officials from different areas can come and watch the demonstration of the products and services in this showcase area. They also have plans to do trade missions. biz.hk: Why do you think US green technologies are a good match for China?

Bonner: The reasons are three-fold. First is that China is very polluted. Second is that they like American technologies. Going green is spelt out clearly in China’s public policy and you know exactly what they are implementing every five years and what the emphases are. Third is that they have the money. So it makes it very attractive [to American companies]. Africa may have the needs too but they don’t have the finance. biz.hk: What are your suggestions for American green tech companies who may want to export to China?

Bonner: Contact the Department of Commerce.

I encourage them to get in touch with their local Department of Commerce staff, and they can help guide them as to which market is more favorable.

The DOC staff can also tell them what the competition is. If you are unsure, the DOC can arrange a conference call. For example, I arranged clients to go online where they had conference calls with Foreign Commercial Service staff in Hong Kong and they could ask questions. The FCS staff would talk to their local contacts and find out if the US company’s products and services are viable. biz.hk: Under what circumstances, should American company consider coming through Hong Kong in exporting to China?

Bonner: American companies should consider Hong Kong because it is very strong in intellectual property protection and practices the rule-of-law.

The fact that the English language is widely used here also makes doing business easy in Hong Kong. Also, Hong Kong people understand the western mentality of doing business and they are highly entrepreneurial. It takes just HK$1 to start a business in Hong Kong and maybe an hour to fill out the form to register a company. And the owner of the business doesn’t have to be a Hong Kong resident. All these make Hong Kong a very attractive place to do business. Of course, protection of IP and patents is very important to American businesses.

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AMERICAN TOPICS

An AmCham-Style Thanksgiving Celebration

By Kenny Lau

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ear after year friends of AmCham gather for a hearty celebration of Thanksgiving, a “terrific” American holiday and a time when friends and families reunite to “give thanks” and to appreciate each other. It is a truly American tradition that that has no boundary in terms of celebratory activities.

“Thanksgiving is one of the most popular American holidays,” said AmCham President Richard Vuylsteke during his welcoming remarks to a crowd of 150 Chamber members and guests who gathered for a mid-day holiday banquet at the Renaissance Harbour View Hotel in Wanchai.

“No gifts to worry about, but simply a time for families and friends to enjoy warm conversation, fine drinks and cuisine, and the joy of simply being together,” he said. “That’s exactly what AmCham tries to do each year at this time.”

What has made the last three AmCham Thanksgiving celebrations particularly special, however, is

Corporate Table Sponsors:

Pilgrim Sponsors:

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the tradition of inviting Hong Kong government officials to the luncheon. These officials have over the previous year or two been asked to speak at an AmCham event, participate in a roundtable discussion, or have worked together with AmCham committees on various advocacy issues.

“These are truly friends of AmCham,” Vuylsteke says. “They have taken time to work constructively with the Chamber and so it’s appropriate that we invite them to share Thanksgiving with us – after all, we are giving them thanks for being such constructive interlocutors.”

This year more than 40 Hong Kong government officials were invited, and more than half were able to make time for the celebration in their schedules.

“We don’t make lots of speeches,” Vuylsteke says. “This is a time for food, drink, and great conversation. We had that in abundance again this year, and I think the officials really appreciate that they can attend, relax, and meet our members in such a relaxed atmosphere.”

Plymouth Sponsors:

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2012

Guide to

Holiday Travel Packages

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The Perfect Sanctuary for

Body and Soul – Banyan Tree

By Nadine Bateman

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here are many varieties of the banyan tree around the world, which is so named because it can grow large enough to provide exceptional shelter to those sitting beneath it.

Thus The Banyan Tree Group, like its namesake, offers sanctuary to guests in a variety of ways among its resorts.

These include the tranquility of its new Vietnam location which is close to a UNESCO World Heritage Site; the chic urban style of its hotel overlooking the river on The Bund in Shanghai and the tropical getaway at Angsana Laguna, Phuket that provides a plethora of activities for children.

Laguna Lăng Cô Part of Vietnam’s first world-class integrated resort, Laguna Lăng Cô,

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Photos courtesy of Banyan Tree

Banyan Tree Lăng Cô offers luxurious accommodation including spacious pool villas, award-winning spa facilities, water sports and other outdoor activities such as quad biking and an impressive 18-hole champion golf course.

Designed to offer privacy and exclusivity, Banyan Tree Lăng Cô is tucked away in a crescent bay which is part of a three-kilometer-long beach on the Central Coast of Vietnam. It's a picturesque region renowned for its pristine coastline, tropical jungles, rugged mountain peaks and proximity to the UNESCO World Heritage Sites and the cities of Hue and Hoi, along with the world-famous relics of My Son. It takes about an hour to drive from Da Nang International Airport to the Banyan Tree Lăng Cô resort. On arriving guests will find stunning decor that has been inspired by Vietnam’s art

and history and about which its creators say “the architecture and design is intended to be a tribute to the cultural richness of the region.”

The 32 lagoon pool villas and 17 beach pool villas set on the shores of Canh Duong beach, have pretty clay tiled pitched roofs, open courtyards and wood rafter ceilings, while the main building and villas include modern interpretations of design elements seen in the traditional garden houses of Hue. The interiors are styled with traditional Vietnamese aesthetic themes: lotus motifs, lacquer and silk embroidery in a neutral palette of earth tones and splashes of purple adorn fabrics, furnishings, paintings and pottery. Natural materials such as bamboo, wicker, and raffia (palm) ropes are used to create a setting that’s intended to blend with the lush green forests that surround the resort. The

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overall effect is a feeling of being close to nature while also being steeped in luxury.

When it comes to eating out, the Banyan Tree Lăng Cô has a choice of restaurants that range from Thai food to classic French cuisine with a Vietnamese influence. The Watercourt serves up a generous international breakfast buffet with a choice of àla carte dishes in the evening, while the elegant hilltop restaurant, Saffron, specializes in Royal Thai cuisine with a twist while diners enjoy expansive views of the East Sea.

Shanghai On the Bund By contrast Banyan Tree Shanghai On the Bund is something of an oasis in this bustling, colorful urban sprawl.

While offering visitors easy access to historical landmarks and modern

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cultural and commercial centers, the hotel is also a place where visitors can sooth their senses after a day of serious sightseeing or business meetings.

Spanning three floors, the spa features exquisitely comfortable treatment rooms offering Asianinspired wellness therapies including one blissful treatment in which heated stones and warm oil are massaged over the body and pressure is applied to ‘energy points’ to apparently attain “a smoother flow of qi” and flush out toxins, followed by a rose-scented body scrub, a chrysanthemum-scented body 'conditioner' and a rose-scented bath. If your skin’s not soft after that you'd have to be made of titanium.

Says Panchao Llamas, General Manager: “Business and leisure travelers like to take advantage of our awardwinning spa during their visit to what is one of China’s most dynamic urban environments. These days the spa experience has become a way of life for many people [whether] ladies or men, for leisure or corporate trips, so we invite all our guests to experience our ‘Sanctuary for the Senses’.”

Llamas suggests the spa could form part of a weekend itinerary, which might also include lunch at the hotel’s Yu Garden restaurant followed by coffee at the Xintiandi cafe before a shopping trip to Tianzifang and Lujiazui then later a romantic dinner in the hotel’s roof-top

suite where he says guests “can enjoy breathtaking views of Huangpu River.”

Llamas suggests the next day could incorporate a trip to the famous water town nearby, Zhouzhuang.

Banyan Tree is proud of the fact that this is Shanghai’s first hotel that provides river views from every room.

Says Llamas: “Huangpu River is Shanghai’s ‘mother river’. All culture and civilization comes from the river: it’s the soul of everything. On one side [there is] the world-renowned historical bund and on the other side the financial centre Lujiazui, [so] Huangpu River is the symbol of the city.”

Adds Llamas: “We don’t want our guests to only remember the luxury; instead we hope they leave with good memories of an emotional experience.

For us, good hospitality means letting people feel good, be surprised and be impressed.”

Angsana Laguna Phuket A world away from a Shanghai city break is the Banyan Tree’s integrated resort at Bang Tao Bay, Angsana Laguna Phuket, which is a treat for families.

While the tropical beach lifestyle on this beautiful island in Thailand can be enjoyed by couples wanting to slip away from the hustle and bustle of urban life, there’s a plethora of fun-filled activities that will keep little ones amused for hours. There’s a comprehensive schedule of indoor and outdoor activities in the kids programme, Banyan Tree Rangers, for children aged five to 10.

The daily programme revolves around the stimulation of the five senses – sight, sound, touch, smell and taste – to explore and appreciate the natural environment. Children learn through games and images how different animals see the world around them. They also learn about birds and animals native to Phuket, and where to find them as well as being allowed to handle a range of different animals. In addition to the Rangers programme, kids can discover new hobbies at the Turtle Club including kite making, sand sculpture, batik painting, and ‘aquacise’.

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for ad hoc promotion fares and quickly make a decision on a package online.

Throughout the 1980s and 1990s, Cathay Pacific was known in the leisure travel segment for its “Discovery Tours,” and in the late 90s foresaw a growing market of independent travel via instant online booking that it is today. Cathay Holidays was subsequently set up in 1998 as the leisure arm of Cathay Pacific (CX) to serve customers directly in a business-to-consumer model through its own website.

“We offer our service worldwide and cover both inbound and outbound travel, with a focus on online service for instant package booking via cxholidays.com,” Cheung says, adding that “best prices” for air ticket and hotel packages are designed for two or more passengers traveling together throughout the whole journey.

CX Holidays

Travel on Your Own Terms

By Kenny Lau

Photos courtesy of Cathay Holidays

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ong Kong is a worldclass city and has achieved the status of an international financial center no less prominent than London, New York or Singapore. The city, however, is also well known globally for its tourism trade. The city is a major attraction among tourists around the world, and more importantly, is home to a large population of travel enthusiasts always looking for an exciting experience abroad.

“People of Hong Kong love to travel, and it is quite common that they take two to three trips a year

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overseas for leisure,” says Anna Cheung, Managing Director of Cathay Holidays, a wholly owned subsidiary of Cathay Pacific Airways, a world-class Hong Kong-based airline serving 170 destinations in 42 countries and territories with signature ground and onboard products and services.

In the early days of international leisure travel, people from Hong Kong were mostly bound to group tours, normally led by a tour leader, designed to accommodate a nominal number of tourists on sightseeing and shopping together in a fashion far less flexible. Today, it has grown to be

much more sophisticated and exceedingly easy to travel on your own terms and schedule.

Independent travel The rise of free and independent travel (FIT) is “accelerated” by a flow of information readily available to prospective travelers through numerous travel guidebooks as well as websites and discussion forums on the Internet.

Travelers from Hong Kong, particularly the younger generations, are getting rather experienced in outbound travel and becoming “experts” at various leisure destinations.

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“Leisure travelers are increasingly accustomed to free and independent travel than group tours as they can enjoy an adventurous journey tailormade according to their specific interests instead of joining a readymade tour,” Cheung points out.

FIT is now more convenient than ever, for which people can easily arrange their flight and hotel accommodation online, saving much time from the tradition way of booking through an agency. That is, travelers would no longer need to visit an agent or queue in long line to approach someone just for information.

Instead, they could conveniently scout

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CX Holidays is a pioneer and a market leader in leisure travel, exclusively on flights within the route networks of Cathay Pacific and Dragonair through an online booking platform. It also provides unique travel packages, including small group travel and those to large-scale sports events. It is a result of “considerable amount” of investment in system development and improvement, Cheung notes.

CX Holidays is somewhat similar to any other travel agency in a sense that it provides all the services in the leisure travel market; but it works in a very close relationship with Cathay Pacific and Dragonair to make full range of year-round package to most CX and KA popular destinations, even during peak holiday travel seasons, as well as with Cathay’s Asia Mile frequent flyer program and Marco Polo Club to establish a number of members-only special privileges.

Currently, there are about 60 different travel destinations (more are expected) from which travelers can choose under a CX Holidays package

Anna Cheung

with hotel and flight service; and there are 40-50 hotel choices for “hot” destinations (plus other valueadded benefits/activities) from a network of over 3,000 partner hotels in over 60 cities, offering an a-la-carte menu of options.

“It really allows a greater freedom on travel,” Cheung says. “You can design your own itinerary at your own pace to suit your very own taste as you create your personal list of local shops, restaurants and places to visit.”

Favorite spots According to CX Holidays, Japan, Taiwan and Thailand remain most popular among travelers of Hong Kong, while Korea and Singapore are now becoming two hot-spot destinations. More recently, there is growing interest in places like Myanmar, India, Bhutan and Nepal.

With an expanded network of Dragonair (also a wholly owned subsidiary of Cathay Pacific Airways since 2006), regional leisure travel to cities such as Okinawa, Fukuoka, Busan, and Kathmandu has increased substantially, while Jeju, Chiangmai, Taichung, Xian and Guilin are expected to become just as popular.

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Packaged tours under CX/KA Holidays are uniquely categorized according to “themes” that closely correlate to the types of vacation. A large number of destination cities within the networks of Cathay Pacific and Dragonair are available for selection, whether travelers want to “stay at the heart of the action in a downtown,” “escape to the great outdoors,” “hit the slopes at a ski resort” or simply “relax on a beach.”

Traveling with CX Holidays, some get to “spoil their body and mind at rejuvenating spas and indulge at traditional or contemporary Japanese hot springs,” while others can run in a marathon, experience the excitement of a Formula One car race, or watch a game of Premier League Football as part of a “special interest” tour, where admission tickets (which can be hard to find and secure) are inclusive.

New experiences CX Holidays is innovative in bringing forward different travel ideas and experiences, Cheung says, noting a number of highly popular premium travel destinations in recent years, including the wine regions of Bordeaux, Burgundy and Champagne of France where wine enthusiasts can get a taste of Europe’s fine wines in an “unforgettable” trip to cellars of world-famous chateaus, hosted by Cathay Pacific’s executive wine consultant Roy Moorfield.

Other than the special interest tours, special business class travel packages are also well-received in the market. “Our special business class packages offer a luxurious experience at an exceptional value,” she says.

“You can travel at the comfort of our Business Class flights and airport lounge facilities and stay in a five-star hotel of international prestige or a boutique hotel of your choice for an exquisite experience.”

Whether it is to have an Englishspeaking tour guide nearby for an expert-guided journey in China or to arrange a car pick-up service to make a relaxed, hassle-free experience in

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Micronesia: The Last Frontier of Exotic Tropical Experience

By Kenny Lau Asia and China, privately guided tours under CX/KA Holidays are there to meet the needs of travelers on such occasions, Cheung further notes.

Moreover, private groups can be completely tailor-made.

“We understand that all customers have different interests and varying needs, hence we provide a special tailored service,” she says. “Our travel

specialists upon request can customize a detailed travel plan specifically for you, your friends and families, and you can always add many extras to the package to spice up your holiday.

“With our full range of choices – different services and wide coverage of destinations, there is always something for everyone.”

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Perfect get-away

Photos courtesy of United Airlines

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hen it comes to choosing a leisure travel destination for an exotic and soulrefreshing tropical experience outside of mainland USA, Hawaii naturally comes to mind as “the place” to go for a vacation in which we can get away from reality of our hectic urban lives for a moment. Perhaps a little less well-known are thousands of other paradise-like islands along the Pacific Ocean geologically carved out for sun-seekers.

A trip to the islands of Micronesia such as Guam and Saipan is an experience of a lifetime to which no mere word can do justice in describing what it truly feels like to spend a week or two on a Pacific island looking over a panoramic picture-perfect horizon of blue sky and ocean in a contour that stretches hundreds of miles.

Although Micronesia literally means “Small Islands,” it is a region made up of thousands of islands covering “a vast expanse” of the Pacific Ocean, stretching from east of the Philippines to west of Hawaii. In between, there are three countries (Palau, Marshall Islands, and Federated States of Micronesia), a US commonwealth (Northern Marianas), and a US territory (Guam).

Flying from Hong Kong or Manila, you can reach these islands in an eastbound order: Palau, Yap (of Federated States of Micronesia), Guam, Saipan (of Northern Marianas), Chuuk, Pohnpei and Kosrae (all three of FSM), Kwajalein and Majuro (both of the Marshall Islands). Each place has its own unique culture and attractions but they have one thing in common: stunning natural beauty.

Having lived in Guam from 1993 to 2008, Walter Dias who is currently based in Hong Kong as Managing Director (Greater China & Korea) of United Airlines describes, “It is a beautiful island where people are very kind and welcoming. Of all the Micronesian islands, Guam is the one most similar to Hawaii. The area of Tumon

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reminds me of a miniature Waikiki (of Hawaii), with its beautiful beach and many hotels. The difference between Micronesia and Hawaii is that Micronesian Islands receive a much smaller number of visitors.”

Dias was originally on a two-year assignment in Guam for Continental Airlines (Continental and United merged in 2010) but liked it so much that he was there for 15 years, during which he felt personally responsible to attract more visitors to Micronesia and Guam in particular. “It was a fantastic experience to work with our partners in Guam and to promote a destination with such great natural beauty.”

The islands’ geographic location, just slightly above the earth’s equator, attributes to year-round summer-like weather with very little variation in temperature and provides a perfect “get-away” travel destination to more up-north countries within Asia, especially in winter months.

Micronesia is indeed very popular among tourists coming within Asia,

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with a flying time of a few hours from most major cities of northeast Asia, Dias points out. Japan is currently the single largest market among visitors to Micronesia. Of Guam’s 1.3 million visitors each year, 71 percent come from Japan; following are tourists from Korea and Taiwan as second and third largest markets, respectively; about 9,000 from Hong Kong and a similar number of visitors from Mainland China make a trip to Guam every year.

The sea, surf, and sky…and shopping “As a tourist travel destination, Guam is really about getting back to a more natural setting…The sea, surf and sky,” Dias says of the US territory.

“It is especially attractive to those of us who live in big cities in the Asia Pacific region.”

“The first thing you notice stepping out of the Guam airport is the beautifully clear ocean; the deep

blue colors are just breathtaking,” he describes. “Another thing you notice right away is the purely fresh air on the ocean breeze.

“As a tropical island, Guam does enjoy all of those qualities you think of for an island: in addition to clean water and air, it has a very relaxing atmosphere where you are comfortable with taking your time to enjoy things, as well as, warm friendly people.”

Guam is a relatively easy place to get around, even for first-time travelers, Dias points out. Its main tourism area is located in an area called Tumon, also very close to the airport.

Most of the hotels are well-known brands people in Hong Kong are very familiar with, including Marriott, Hyatt, Hilton, Westin and Sheraton, and they are all located on the beach in Tumon, where an iconic natural attraction called Two Lovers Point (a high, dramatic cliff soaring over 380 ft above the Tumon beach) stands.

The most popular activities among tourists on the island are water sports,

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and “there are many beautiful areas in which to snorkel or scuba dive.” Swimming on the beach of Tumon is easy and purely enjoyable as the beach has a protective reef. Sightseeing and hiking around the area are very common. For those opting for more of an adrenaline rush, there are plenty of tours offering jet skiing, parasailing, skydiving and introductory flight lessons.

Guam not only is an outdoor travel destination but also has a number of shopping outlets. “There are many venues on the island to take advantage of their product offerings, including famous brands like Louis Vuitton, Gucci, Channel, Hermes and Duty Free Shoppers,” Dias highlights.

“Based on some of the feedback from our customers, I understand there are some very good values on luxury brands in Guam.”

The islands The Micronesian islands as a whole are becoming more popular with divers

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and surfers because of their natural environment, but growth from other visitors has been slower since these islands are relatively unknown. The four islands of the Federated States of Micronesia (Kosrae, Pohnpei, Chuuk and Yap) receive less than 15,000 visitors a year and have relatively small populations.

“I feel the Micronesian islands, with the exception of Guam and Saipan, are one of the last frontiers of tourism, as they receive only a small number of visitors per year and hence much of the natural beauty and culture remain undiscovered,” Dias points out.

“More importantly, each island has something really unique to offer.”

The best thing about traveling to Micronesia, perhaps, is that a traveler is not confined on one single island but is treated to an option of going to a number of islands that itineraries can be excitingly different. To each his own, one can choose to stay on one island or make multiple destinations on different islands in a single trip; better yet, make it multiple trips in the span of a lifetime because one will never be tired of the islands’ natural beauty.

Proximity of the Micronesian islands makes possible an islandhopping tour in one trip; yet, they are far enough to be unique mini-trips on their own for a total experience of various cultures in a single journey, all courtesy of a well-established air travel system covering the area.

Getting there Guam as the largest and most developed island in Micronesia serves as the gateway to other communities of Micronesia. United Airlines, now the largest private employer in Guam as a “hometown” airline of the island, has a very close relationship with the island and has enjoyed almost 45 years of serving the communities of Micronesia through its Continental subsidiary, Dias says.

Continental Airlines in 1968 established Continental Micronesia (initially called Air Micronesia, or “Air Mike”) with a Boeing 727-100 nicknamed

Walter Dias

“Ju-Ju,” and a Douglas DC-6, in addition to two Grumman SA-16/HU16 Albatross amphibians. Over the past few decades, Continental (now a part of an extended network under United Airlines) has not only provided service to all of the major islands but also created an aviation sector with employment opportunities for local residents and taken part in building some of the first hotels in the region, Dias notes.

From Hong Kong, United Airlines provides exclusive nonstop scheduled service to Guam twice a week on Mondays and Fridays. An alternative is via a daily Hong Kong-Tokyo flight and twice daily Tokyo-Guam flights.

Charter service on United is also available, Dias adds. “We did three charters from Hong Kong to Palau in the last Christmas and New Year season, and we will do two charters from Hong Kong to Guam during the upcoming Chinese New Year holiday period, in response to high demand from Hong Kong and Mainland China.”

Best of all, Hong Kong passport holders are no longer required to have a US visa for entry to Guam or Northern Marianas Islands, despite their US status (and hence the same requirement on international travel documentation), under the Guam/CNMI Visa Waiver Program, which also applies to nationals of Malaysia, Nauru, Papua New Guinea and Russia.

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“For centuries forbidden to foreigners, this timeless Buddhist Kingdom has succeeded in preserving its enchanting traditions and ancestral way of life. This is further epitomized by the state’s mandate of 'Gross National Happiness', where economic development, a goal for much of its humanity, is only a means to the real goal of happiness.”

Chang says the custom-made trips include opportunities to hike and bike into the Himalayas and to learn about the religion, arts and unique way of life. He doesn't guarantee that visitors will return ecstatically happy from their holiday, but says “many do return from the country with a paradigm shift of what happiness means.” some of the voyages with extensive exploration of the Antarctic Peninsula.”

Bhutan

Off the Beaten Trail For adventure and happiness on earth

By Nadine Bateman

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magine sailing along ice-filled fjords and among looming icebergs, getting up close to penguins, seals, whales and a multitude of sea birds on one of the world's most spectacular and remote continents.

Intrepid travelers or those looking to experience the trip of a lifetime: something completely different to the usual tourist destinations, might well be attracted to the idea of exploring Antarctica.

Where to start But where do you start? It’s not the sort of place where you can pitch up with a backpack and a map. To get the most out of a trip like this, it’s best to consult those with knowledge and experience of this vast wilderness and largely uncharted terrain.

Country Holidays are professional tour consultants who will help you put

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Photos courtesy of Country Holidays

together a customized travel plan to take the hassle out of preparing for such an exceptional holiday. They say their itineraries are always flexible, as are the guides and drivers. Country Holidays also specializes in organizing private tours that match each traveler’s interest, accommodation requests, and traveling dates.

The company aims to cater for people who are tired of holidays in which they are “always waking up early, rushing through a buffet breakfast for a better seat in a big tour coach and dozing off listening to the standard commentaries that the tour guide has to offer.” Instead, the intention is to “inspire” the travelers who choose their trips.

Country Holidays specializes in journeys to Indochina, India and the Himalayas, China and East Asia, the Middle East, Africa, Russia and Eastern Europe, Latin America and the Polar Voyages.

Says the company's managing

director Chang Theng Hwee: “Like majority of our itineraries, our Antarctica voyages cater to those with a sense of wonder, a quest for learning about unusual places and a thirst for unique experiences. Antarctica in particular appeals to those who wish to be in the remotest corner on earth and experience pristine natural beauty at its best and encounter some of the greatest wildlife.”

Antarctica Country Holidays’ Antarctica itineraries include an 11-day expedition such as the one taking place from January 26 to February 6, which will incorporate some magnificent places such as Livingston Island, Port Lockroy, Petermann Island, Paradise Bay, Cuverville and Deception Islands. The company promises the adventure will be “very active”, with several daily landings and cruises in Zodiac boats, as well as lectures and a

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“very enjoyable time on board.”

The Antarctica package is part of Country Holidays’ Signature Departure series and it can take a maximum of 16 persons. Although the dates are pre-set, each group always features something unique – the participation of an expert in the expedition or the opportunity to take part in or observe local festivals.

Says Chang: “We ensure the voyage is rewarding by engaging top Antarctica experts, (such as) Dr Thomas Bauer who wrote several books and papers about the continent and conducted several lectures on the topic (and who) will be sharing his passion about the subject with our travelers.”

Taking a flight from Punta Arenas to King George will reduce 100 hours of sailing across the Drake Passage to just a two-hour flight but the company promises “a quick crossing does not reduce the time in Antarctica. You spend five days (there), the same amount of time as

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If it’s mountains rather than icebergs that appeal, and if you have children to consider, then a trip to Bhutan with one of Country Holidays’ ‘Family Fun’ itineraries is worth considering.

Chang says he and his associates are advocates of family holidays that are not centered around beaches or theme parks.

“A family adventure is best for family bonding and it is very educational for the young ones. Bhutan is perfect in this regard. In the day, the family can explore the Himalayan landscape and encounter ways of life so different from that of Hong Kong. In the evening, there is no TV and internet access is intermittent at best, (instead) the family can gather around to chat about the days’ adventures.”

He recommends the eight-day Bhutan insight trip as the “best introduction to the kingdom”, while the Amankora journey is “perfect for those who want to be pampered during their adventure.”

Dzongs and monasteries are definitely on the agenda, so too is the chance for families to fully appreciate the unique culture and natural beauty of the Kingdom.

The trip begins from Paro into the stunning un-spoilt setting of Gangtey for some of Bhutan’s most iconic highlights.

Country Holidays states that a trip to Bhutan is “like having a magic wand transporting one back to the 15th Century.”

Nepal Country Holidays also offers trips to Nepal, a place that adventure seekers have long been seduced by. From the vibrant capital of Kathmandu, with its ancient architecture and colorful bazaars, the well-travelled and much-loved valley of Pokhara to the Annapurnas, Nagarkote and Poonhill and the Chitwan National Park with its elephants, tigers and rhinos, and the beauty of the Himalayas, it’s a place that continues to enthrall.

Chang says Country Holidays offers trips that are “off the beaten trail.” He adds: “Nepal is one of the victims when adventure tourism was developed at the expense of local culture and environment.

There are many villages in the Nepal Himalayas now which have more locals selling coca cola than there are farmers in the fields. Trash and deforestation due to heating requirements for the hikers are also real problems. We explore treks where one can enjoy pristine wilderness and villages where life is much less affected by mass tourism.”

As anyone who has been there will know, there is little that beats a trek along Nepal's quiet trails through its valleys and ridges to enjoy a panoramic view of the world’s highest mountains.

Country Holidays’ Contact Tel: (852) 2525 9199 Email: enquiries@countryholidays.com.hk Website: www.countryholidays.com.hk

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Plan Your Dream Holiday –

Recommended destinations for cruise travel in spring

Cruise Travel

By Daniel Kwan

Photo courtesy of Silversea Cruises

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f you are planning your vacation in spring and are looking for some relaxed but not-soordinary excursion, what’s better than a cruise vacation? If you love travel, then you must have heard that cruises are more popular than ever.

And if you have never cruised before, why not? Cruises today can take you everywhere: Europe, America and Asia.

Pick your destinations – there is always somewhere that will fascinate you.

Why cruise There are many reasons why cruises are popular today. Ask around and you will learn that cruises are not just fun but also represent great value. Although air fare has generally gone down due to competition among airlines, the truth is that cruises still provide an opportunity to visit multiple destinations in a relaxing way that some would never be able to afford if they had to pay for the food, transportation and accommodations separately.

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Being able to relax is in fact why cruises have become immensely popular in Asia.

Imagine once you are on board a cruise ship, you can literally stop to think. You don’t need to pack and repack your bags.

Your biggest decision then will be “how to relax”. And what could be better than lying on the deck, soaking up the sun, and indulging whatever fits your mood? That’s what relaxation is all about. For those who want to have the ease of mind when they are on holiday, cruises have a natural advantage too – you can forget about your inbox. Once you are onboard a cruise ship, your smart phones will be offline (although modern communication technology is available on most cruise ships if you absolutely want to stay connected).

On a cruise ship, you are not just traveling on a ship but on a luxurious hotel liner. You will have an abundant choice of restaurants, a plethoric selection of entertainment, and – if you live in Asia – the best air you can breathe.

There is another reason for you to consider cruises in planning your holidays

in spring – family. Cruises are for all demographics. If child care service is what you want, all you need is to ask for it. If ball-room dancing is your hobby, bring your dancing shoes. Eager to learn something new? Some cruises offer wine tasting lessons (if your destinations are Australia and New Zealand, your onshore day-tour will likely include visits to local wineries). Want to have it easy and quiet?

A stroll on deck can be a memorable experience. There is something for everyone. Today, cruise liner offers personalized service with many delightful surprises to make you feel at home.

Things to consider A cruise vacation is like the ‘magic door’ we dream as kids that open to every corner of the earth. When you arrive at different scenic spots, you can select a sightseeing route according to your preferences and budgets and roam freely or join the many shore excursions to famous landmarks hassle-free. The choice

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is yours and very flexible.

Here are a few suggestions about planning your cruise vacation. First, consider the seasons. For the non-rainy months from April to September, Europe and the Mediterranean would be good choices. The best time to visit Alaska, North Europe and Russia would be between May and August. From September to April, nearby countries like Japan, Singapore, Australia and New Zealand are all terrific destinations that you should include in your shortlist.

Then you should check out the differences between various cruise liners and find the one that suits you. In general, ocean liners are divided into three classes.

In the Four-Star category (e.g. MSC Cruises, Norwegian Cruise Line, Royal Caribbean International, Princess Cruises), the ships are longer with more passengers, offering for a boisterous atmosphere with a variety of activities available on board. Pricing is highly affordable and suitable for a group of friends or a family.

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Destination

Cruise liner

Package includes

Cruise Itinerary

Japan, Korea and China

Holland America Line - ms Volendam

• 14 nights cruise accommodation with meals and selected onboard entertainment • Economy class ticket from HK to Osaka on Cathy Pacific Airways

Osaka, Nagasaki, Pusan, Dalian, Beijing and Shanghai

Australia, New Zealand

Holland America Line - ms Oosterdam

• 14 nights cruise accommodation with meals and selected onboard entertainment • Economy class ticket from HK to Sydney and Auckland to Hong Kong or vice versa on Cathy Pacific Airways

Sydney, Hobart, Port Chalmers(Dunedin), Akaroa (Christchurch), Wellington, Napier, Tauranga and Auckland

The Five-Star Cruise Liner category (e.g. Celebrity Cruises, Cunard Line & Holland America Line) generally offers more attentive services, upgraded facilities and amenities, and higher quality of food.

In the Six-Star Cruise Liner group (e.g. Crystal Cruises, Seabourn Cruises, Silversea Cruises), the ships are usually in smaller tonnage with less passenger capacity. Cruise staff can offer a more attentive service and take care of every need of the passengers from food quality, the atmosphere and land excursions in a meticulous manner. Passengers enjoy the luxury of free flowing alcoholic drinks, juices and beverages and food, feasting like a king without any extra cost.

Although booking online is one option, you may need more customized services and support. Swire Travel is known in the industry as the market leader in arranging cruise travel. It will be a good starting point – and probably be the end point too – in your search as it offers one-stop shop service. Go to its website and it has more cruise packages and destinations than you

can imagine. For the discerning travelers, it will tailor-make a package that looks after all your special needs.

As for destinations, Osaka in Japan will be a perfect choice in spring as the cheery blossom season comes. Swire Travel offers a special Osaka package next year on board the cruise liner ms Volendam of the Holland America Line from HK$8,900 if book before December 31, 2012 – a bargain for a two-week-long cruise vacation since the price includes a one-way ticket between Hong Kong and Osaka.

Also in March, another cruise liner ms Oosterdam will tour Australia and New Zealand for two weeks for just HK$14,600 and up (price includes round-trip air ticket to Australia). Compared with how much you may need to spend on hotels and tickets if you have to pay separately, another good value package.

Swire Travel Contact Tel: 3151 8887 Email: cruise@swiretravel.com Website: www.swiretravel.com

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including a ski school for people new to the sport to a renovated Japanese restaurant where vacationers can enjoy special Hokkaido cuisine, Sahoro is not only luxurious but unique. Popular throughout the country are outdoor hot tubs and saunas, which can be found at Sahoro as well, perfect for enjoying snow in a warm environment.

A Club Med ski holiday at Sahoro includes not only accommodation but lift tickets, three meals a day, snacks, most beverages, and ski and snowboard lessons. Programs for children are also included (for children over four) and child care for 2-4 year olds is also available, for a truly hassle-free skiing adventure.

Skiing – the King of Winter Sports

Korea to cater for this explosion of skiing interest. One luxury leisure company is taking advantage of this attraction and showcasing skiing resorts as the perfect winter time vacation.

Winter time offers the chance to get outdoors and tear up the slopes in style

By Megaen Kelly

Club Med Photos courtesy of Club Med

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ong Kong’s short winter is arguably the nicest time of year in the territory. The reprieve from the heat and humidity plus the colorful lights decorating the city’s many skyscrapers make Hong Kong a bright, cool place to be.

However, one thing Hong Kong’s winter lacks is the typical activities in places where snow and ice mark the long winter months in those countries.

This is why so many people leave the territory for colder climes, to take part in the many outdoor recreational pursuits found in places like Europe and North America, chief among these being skiing.

From necessity to leisure Skiing has been a part of the human

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condition for centuries in places like Europe and North America. Starting off as a purely utilitarian activity – helping a person get across the snow and ice without sinking – it has evolved into a wildly popular leisure time interest as well as a competitive sport. This has been facilitated by the increasing number of ski resorts that are popping up around the globe.

While people have used skis for millennia in order to get around, it wasn’t until the early 19th century that people, helped by the Industrial Revolution – giving people more leisure time – started using skis for other purposes.

For example, the first organized races were held in Tromso, Norway in 1843.

Leisure-time skiing was initially only for the well-to-do, as equipment, clothing and resort costs were outside the means of the average person.

However, with advances in mass

production of ski equipment combined with the fact that the average income has risen, more and more people have been able to enjoy skiing. In fact, it is one of the few activities that can be viewed as both an exciting romantic getaway and as a family fun vacation.

Recently a new demographic has entered the skiing arena. People from around Asia – many of whom have disposable income for the first time – have discovered the joys of skiing and actively pursue it. For lovers it is a way to spend quality time in a beautiful setting, enjoying not just skiing but other activities including outdoor hot tubbing, while for families it is a great way to bond over a cup of hot chocolate in front of a lodge fire, going over the day’s adventures on the slopes.

Not only are there Asian skiers growing in numbers, but regional resorts have sprung up in places like South

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Club Med is known as the first all-inclusive resort operator, opening its first venue in 1950 in Mallorca. Another way it has made its name is the fact that it is a family-friendly company, with resorts catering to people with children.

And while more people are familiar with Club Med’s exotic beach getaways, the company in fact has 24 luxury ski resorts around the world, including two in Asia.

Asian skiing getaways Yabuli, located in China’s Heilongjiang Province in the country’s very cold north east, is the Mainland’s first inclusive skiing resort; it is also China’s largest skiing area and has played host to several winter athletic events including the 1996 Asian Winter Games and the 2009 Winter Universiade, so the infrastructure is quite good.

The resort is located in the middle of a national park at an altitude of 470 meters. Club Med’s resort features the

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company’s G.O (Gently Organized) professional ski instructors and 18 ski runs for all levels of skiing ability. If a vacationer needs a break from skiing there are some day trips to nearby Harbin where people can visit the world famous Ice and Snow Festival.

Or, if guests don’t want to leave the resort, there are plenty of indoor activities to take part in including a flying trapeze and indoor heated swimming pool.

Other resort amenities include three buffets a day featuring both Chinese and international cuisines, in addition to a late breakfast and late lunch service. There is also a spa to treat yourself to after a long day on the slopes.

Unlike other Asian countries that are just now jumping on the skiing bandwagon, Japan has been a long-time skiing-centric country, particularly because the northern island of Hokkaido offers some prime skiing locations. Club Med has a resort at Sahoro in the center of the snowy island that affords an attractive skiing experience.

One special feature of Sahoro is that there are ski gondolas, not just ski lifts, in the tradition of European ski resorts. These reach the 17 ski runs available, with the highest one being at an elevation of 1,030 meters.

With amenities and services

European tradition Skiing has been a part of European culture for centuries. As such, the resorts on the continent are welldeveloped and very competitive with each other. Club Med has a variety of resorts in Europe, particularly in France, Italy and Switzerland.

Club Med has staked a claim in Chamonix Mont Blanc in France, which is one of the country’s oldest and most luxurious ski resorts. Chamonix was in fact the site of the first Winter Olympics, back in 1924.

Located near the massive peaks of the Aiguilles, the skiing is world-class with 182 kilometres of slopes to choose from and 46 ski lifts to get you there.

Skiers can return to the winterinspired all white palatial Savoy Hotel for some relaxation in the Turkish baths or outdoor heated swimming pool, Europe’s answer to the Japanese outdoor bath.

So, for a carefree, luxurious ski vacation, you can do no better than to book with Club Med. Club Med differentiates itself from its competitors by being inclusive, which means that they do all of the planning for vacationers.

From accommodation to transportation, activities to dining, Club Med organizes everything. Book now to enjoy your ski vacation, whether it’s with a special someone or your entire lovely family.

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Guide to

Holiday Travel Package Conrad@ Macao, Cotai Central

Country Holidays

Sands® Cotai Central, Cotai Strip®, Taipa, Macao SAR

20/F Oriental Crystal Commercial Building, 46 Lyndhurst Terrace, Central Hong Kong

Conrad® Macao, Cotai Central is a world- class, contemporary luxury hotel located in Sands® Cotai Central. Conrad Macao offers a truly personalized level of service that anticipates and meets the needs of our guests, whether staying for business or leisure, to create a unique and unforgettable experience.

Private Tours Tailor-made Exclusively for You

Our exquisite guestrooms and magnificent suites are located in a 39-floor tower overlooking the Cotai Strip®, the heart of Macao leisure, shopping and entertainment district. The Conrad Macao provides direct access to Sands Cotai Central restaurants, entertainment and almost 90 luxury brand shops, as well as the Pool Deck and Health Club and Spa. Conrad Macao offers easy access to border crossings, ferry terminals and Macau International Airport, as well as famous cultural and World Heritage sites.

Expert Advice Utmost Flexibility

Now, with the hotel’s latest CELEBRATE THE SEASONS and SAVE 25% offer, you’ll experience the splendor of exquisite surroundings, complemented with a level of service so attuned to you. Relish in a luxurious experience from HKD1, 275++ Offer Details: • Receive 25% discount off “Best Available Rate” and “Bed and Breakfast” • HHonors Members earn Double Stay Credit on completed stays of 2+ nights.

• 7-days in advance purchase.

For more information, please visit conradmacao.com or call +853 8113 6000 Suite Details Each Deluxe Suite is generously apportioned at over 1,100 square feet (104 square metres), and features daily turn down service and a special turn down gift , the well-liked his-and-hers plush hooded microfibre robes and tailored satin slippers. Each Deluxe Suite also features the customised hallmark golden teddy bear and unique bespoke Conrad Macao rubber duck – Lucky Ducky.

Tel Fax Email Key Personnel Price range for package

: (853) 8113 6000 : (853) 8113 6623 : conrad.macao.sales@conradhotels.com : Troy Hickox, General Manager : James Wong, Manager – Sales and Marketing : start from HKD1275++

Spa and Dining Outlets Whether for a relaxing drink, a rejuvenating massage or a powercharged workout you will find that our Pool Deck, Bodhi Spa and Health Club with fully equipped high-tech gymnasium, Jacuzzi, sauna and steam rooms, provide everything you need.

Be one of the first to enjoy Conrad’s signature world of style, service, and connection in your own unique way at the Sands Cotai Central integrated resort in the heart of the glittering Cotai Strip. www.facebook.com/ConradMacao www.twitter.com/conradmacao

www.conradmacao.com 60

Indulge in the attention, flexibility and pampering on a trip tailormade exclusively for you, one that goes where you want, when you want. Extraordinary moments are made possible by well-travelled consultants and handpicked guides. With expertise in not only luxury but also culture, history and wildlife, let us redefine your notion of travel.

Tel Fax Email Opening Hours

: (852) 2525 9199 : (852) 2525 5199 : enquiries@countryholidays.com.hk : 9.30am to 6.30pm (Mon to Fri); 9.30am to 1.30pm (Sat)

Country Holidays specialises in bespoke journeys to: ∙ Indochina ∙ Southeast Asia China ∙ ∙ Himalayas & Indian Sub-Continent ∙ Northeast Asia ∙ Africa ∙ Oceania ∙ Europe & Russia ∙ Middle East ∙ Polar Voyage Latin America ∙

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Guide to

Holiday Travel Package Banyan Tree Lăng Cô

BANYAN TREE HANGZHOU

Cu Du village, Loc Vinh commune, Phu Loc District, Thua Thien Hue province, Vietnam

2 Westbrook Resort, Zijingang Road, Hangzhou, Zhejiang Province 310030 People’s Republic of China

Discover Priceless Tranquillity in Hangzhou Enveloped in lush greenery and calm waters, Banyan Tree Hangzhou exudes an authentic sense of place and priceless tranquillity.

Discover the Jiangnan-style water-village resort experience located inside the Xixi wetlands, and let the splendour of nature and centuries-old cultural legacy enthrall you.

Winter exclusive for American Chamber (Booking code: HK-AMCHAM) valid from now until March 31, 2013 (excluding February 9-15):

Part of Vietnam’s first world-class integrated resort, Laguna Lăng Cô, Banyan Tree Lăng Cô is poised to offer the group’s signature brand of luxurious accommodation with spacious pool villas, award-winning spa facilities, an 18-hole champion golf course, an array of dining venues and much more. Designed to offer absolute privacy and exclusivity, Banyan Tree Lăng Cô is nestled in a unique crescent bay framed by a three kilometre beach on the Central Coast of Vietnam, an area renowned for its pristine coastline, tropical jungles, rugged mountain peaks and proximity to the country’s most storied UNESCO World Heritage Sites, including the cities of Hue and Hoi An along with the relics of My Son. The resort is easily accessible within a 60 minute car ride from Da Nang International airport, which is fed by Tan Son Nhat International Airport (Ho Chi Minh).

Tel Fax Email Key Personnel Price range for package

: (86) 571 8586 0000 : (86) 571 8897 6535 : reservations.hangzhou@banyantree.com : Pascal Eppink, Area General Manager : Den Ferdinand V . Navarro, Director, Sales and Marketing : HKD5,500 net

www.banyantree.com/en/hangzhou

• RMB2,300 net for a Water Terrace Suite (RMB250 upgrade to a Premiere Water Terrace Suite or Water View Villa) • Buffet Breakfast at Waterlight Court for two • RMB200 spa value credit per room per stay • RMB100 afternoon tea value voucher at Jiu Xian Lounge • 10% discount on F&B at Waterlight Court, Bai Yun and Jiu Xian • Children under 12 years stay free on existing parent’s room with complimentary breakfast at Waterlight Court (maximum two children) Hong Kong Reservation Toll-Free 800 903 881 or call +852 2312 1815 or email yoko.cheung@banyantree.com.

For more information or reservation, please call +86 571 8586 0000 or email reservations-hangzhou@banyantree.com.

Inspired by the artistic heritage of Vietnamese dynasties past, the resort features 32 lagoon pool villas and 17 beach pool villas set on the shores of Canh Duong beach. The architecture and design of this stunning all-pool villa resort pays contemporary tribute to the cultural richness of the region. Integrating clay tiled pitched roofs, open courtyards and wood rafter ceilings, the main building and villas feature modern interpretations of design elements seen in the traditional garden houses of Hue. Villa interiors are replete with traditional Vietnamese aesthetic themes. Lotus motifs, lacquer and silk embroidery in a neutral palette of earth tones and accents of regal purple adorn fabrics, elegant furnishings, paintings and pottery. Natural materials such as bamboo, wicker, and raffia (palm) ropes are used to create a setting that blend the resort into the lush green forests that surround it.

Tel Fax Email Key Personnel

: (84) 54 3695 888 : (84) 54 3695 999 : reservations-langco@banyantree.com : Reinhold Johann, Area General Manager

www.banyantree.com/en/lang_co 62

For guests who are more inclined to the outdoors, the Laguna Lăng Cô Golf Club, an 18-hole, par-71 championship course designed by Sir Nick Faldo, delivers a golfing experience that can be enjoyed by skilled and novice players alike. The site’s natural rugged terrain has been preserved, offering a distinctive course with changing landscape framed by mountains on three sides and the East Sea to the west. The grounds weave between soaring trees, flowing streams, verdant rice paddies and dramatic rock features, and are noted for their oceanfront footage.

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HONG KONG biz.hk 2012 INDEX OF ARTICLES

CATEGORY

SECTION

ARTICLE

ISSUE

SECTION

ARTICLE

ISSUE

ADVOCACY

Washington Doorknock

Knocking on the Doors of Government

July

14

Cover Story

Is CEPA Good for Your Business?

September

8

Washington Doorknock

APCAC Washington Doorknock

July

23

China Business

A Shot in the Arm for Sellers to China Market

September

13

Beijing Doorknock

Knocking on Doors in Beijing

December

20

China Business

Breakthroughs for Architects

September

18

Government Relations

Challenges to Growth in Bangladesh

December

24

Urbanization

Grappling with China's Rural Land Problems

October

26

Chamber News

A Fond Farewell

January

40

Commercial Property

Kowloon East: Transformation & Integration into Hong Kong's CBD

March

18

AmCham Ball (Supplement)

A Night of Fire and Ice

May

22

Real Estate

Real Estate 101: An Introduction to Buying Property in Hong Kong

March

26

Charitable Foundation

Foundation Awards Students for Excellence and Vision

July

30

Real Estate

The Sky Is The Limit

September

24

American Topics

AmCham Celebrates "Fourth of July"

July

42

Real Estate

Mitigating High Occupancy Costs in HK's Office Market

October

36

Chamber News

Lyn W Edinger, 1948 - 2012

August

46

Sports & Entertainment

7th AmCham Golf Open Tournament

October

33

EDUCATION

Best-in-Class

Master Builder: Steven DeKrey

February

26

Charitable Foundation

A Night Out for a Worthy Cause

November

36

American Topics

An AmCham-Style Thanksgiving Celebration

December

38

EMBA/MBA PROGRAMS

Supplement

New Partnership to Bolster CU EMBA Program

November

2

Supplement

An Evolving MBA Program in an Ever Changing World

November

4 6

AMERICAN CHAMBER

APPAREL & TEXTILE

ARTS & CULTURE

BUSINESS OUTLOOK

CHINA MARKETS

64

PAGE

CATEGORY

COMMERCIAL PROPERTY

PAGE

Apparel & Footwear

GAFTI: Standardization of the Global Supply Chain

March

22

Supplement

The EMBA Program for Globally-focused Executives

November

Washington Doorknock

Effective Channel

July

22

Supplement

A Platform for All

November

8

Supplement

Invest in Talents - Advice from Top Headhunter

November

10

Culture

Water Margin: Hong Kong's Link to the Sea

March

29

Supplement

A Gen Y Success Story in Hospitality Business

November

12

Sports & Entertainment

Always Like to Have Fun

April

30

Supplement

PolyU DBA: An Integration of Scholarship, Leadership & Management

November

14

Sports & Entertainment

Watchmaker with a Big Heart

May

30

Financial Services

Is Art the New Asset Class?

June

36

Energy

The Tariff Debate

August

28

Energy

The Energy Landscape: A View to 2040

November

24 34

ENERGY

Cover Story

Fostering a Competitive Edge

January

8

Annual Survey

2011/2012 AmCham Business Outlook Survey

January

14

Financial Services

Mapping Investment Strategy in Times of Uncertainty

June

Talk-to-Author

Winning Through Innovation

August

42

Cover Story

Myanmar: The New Frontier?

August

8

China Business

Is the China Rebound Close?

October

16

Trade & Investment

Hong Kong's Strength

August

10

Trade & Investment

Observations from the Frontline

August

12

China Business

Rule of Law in China: The Falling Trajectory

January

27

Trade & Investment

The Bangladesh Challenge

August

22

China Business

China to Continue Buying Spree in 2012

March

12

Financial Services

Taking the Lead - Hong Kong as a RMB Offshore Center

April

24

Government Policy

Mapping Hong Kong's Future

April

14

China Business

Simple Truism Holds Key to Future Reform

May

20

Government Policy

Reclamation & Rock Cavern Development Viable Options?

April

17

China Conference (Supplement)

Top Five Challenges for Businesses in PRD

May

24

Cover Story

Pivot to Asia

May

8

China Conference (Supplement)

RMB to Become International Currency

May

26

Sino-US Relations

Can the US Walk & Chew Gum at the Same Time?

May

12

China Conference (Supplement)

Finding the Thousand Mile Horse

May

30

Trade & Investment

Implications of US Sanction

August

14

China Conference

AmCham's Value-Added China Conference

June

16

Cover Story

US Economic Engagement with the Asia Pacific

December

8

China Business

Tales from the Frontline: Saving Face in China

June

28

Cover Story

China, Freedom of Information and the TPP

December

10

China Business

China: A Labor Movement in Progress?

June

30

biz.hk 12 • 2012

GLOBAL ECONOMY

GOVERNMENT RELATIONS

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HONG KONG biz.hk 2012 INDEX OF ARTICLES

CATEGORY

SECTION

ARTICLE

SECTION

ARTICLE

ISSUE

Supplement

Prevention of Joint Degeneration

ISSUE October

PAGE

HEALTHY LIVING

1

CATEGORY

Supplement

Home Sweet Home for School-Age Children?

April

1

Supplement

Boosting Employee Wellness with New Ideas

October

4

Supplement

A Pioneering Move

April

3

Supplement

Raising Awareness of Prostate Problems

October

6

Supplement

Case Study: Why Local Schools Aren't an Option

April

5

Supplement

HPV - Real Culprit of Cervical Cancer

October

7

Supplement

Learning about Montessori

September

8

Pharmaceutical

Building Hong Kong as a Genuine Medicine City

November

28

Supplement

Finding a School Place in the Right School

September

10

Healthcare & Wellness

Launch of Consultation on Code

November

32 Supplement

The Perfect Sanctuary for Body & Soul - Banyan Tree

December

46

Human Capital

Key Driver in the War for Talent: Understanding Your Employee

February

22

Supplement

Travel on Your Own Terms

December

48

Business Management

Leadership Matters

February

34

Supplement

Micronesia: The Last Frontier of Exotic Tropical Experience

December

51

Human Capital

Asians with Vision

April

27

Supplement

Off the Beaten Trail

December

54

Human Capital

Multinational Leadership Migration to Growth Markets

October

38

Supplement

Plan Your Dream Holiday - Cruise Travel

December

56

Human Capital

A Global China: How Do You Win in a War for Talent?

December

28

Supplement

Skiing - The King of Winter Sports

December

58

Human Capital

Lead Your Employees by Purpose

December

32 Entrepreneurs/SME

Amazing Journey of Success

May

23

Information Technology

The Brain of Your Computer

February

16

Entrepreneurs/SME

Growing Pains

May

26

Information Technology

Cybercrime: The New Frontier of Corporate Security

June

24

Entrepreneurs/SME

Upsizing in a Downsizing World

June

22

Entrepreneurs/SME

Going Global - From Jacksonville, Florida

July

34

China Business

China Advice from a Successful Parachutist

September

20 1

LEISURE TRAVEL HUMAN RESOURCES

MANAGEMENT ICT

PAGE

INFRASTRUCTURE

Cover Story

Third Runway, Ready for Take-Off?

July

8

IP

Intellectual Property

Washintong State's Unfair Competition Act

January

30

Supplement

Devising & Implementing a Reputation Management Strategy

February

Intellectual Property

Review of Hong Kong's Patent System

February

31

Supplement

Trends Defining Communication

February

3

Intellectual Property

IP Protection & Enforcement Vital Int'l Commerce

May

16

Communications

Growing Business the Brand Building Way

May

28

Communications

The Digitally-Powered, Incredible Human

July

36

Cover Story

Investing in America

March

8

Trade & Investment

US State Department - Global Business Conference

March

14

Supplement

Growth & Diversification of Executive Assignments

September

1

Trade & Investment

Hong Kong Scorecard

March

17

Supplement

Setting Standard

September

6

Trade & Investment

Tokyo Summit Renews Commitment to Drive American Business Abroad

April

21

Trade & Investment

Commitment to Connectivity

August

18

Supplement

At Your Service

July

1

Trade & Investment

Championing for American Businesses

August

25

Supplement

Home Feeling

July

8

Trade & Investment

Open for Business

August

26

Supplement

Professional Help & DIY

July

12

Trade & Investment

Queries to American Investment Explained

September

28

Trade & Investment

Excellent Partners

September

32

Cover Story

After Changing the Light Bulb, What's Next?

February

8

Trade & Investment

The Maine Man

October

20

Environment

Counting Carbon

February

12

Trade & Investment

State's Soft Cell

October

24

Environment

Growing Concern among SMEs but Little Action on Climate Change

March

24

Best-in-Class

Otis' Way to Green

July

24

INTERNATIONAL COMMERCE

INTERNATIONAL SCHOOLS

66

MARKETING

RELOCATION

RESIDENTIAL RENTAL

SUSTAINABILITY

Cover Story

A Holistic Approach to Alleviate Shortage of Int'l School Places

April

8

CSR

A Banker who Feeds the Hungry

July

38

Education

The Challenge of Finding Land

April

12

CSR

Photographing Poverty

July

41

biz.hk 12 • 2012

biz.hk 12 • 2012

67

Mark Your Calendar

HONG KONG biz.hk 2012 INDEX OF ARTICLES

CATEGORY

TAX & LEGAL

TOURISM

TRANSPORTATION

WINE & DINE

WOI

SECTION

ARTICLE

ISSUE

PAGE

Environment

Make a Difference: Clean Up Our Beaches

August

32

Environment

The Pelle Lessons

August

34

CSR

A Canteen That Serves More Than Just Hotmeals

September

34

Food Banking

On a Mission to Feed the World's Hungry

October

28

Environment

Captain of The Trash Contingent

October

31

Trade & Investment

Green Program Runs a Good Course

December

38

Taxation

Which Forms Do I Need to File?

January

20

Law

Tougher Than Ever

January

24

Cover Story

You Do Know About FATCA, Don't You?

June

8

Taxation

What You Need To Know About FATCA

June

14

Washington Doorknock

Taxing Issues

July

20

Supplement

Sustainable Tourism - The Banyan Tree model

March

1

Supplement

Sheraton Macau to Open as Largest Hotel in Enclave

March

6

Supplement

China Strategy for French Pioneer

March

8

Hospitality & Tourism

Cruise Tourism Set to Take Off

December

16

Environment

Charges Reduction Welcomed for Shippers Using Cleaner Fuel

February

15

Washington Doorknock

Model for Business

July

21

Cover Story

The New Yorker Who Will Take MTR to New Heights

October

8

Aviation

Building the World's Leading Airline

December

12

Supplement

A Seasoned Performer

August

2

Supplement

Beyong the Basic

August

5

Supplement

Closer to Home

August

8

Supplement

California Weather and Wine vintages

August

10

Supplement

Picking Wines for Asian Palates

August

12

Supplement

Where The Money Flows

August

14

Trade & Investment

Prospects of US Fine Wine in China

December

34

Women of Influence

A Caffeine High

August

38

Women of Influence

The Art of Leadership: Inspiring Souls and Minds

November

8

Women of Influence

Creating Your Own Success

November

11

Women of Influence

Technology, Leadership and Branding: Themes for Breakout Sessions

November

13

Women of Influence

Technology Eases The Way Towards Flexible Approach

November

18

Women of Influence

South Africa Created Vision

November

19

Women of Influence

Keeping Hong Kong Safe and Sound

November

20

Women of Influence

Fight for Animal Rights

November

21

Women of Influence

Completely Unexpected

November

22

The 2013 AmCham Chairman Inaugural Luncheon &

Jan Annual Appreciation for US Consulate Leadership

08

Jan

18

James Sun, 2013 AmCham Chairman AmCham Chairman James Sun will review the Chamber's significant accomplishments in 2012 and, most importantly as he continues his tenure as Chairman for a second year, will outline AmCham’s key priorities for 2013 and highlight pressing issues impacting the business communities in Hong Kong and Asia Pacific.

In his previous role as vice chairman in 2011, James led the annual Beijing Doorknock to interact with senior government officials from various Chinese ministries to reinforce Hong Kong as a two-way gateway into and out of China. He also had extensive board involvement and provided his keen insights on Hong Kong and China related issues.

James Sun is Managing Director and Responsible Officer of Charles Schwab, Hong Kong, Ltd, overseeing Schwab’s business in Asia. James joined Charles Schwab & Co. Inc. in New York in 1998, before relocating to Hong Kong in 2004. During his tenure with Charles Schwab in New York, James managed the East Coast business development, developing ethnic Chinese client base in New York, New Jersey, and Connecticut.

NOTE: AmCham will host Consul General Stephen Young and more than 20 other Foreign Service Officers serving at the US Consulate in Hong Kong to show appreciation for another year of close cooperation with the Chamber’s Board, Committees, and members on priority issues plus a wide range of other programmatic and advocacy activities.

Destination USA or the Roundtrip Experience for some!

Joseph Field, Senior International Counsel, Withers LLP Grace Shie, Special Counsel, Baker & McKenzie Brian Rowbotham, Managing Partner, Rowbotham & Company Harriet Leung, Partner, Rowbotham & Company (Moderator) This is a unique opportunity to listen to a panel of experts on immigration and tax law conflicts facing foreign executives as well as entrepreneurs and investors in Asia contemplating relocation to the United States.

In particular, those on an EB5, L-1 and/or H-1B visas moving to the US with existing wealth face an increasingly complex and hostile tax environment where residents may be subject to worldwide taxation and reporting requirements. Penalties for noncompliance related to foreign bank accounts can result in a penalty of 300 percent of the amounts not reported.

Issues concerning tax and immigration include: • Penalties related to FATCA and FBAR disclosure requirements • Impact on future individual travel to the US • Retaining green-card status outside the US • pre-departure strategies for tax and immigration Case studies will be discussed including: • Strategies for dealing with the IRS and FBAR penalties • Whether to delay getting a green card despite plans to move to the US • Pre-arrival tax strategies • tax risks for green card holders living in Hong Kong

Luck Favors Only The Prepared - Market Outlook and Jan Investment Solutions for 2013

24

Fan Jiang, Chief Investment Strategist, J.P. Morgan Private Bank, Asia

Join us for this informative and interactive luncheon as Fan Jiang, Chief Investment Strategist of J.P. Morgan Private Bank in Asia talks about the following: • Why emerging markets, particularly in Asia, have outperformed developed markets?

• Why emerging markets and Asia emerging markets are likely to turn around in 2013?

• What are the catalysts for the turnaround?

• What are the risks and how we can mitigate them?

Based in Hong Kong, Fan Jiang is responsible for developing and implementing the investment strategy for Asia as well as tailoring it for client portfolios in the region. As a member of the firm’s Global Investment Committee, he is also responsible for generating alpha across all discretionary multi-asset portfolios.

Prior to joining J.P. Morgan, Jiang spent nearly 20 years at Goldman Sachs and was most recently Chief Market Strategist for its Private Wealth Management business across the Asia Pacific region. Before that, he worked in its Fixed Income Division, where he started the group’s Asia credit strategy and trading team. Mr. Jiang holds an undergraduate and a graduate degree from the University of Notre Dame where he majored in economics and a Ph.D. in finance from the Kellogg School of Management.

For information, see website: www.amcham.org.hk

68

2013 Jan

biz.hk 12 • 2012

Tel: (852) 2530 6900

Fax: (852) 2810 1289

Venue: Venue: Conrad Hong Kong Harcourt Room (LL) Pacific Place 88 Queensway, HK

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Time: 12:00 - 2:00pm (Lunch included)

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Fee(s): Member Fee: HK$550 Non Member Fee: HK$650 Corporate Table Fee (10-12pax): HK$6,600 MEDIA WELCOME

Venue: AmCham Office 1904 Bank of America Tower 12 Harcourt Road, Central Time: 12:00 - 2:00pm (sandwiches & beverages included) Fee(s): Member Fee: HK$250 Non Member Fee: HK$380

Venue: The American Club, 49/F Floors 48-49, Exchange Square Two Central, Hong Kong Time: 8:00 - 9:30am (Continental breakfast included) Fee(s): Member Fee: HK$260 Non Member Fee: HK$380 Corporate Table Fee (10-12pax): HK$4,000

Email: kalau@amcham.org.hk

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