Secretary for Commerce and Economic Development Edward Yau: Hong Kong aviation recovery progressing as expected, airport passenger traffic expected to fully recover next year.

According to the information obtained from the Zhītōng Finance APP, on August 20th, the Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan Mo-po, published a blog post. In it, he mentioned that currently, Hong Kong International Airport has approximately 110 airlines operating flights to 165 destinations worldwide, which is about 75% of the pre-pandemic level. The daily passenger volume and flight movements have also recovered to about 65% and 70% respectively. The Airport Authority Hong Kong predicts that the passenger volume at Hong Kong Airport will recover to about 80% of the pre-pandemic level by the end of this year and fully recover next year. Overall, the progress of Hong Kong's aviation recovery is in line with expectations.

Paul Chan Mo-po stated that the development of Hong Kong International Aviation Hub is opening a new chapter at full speed, transforming from a city airport into an airport city. It is necessary to grasp several major trends and new opportunities, including: 1) the new model of bridgehead economy; 2) the new opportunities for growth in the Greater Bay Area; and 3) the paradigm shift in cargo and logistics.

Firstly, the new model of bridgehead economy. In 2019, with the support of the Hong Kong SAR Government, the Airport Authority Hong Kong launched a strategic development blueprint. The airport will no longer be just a place for passenger arrivals and departures, but will combine aviation with different economic functions to become a commercial landmark and even a leisure resort. The SKYCITY development project, covering an area of 25 hectares, offers a range of innovative entertainment, retail, and dining options, as well as commercial office space for the development of medical, healthcare, financial, and other services. SKYCITY will become an important tourism facility, contributing to Hong Kong's overall tourism economy.

Secondly, the new opportunities for growth in the Greater Bay Area. The three-runway system at the airport will be completed by the end of next year, significantly increasing the airport's passenger handling capacity by about 50%, accommodating 120 million passengers annually. At the same time, the airport will further expand its waiting network in mainland Chinese cities, increasing the number of destinations from the current 19 to 30.

The third trend is the new model of cargo and logistics in recent years. The Airport Authority Hong Kong has collaborated with multiple companies to invest in and build advanced logistics facilities, obtaining international certifications, enabling Hong Kong to seize the huge growth opportunities in modern high-end logistics services. For example, the Central Asia Hub, jointly expanded by the Airport Authority Hong Kong and DHL, was put into operation in March this year, increasing its automated cargo handling capacity by 50% to 1.06 million tonnes per year. The high-end logistics center built and managed by a joint venture led by Cainiao Network will also be completed and put into operation this year, handling an additional approximately 1.7 million tonnes of air cargo for Hong Kong annually. As for the transit mail center for handling mainland China's transshipment mail, it will be completed in 2025.

In addition, the Airport Authority Hong Kong is exploring a new sea-air cargo intermodal transport model with Dongguan, which can reduce operating costs by about half and reduce handling time by one-third, enhancing the cargo competitiveness of the entire Greater Bay Area.