The Hong Kong Government Commerce Essay

The Hong Kong Government had decided to build the new runway in HKIA. It will bring the advantage and the disadvantage to Hong Kong. It will identify the third runway’s impact by review the literatures. Moreover, it will do the survey with the Hong Kong citizen to identify what factor they are concern with build the third runway and whether support to build the new runway. It also review the case study to identify which factor needs to concern during construct the third runway in Hong Kong. After doing the survey and review the literature and case study, I expect to find out the answer whether to build up the third runway and the reason to support the answer.

Aim

This project will identify the impact of the new runway in HKIA and find the answer which is whether to build the new runway. I will find out the answer through review the literatures and do the survey. The third runway is an issue which we need to concern. In the past, HKIA had contributed directly to Hong Kong’s economy. Hong Kong’s aviation industry generated HK$78 billion in value added contribution in 2008. It represents 4.6% of Hong Kong’s GDP. In 2010, it supports the four pillar industries of HK. They are tourism, trading and logistics, financial services, producer and professional services which together accounted for 58% of Hong Kong’s GDP in 2010 (Airport Authority Hong Kong n.d.a). The new runway will bring the advantage and the disadvantage to Hong Kong. We need to analysis it whether it is better or not after build the new runway.

Objective

1. Find the reason of the HKIA need to build up the new runway.

2. Finding literatures for the discussion or information about the third runway, such as any positive and negative views, suggestions, analysis the impact which the third runway will bring about the HKIA to build up the third runway.

3. Gathering the view of people support and oppose to build the third runway in Hong Kong International Airport by work out a questionnaire/survey.

4. Gathering the concern factor in Hong Kong International Airport by review the case study.

5. Analyse the data of (3), (4) and compare with literatures to determine problems that is impact of build the third runway which is Hong Kong local concern.

6. Suggestion of recommendations and conclusions will be based on the above data.

Background

Table -1 tentative layout of the Three Runway System

(Airport Authority Hong Kong n.d.e)The Hong Kong International Airport is the world’s busiest cargo gateway and one of the world’s 10 busiest passenger airports. In 2011, 53.9 million passengers used HKIA and 3.9 million tonnes of air cargo passed through Hong Kong (Airport Authority Hong Kong n.d.b). The AA had considered the long term development of HKIA. To cope with the increasing air traffic demand and competition, Airport Authority has published “Master Plan 2030” and makes a three-month consultation to gauge public opinion on HKIA’s future development. 73% of respondents supported the proposal to build the third runway to meet the airport’s long-term growth demand (Airport Authority Hong Kong n.d.c). The development of the third runway is involves construction of a third runway, related taxiway systems and navigation aids, and airfield facilities, the third runway aprons and passenger concourses, expansion of the existing Terminal 2 etc. Tentative Layout of the Three-Runway System

Critical review of literature

The reason of build the third runway

The demand of HKIA in the 2030

The International Air Transport Association Consulting had estimated by 2030: the flight movements are estimated to reach 602,000 flights with a CAGR of 3.2 %( Airport Authority Hong Kong n.d.d). It reflects the demand of the HKIA is increase in the future.

Table -2 the demand of flight movement (Airport Authority Hong Kong n.d.e)

HKIA Flight Movement Projection (Up to 2030) – The base-case demand forecast shows that annual flight movements at HKIA will reach 602,000 by 2030

The capacity of two runway in HKIA

For the capacity of the two existing runway in HKIA, it is 54 flights/ per hour in 2007, 55flights/ per hour in 2008, 58 flights/ per hour in 2009, 62 flights/ per hour in 2011, 68 flights / per hour in 2015. It is the ultimate capacity of the two runways in 2015. If no action taken, the ultimate capacity would be saturated around 2020 and it would take more than 10 years to complete a new runway (Dr. C.K. Law 2012).

The airport competition

The HKIA have competitors in Asia. The nearly all major hubs in the region are having plan or complete to build more runways. The Seoul Incheon Airport’s third runway taxiway system began in 2002 and was completed in 2008. It currently service with forty four million passengers. For capacity of the flights, it cans capacity of 410,000 flights and nearly 4.5 million tonnes of cargo per year. The Seoul Incheon Airport is continued to expand. The construction is set to continue until 2020. After the construction, it will be able to handle one hundred million passengers, 700 million tonnes of cargo and 530,000 flights per year (Halcrow 2011). The Construction cost is about US$1.22 billion (Aviation Policy and Research Center, Department of Decision Sciences and Managerial Economics 2007:8). In Mainland China, GuangZhou Baiyun Airport also implement the third runway and will be completed in 2015(Dr. C.K. Law 2012).

The view of different people in Hong Kong for build the third runway

The view of Hong Kong Government

In March 2012, the secretary for transport and housing Eva Cheng stated that the HK government would show the support to the Airport Authority. The Airport Authority can proceed an environmental impact assessment which is expected to take two years, must cover marine ecology, noise and air quality, and plan design details and financial arrangements (Alisha Haridasani 2012).”

The view of the airline

Cathay Pacific has been rooted in Hong Kong for more than 66 years and today connects the city to 170 destinations around the world (Cathay Pacific 2012). For the view of Cathay Pacific, it believes that a third runway is the only viable way to ensure the long-term competitiveness of Hong Kong as an important international airport. John Slosar, the Chief Executive of Cathay Pacific, stated that the third runway is importance for Hong Kong citizen. It can bring the welfare for them. Moreover, the third runway is vital the sustainability of the Hong Kong economy. The demand of build the third runway is become increasing. He also mentioned that the existing runways are already heavily used through most of the operating day that finding take-off and landing slots for additional flights is increasingly difficult. The existing runways will saturate between fifteen and twenty years early before the forecast of 2040. Mr Slosar said that as the airport becomes busier and busier, the capacity of the two runways will soon be saturated. If Hong Kong does not decisively to build the new runway, it will lose its advantage for competitive in aviation industry (Cathay Pacific 2011).

The view of environmental group in HK

The WWF is the one of the environmental group in HK. It supports the sustainable development of Hong Kong, and the associated benefits for its citizens (WWF n.d.a). However, it has a number of serious environmental concerns about the third runway proposal. The Chinese Dolphins, the fisheries and carbon emission are the WWF hopes the Hong Kong government will consider during build the third runway (WWF n.d.b).

The view of the citizens in Hong Kong

The Hong Kong Airport Authority was held the three- month public consultation on Hong Kong International Airport Master Plan 2030. It was held between 3 June and 2 September 2011. It was done 24,242 of the questionnaire during the public consultation. For the result of the questionnaire, it indicated that the majority of respondents 80% agree or strongly agree that Hong Kong Airport Authority should make a decision urgently on Hong Kong International Airport’s future expansion plans. There are 73% of respondents prefer the three-runway option, with 11% opting to maintain the two-runway system and 16% remaining neutral(Airport Authority Hong Kong 2011).

The impact of the third runway in Hong Kong International Airport

Economic impact

In fact, the aviation industry is essential role in Hong Kong’s development of economic. The professional services, trading and logistics, financial services and tourism are affecting mostly by the aviation industry (James Tong 2011). The new runway can increase the economy. After the Enright, Scott & Associates Ltd analysis, it estimate the direct, indirect and induced contribution of HKIA to Hong Kong’s GDP in 2030 will be HK$167 billion, equivalent to around 4.6% of the HKSAR’s GDP forecast for 2030. For the job opportunity, it estimates the direct employment associated with HKIA would reach 141,000 and indirect/induced employment would be about 199,000(Airport Authority Hong Kong n.d.g:189).

Keep Hong Kong ‘s position as aviation hub

James Tong stated that the upcoming third runway construction is to maintain lead in the aviation industry. The geographic location is the Hong Kong’s advantage. The main advantage of the location of Hong Kong is its international connections in destinations and flights. It can be connected to 160 destinations. The third runway can increases capacity. It is enhanced the Hong Kong’s aviation position by keep up with the growing trends of aviation industry and handle with the strong demand in aviation industry. The overall of Hong Kong economic also be increased after construct the new runway. If not to build the new runway, Hong Kong may lose the position as aviation hub in Asia .The competitors in Asia is aggressive to enhance its aviation position and exceed the Hong Kong’s aviation position (James Tong 2011).

Environmental impact

The WWF had stated some of the environmental impact during constructing the third runway in Hong Kong International Airport. The construction brings the negative effect for the Chinese dolphins. During the construction of third runway, it is increased activity in the water. The Chinese dolphins will increase the risk. It is because dolphins in the nearby marine park. It is less than 1 km away from the proposed construction site. It will undoubtedly be disturbed by the construction. The construction may changes in water quality and affects their food supply. The WWF stated that the carbon emission is the concern. The third runway will increase the number of aircraft movements per day. It is leading to a massive increase in Hong Kong’s carbon emissions. The third runway will only drive them higher (WWF n.d.b).

Research Methods

In the research, it will be implemented the inductive approach. The purpose of this research will collect different view, opinion and the concern factor about build the new runway in HKIA.

Survey

For the survey, the research will collect the data through the questionnaire. A non-probability sampling techniques like convenience sampling and snowball sampling would be adopt for the questionnaire. For the types of questionnaire, it will be used Internet-mediated questionnaires and delivery and collection questionnaires. For the Internet-mediated questionnaires, it would post the questionnaires on the internet. It is mainly post on the Hong Kong website. For the delivery and collection questionnaires, it is going to ask 200 interviewers to collect the data. It would analysis the data after data has been collected.

Case Study

There are similar situation with Hong Kong International Airport in other country. It will review the cases which are about construct the new runway. Identify the factor which needs to concern for the Hong Kong International Airport during the case study.

Project Plan

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