The Hong Kong-Zhu Hai-Macau Bridge: Impacts on the Greater Pearl River Delta

Transcription

1 Purdue University Purdue e-pubs Open Access Theses Theses and Dissertations Spring 2014 The Hong Kong-Zhu Hai-Macau Bridge: Impacts on the Greater Pearl River Delta Jun He Purdue University Follow this and additional works at: Part of the Civil Engineering Commons, Economics Commons, and the Ethnic Studies Commons Recommended Citation He, Jun, "The Hong Kong-Zhu Hai-Macau Bridge: Impacts on the Greater Pearl River Delta" (2014). Open Access Theses. Paper 188. This document has been made available through Purdue e-pubs, a service of the Purdue University Libraries. Please contact epubs@purdue.edu for additional information.

2 Graduate School ETD Form 9 (Revised 01/14 ) PURDUE UNIVERSITY GRADUATE SCHOOL Thesis/Dissertation Acceptance This is to certify that the thesis/dissertation prepared By Jun He Entitled The Hong Kong-Zhu Hai-Macau Bridge: Impacts on the Greater Pearl River Delta For the degree of Master of Science Is approved by the final examining committee: Dr. Howard Adler Dr. Joseph Mick La Lopa Dr. Sandra Sydnor To the best of my knowledge and as understood by the student in the Thesis/dissertation Agreement. Publication Delay, and Certification/Disclaimer (Graduate School Form 32), this thesis/dissertation adheres to the provisions of Purdue University s Policy on Integrity in Research and the use of copyrighted material. Approved by Major Professor(s): Dr. Howard Adler Approved by: Dr. Barbara Almanza 02/27/2014 Head of the Department Graduate Program Date

3 THEHONGKONG)ZHUHAI)MACAUBRIDGE: IMPACTSONTHEGREATERPEARLRIVERDELTAREGION AThesis SubmittedtotheFaculty of PurdueUniversity by JunHe InPartialFulfillmentofthe RequirementsfortheDegree of MasterofScience May2014 PurdueUniversity WestLafayette,Indiana

4 ii Thisthesisisdedicatedtomybelovedparents.

5 iii ACKNOWLEDGEMENTS Iwouldliketoexpressmydeepestappreciationtomymajorprofessor,Dr. HowardAdler.Thisthesiswouldhavenotbeenpossiblewithouthisvision, guidance,encouragement,andhelp.hispassion,energy,andcarehavemadethe processofcompletingthisthesisfunandenjoyable.iwouldalsoliketothankmy committeemembers,dr.sydnoranddr.lalopa,foralloftheirvaluablesuggestions andcommentsthathelpedtoshapethisthesis.inaddition,iwouldliketothank Dr.Cai,Dr.Ghiselli,andDr.Miaofortheiradvicesandsupportthroughoutmy graduatestudy,iwouldnothavegainedsuchgreatexpricenceswithouttheirhelp andguidance.furthermore,iwouldliketothankmr.he,mr.lee,mr.liu,mr.luo, andallofmyinterviewees,thisthesiswouldnotbepoissiblewithouttheirhelp. Moreover,IwouldliketothankJoyMa,myfriendandfamily,forgivingmelove, care,andsupportespeciallyduringthedarkestperiodofmygraduatestudy.i,too, wanttoshowmyappreciationtomybffjiayuforherinvlaublefreindship.iwould alsoliketothankms.mariacamposforherpatience,help,andcarealongtheway.i wouldliketothankallofthefaculty,staff,andfellowstudentsattheschoolof HospitalityandTourismManagementaswell.AsIamfinishingmyseconddegreeat thehtmschool,theknowledgeandexperienceigainedduringthefiveyearsispent herehavemademewhoiamtodayandiamalwaysproudtobeapartofthehtm. Finally,Iwanttothankmyfamily,nothingwouldbepossibleinmylifewithout theirendlesslove,care,andsupport.

6 iv TABLEOFCONTENTS Page LISTOFTABLES...vii ABSTRACT...viii CHAPTER1INTRODUCTION...1 CHAPTER2REVIEWOFLITERATURE World smajormegaprojects ImpactsonEconomyandTourism PalmJumeirah ChannelTunnel ØresundBridge HongKongInternationalAirport CurrentStatusOfHongKong,Macau,andPearlRiverDelta DemographicsoftheGPRD DomesticEconomicForcesofHongKong,Macau,andGuangDong VisitorPortfolio LodgingIndustryProfiles RegionalEconomyandTourismCorporationsandPolicies EvolutionOfHZMBProject JustificationofPurpose InitialDiscussionontheFeasiblePlan DesignofMan)madeIslandsandTunnel EnvironmentalImpactsandConcerns ImmigrationIssues UseoftheBridge ProjectOverview...60 CHAPTER3METHODOLOGY SecondaryDataAnalysis AnalysisofOtherMegaprojects Impacts AnalysisofGovernments ProjectionsontheHZMB simpacts InterviewsWithHZMB sstakeholders SelectionofInterviewees DesignoftheInterview InterviewQuestions...69 CHAPTER4RESULTSANDDISCUSSIONS...70

7 v Page 4.1SecondaryDataAnalysisofMegaprojects PalmJumeirah ChannelTunnel ØresundBridge HongKongInternationalAirport ComparisonsoftheHZMBwithOtherMegaprojects SituationAnalysis:theHZMB spotentialimpactsonthegprd HongKong)SituationAnalysisonEconomicandTourismForces Macau)SituationAnalysisofEconomicandTourismForces GuangDong)SituationAnalysisofEconomicandTourismForces TheGPRD)SituationAnalysisofCurrentRegionalPolicies InterviewResultsandDiscussions SectionOne)Stakeholders KnowledgeoftheHZMB SectionTwo)Stakeholders PerceivedImpactsoftheHZMBontheGPRD SectionThree)TheHZMB simpactsonstakeholders CHAPTER5CONCLUSIONS,IMPLICATIONS,ANDRECOMMENDATIONS ResearchObjective1)ToReviewMegaprojectsontheScaleoftheHZMB CommonalitiesAmongMegaprojects UniquenessoftheHZMB ResearchObjective2)IssuesInvolvedinConstructionsofMegaprojects CommonIssues ResearchObjective3)TheHZMB sfutureimpactsonthegprd TheHZMB sfutureeconomicimpacts TheHZMB sfuturetourismimpacts TheHZMB sotherimpacts ResearchObjective4)Stakeholders PerceivedImpactsoftheHZMB TheHZMB sexpectedimpactsonstakeholders Fields ImplicationsandRecommendations ImplicationstotheHZMBAuthorityandFutureMegaprojectDevelopers ImplicationstoPotentialInvestorsoftheGPRD LISTOFREFERENCES APPENDICES AppendixA.ContextualSimilaritiesandDifferencesBetweenHostRegions AppendixB.ComparisonsofHongKong,Macau,andPearlRiverDelta AppendixC.SummaryTableofInterviewees'ResponsesbyQuestion AppendixD.MajorThemesfromStakeholders InterviewsbyQuestion AppendixE.SummaryGraphofImplicationsandRecommendations...163

8 vi LISTOFFIGURES FigurePage 1.MapofGPRDandHZMB PalmJumeirah PalmJumeirah HotelKPIsofDubaiRegions NumbersofOvernightStays,ØresundRegion GDPoftheGPRD PerCapitaGDPoftheGPRD HongKongHotelPerformance MacauHotelOccupancyRatesbySegment EstimatedDesignsoftheHZMB HZMBMainBridge DesignoftheHZMBMainBridge ChineseWhiteDolphins'Habitats ConnectivityoftheHZMBtoMajorCitiesatPearlRiverWest AnalyticalFrameworkOfSecondaryDataAnalysis...66

9 vii LISTOFTABLES TablePage 1.Passengers'TransportationMeans AgeStructuresComparisonoftheGPRD In)BoundTouristArrivalsComparison MacauCasinoGamingNumbersandRevenues SummaryofKeyInformationoftheHZMBandotherMegaprojects TravellingTimeComparison)WithandWithoutHZMB EstimatedPassengerFlowsbetweenHongKongandMacau ListofIntervieweesandKeyInformation 103

10 viii ABSTRACT He,Jun.M.S.,PurdueUniversity,May,2014.TheHongKong)ZhuHai)MacauBridge: ImpactsontheGreaterPearlRiverDelta.MajorProfessor:HowardAdler. Thisresearchlooksattheimpactsofmegaprojectsontheirhostregionsthrough acasestudyofthehongkong)zhuhai)macaubridge(hzmb).thepurposeofthis studyistoanalyzethepotentialeconomicimpactofthehzmbontheregion throughexistingdataandstakeholderinterviews.theresearchwillspecifically focusonmegaprojects impactsontourismindustryandeconomicdevelopmentin general.theresearchresultsareaimedtoaddressthefourresearchobjectivesof thestudy,whicharesimilaritiesanddifferencesbetweenthehzbmandother megaprojects,commonissuesinvolvedindevelopingmegaprojects,thefuture impactsofthehzmbonregionaleconomicdevelopment,andthehzmb spotential impactsonstakeholders.thisstudyisalsoexpectedtoconcludemegaprojects generalimpactsonaregionintermsoftourismdevelopmentandgeneraleconom

11 1 CHAPTER1INTRODUCTION TheGreaterPearlRiverDelta(GPRD)isthemostdevelopedregionandstrongest regionaleconomyofchina(chinacommunicationsconstructioncompanyltd. [CCCC],2011,Chapter1).TheGPRDregionconsistsofthreeareasincludingthetwo specialadministrativeregionsofthecountryhongkongandmacau,andthepearl RiverDeltaeconomiczoneofGuangDongprovince(CCCC,2011,Chapter1).To encouragecooperationamongthesethreeregions,thecentralgovernmentofchina haspublishedpoliciesthatenablelocalgovernmentstoestablishpartnershipsin economicdevelopment,tourismdevelopment,andimmigrationcooperation(cccc, 2011,Chapter1).ConvenientcommuteswithintheGPRDhaveproventobea criticaldeterminantoftheefficiencyofregionalcooperation(hongkong)zhuhai) MacauBridgeAuthority[HZMBAuthority],2009). Figure1isaregionalmapofHongKong,Macau,andZhuHai.Fromthemap,one caneasilyseethatthepearlriverestuarygeographicallyseparatestheeasternand westerngprd.atthepresenttime,peoplehavetotravelaroundtheinnersideof thegprdtogetfromonesidetotheothersideandtravellingtimebetweenthetwo sidesisatleastthreehours.thus,in2003,thehongkong,macau,andguangdong governmentsproposedaplantobuildabridgetoconnecttheeasternandwestern GPRD.Itwouldallowdirectaccesstobothsidesoftheregioninordertoenable efficientcommutesbetweeneasternandwesterngprd(cccc,2011,chapter1).

12 2 Thebridgeprojectisnamedafterthreecitiesitconnects,whichareHongKongZhu HaiandMacau.TheHongKong)ZhuHai)MacauBridge(HZMB)isindicatedbythe yellowdottedlineinfigure1( Chinabeginswork, 2009). Figure1.MapofGPRDandHZMB( Chinabeginswork, 2009) TheHongKong)ZhuHai)MacauBridge(HZMB)isoneofthemostimportant infrastructureconstructionprojectsinchinasincetheopenpolicyin1978(cccc, 2011,Chapter1).Thisprojectwillhavetremendousimpactonthedevelopmentof theregion("governorsfromfour,"2003).thepurposeofthepresentstudyisto analyzethepotentialeconomicimpactofthehzmbontheregionthroughexisting dataandstakeholderinterviews.theresearchwillfocusontheimpactsoneconomy andthetourismindustryingeneral. Justificationsofthestudyinclude: 1. TheHZMBisthebiggestinfrastructureprojectsinceChinaimplementedthe OpenPolicyin1978,anditisgoingtoimpacttheentireGPRDregion.There

13 3 wasnopreviousresearchwhichstudiedfutureimpactsofthehzmb.in orderforproposingfuturedirectionsofcooperationanddevelopment betweenareaswithinthegprd,researchonpotentialimpactsofthehzmb ontheregionissignificant. 2. Whiletherehasbeenotherresearchondifferentmegaprojects,noresearch hascombinedandstudiedthegeneralimpactsonregionaleconomyofthese megaprojects.researchonthegeneralimpactsofmegaprojectsissignificant, becausedeveloperofsuchprojectsinthefuturecanrefertosucharesearch tomaximizetheopportunitytoleveragepotentialimpacts. 3. TheHZMBisamulti)billion)infrastructureprojectthatrequiredlarge amountsofcapitalinvestmentfromthecountry,butnoonehasstudied stakeholders opinionsoftheproject.inorderfortheexecutorstooptimize theirneedsto buy)in theproject,aresearchonstakeholders perceptions onthehzmbisnecessary. Overallresearchobjectivesofthestudyinclude: 1. ToreviewthemegainfrastructureprojectonthescaleoftheHZMB; 2. Toreviewexistingdataontheissuesinvolvedindevelopingan infrastructureprojectofthescopeofthehzmb; 3. ToanalyzethepotentialimpactoftheHZMBonGPRD sregionaleconomic developmentwithaspecificfocusonthetourismindustry;and 4. Toidentifyhowthevariousstakeholdersperceivethedevelopmentofthe HZMBanditsimpactsontheirsegmentsoftourism.

14 4 CHAPTER2REVIEWOFLITERATURE 2.1World smajormegaprojects ImpactsonEconomyandTourism TheHZMBisconsideredamegaproject;howeverthereisnotauniversal definitionoftheterm megaproject.theunitedstatesfederalgovernmentdefines megaprojectasaprojectthatis recipientoffederalfinancialassistancewithan estimatedtotalcostof500millionu.s.dollarsormore. TheWorldDataCenter (WDC)definesmegaprojectasaprojectthathasmajorimpactintechnology, economy,and/ortheenvironmentwithaminimumtotalcostof1billionu.s.dollars. Megaprojectsareoftenseenastheassistantofhigher)levelgovernmenttolocal areas,mainlyforthepurposeofdrivinglocalareas physicalandeconomic development(altshuler&luberoff,2003).theimpactsofmegaprojectsvarydueto differentlevelsofsocio)economicdevelopmentineacharea(altshuler&luberoff, 2003).Thereisresearchconcerninghowotherexistingmegaprojectsincountries orregionswithsimilarstatesofsocio)economicdevelopmentaschinahave impactedthelocaleconomyandtourismdevelopment.suchresearchcanbeusedto analyzepotentialimpactofthehzmbonthegprd seconomyandtourism.afull reviewoftheliteratureaboutsuchprojectsasthepalmjumeirah,channeltunnel, ØresundBridge,andHongKongInternationalAirportarediscussed.Theywere

15 5 chosenbecausedubai,britain,france,sweden,demark,andhongkonghavestrong economieswithdevelopinggrowthsimilartochina PalmJumeirah PalmJumeirahisa12)square)mileman)madearchipelagointheshapeofpalm treelocatedindubai(nakheel,2011).nakheelcorporation,astate)ownedcompany controlledbytheunitedarabemirates(uae)government,investedand constructedtheman)madearchipelago(nakheel,2011).thoughtheactual constructioncostofpalmjumeirahhasneverbeenofficiallyrevealedtothepublic, theestimatedcostis$14billion("dubai'sfirst'palm',"n.d.).thetotalconstruction timeofpalmjumeirahwas9years,from2001to2010(nakheel,2011).asamulti) functionalproject,itincludesthedevelopmentofcommercial,retail,residential,and hospitalityofferings(nakheel,2011).theeconomicandtouristimpactsofpalm Jumeirahhavebeenverydiversifiedsincecompletionin2010.Suchimpactscanbe categorizedintourbanization,in)boundtourism,andhospitality(nakheel,2011; "Dubai'sfirst'palm',"n.d.) AcceleratingUrbanization Urbanizationisacommoneconomictermthatindicatesthephysicalexpansionof urbanareasasaresultofruralmigrationorsuburbanconcentration.thistermis associatedwithmodernizationandindustrialization.accordingtothephotoseries ofdubaitakenbynationalaeronauticsandspaceadministration(nasa)from

16 6 2000to2011,urbanizationhasgrownrapidlysincethebeginningofconstruction. ThepictureinFigure2wastakeninNovemberof2000,afewmonthsbeforethe constructionofpalmjumeirah.theviewinfigure3wastakeninfebruary2011, fewmonthsaftercompletionofthemegaprojectin2010.inthesefalse)colorimages, brownindicatesbareground,redindicatesvegetation,darkblueindicateswater, andlightblueorgrayindicatebuildingsandpavedsurfaces(earthobservatory, 2011). Figure2.PalmJumeirah2000(EarthObeservatory,2011) Figure3.PalmJumeirah2011(EarthObservatory,2011)

17 7 ComparisonofthesetwoimageshasindicatedPalmJumeirahimpactaccelerating Dubai surbanization.in2000,asindicatedbyfigure2,thecitywasdominatedby bareground,showingminimalconstructionandpavedsurfaces.in2011, representedbyfigure3,constructionandpavedsurfaceshadincreased significantly DrivingtheEnhancementofInfrastructure TheconstructionofPalmJumeirahalsohasdriventhemassivedemandsfornew localinfrastructure,includingpowerplants,sewagetreatmentfacilities,water supplysystems,residences,roads,andrailways.mostdemandswerefromproject developers,newresidents,andvisitorstothegroupisland(businessmonitor International,2013).Localgovernment seffortsofbeingsustainablehavedriven theinfrastructuredevelopmentassociatedwithgreenactions( Palmjumeirahuses, 2008).PalmMonorail,whichconnectsthePalmJumeirahandmainland,isthemost wellknowninfrastructureassociatedwithpalmjumeirah.thepalmmonorailisthe firstmonorailinthemiddleeasternarea,withatotalconstructioncostof$381 million(sell,2007).asewagetreatmentplantwasconstructedwithacostof$400 million,alongwiththeconstructionofthegroupislandtoproducesufficienttreated effluenttomeetallirrigationneeds( Palmwater, 2006).InJuneof2013,Dubai ElectricityandWaterAuthorityannouncedplanstolaunchanewwaterpipeline projectinpalmjumeirahtoenhancetheisland sinfrastructureandmeetthe growingdemandforitsservicesacrossdubai("dewalaunchesnew,"2013).

18 StimulatingDevelopmentintheHospitalityIndustry Along with the construction of Palm Jumeirah, Dubai became one of the world s most exciting locations for new hotel development. Palm Jumeirah has been designed to support more than 60 luxury hotels, 4000 exclusive residential villas, 1000 unique water parks and 5000 shoreline apartments, marinas, water theme parks, restaurants, shopping malls, and other entertainment facilities (Horner & Bleeker, 2007). Almost all major global hotel companies already operate at least one property on this island, including Starwood, Fairmont, Sofitel, Hilton, Marriott, Trump International, and Kempinski (Katz, 2010); most of their properties are ranked as 5-star. The occupancy of the five-star hotel sector in 2012 increased by six percent despite more than 1000 hotel rooms being added to the market in the same year (Gandhi et al., 2013). According to Figure 4, which shows the Average Daily Rate (ADR), occupancy and Revenue Per Available Room (RevPAR) of different regions in Dubai, Palm Jumeirah has proven to dominate Dubai s hospitality industry. Figure4.HotelKPIsofDubaiRegions(Gandhietal.,2013)

19 9 Inaddition,shared)ownershipbusinessmodelsunderthehospitalityumbrella haveproliferatedinpalmjumeirah.suchbusinessmodelsincludetimeshare, fractionalownership,privateresidenceclubs,destinationclubs,andcondohotels (Robinson,2006).Thedrivingforceoftheboomingshared)ownershipbusiness modelisthehigh)incomehouseholdsintheregion.anestimated2.4million consumersfromthesehigh)incomehouseholdswouldliketolockintheirfuture holidaysinpalmjumeirahatthepricebeforeitscompletion(robinson,2006). Rapiddevelopmentofshared)ownershipbusinesseshasdiversifiedtheinvestment riskaswellasdubai sportfolioasaglobaltouristdestination.withthegrand openingofthefairmontresidencesin2011,thereareeightshare)ownershiphotels operatingontheislands(robinson,2006) ChannelTunnel TheChannelTunnelisa31.4milesundersearailtunnelconnectingGreatBritain andfrance,whichcosts$15billiontobuild,istheworld smostfamousmegaproject (Sen,2004).Itopenedforservicein1994withatotalconstructiontimeoffour years(sen,2004).thechanneltunnelsharesafairamountofsimilaritieswith HZMB:theyarebothmegaprojectrelatedtotransportationsandtheybothconnect regionsunderdifferentadministrations(cccc,2011,chapter1;sen2004).the ChannelTunnelimpactstheeconomyandtourismfromamulti)regionperspective, eventhoughtheseimpactsarelessthanprojected(thomas&o'donoghue,2013).

20 EconomicImpactsonKentandNord)Pas)deCalais TheChannelTunnel,directlyconnectingtwoofthelessdevelopedregionsinthe UnitedKingdomandFranceKentoftheUnitedKingdomandNord)Pas)deCalaisin France,hasenabledeconomicandsocialintegrationsacrossthetwocountries internationalborders(sen,2004).thepublichadexpectedthatthechanneltunnel woulddramaticallyimprovetheeconomicandsocialdevelopmentofthisregion whenthechannelwasfirstopened(thomas&o'donoghue,2013).intheearly) 1990s,KentandNord)Pas)deCalaiswereexperiencingdifficultiesineconomic developmentduetotheregions decliningindustriesandincreasingforeign competition(kentcountycouncil,2009).therefore,constructionofthechannel TunnelwasbelievedtobeabletocontributeafresheconomicstimulustoKentand Nord)Pas)deCalaisthroughgreateraccessibilitytotheseplaces(KentCounty Council,2009).However,theregionaleconomicimpactofChannelTunnelasa catalysttothetwodecliningeconomieswasactuallylesssignificantthanexpected (Thomas&O'Donoghue,2013).KentandNor)Pas)deCalaisexperiencedminor economicgrowthinthemid1990 simmediatelyaftercompletionofthechannel Tunnel,thentheeconomicdevelopmentofthesetwoplacesagainlaggedbehind otherplacesinwesteurope(kentcountycouncil,2003;thomas,2006). AfewmajorfactorshaverestrictedeconomicdevelopmentofKentandNord)Pas) decalaisdespitethechanneltunnel.onefactorrelatedtotheeconomicandsocial structures:bothregionsweresufferingfromforeigncompetitionontheir traditionalindustriesandlossoftalentsduetohighratesofemigration(kent

21 11 CountyCouncil,2003;Thomas,2006;Vickerman,1998).Theotherfactorrelatedto theirlocations.thoughkentisclosetolondon,ithasverypoortransportationlinks withtherestoftheunitedkingdom;thus,kentfailstobeappealingasan employmentlocationofchoice(thomas&o'donoghue,2013) Socio)EconomicImpacts Thesocio)economicimpactsofChannelTunnelaremostlyreflectedonlocal residents perceptionsofkentandnord)pas)decalais(thomas,2006).residents therehavegraduallyremovedtheconceptofboundariesbetweenkentandnord) Pas)deCalais.OftenresidentsinKenttravelthroughChannelTunneltoNord)Pas)de Calaisandbuyfoodandalcohol(TheMissionOpérationnelleTransfrontalière, 2011).Leisuretripinbetweenthesetworegionshavebecomeroutine. AfewyearsbeforetheChannelTunnelstarteditsservices,demandsforferry serviceswerehighduetotheincreasingnumbersofleisureandbusinesstravelers. However,ferryservicewasexpectedtobecomeobsoleteduetotheuseofnewand convenienttransportationbetweentheunitedkingdomandfrance(jefferson, 1993).AccordingtoTable1,theChannelTunnelreplacedtheferryasamainmeans oftransportationbetweentheunitedkingdomandfrance(thomas&o'donoghue, 2013).YetferryservicedidnotbecomeobsoleteafteraddingtheChannelTunnelas atransportationlink;thechanneltunneldidnotsuccessfullyreplaceferriesinthe freightsector(thomas&o'donoghue,2013).table1alsoshowshowtheferryhas dominatedfreightservicesbetweenthetworegions.

22 12 Table1.Passengers'TransportationMeans(Thomas&O'Donoghue,2013) MajorTourismImpacts TheChannelTunnelhasprovidedaconvenientandalternativewaytotravel betweenunitedkingdomandotherpartsofeurope.knowingthefactthatfrance alwayshasbeenapartofthecontinent,thetourismimpactsofthechanneltunnel aremoredynamicandsignificanttounitedkingdomthanfrance,impactingonboth theinboundandoutboundtourismofunitedkingdomandtheinboundtourismof France(Sen,2004).Thenumberofinboundtouristsgrewby47%from1991to 2000andthatofoutboundtouristsgrewby85%withinthesameperiodoftime (Sen,2004).TheUnitedKingdomlostasignificantamountofinternaltravelers sinceithadbecomemucheasierforbritishpeopletotakeshort)breaksineuropean Continentthroughthetunnel(Sen,2004).However,tourismimpactsoftheChannel Tunnelwerenotassubstantialasexpected:itsopeningneverinspiredanygreat excitement.themaincauseisthatchanneltunnelonlybenefitstheresidentswho

23 13 livenearlondonandsoutheastunitedkingdom;makinglittledifferencesinterms oftravelingtopeoplefromotherpartsoftheunitedkingdom(barrett,2009) ØresundBridge TheØresundBridgeisa10)mileroadandrailwaylinkbetweenCopenhagen,the capitalofdenmark,andmalmö,thesecondlargestcityofsweden(øresundsbro Konsortiet,n.d.).Thetotalconstructioncostofthismegaprojectwasabout$5.2 billion(organisationforeconomicco)operationanddevelopment[oecd],2003); totalconstructiontimewasfiveyears(øresundsbrokonsortiet,n.d.) DrivingRegionalIntegration Withinthefirsttenyearsofoperation,theØresundBridgehascreatedaregion calledøresundwith3.7millionresidencesbyconnectingscaniaandzealandwhere twothirdsofthepopulationliveinthedanishpart(øresundsbrokonsortiet,n.d). Theregionquicklybecameahighlyintegratedmegacenterconsistingofresidences fromscaniaindenmarkandzealandinsweden.themainintegrationsinclude housing,culture,labor,businessandtransportation(wenande,2013).accordingto thestatisticsin2011,about25,000danishpeopleliveinscania(øresundsbro Konsortiet,2011)).Atotalof20,400peoplecommutebytheØresundBridgetoget toworkonadailybasisandmorethan50percentofthefamiliesinscaniaand Zealandhavefriends,families,andcolleaguesacrosstheBridge(Øresundsbro Konsortiet,2011).Aregionalorganization,RegionalGrowthProgrammes,was

24 14 establishedtocreatepoliciesrelatedtoindustrial,regional,andlabormarket;the Øresundregionhasitsownpoliciestosupportregionaleconomicdevelopment (OECD,2003) SupportingRegionalEconomicGrowth IntegrationoftheØresundregionhassignificantimpactofthetwonations, especiallyintermsofeconomy.approximately27percentofthecombinedgross DomesticProduct(GDP)ofDenmarkandSwedenisgeneratedinthisregion (ØresundStatisticsandAnalysis,2011).Integrationoftheregionalsoimprovesthe economicefficiencyofthetwonations;theincreasingeconomicscalehasintegrated theresourcesfrombothcountries(øresundstatisticsandanalysis,2011).in addition,strongeconomicpowerintheøresundregionhasattractednewbusiness tosettlethere,thusincreasingjobopportunities(øresundsbrokonsortiet,2011). BothcountriesoftheØresundregionhaveahigherpercentageofnewcompanies thantheaveragepercentageoftherespectivecountries.in2009,only22,500new companieswereestablishedintheregion(øresundstatisticsandanalysis,2011). Tomaintainahighlevelofintegrationintheregion,anorganizationcalled Øresundskomiteen,monitorstheintegrationindexoftheregion,governmentswill takeactionaccordingtothechangesandtrendsintheindex(wenande,2013).

25 CreatedCommonLaborMarket Oneofthefactorsthathaverestrictedtheregionaleconomicimpactofthe ChannelTunnelisthatUnitedKingdomandFrancehavefailedtocreateacommon labormarketbetweenkentandnord)pas)decalais(thomas&o'donoghue,2013). TheØresund,ontheotherhand,isaverysuccessfulcaseofdevelopingcommon labormarketbetweenthetwonations.labormarketpolicessupportedbythe RegionalGrowthProgrammeshaveenabledfrequentlaborflowwithintheØresund region(oecd,2003).danishcompanieshavereceivedhelpfromswedishlabor whendenmarkwasexperiencingaboomingeconomy,butwithaninadequate amountofqualifiedlaborforcetosustaingrowth,qualifiedjobseekersareableto findidealjobsintheirprofessionalareasontheothersideoftheøresund (ØresundsbroKonsortiet,2011).Thoughregionalpoliciesenablefrequentlabor flow,denmarkandswedencontinuetohaveamajordifferenceintaxandpension regulations,creatingconcernsoftheøresund scommutersandrestrictinggrowthin theregionalintegrationindexinthelabormarketcategory(øresundsbrokonsortiet, 2011) StimulatingtheHousingMarket HousingisalsopartofthemajorintegrationmarketintheØresundregion(OECD, 2003).DuringthepastdecadeaftertheopeningoftheØresundBridge,migration activitieshavebecomeincreasinglyfrequentbetweenregions,especiallyfrom DemarktoScania,thusstimulatedthehousingmarketatbothendsofthebridge

26 16 (ØresundsbroKonsortiet,2011).Statisticaldatahasproventhatlocationsnearthe bridgearethemostpopularplacesfornewimmigrantstosettle;malmöisthemost popularhousingmarket.mostimmigrantsfromscaniatomalmöwereoriginally livinginthecopenhagenregion.themaindrivingforceofthemovementisthatthe costofhousingingreatermalmöis35percentlessexpensivethaninthecapital RegionofDenmark(ØresundsbroKonsortiet,2011) SettingNewPatternsintheTravelMarket Traditionally,DanishpeopletraveledtoScaniamuchlessoftenthanScanians traveledtodenmark;however,theøresundbridgehasmotivatedtheleisure markettotraveltotheothersideofthebridgeduringthepastdecade(øresundsbro Konsortiet,2011).ThenumberofleisuretravelersfromDenmarktoSwedenhas increasedandleisure)travelingactivitiesindicateagrowthtrendintheøresund regionaswell(øresundstatisticsandanalysis,2011).accordingtofigure5,which showsthenumbersofovernightstaysinthecopenhagenregion,scania,andmalmö from2003to2009,thebridgealsohasdrivenchangesinstayingpatternsforthe travelmarket(øresundsbrokonsortiet,2011).sincethebridgeenablessame)day visitstotheoppositeside,thenumberofovernightstaysinbothscaniaandmalmö droppedduringthefirstfewyearsaftertheopeningoftheøresundbridge.then numbersincreasedagainwhencopenhagenlostpartialpopularityasanovernight staydestinationtosweden(øresundsbrokonsortiet,2011).

27 17 Figure5.NumbersofOvernightStays,ØresundRegion(ØresundsbroKonsortiet,2011) 2.1.4HongKongInternationalAirport HongKongInternationalAirport(HKIA),amegaprojectincurredconstruction costofover$6.5billiontoandbeganitsserviceinjuly1998.itisnowtheworld s busiestcargogatewayandbusiestpassengerairport(airportauthorityhongkong [AA],n.d.b).Theairportwasconstructedonaman)madeislandtothenorthsideof LantauIslandwithanareaof4.85squaremile(AA,n.d.a).Thisisamulti)functional projectthatincludedconstructionsofarailwaycalledairportexpresslinethat connectsthehkiatodowntownhongkong,ferryportsthatofferferriestravel betweencitiesinpearlriverdeltaandtheairport,twoterminalswithatotalfloor areaof0.274squaremile,two2.36)milelongrunways,twoairporthotels,and variousentertainmentfacilitiessuchasanimaxtheaterandover280retailshops (AA,2010).TheHKIAhastremendouslybenefitedHongKong,intermsofindustrial, commercial,tourist,andsocialdevelopments(aa,2010).

28 ConsolidatingEconomicGrowth In2008,thetotaleconomiccontributionoftheHongKongAviationIndustryand otherbusinessesatthehkiawasapproximately$10billioninvalueaddedor4.6% ofthecity sgdpofthesameyear(aa,2010).inaddition,hkiarelatedbusinesshas createdjobsfor185,000peoplewhichisapproximately5.3%ofthetotalnumberof laborforceinhongkong(censusandstatisticsdepartment[c&sd],2013).the tradingandlogisticsindustry,whichcontributesapproximately4%ofhongkong s GDP,isoneofthefourkeyindustriesinHongKong(AA,n.d.a).Itheavilyrelieson land,water,andairtransportationtotransfergoodsbetweenmainlandchinaand therestoftheworld(aa,2010).asthemaininternationalhubairportoftherapidly developinggprd,thehikaisbecominganincreasinglyimportantdrivingforcefor thelocaltradingandlogisticsindustry(aa,2010).withanannualaveragegrowth rateof22percentincargotraffic,hkiahassuppressedmemphisinternational Airportthathasdominatedthetitleofworld sbusiestairportbycargotrafficfor17 consecutiveyearsin2010andbecametheworld sbusiestcargohub("world airportrankings,"2011).in2012,hika scargotrafficreached4.06milliontons, andsuppressing4milliontonsforthefirsttime(c&sd,2013) EnablingGreatAccessibilitytoTravelers TheHKIAisnotonlyamaincargohubtotheGPRD,butitisalsothemost importantpassengerhuboftheregion.itisrankedastheworld sbusiestairportin termsofpassengertraffic,connectinghongkongwithover180destinationswith

29 19 morethat100airlinesthere,with48destinationsinmainlandchina(c&sd,2013). Withanaverageannualgrowthrateof4.9%inpassengertrafficsince1998,the HKIAhascarriedmorethan600millionpassengerstoandfromHongKongduring thepast15years( Airtrafficstatistics,2013).Theairplaneisthemainmeansof transportationforforeigntravelerstohongkong,atotalof13.7%oftouristarrivals enteredhongkongthroughthehkiain2011(hongkongimmigrationdepartment, 2011).Inaddition,theHKIAisalsothemainarrivalportoftransitingpassengers, thegroupoftravelerswhocontributedover$313billionintouristrevenuetohong Kongin2012(HongKongTourismBoard[HKTB],2012c).TheHKIAhasprovenits attractivenesstotravelersbywinningthe BestAirport awardfromtraveltrade Gazettefortenconsecutiveyears(AA,2013) StimulatingtheDevelopmentofLantauIsland Thoughintheplanningstage,theHKIAhasgivenimpetustoLantauIsland s development.lantauislandisthesecondlargestislandofhongkongandadjacent tothehkia(lantaudevelopmenttaskforce,2004).itisasignificantregiontothe HKIAsincetheroadlinksonLantauconnecttheHKIAtodowntownHongKong,but itremainsunderdevelopedandmostlycoveredbyvegetation("developingnew northern,"2013).withtheraisingpopularityofthehkiaasaninternationalcargo andpassengerhub,lantauislandisbelievedtohavethepotentialtobecomeanew commercialdistrictandtouristdestinationofhongkong,especiallyforthe transitingtravelerswhostopoveratthehkia("developingnewnorthern,"2013).

30 20 In2004,HongKongS.A.R.Governmentinitiatedafuturedevelopmentplanof LantauIslandthatincludedthedevelopmentofshoppingcenters,hotels,and conventioncentersinnorthlantau,andfurtherpromotingexistingnaturalreserves astouristdestinationsinthesuburbsoflantau(lantaudevelopmenttaskforce, 2004). 2.2CurrentStatusOfHongKong,Macau,andPearlRiverDelta Asmentionedpreviously,theGPRDconsistsofHongKong,Macau,andthePearl RiverDeltaeconomiczoneofGuangDongprovince.DifferentfromHongKongand Macau,thePearlRiverDeltaeconomiczoneisnotanindependentadministrative regionanditisundertheadministrationofguangdonggovernment.thus,section 2.2comparedstatisticsofthethreeadministrativeregions:HongKong,Macau,and GuangDongwithspecificfocusesonthePearlRiverDelta DemographicsoftheGPRD TheGPRDisoneofthemostpopulatedregionsinChinawithatotalpopulationof 64.8million(StatisticsBureauofGuangdongProvince[GDSTATS],2012).Guang DongandHongKongarethemostpopulatedprovincialareasinthenation. AccordingtoChina ssixthnationalpopulationcensusreportin2010,guangdong exceededhenanprovincebecomingthemostpopulatedprovinceinchina.the statisticsof2011revealsthepopulationofguangdongis105million.comparedto

31 21 thefifthnationalpopulationcensusin2000,totalpopulationhasincreasedby 20.26%.Thepercentageofagegroup0)14decreasedby7.28%,thepercentageof agegroup15)64increasedby6.58%,andthepercentageofagegroup65orolder increasedby0.7%(gdstats,2012).percentagechangesindicatethatthegeneral populationintheprovinceisagingataslowpace. IncontrastwithGuangDong ssituation,thehongkonggovernmenthasamore importantconcernwiththeagingpopulation.basedonthelatestcensusreport releasedbythehongkonggovernmentinmid2012,thetotalpopulationofthecity is7,136,300andincreasedby2.47%comparedtothestatisticsfrom2008(c&sd, 2012a).Thepercentageoftheagegroup65orolderhasincreasedbyalmostone percentwithinpastfouryears,andhongkongistheonlyregionhasahigher percentageof65orolderpopulationthanthatoftheagegroupfrom0)14among thesethreeregions.thus,agingisamajorfast)growingdemographictrendinhong Kong. Macau,ontheotherhand,hasthesmallestpopulationamongthesethreeregions. Accordingtothecity scensusreportof2011,thepopulationofmacauis557,300 (DepartmentofStatisticsandCensusService[DSEC],2011e).Comparedtothe censusstatisticsin2008,macau spopulationhasincreasedby1.47%,andthe percentageoftheagegroup65yearsorolderhasincreasedslightlyby0.14%(dsec, 2008).Theagingratioof2011was70.3(DSEC,2011),almostsixpointshigherthan thatof2008(dsec,2008).althoughmacauhasthesmallestpercentageofelderly population(aged65orolder)amongallthreeregions,agingremainsthetrendof

32 22 Macau spopulationstructure.table2wasgeneratedfromthelatestpopulation censusreportofthethreegovernments,includingthestatisticsofthepopulations andpopulationpercentagesofyouth(agedfrom10)14),adult(aged15)64),and elderly(aged65orolder).thetableshowscomparisonsofthepopulationnumbers andstructures. Table2.AgeStructuresComparisonoftheGPRD(C&SD,2012;DSEC,2011;GDSTATS,2012) Guang&Dong& Hong&Kong& Macau& Age %of %of %of group Population total Population total Population total ,618, % 806, % 66, % ,645, % 5,347, % 450, % >=65 7,039, % 982, % 40, % Total 104,303, % 7,136, % 557, % 2.2.2DomesticEconomicForcesofHongKong,Macau,andGuangDong TotalGDP,indicatingthemarketvalueofallserviceproductsandfinalgoods generatedbyacountryorregionatagiventimeperiod,isthemostimportant indicatorofalocation seconomicstatus.traditionally,thehigherthegdp,the higherthepotentialsupportfromthegovernmentandlocalbusinesses. Figure6showstheGDPofHongKong,Macau,andGuangDongfrom2005to 2010.HongKongandMacau sgdpindicatesslightlyupwardpatternsduringthat timeperiod,whereasguangdong sgdpincreaseddramaticallywithinthetime frame.accordingtothelateststatisticsfrom2011,thegdpofguangdongis $845.67billion(GDSTATS,2011),theGDPofHongKongreached$243.67billion

33 23 ( Hongkonggdpgrowth, 2013)andtheGDPofMacaureached$36.43billion (DSEC,2012a).AhighlightoftheGDPinGuangDongisthatin2011theGDPofthe PearlRiverDeltacontributedover83%ofthetotalGDPintheentireprovince (GDSTATS,2011),indicatingtheoutstandingpotentialofthePearlRiverDelta. ThesecondeconomicfactorfordiscussionispercapitaGDP.PercapitaGDPisa measureoftheprosperityofthepopulationofanationoraregion.theaverage incomeofhongkong,macau,andguangdongshowsadeeperinsightofthelocal economicsituationingprd.percapitagdpofchinaisalsoaddedtocomparison, showingtheprosperityofgprdfromtheperspectiveofthenation spopulation. AsshowninFigure7,theaverageincomeofChina,GuangDong,HongKong,and Macaufollowedanoverallupwardtrendduringthetimeperiodofobservation (2005to2010)(DSEC,2012;NBS,2011).Thepercapitapersonalincomelevelof GuangDongwasslightlyhigherthanthatofthenationandbothHongKongand MacauhaveamuchhighernumberthanGuangDongandthenation saverages. MacaushowedthefastestgrowthrateinpercapitaGDP. Figure6.GDPoftheGPRD(DSEC,2012a;NBS,2011)

34 24 Figure7.PerCapitaGDPoftheGPRD(DSEC,2012a;NBS,2011) MainIndustries TheindustriesthatsupportandsustainstrongeconomicgrowthacrosstheGPRD areslightlydifferentamongthethreegeographicareas.yetonecommonindustry allthreeareasrelyonisservice/tourism.financialservices,tradingandlogistics, tourism,andproducerandprofessionalservicesareconsideredthefourmajor industriesofhongkong(c&sd,2012b).thesefourindustriesaccountforover58 percentofhongkong sgdpandhavebeenthedrivingforcesofeconomicgrowthas wellasthemajortaxincomecontributorsofthecity(c&sd,2013).hongkongisa logisticcapitalwiththeseventhlargestseaportintheworld.mostgoodsare transportedbetweenoverseascountriesandmainlandchina(c&sd,2012b). Theserviceindustrycontributesover90%ofMacau sgdp,theonlyeconomic drivingforceofthecity(dsec,2012b).amongallservicesectors,thegaming industrycontributesthemosteconomicrevenues.in2011,taxfromgaming

35 25 revenueaccountedfor88.4percentofmacau sgovernment sincome(bankofchina MacauBranch,2012).Macau sgamingindustryishighlydependentonchinese tourists,whichspendaround$407to$652percapitapertrip("mainlandchinese gamblers,"2012).thus,macau seconomyisconsideredfragilebecauseitmainly reliesonasingleindustry:gamingindustry,andmostlyreliesonmainlandchinese tourists. Industrialandservicesectors,whichincludemanufacturing,mining, construction,transportation,tourismandinformationtechnology(it),aretwo majoreconomicdrivingforcesofguangdong(nbs,2011).theeasternpearlriver Deltafocusesonanexport)orientedeconomy(NBS,2011).Themainindustriesin thisregionareit,tourism,andothernewindustries.thewesternpearlriverdelta focusesonprivateeconomy;andthemainindustriesinthisregionaretraditional industriessuchasmanufacturing(dsec,2012b) ConcernsofSustainableGrowthintheGPRD ThoughthethreeregionsofGPRDalwaysshowstrongeconomicgrowthover time,someconcernsregardingtheregion sabilitytosustainsuchstrongeconomic growthinthefutureareevident.becauseofinconvenienttransportationand carryingcapacityproblems,hongkong spositionasaninternationallogisticcapital isindanger(liu,n.d.).accordingtothestatisticsofguangdongtransportation department,amongallroadlinksthatconnecthongkongwithguangdong province,only30%ofthehighwaysandroadsconnecthongkongwithwestern

36 26 GuangDong(Liu,n.d.).TrucksthattransportgoodsbetweenwesternGuangDong andhongkonghavetodrivethroughshenzhen(amajorcityineasterngprd)to enterhongkong,costsatleastanextrahourcomparedtotravellingdirectlyfrom westernguangdongtohongkong.moreimportant,themainbridgethatconnects ShenZhenandwesternPearlRiverDeltaRegion,HuMenBridge,alreadyhas reacheditsmaximumcarryingcapacity(lao,2012).goodsalsocanbetransported onthepearlrivertohongkong,butwatertransportationisnotefficientandcosts atleast24hourstotransportgoodsbetweenhongkongandguangdongeachway (Liu,n.d.).IftruckscandriveonaroadlinkthatdirectlyconnectswesternGuang DongwithHongKong,travellingtimebetweenthesetwoplacescanbereducedby asmuchas70%(cccc,2011,chapter1). WhileHongKongbusinessisconcernedwithcarryingcapacityofthecurrent transportationmeansandtransportationcosts,macau shighdependenceofgaming industryandmainlandchinesetouristshaveraisedconcernsofthegovernment officialsandeconomists.thegovernmenthasopeneditsmarkettolasvegas)style casinosin2002andtriedtoslowlydiversifytheindustriesandmarketsofthecity (CCCC,2011,Chapter2).Yetpooraccessibilityandlackoflargetouristattractions remainsignificantobstaclesformacautodiversifyitseconomicdevelopment. MacauisnotveryaccessibletomanyoverseastravelersbecauseMacau internationalairportdoesnothavedirectflightstomajorwesterncountries(lao, 2012).Inaddition,becauseofthelandcarryingcapacity,Macaucannotaffordto havelargetouristattractionslikethedisneylandinhongkongtoattractothertypes

37 27 oftouriststhangamblers.aroadlinkthatdirectlyconnectshongkong,macauand GuangDongwouldenableMacautoutilizeconvenienttransportationbetweenHong Kongandmajorwesterncountriestogetaccesstooverseamarketsaswellsto utilizethelargetouristresourcesinguangdongandhongkongtodiversifyits touristproducts(lao,2012). TheeasternPearlRiverDeltaRegionhastakenadvantageofitslocationadjacent tohongkongandhasbeensuccessfulindevelopingitsinternational)trade)base economyduringthepastthreedecades.becauseofthepooraccessibilityofthe westernpearlriverdelta,economicdevelopmenthadbeenstagnantduringthe pastthreedecadesanditseconomycontinuestorelyonthedecliningtraditional industries(cccc,2011,chapter1).thepercentageofgdpcontributiontotheentire PearlRiverDeltaRegionbytheeasternPearlRiverDeltaincreasedfrom14%in 1980to44%in2005;thatofwesternPearlRiverDeltadecreasedfrom24%in1980 to13%in2005(cccc,2011,chapter1).directtransportationlinksbetweenhong KongandwesternPearlRiverDeltaarecrucialfortheeconomictransitioninthe westernregion(cccc,2011,chapter1) VisitorPortfolio Asdiscussedintheprevioussection,theserviceindustryisthemaineconomic drivingforceofhongkong,macau,andtheguangdongprovince. Tourismisclosely relatedtoserviceeconomy.thenumberofvisitorarrivalsistheprimaryindicator ofaregion stourismdevelopment.

38 28 Table3indicatesthevisitorarrivalstatisticsprovidedbytheHongKongStatistics Department,MacauCensusServices,andtheNationalTourismAdministrationof China.HongKongandMacauarebothindividualadministrativeregions;thus, neitherofthesecitieshavedomestictravelersanddatashownarethestatisticsof in)boundtourists.alsothestatisticsofguangdongalsoonlyindicatein)bound touristarrivals.accordingtotable3,thenumberofin)boundtouristarrivalsofall thesethreeregionsisfollowinganupwardpathwithhongkongshowingthe strongestgrowthratefrom2008to2010.in2011,guangdongprovinceaccounted for31.27%oftotalin)boundtouristarrivalsofthenation,andthepearlriverdelta accountedforapproximately40%ofin)boundtouristarrivalsofguangdong (NationalTourismAdministrationofChina[CNTA],2012). Accordingtothemostrecentannualrecord(2008),thenumberofovernight domestictravelerstoguangdongwas133,616,545andthatnumberhasincreased by9.36%comparedtothatof2007(tourismadministrationofguangdong Province[GDTA],2009a).Accordingtothemonth)to)datedatafromJune2009,the PearlRiverDeltaaccommodatedover50%oftheentireprovince sovernight domestictravelers(gdta,2009b).boththestatisticsofin)boundtourismand domestictourismshowthathongkong,macau,andguangdong(especiallythe PearRiverDelta)haveaverystrongpotentialfortourismdevelopment.

39 29 Table3.In)BoundTouristArrivalsComparison(CNTA,2012;DSEC,2012g,WTO2012b) Hong Kong Guang Dong 29,506,575 29,590,654 36,030,331 41,921,310 25,679,721 27,478,009 31,409,300 33,316,251 Macau 22,933,185 21,752,751 24,965,411 28,002, OriginalResidencesofVisitors ThetourismindustryisprosperousintheGPRD,anditisimportanttoknowthe originsofvisitorstothisregion.travelersfrommainlandchinaarethemajor touristmarketofhongkong.accordingtostatisticsfrom2011,67.03%ofvisitors tohongkongarefrommainlandchina;thenumberhasincreasedby23.87%from 2010.Taiwan,Japan,theUnitedStates,SouthKoreaandMacauaretheothermajor marketsforhongkongtourism,buttheseregionsonlyaccountfor27.11%ofthe tourismmarketshare(worldtourismorganization[wto],2012a). MacauhasaverysimilartouriststructureasHongKong.TouristsfromMainland Chinaoccupied57.72%ofthetourismmarketsharein2011,followedbyHong Kongvisitorsaccountingfor27.08%ofthemarketshareinthesameyear(UNWTO, 2012b).TaiwanisconsideredthethirdlargesttourismmarketofMacau,butitonly accountedfor4.34%oftotaltouristarrivalsin2011(unwto,2012b).thenumber oftouristsfromguangdongprovinceoccupied29.27%ofmacau stotaltourist

40 30 arrivals(dsec,2012g).thus,itisconsideredthelargestregionaltouristmarketof Macau. VisitorsfromHongKongarethelargesttouristmarketofGuangDong;they accountedfor61.6%ofthetotaltouristarrivalsintheprovincein2011(cnta, 2012).AlsothegrowthrateofvisitorarrivalsfromHongKongtoGuangDonghas beenapproximately10%duringthepastthreeyears.itisexpectedtobeevenlarger withtherecoveringglobaleconomy(cnta,2010;cnta,2011;cnta,2012). Overseastravelers,accountingfor22.49%oftouristarrivalsin2010,arethesecond largestmarketofguangdong.abovestatisticshaveshownthatmainlandchinais thelargesttouristmarketofhongkongalsohongkongisthelargesttouristmarket ofmainlandchina.thenumberoftouristsinthebi)directionaltouristmarketof HongKongandMainlandChinahasreached108millionthelargestbi)directional touristmarketintheworld("world'slargestbi)directional,"2012) MeansofTransportation BasedonthelateststatisticsreleasedbytheHongKongImmigrationDepartment in2010,76.21%ofvisitorstraveledtohongkongbylandtransportation,13.27%of visitorstravelledbyair,and10.52%visitorstraveledbysea.percentagesofmeans oftravelinmacauareverydifferentfromthoseofhongkong.in2011,53%of visitorstravelledtomacaubyland(mainlybywalking),40%bysea,and7.26%by air(dsec,2012g).themaintransportationoftravelerstoguangdongisland)based.

41 31 In2011,thenumberofpassengerswhotraveledbyvehiclesaccountedfor94.56% ofthetotalpassengertrafficinguangdong(gdstats,2012). Visitors highdependenceonland)basedmeansoftravelhasaddedpressureon theimmigrationentrypointsbetweenguangdongprovinceandhongkong/macau. LuoHuimmigration,thelargestimmigrationportofChinathatcarriesmorethan 900milliontravelersperyear,isreachingitscarryingcapacity(CCCC,2011,Chapter 1).Thesamesituationhasbeenencounteredbythecountry ssecondlargest immigrationport,gongbeiimmigration,theimmigrationportbetweenzhuhaiand Macau(CCCC,2011,Chapter1).Thebuildingwasonlydesignedforamaximumof 150,000visitorsperday,buttheaveragenumberofvisitorsusingGongBeiporthas exceeded300,000perdayin2013andcontinuestogrow. ThecarryingcapacityofHongKonginternationalairport(HKIA)isexpectedto reachitsupperlimitin2017("airportreachingits,"2010).currentcapacityofthe HKIAalreadyhasreached93%ofitscarryingcapacityandtheannualgrowthrate ofdemandisashighas6.5%("airportreachingits,"2010).thoughmodifications andadjustmentshavebeenmadetoimprovetheairport scarrycapacity,thehkia isexpectedtoreachitscarrycapacitynolaterthan2020(chen,2012).macau InternationalAirport,whichisonly25.7milesawayfromHKIA,haslostitsbusiness tremendouslyduetofinancialcrisisandtheopeningoftaiwantouristindustryto MainlandChinese(Chen,2012).AdirectroadlinkbetweenHongKongandMacau wouldenablemacauinternationalairporttobecometheoverflowairportofthe HKIA.

42 LodgingIndustryProfiles Thelodgingindustry,whichactsasthesupportingindustryofthetourism,has contributedtoandbenefitedfromthegprd sprosperoustourismeconomy. Availablelodgingproductsintheregionarehighlydiversifiedintermsofmarket scalesandassociatedfacilities(gdta,2009a;hktb,2012b).thelodgingindustry isasignificantcontributoroftheservicesectorinthisregionjustifiedbythekey indicatorsincludingaverageoccupancyrate,averagedailyrate,andrevenue LodgingIndustryinHongKong TheHongKongTourismBoardclassifiedthehotelsinHongKongintothree categories:hightariffahotels,approximatelyequivalenttoupperupscaleand luxuryhotelsintheunitedstates;hightariffbhotels,approximatelyequivalent equaltoupscaletolower)tierofupperupscaleamericanhotels;andmediumtariff hotels,veryclosetoamericanmid)scalehotels(hktb,2012b).accordingtothe latesthotelreportreleasedbythehongkongtourismboardin2012,thetotal numberofhotelsis174andthetotalnumberofroomsis58,344.thenumberof mediumtariffhotels(75)isthebiggestamongallthreescales.thenumberofrooms inhightariffbhotels(24,218)isthelargestamongallthreescales(hktb,2012b). Theaveragehoteloccupancyratein2011ofallmarketscalesinHongKongwas 89%,2%higherthantheaverageoccupancyin2010( Tourismperformancein 2011, 2012).Theoccupancyrateofmediumtariffhotels,whichhasincreasedby 3%andreached93%in2011,isthehighestamongallscales.Theoccupancyrateof

43 33 hightariffahotels,whichhasincreasedby4%to85%from2010to2011,grewthe fastestamongalltiers(hktb,2012b).theaverageroomnightstayofovernight guestsin2011was3.6(hktb,2012a). ThelatestreportreleasedbySTRGlobalinOctober2012revealedthatthe AverageDailyRate(ADR)grew8.3%from$175to$190(HKTB,2012b).According tothereportin2011,adrofhightariffahotelswas$288,adrofhightariffb hotelsis$92("hongkongreports,"2012).hongkong srevenueperavailable Room(RevPAR)alsoshowedastronggrowthin2012,accordingtotheyear)to)date datarevparforthefirsteightmonthsof2012hadgrown8.7%to$196.2("hong kongreports,"2012).figure8showsthechangingpathsofadrandrevparin HongKongfrom2000to2012YTD("Hongkongreports,"2012).Growthhasbeen dramaticoverthese12years,thoughsarsin2003andthefinancialcrisisin2009 createdsomedownturnsinlodging.greatdevelopmentpotentialofhongkong s lodgingindustryisindicated. Figure8.HongKongHotelPerformance("Hongkongreports,"2012)

44 LodgingIndustryinMacau CasinohotelsarethemajorplayersofMacau slodgingindustry.asdiscussed previouslythegamingindustryistheonlyeconomicdrivingforceinmacau(bankof ChinaMacauBranch,2012).TheMacaugovernmentendedtheSociedadede TurismoeDiversõesdeMacao(STDM) s40)yearmonopolyonthecity sgaming concessionsin2001andopenedthecasinomarkettonewbidders(unlvcenterfor GamingResearch,2013).Currently,therearesixconcessionairesandsub) concessionairesofmacau scasinos;theyarelasvegassands,sociedadedejogosde Macau(asubsidiaryoftheSTDM),WynnResorts,MGMResorts,MelcoCrown,and GalaxyEntertainment(DSEC,2012e).Gamingrevenuehasgrowndramaticallysince theopeningofthecasinomarketin2002.table4,whichincludesthenumberof casinosandrevenues,showsthetremendousgrowthofmacau sgamingindustry sinceinception.therevenuenumbersintable4areinmillions(unlvcenterfor GamingResearch,2013). Table4.MacauCasinoGamingNumbersandRevenues(UNLVCenterforGamingResearch,2013)

45 35 Thoughthehotelsectorofthelodgingindustrydoesnothaveamarketshareas bigasthecasinosector,itisanessentialcomponentofthelocaleconomy.according tothelateststatisticsreleasedinoctober2012,thereare25,450hotelrooms availableinmacauincluding16,659roomsin5)starhotels,5,563roomsin4)star hotels,2,390roomsin4)starhotels,and838roomsin2)starhotels(dsec,2012c). Totalroomrevenuein2011grew31.7%to$2.35billion,andthiswasthesecond consecutiveyearthatmacauhadagrowthratehigherthan30%intotalroom revenue(dsec,2012c).five)starhotels,whichgenerateapproximately80%oftotal roomrevenueduringthepastfiveyears,arethemajorroomrevenuegeneratorsin Macau(DSEC,2012c). TheaverageroomoccupancyrateofMacauin2011was84.76%;4)starhotels hadthehighestaverageoccupancyamongallfivehotelsectors(dsec,2012d). Averagelengthofroomnightstayinallhotelsis1.52.Thenumberof5)starhotelsis 1.84,4)starhotelsis1.14,3)starhotelsis1.34,and2)starhotelsis1.11(DSEC, 2012d).TheaveragelengthofroomnightstayinMacauisconsideredminorfroma touristdestinationperspectiveandmacaugovernmenthasattemptedtocreate waystolengthenroomnightstays(bankofchinamacaubranch,2012).figure9is generatedfromthestatisticsofaverageoccupancyrateofeachhotelsector, includingthegrandtotalofallhotelsfrom2002to2011.itindicatesthatmacau s hotelmarketisstrongandstablesincemosthotelscanmaintainanoccupancyrate above70%.

46 36 Figure9.MacauHotelOccupancyRatesbySegment(DSEC,2012a) LodgingIndustryinGuangDong DifferentfromthelodgingindustryinHongKongandMacau,GuangDong s lodgingindustrydidnotshowstronggrowthovertimeintermsofoccupancyrate, whilethenumberofavailableroomproductscontinuestoincrease.accordingtothe touriststatisticsyearbookreleasedbytheguangdongprovincialtourism Administrationin2011,totalrevenuegeneratedbyhotelaccommodationswas approximately$1.6million,havingtripledsince2000. In2010,therewere9,179hotelsinGuangDong,including945)starhotels,1944) starhotels,6613)starhotels,2462)starhotels,141)starhotels,and7,970unrated hotels(gdta,2012).thenumberofroomsavailablein2011doubledsince2005 andreached565,582inguangdong(gdta,2012).theoccupancyratehadnot changedsignificantlyfrom2000and2010andremainedata60%slevel(gdta,

47 )BasedonthelatestdatareleasedbyGuangdongProvincialTourism Administrationin2009,theaverageroomnightstaywas1.81.Thoughvisitorsfrom HongKongarethebiggesttouristmarketofGuangDong(CNTA,2012),theyonly stayanaverageof1.75roomnightsatahotel.thetouristgroupthathasthe longestlengthofstayinahotelinguangdongisoverseastravelers,stay2.33nights atahotelonaverage(gdta,2009a) RegionalEconomyandTourismCorporationsandPolicies EconomicdevelopmentsofthethreeregionsoftheGPRD:HongKong,Macau,and thepearlriverdeltaalwayshavebeeninterdependentwitheachother.macauhas utilizedtheinvestments,technology,laborforcesandadvancedinfrastructuresof HongKongforthecity seconomicdevelopmentinthepast(cccc,2011,chapter1), whilethevisitorsfrompearlriverdeltahavebecomethemajorrevenue contributorsofmacau sgamingindustry(dsec,2012g).economicconnections betweenhongkongandthepearlriverdeltainvolveawiderrangeofindustries thanthatbetweenmacauandhongkong/pearlriverdelta,includinginvestment, trade,informationtechnology,transportation,tourism,retailandrealestate(cccc, 2011,Chapter1). HongKong sinvestmentinthepearlriverdeltaregionstartedin1979, stimulatinggreateconomicgrowthintheregionbyintroducingadvanced managementknowledgeandproductiontechnologytolocallabor(cccc,2011, Chapter1).Ontheotherhand,thePearlRiverDeltahasprovidedlandsourcesfor

48 38 theexpansionofhongkong sfinancial,service,manufacturing,andrealestate industries(cccc,2011,chapter1).hongkongalsoactsasamostimportant exportingdestinationofgoodsproducedinthepearlriverdeltaandeventheentire GuangDongprovince(CCCC,2011,Chapter2).BecauseHongKong,Macau,and PearlRiverDeltaareundertheadministrationofthreedifferentgovernments, regionalcooperationplansandpolicieshavebeenconstantlypublishedtosimplify theprocessofestablishingpartnershipwithinthesegovernments(cccc,2011, Chapter2) CloserEconomicPartnershipArrangement(CEPA) In2003,thegovernmentofMainlandChinasigneda CloserEconomic PartnershipArrangement (CEPA)withbothofHongKongandMacaugovernments. TheCEPAisanagreementestablishingfree tradeareasbetweenmainlandchina andhongkong/macau.suchanagreementaimedtograduallyreduceorremovethe tariffsandnon)tariffbarriersintrading,achievefreetrades,reducediscriminatory measures,andimproveconvenienceininvestmentbetweenmainlandchinaandthe twospecialadministrativeregions(departmentoftaiwan,hongkong,andmacao Affairs,2006). ThefieldsincludedintheCEPAaretradeandinvestment,improvementof immigrationpoliciesandfacilities,inspections,foodsafetyandqualitystandardsof tradegoods,clarificationsoflawandregulations,corporationsamongsmalland mediumenterprises,andthechinesemedicineindustry(departmentoftaiwan,

49 39 HongKong,andMacaoAffairs,2003).DuringtheimpactsoftheCEPA,theamountof cross)borderpassengersinthegprdreached616.5thousandpeopleperdayin 2011,havingincreasedby12%comparedtotheamountin2009("Reportshows that,"2012).thefreightcapacityofhongkongis26,500pertruckperdayandthe amountofcross)borderfreightwillreachthecarryingcapacityofexistingroadsby 2016("Hongkongasianlogistics,"2007). Inadditiontoencourageregionaleconomicpartnership,theCEPAhasagreat impactontourism.supplementalagreementfiveofcepahongkongsignedin2008 andsupplementalagreementfiveofcepamacausignedin2009havederegulated HongKongandMacaucitizens investmentrestrictionsinmainlandchinainterms ofgeographicareas("newcepaeffects,"2008).tourismandservice)related industriesareincludedinthefifthsupplementalagreementsofbothcities, indicatingthatinvestorsfrombothareascaninvestinwidergeographicareas ("Newcepaeffects,"2008).TheninthsupplementalagreementofCEPAallowed HongKongandMacautravelagenciesthathavepropertiesinMainlandChinato organizepackagetouristgroupstohongkong,macau,andotheroversea destinationsbesidestaiwan("nationaltourismadministration's,"2012).tourism cooperationinthegprdregion(hongkong,macauandpearlriverdelta)have becomeincreasinglyfrequentsincetheimplementationofcepa.

50 TravelPermitsofResidents HongKongandMacauarethespecialadministrativeregionsofChina, administeredunderanentirelydifferentpoliticalsystemthanmainlandchina.thus, residentsofmainlandchinamustapplyfortravelpermitswhilevisitinghongkong andmacau.converselyhongkongandmacau sresidentsmustapplyfortravel permitstovisitmainlandchina. TheIndividualVisitScheme,whichenablesMainlandChina sresidentstovisit HongKongand/orMacauindividually,isatourismpolicyunderCEPA("Newcepa effects,"2008).themainpurposeofthispolicyistodrivethetourism)related economyinhongkongandmacauaswellasstimulateeconomicgrowth.first implementedonjuly28 th 2003,itallowsresidentsfromthePearlRiverDeltatovisit HongKongandMacauindividually(CCCC,2011,Chapter1).Afterinitial implementation,thecepa sthreesupplementalagreementssignedin2005,2006, and2007openedthehongkongandmacautourismmarketstomainlandchina.it allowedresidentsfrom49citiesinmainlandchinatovisithongkongandmacau individuallywithaone)weekmaximumlengthofstay(wu,2007).beforethe IndividualVisitScheme,MainlandChinaresidentscouldonlygotoHongKongor Macauinapackagetouriftheywerevisitingforpersonalreasons("Newcepa effects,"2008). SinceimplementationoftheIndividualVisitSchemein2003untiltheendof2011, thetotalnumberofmainlandchineseindividualvisitorstohongkonghasreached 78.4million;thetotalnumberofMainlandChinavisitorstoMacauhasreached46

51 41 million("over124million,"2012).inseptember2012,administratorsofmainland ChinadecidedtoaddnewelementstotheIndividualVisitScheme.Thenresidentsin ShenZhencouldapplyforaone)yearmultiple)entryvisitingvisatoHongKong.The newpolicyisexpectedtoimplementinothercitiesofthepearlriverdeltaregionin thenearfuture("hongkong'stourism,"2012).thus,evenmorefrequenttravelof MainlandChinesevisitorstoHongKongareanticipated. HongKongandMacauresidents travelpermitsarenotasregulatedasthetravel permitsformainlandchinesetothesetwospecialadministrativeregions.thehome ReturnPermitisthedocumentationforHongKongandMacauresidentstobeable tovisitmainlandchina(publicsecurityofguangdongprovince[gdpsd],2011b). TheinitialissuingoftheHomeReturnPermitwasin1999alongwiththetransferof sovereigntyofhongkongandmacau,anditisacreditcard)sizedocumentation (GDPSD,2011b).WithimplementationofthecurrenttravelpermitforHongKong andmacauresidentstomainlandchina,thereisnoneedforimmigrationofficersto stamponthedocumentationsandthereisnolimitationonthenumberofvisits withintheexpirationdateofthepermit(cccc,2011,chapter1).permanent residentsofhongkongandmacaudonothavetoapplyfortravelpermitstovisit eachother scityhaveamaximumlengthofstayof180days(cccc,2011,chapter1) CurrentImmigrationRestrictionsandRegulations Immigrationpolicies,whichdefineeligiblevisitorsandvehiclesallowedtotravel betweenmainlandchinaandhongkong/macau,hashadasignificantimpacton

52 42 regionaltravelingfrequencyandease.undertheindividualvisitscheme,thereare fourmaintypesoftravelpermitsthatmainlandchinaresidentscanapplyfor:three) monthsingleentry,three)monthdoubleentry,one)yearsingleentryandone)year doubleentry(gdpsd,2011a).themaximumlengthofeachstayatthedestination issevendays(gdpsd,2011a).transitpassengerswhohaveachinesepassportwith avalidvisaofothercountryandvalidflightticketscanstayinhongkongand Macaufornomorethansevendays(GDPSD,2011a).TransitpassengersofHong KongandMacaufromothercountriescanstayfornomorethan48hours(Macau PublicsecurityPoliceForce[PSP],2012;HongKongImmigrationDepartment, 2012). DriversofvehiclesmustapplyfordualdrivingplatestotravelbetweenMainland Chinaandthetwospecialadministrativeregions.Itiscurrentlytheonlytypeof immigrationdocumentationforvehiclestotravelbetweenhongkong/macauand MainlandChina.QualifiedindividualsarethosewhohaveHongKong,Macau,ora thirdcountry scitizenships,andinvestover$400,000andpayoveranannualtaxof $30,000inGuangDongprovince(CCCC,2011,Chapter1).Currently,thereare 15,000dual)driving)platevehiclesinMacauandabout30,000inHongKong(GDPSD, 2011b).HongKongresidentsalsocanapplyforaone)timedualdrivingpermitto gotomainlandchina,indicatingthattheresidentsmustapplyforanewtravel permitfortheircarseachtimetheywanttodrivetomainlandchina(hongkong ImmigrationDepartment,2012).SinceHongKongistheworld smostimportant harbor,manytrucksmusthavedualdrivingplatestotransportgoodsinandoutof

53 43 HongKong(CCCC,2011,Chapter1).Administratorsfrombothsideshavereached anagreementaboutrestrictingthemaximumnumberoftruckstoholdadual drivingplateto800,sincetheroadsandimmigrationfacilitiesinbetweenhong KongandMainlandChinaareclosetotheircarryingcapacities(CCCC,2011,Chapter 1).Anotherformoftransportationchannelswillbeneededbeforeboth governmentscanincreasethemaximumnumberoftruckswithdualdrivingplates (HongKongImmigrationDepartment,2012). 2.3EvolutionOfHZMBProject 2.3.1JustificationofPurpose HongKongentrepreneurSirGordonWu,firstindicatedtheideain1983of buildingabridgetoconnecthongkongwiththewestsideofthepearlriverdeltato improveandenforcetheeconomiccooperationbetweenhongkongandthewest PearlRiverDelta(Tan,2008).However,theZhuHaigovernmentdeniedthisidea.In 2002,Mr.Wubroughtre)introducedtheideaandthegovernmentsofHongKong, ZhuHai,andMacauaccepteditanddiscussedaboutthenecessityofbuildinga bridgeconnectingthesethreecities(tan,2008).theexpectationwastoaccelerate theintegrationoftheregion,soastoimprovetheoverallcompetivenessofthe GPRD(Zhang,Qiu,Hu,Liu,Liu,&Hu,2006).

54 IndividualRegions Perspectives HongKongisthestrongesteconomyoftheGPRD,butitisasmallregion.Thus, theeconomicdevelopmentofthecityhighlydependsontheresourcesinthegprd (HZMBAuthority,2009b).Sincethe1980 s,significantprogresshavebeenmadein developingtransportationconnectinghongkong,macau,andmainlandchina, especiallydirectland)basedtransportationconnectinghongkongandthewestern PearlRiverDeltaRegion(HZMBAuthority,2009b).Themeansoftransportation betweenhongkongandthewesternpearlriverdeltaremainweakandarehighly dependentonriver)basedtransportation.afterthefinancialcrisisin1997,thehong Konggovernmentbegantoseekfornewdrivingforcesforeconomicgrowth. OfficialsdeterminedthattherearemanyopportunitiesinthewesternPearlRiver DeltaandtheHZMBwouldhelpHongKongbetterutilizetheresourcesinthe westernpearlriverdelta(hzmbauthority,2009b). Asmentionedpreviously,Macauisagamblingcapitalthathighlydependson MainlandChinesetourists.Althoughboththegamingrevenueandnumberof touristarrivalsareincreasing,themacaugovernmentseekstodiversifymacau s touristmarketandpositionthecityasaworld sleisuretravelcenter(lao,2012). PooraccessibilityisthemajorobstaclethatpreventsMacaufromsuchadestination. MacauInternationalAirportonlyhasflightstosomeSoutheastAsiancountriesand MacauisnotdirectlyconnectedtotheeasternPearlRiver(Lao,2012).TheHZMB wouldenablepeopledrivingfromeastpearlriverdeltatomacaudirectlywithout goingaroundotherinnercitiesinguangdong.travelingtimewouldbeshortened

55 45 fromthreehourstothirtyminutes(hzmbauthority,2009b).theimprovementof land)basedtransportationwouldimprovemacau saccessibilitytointernational travelersbyconnectingthecitytotheworld slargestairport:hongkong InternationalAirport(Lao,2012). ThePearlRiverDeltahasamuchlargergeographicareacomparedtobothHong KongandMacau.ThegreatestconcernoftheDelta scontinuinggrowthistobalance economicdevelopmentacrosstheregion.theeconomyoftheeasternpearlriver Deltahasreportedastronggrowthsincethe1980 s;thedramaticeconomicgrowth inthisregioniscloselyrelatedtoitsaccessibilitytohongkong(hzmbauthority, 2009b).ConvenienttransportationtoHongKonghasbroughtmanyopportunities totheeastpearlriverdeltaregiontodevelopinternationaltradeandbusiness,and haslargelydriveneconomicgrowththere(cccc,2011,chapter1).yetthewestern PearlRiverDeltaisnotdirectlyconnectedtoHongKong;thus,international economicactivitiesarenotasactiveasthoseintheeasternpearriverdeltaduring thepast30years(hzmbauthority,2009b).becauseoftheimbalanced developmentininternationalbusinessandtrade,theeconomicgrowthgapbetween easternandwesternpearlriverdeltaiswidening.alsothecarryingcapacityofthe landandpopulationisreachingamaximumlevelineasternpearlriverdeltaafter thirtyyearsoffastdevelopment(hzmbauthority,2009b).thehzmbwillallow westernbankofpearlrivertobetterutilizetheresourcesofhongkonginorderto balancetheeconomicdevelopmentofbothsidesofthedelta(cccc,2011,chapter

56 46 1).Alsotheeasternsidewillhaveaneasyaccesstoresourcesinwesternsideto sustainstrongeconomicgrowth PerspectivesoftheGPRD AfterdiscussionofthepurposesofconstructingtheHZMBfromtheperspectives ofhongkong,macau,andthepearlriverdeltaindependently,thepurposefromthe entiregprdregion sperspectiveisalsoasignificantmotivationforproposingsuch abridgeproject.hongkongisalogisticcenteroftheworld.majorflowsofthe goodsaretransferredbetweenthepearlriverdeltaandhongkong.currently, goodscanonlybedirectlytransportedbetweenthewesternpearlriverdeltaand HongKongbywater;therearenodirectroadlinksconnectingthesetwoareas (CCCC,2011,Chapter1).Thus,goodshavetobeloadedandunloadedoncein betweendestinationssincetheyneededtobetransferredbetweenshipsandtrucks attheriverportofthewesternpearlriver.totaltransportationtimeis approximately24hours(liu,n.d.).ifgoodsaretransportedbylandbetweenmajor citiesinthewestpearlriverdeltaandhongkong,truckshavetobedriventoshen Zhen,amajorcityineasternPearlRiverDelta.Suchtransportationcostsabout threehourseachway(liu,n.d.).bothofthewater)basedandland)based transportationbetweenthewesternpearlriverdeltaandhongkongaretime) consuming,costly,andnearcapacity(liu,n.d.).completionofthehzmbwill shortentransportationtimebetweenmajorcitiesofthewestpearlriverdeltaand HongKongtonomorethantwohours,enablingafaster,cheaper,andextrameans

57 47 ofcommutestoallowsustainablegrowthofthelogisticindustryinthegprd(cccc, 2011,Chapter1). TheotherindustrywhichwillbenefittremendouslyfromconstructingtheHZMB istourism.one)trip)multi)destinationtourismisacooperationplaninthegprd thatisbroughtupaspartofthecepa.becauseofthevicinityamongmajorcitiesin thegprd,touristsliketovisittheseplacesonatripespeciallytovisitbothhong KongandMacau("Hzmb,theeffects,"2012).Suchatourismplanstimulates integrationandutilizationofthegprd stouristresources("hzmb,theeffects," 2012),includingconvention,gaming,andrecreationalfacilitiesofMacau,major themeparksandotherlargetouristattractionsinhongkong,andtraditional, natural,and/orhistoricaltouristattractionsinthepearlriverdeltaregion(lao, 2012).CurrenttransportationintheGPRDdoesnotallowtravelerstohavea convenientone)trip)multi)destinationexperiencesincetheferryistheonlydirect transportationbetweenhongkongandmacau.visitorsmustchangevehiclesand transfertheirownluggageduringthetrip.uponcompletionofhzmb,travelers wouldusethesamevehicleduringtheentiretrip,savingtheirtravelingtimeand operatingcostsofswitchingmethodsoftransportation("hzmb,theeffects,"2012) InitialDiscussionontheFeasiblePlan InJuly2003,NationalDevelopmentandReformCommissionofChinaandHong Kongconductedresearchconcerning TransportationLinksbetweenHongKong andthewesternpearlriverdelta. Resultsshowedthattheconstructionofthe

58 48 HZMBissignificantinthepoliticalandeconomicdevelopmentoftheGPRD(HZMB Authority,2009a).InAugust,amonthaftertheresearchresultswerereleased,the HZMBAdvancedWorkCoordinationGroupthatincludedrepresentativesfromHong Kong,Macau,andGuangDongformedandtheinitialdiscussiononHZMB sfeasible planstartedimmediately(hzmbauthority,2009a) DiscussionsontheHZMB sdesign Theshapeofthebridge,highlydependentonthelocationsofconnectingpoints, causedmajorconcernsandconflictsabouttheinitialdiscussionofthehzmb feasibleplan.oneoftheoriginalplansofthehzmb sconnectingpointsincluded ShenZhen(CCCC,2011,Chapter2),thustheHZMBwouldhavefourlandconnecting pointslocatedinshenzhen,zhuhai,hongkongandmacauinthisplan.theshape ofthehzmbrevealedasa doubley,showningreeninfigure10("governorsfrom four,"2003).theotherpopularplanwasa singley wherebythehzmbonly connectedhongkong,macauandzhuhai("governorsfromfour,"2003)shownin redinfigure10below.thelengthofthebridgein doubley planwaslongerthan inthe singley design;therefore,thecostsof doubley planwouldbehigher.also thelandconnectingpointinhongkongof doubley designwasintuenmun,one ofthelessdevelopedregionsofthecitywithnoconvenienttransportationnetworks. YetthelandconnectingpointinHongKongofthe singley designwaslocated adjacenttothehongkonginternationalairportinthelantauislandarea(zheng, 2008).ThegovernmentsofHongKong,Macau,andGuangDongreachedan

59 49 agreementofimplementing singley designofhzmbafterevaluatingcosts,travel time,convenience,andeconomicbenefitsofbothdesignsin2008(zheng,2008). Figure10.EstimatedDesignsoftheHZMB("Governorsfromfour,"2003) DiscussionsontheFinancingMethod In2005,thegovernmentsofHongKong,Macau,andGuangDongplannedtouse thefinancingmethodofbuild)operate)transfer(bot)("hzmbdecidedon,"2005). BOTisaprivateentitywouldreceiveaconcessionfromthegovernmenttofinance, design,constructandoperateaninfrastructurewithinacertaintimeperiodstated intheconcessioncontract("hzmbdecidedon,"2005).afterthattimeperiod,the governmentwouldtakebackownershipofthefacility("hzmbdecidedon,"2005). Thenin2007,thegovernmentsofthreeplacesthoughttheBOTwasnotaviable waytofinancethehzmbprojectaftertakingallthepositivesandnegativesinto consideration(tian&jia,2008).inaugust2008,hongkong,macauandguang Donggovernmentsreachedanagreementaboutsharingconstructioncostofthe HZMB smainbridge.projectcostsweredividedaccordingtoanagreedprincipleof

60 50 EqualizationofBenefitCostRatioinwhichHongKongcarried50.2%,Macaucarried 14.7%andGuangDongcarried35.1%ofthecost("Timeline,"2008).Total contributionfromthethreegovernmentswasapproximately$2.6billion, accountingfor42%oftheestimatedcostoftheentirehzmbproject.theremaining 58%wastobefinancedbyloans("Timeline,"2008).In2009,theBankofChina agreedtoloan$3.6billiontothegovernmentstoconstructthehzmb("financing arrangements,"2009) DesignofMan)madeIslandsandTunnel AsshowninFigure11,therewillbefourman)madeislandsandanunderwater tunnelincludedintheconstructionhzmb.theunderwatertunnelisconnectingthe mainbridgeandhongkonglinkroad.thefourman)madeislandshavedifferent functions;oneworksasthetransitionbetweenmainbridgeandunderseatunnel, oneworksasthetransitionbetweenhongkonglinkroadandunderseatunnel,one worksastheimmigration sislandforhongkongandtheotheroneworksasthe immigration sislandforbothmacauandzhuhai0(highwaysdepartment(hyd), 2012c).Theislandworksasatransitionbetweenmainbridgeandtunneliscalled thewesternman)madeisland,theislandworksasatransitionbetweenhongkong LinkRoadandunderseatunneliscalledtheeasternman)madeisland,and immigrations islandsarecalledhongkongimmigrationcheckpoint sman)made islandandzhuhai/macauimmigrationcheckpoint sman)madeisland0(hyd, 2012c).

61 51 Figure11.HZMBMainBridge(HYD,2012c) UnderwaterTunnel Asmentionedpreviously,theunderwatertunnelconnectsHZMBmainbridgeand HongKongLinkRoad.Thelengthofthetunnelisapproximately4.16mileslong,and itcrossesbothlingdingchannelandtonggunavigationchannel(hzmbauthority, 2009b).Theunderwatertunnelisdesignedasanimmersedtubetunnel,whichis consistedof33immersedtubes("hzmb'stunnelis,"2012).thebiggestdistance betweenthetunnelandseasurfaceisaround40meter,thisdesignwon taffect large)sizeshipsthatareweightedover300thousandtonstopassthroughorparkat thepearlrivermouth(chen,2010).eachtubeisabout22.5meterslong,37.95 meterswideand1.5metersthick,andithasgreatresistanceofthepressureinthe 50)meterdeepsea(Wei,2012).Insidethetunnel,therewillbeasix)lane expressway,whichisconsistentwiththeroadconstructionstandardofhzmb s

62 52 mainbridge(chen,2010).thewidthofthetunnelis28.5meterandheightofitis 5.1meter(HZMBAuthority,2009b).Uponcompletion,thetunnelofHZMBwill becometheworld slongestimmersedtubetunnelfortransportation(chen,2010) Man)madeIslands Theeasternandwesternman)madeislandsareatthestartingpointsofthe tunnel sbothsides.theconstructionofmainbodyofeasternman)madeislandhas beencompletedondecember7th,2011andtheconstructionofmainbodyof westernman)madeislandhasbeencompletedinseptember11th,2011(wei,2011). Theeasternman)madeislandis150metersawayfromtheborderofHongKong andguangdong,andthewesternman)madeislandis1800metersawayfrom Lingdingchannel.Thesmallestdistancebetweeneasternandwesternislandsis 5250meters(HZMBAuthority,2009b). Theimmigration sman)madeislandforzhuhai/macauisgreyareaatthebottom leftcorneroffigure11.itistheconnectingpointbetweenmacau/zhuhaiand HZMB smainbridge(hzmbauthority,2009b).theimmigrationcheckpointsof bothmacauandzhuhaiwillbeconstructedonthisisland,andthecheckpointsof thesetwocitieswillbeinthesamebuilding("hzmb's"threelocations,"2009).the totalareaofseahasbeenfilledfortheconstructionoftheislandisabout acres(hzmbauthority,2009b).therewillbetwolinkroadsconnectedtothisman) madeisland,onetomacautheothertozhuhaiandothereasternguangdongcities.

63 53 Theimmigration sislandforhongkongisatuprightcorneroffigure11, indicatedas HongKongBoundaryFacilities.Theman)madeislandislocatedon theopenwatersoffthenortheastofhongkonginternationalairport,andthearea ofthisman)madeislandisabout321acres(hyd,2012b).thelinkroadstohong KongInternationalAirport,KwaiTsingContainerTerminals,SkyPierferryterminal andhongkongurbanareasareconnectedtothisman)madeisland(hyd,2012b). AccordingtoamemberfromtheHZMBAuthority,thereisaplantomakeeither theeasternorwesternislandatouristattraction.therewillbeplatformsfor touriststorestandenjoytheuniqueseaviewsonhzmb(chen,2010).also,as mentionedabovehzmbwillbeacrossthehabitatofsousechinensis(chinesewhite Dolphins)thusplatformsfortouriststoobservetheseverypreciousseaanimalswill beestablishedontheman)madeislandsaswell(chen,2010).zhuhaigovernment hasinvitedmr.liuthaiker,thefatherofworldcityplanning,tobethecity surban planningadvisorandjointhedesignofattractionsonthezhuhai/macau s immigrationisland("citydesignguru,"2012) EnvironmentalImpactsandConcerns TheHZMBisagiantartificialprojectacrossthesea,environmentalistsand engineershaveunderscoredmanypotentialenvironmentalissuessinceinitial discussionofthehzmb("hongkong),"2012).twomajoraspectsregardthe environmentalconcernsandimpactsofthehzmb:howwillenvironmentalfactors affectconstructionandusageofthebridge?also,howwillthebridgeimpactthe

64 54 environment?thefirstpartofthissectionwilldiscusshowenvironmentalfactors willaffectconstructionandusageofthebridge.thesecondpartofthissectionwill focusonhowthehzmbwillaffecttheenvironmentandthesolutionsforpotential negativeimpacts TheImpactsofEnvironmentalFactorsonHZMB ThemainbridgeoftheHZMBisacable)stayedbridge(Figure12),becauseof thisdesign sprovenabilitytoresistextremeweathereffectsonthebridgeand ensureanattractiveappearanceofthebridge(wei&wan,2012). Figure12.DesignoftheHZMBMainBridge(HYD,2012e) TheHZMBislocatedinatropicalarea,oftensuffersfromimpactsoftyphoon,and otherstrongtropicalcyclonesduringsummer.suchnaturalimpactsarebeingtaken seriouslyinthedesignandconstructionplanofthehzmbtoensuresafetyoftravel andstrongconstruction.annualaveragewindvelocityofzhuhaiis3.1meterper secondandtheannualaveragewindvelocityofmacauis3.6meterspersecond.the

65 55 dataofannualwindvelocityofhongkongwastakenfromwaglanisand,anisland thathasthelargestwindvelocityonrecordforthecity.anaveragewindvelocityof theislandis6.6meterpersecond(cccc,2011,chapter5). Theaveragenumberofwindydayswithanaveragewindvelocitygreaterthan 10.8meterspersecondfor10minutescontinuouslyis10.7daysinZhuHai,6.7days inmacau.and117.7daysinwaglanisland(cccc,2011,chapter5).thedesignand constructionofthehzmbhadfollowedthewind)resistantdesignspecificationsfor HighwayBridgesissuedbytheMinistryofTransportofthePeople srepublicof China(CCCC,2011,Chapter7). Alsomist,andtropicalstormsareimportantextremeweatherthatwillaffect constructionandusageofthehzmb.theconstructionteamwouldstopworkingon thedaysthathaveawindvelocityof12meterspersecondorhigher,theamountof rainfallisover25mmperday,orthevisibilityislessthan1000meter(cccc,2011, Chapter5).WeatherrestrictionsonoperatingtheHZMBuponitscompletionwould followtheguidelinesbytheministryoftransportofthepeople srepublicofchina (CCCC,2011,Chapter7) HZMB simpactsontheenvironment EnvironmentalimpactsofHZMBaregreatconcernsofsociety,especiallyduring theconstructionperiodofthemainbridge.thegovernmentsofhongkong,macau andguangdongpreparedanenvironmentalassessmentreportbeforeconstructing

66 56 thehzmbanddesignedafeasibleconstructionplantohavetheleastnegative impactsontheenvironmentamongthevariousplansproposed(hyd,2009). Themostsignificantenvironmentalconcernthataddressedintheassessment reportsregardingthehzmbis,thebridge simpactonthehabitatofchinesewhite Dolphin.TheChineseWhiteDolphin,anendangerdolphinspeciesthatmainlylivein thesouthchinasea(xie,wu&xie,2012).thehzmbwillhavetoacross approximately11.2squaremilesofthenationalnaturereserveofthechinese WhiteDolphinatPearlRiverEstuary:about3.5squaremilesofthe11.2square milesisthecoreareaofthenationalreserve(xie,wu&xie,2012).solidwaste, waterwaste,andnoisescreatedbyconstructionofthehzmbareexpectedtohave significantnegativeimpactsonthechinesewhitedolphin(xie,wu&xie,2012).to minimizesuchimpactonthechinesewhitedolphin,therewillbeacrucial environmentalprojectwithconstructionofthehzmb. Figure13.ChineseWhiteDolphins'Habitats(HYD,2009)

67 57 TheselectionofthelocationoftheHZMB shongkonglinkroadalreadyhas avoidedthemainactivecorridorofchinesewhitedolphin(hyd,2009).thedotted lineinfigure13indicatestheactivecorridorofthedolphins;theconnectingpoint betweenthehzmbandhongkongisattheupperrightcornerofthehkia.also,the HongKonggovernmenthaslegislatedrulestoprotectChineseWhiteDolphin duringconstruction:settingupa250)meterradiateddolphinexclusionareaaround thehzmbprojectareaandstoppingworkifanychinesewhitedolphinsarefound intheexclusionareas.underwaterpercussivepilingworkswillbebannedinmay andjune,theprimecalvingmonthsofthedolphins.alsospecialtechnologiesare appliedinthehzmbanditshongkonglinkroad sconstructionreducesthe nuisanceandsedimentdispersaltoavoidnegativeimpactthedolphins. AstheHongKonggovernmenthastakenresponsibilitytominimizenegative impactsonthechinesewhitedolphincausedbytheconstructionofhzmbandits linkroadonhongkong sside,theguangdonggovernmenttookthemain responsibilityofprotectingthedolphinsfromconstructionofthehzmb smain bridge("firsttrainingsession,"2011).thehzmbadministryhasinvitedthe AdministrationofOceanandFisheriesofGuangDongProvince,Departmentof ResourcesandEnvironmentalManagementofGuangDong,andPearlRiverEstuary ChineseWhiteDolphinNationalNatureReservetocreateaseriesoftraining programsforworkersparticipatinginconstructionofthehzmb("firsttraining session,"2011).themostimportantcontentofthetrainingprogramshelpsworkers detectthechinesewhitedolphinwithintheconstructionareas.therestrictionsis

68 58 that,ifachinesewhitedolphinappears0.31mileswiththeconstructionarea workermuststopconstructionuntilitleavesthearea.tilljanuary2013,four trainingsessionsaboutprotectingthechinesewhitedolphinwerecompleted ("Fourthtrainingsession,"2013) ImmigrationIssues Asmentionedpreviously,citizensfromHongKong,MacauandMainlandChina needtogothroughimmigrationcheckswhentravelingtotheothertwodestinations. Hence,theimmigration)relatedissueisoneofthemainconcernsregardingthe design,construction,andfutureefficiencyofthehzmb.thedesignofthe immigrationistoaffecttheefficiencyofhzmb strafficandpeopleflow.the immigrationregulationsaretoaffectfrequenciesandconveniencesforcitizensfrom HongKong,MacauandMainlandChinatotravelaroundeachdestination DeregulationsofImmigrationPolicies Atthepresenttime,therearetwoformsofimmigrationchecksinChina; electronicandmanual.travelersonlyneedtoscantheirtravelingpermitsusing electronicdeviceswhengoingthroughtheelectronicimmigrationcheck.thenthe deviceswillautomaticallyverifytravelers informationandexecutetheimmigration check.inthemanualcheck,atravelerhastomeetwithanimmigrationofficerface) to)face.theaverageimmigrationcheckingtimeofelectronicformisabout20

69 59 secondslessthanthatofthemanualform;thus,implementationofelectronic immigrationcheckcanefficiency.itiscurrentlyopenforhongkongandmacau citizenswhohavetravelpermitstomainlandchina,whereastheelectronic immigrationcheckisonlyopenformainlandchinesecitizenswhohavemulti)entry travelpermitstohongkongormacau.mostmainlandchinesecitizensholdasingle ordual)entrytravelpermittohongkongormacau.thus,mostmainlandchinese travelersarenoteligibleforelectronicimmigrationchecks. AccordingthedirectorofZhuHai simmigrationdepartmentonthehzmb,the localgovernmenthasdecidedtoderegulateimmigrationpoliciesregarding MainlandChinesetravelpermitstoHongKongandMacau.Thefirststepisto transformthecurrentmainlandchinesetravelpermitsfromapassport)typeof documentationtoacredit)cardtypewithachipinside.suchelectronicimmigration checksareexpectedtoopenforanymainlandchinesetravelerswhoholdamulti) entrytravelpermitsorthenewcredit)card)typeoftravelpermits.thisnewformof immigrationdocumentationisexpectedtobewidelyapplieduponthecompletionof HZMBin2016toensureaconvenientandefficienttravelingexperiencethroughthe newbridge UseoftheBridge UponthecompletionoftheHZMBin2016,therewillbefourmajortypesof vehiclethatcantravelonthebridge:truckswithdualdrivingplates,shuttlebuses withdualdrivingplates,privatevehicleswithdualdrivingplates,andshuttlebuses

70 60 withoutdualdrivingplates(cccc,2011,chapter1).asmentionedpreviouslyinthe article,hongkongandmacauarespecialadministrativeregionsofchina,using totallydifferentpoliticalsystemsthanmainlandchina.since,vehiclescannottravel freelybetweenthesetwospecialadministrativeregionsandmainlandchina,shuttle buseswithoutdualdrivingplatescanonlybedrivenonthebridge RegulationsRegardingDualDrivingPlates DualdrivingplatesenablevehiclestodrivebetweenHongKong/Macauand GuangDong,butthesedrivingplatesdonotallowvehiclestotravelbetweenHong KongandMacau.SinceHZMBwillbethefirstlinkroadbetweenthesetwospecial administrativeregions,thereisnopolicytoregulateandjustifyhowvehiclescan travelbetweenthem.governmentsofbothhongkongandmacauraisedthe concerns,andnegotiationsaboutthepoliciesofallowingvehiclestravelfreely betweenthesetwocitiesareinprogress ProjectOverview Uponcompletion,theHZMBwillbecometheworld slongestbridge)tunnelsea crossingthatcontainsthreeexpresslaneseachdirection.thetotallengthofthe HZMB(fromHongKong simmigrationman)madeislandtomacau/zhuhai s immigrationisland)willbeabout26.1miles,whilethelengthofhzmb smain bridgeis22.1miles(hyd,2012f).thelengthofunderwatertunnelwillbeabout

71 mileslong.Itwillbecometheworld slongestunderwatertunnelmadeof immersedtubeandusedfortransportation(chen,2010). TheestimatedcostofconstructingHZMBhasrisenmanytimessinceDecember 2009whentheconstructionfirststarted("Hzmb:thebudgethas,"2013).Theinitial estimatedcostofbuildingthebridgewas$11.66billionin2009,buttheexpected costofconstructionhasrisenby45%toover$16.77billionaccordingtothemost recentestimation("hzmb:thebudgethas,"2013).thesinglemostsignificantevent thatcausedanincreaseinthecostofconstructingthehzmbisthatin2012some politicalpartiesinhongkongdoubtedthevalidityofhzmb senvironmental assessmentreportpreparedbyhongkonggovernment.thus,thegovernmenthad tore)evaluateandmodifytheentirereport,causinga$1.14)billionincreaseinthe HZMB stotalbudget("hzmb:thebudgethas,"2013).thelatestestimatedcostof thehzmb szhuhailinkroad.$1.47billion,hasrisenby52%since2009. ConnectivityamongthecitiesintheGPRDwillbegreatlyimprovedafter completionofthehzmb.theredlineinfigure14indicatesthelocationofthe HZMB.ItwillbeacrosstheSouthChinaSea,connectingthewestern(indicatedon theleftinfigure14)andeastern(indicatedontherightinfigure14)pearlriver Delta.BeforetheHZMB,therewasnodirectlinkroadsbetweenthetwosidesof PearlRiverDeltaandcarshadtodrivearoundtheentirePearlRiverDeltatoreach theotherside(hyd,2012a).uponcompletion,traveltimefromonesidetothe othersideofpearlriverdeltawillbeshortenedonaverageby3hoursonaverage (CCCC,2011,Chapter1).

72 62 Figure14.ConnectivityoftheHZMBtoMajorCitiesatPearlRiverWest(HYD,2012a) ProjectTimeline 1983:TheideaofconstructingabridgethatconnectsHongKongandZhuHai wasinitiated. July2003:NationalDevelopmentandReformCommissionofChinaandHong KongGovernmentcompletedastudyabouttransportationbetweenHongKong andthewesternpearlriverdelta.theresultrevealeddesiretobuildahong Kong)ZhuHai)MacauBridge(HZMBAuthority,2009a) August2003:StateCouncilofthePeople'sRepublicofChinaapprovedthatthe governmentsofhongkong,macau,andguangdongcouldbeginthepreliminary workofthehzmb(hzmbauthority,2009a)

73 63 January2007:ThegovernmentsofHongKong,MacauandGuangDongreached anagreementconcerningeachofthethreelocationstohavetheirown immigrationcheckpoint("hzmb's"threelocations,"2009). August2008:ThemethodoffinancingmethodofconstructionstheHZMBhas beenset.hongkong,macau,andguangdonggovernmentreachedanagreement wastoshareexpensesfortheconstructionofhzmbmainbridge(hyd,2012g). October28 th,2009:statecouncilofthepeople'srepublicofchinaapprovedthe feasibilitystudyofthehzmb(hyd,2012g). December15 th,2009:hzmbhaditsgroundbreakingceremony(hzmbauthority, 2009a). July2010:TheHZMBAuthoritywasestablished(HYD,2012g). 2016:TheHZMB sexpectedcompletiontime.

74 64 CHAPTER3METHODOLOGY ThepurposeofthepresentstudyistoprojectfutureimpactsoftheHZMB.Two approacheswereappliedtoanswerthefourobjectivesoftheresearch:toreview themegainfrastructureprojectsonthescaleofthehzmb, the issues involved in developing an infrastructure project of the scope of the HZMB, the potential impacts of the HZMB on the GPRD s regional economic development with a specific focus on the tourism industry, and stakeholders perceptions on the HZMB and its future impacts on their sectors of industry.themethodologyisacombinationofsecondarydata analysisandqualitativeapproachandthequalitativeapproachconsistsof stakeholderinterviews. 3.1SecondaryDataAnalysis Inthesecondarydataanalysissection,differencesandsimilaritiesbetweenthe HZMBandothermegaprojectswerecomparedtoestimatesimilarimpactsofthe HZMBontheregion.HongKong,ZhuHaiandMacaugovernmentshavealso announcedtheirprojectionsonthehzmb simpactsontheregions.thus, projectionsbythesegovernmentswerealsocomparedandanalyzedinthe secondarydataanalysissectionwiththepurposeofgeneralizingthehzmb s

75 65 potentialimpactspredictedbythem.figure15onpage66showstheanalytical frameworkofsecondarydataanalysisofthepresentstudy AnalysisofOtherMegaprojects Impacts Fourmegaprojectshavebeenstudiedpreviouslyintheliteraturereviewsection: PalmJumeirahinDubai,ChannelTunnelbetweenBritainandFrance,Øresund BridgebetweenDenmarkandSweden,andHongKongInternationalAirport.Data onspecificationssuchaslocalconditions,surroundingareas,governmentpolicies, economicandtourismdevelopmentstates,andtheprojectsthemselvesofthese fourprojectsandthehzmbwereanalyzedtocomparesimilaritiesanddifferences betweenthehzmbandothermegaprojects.similaritiessharedbythehzmband thefourmegaprojectsstudiedwerefurtheranalyzedtoderivesomesimilarimpacts thatthehzmbwillhaveonthegprd.theothermegaprojects impactsontheir associatedregionswereanalyzedaswell.differencesbetweenthehzmbandthose fourmegaprojectswereexpectedtocontributetothepredictionsofsomeunique impactsthatthebridgeprojectwillhaveonthegprd AnalysisofGovernments ProjectionsontheHZMB simpacts HZMBwillconnectthreedifferentcities:HongKong,ZhuHaiandMacau,and theywillbethefirstonesimpactedbythebridge.eachofthesethreemunicipal governmentshaspublishedstudiesonthehzmb sfutureimpactsfromtheirown administrativeregions perspectives.

76 66 Thegoalofthesecondsectionofsecondarydataanalysiswastogeneralizethe HZMB sfutureimpactsprojectedbyhongkong,zhuhaiandmacau.dataanalysisof thethreegovernments individualprojectionsofthehzmbisexpectedtoderive similaritiesanddifferencesregardinghowthebridgewillaffectlocalareas.data fromliteraturereviewsonthegprd ssituationanalysisandthehzmb sevolution werethenincludedinthedataanalysisassupportiveinformationthat demonstratesthecommonimpactsderivedfromanalysisofgovernmentsindividual projectionsofthebridge simpacts. Figure15.AnalyticalFrameworkOfSecondaryDataAnalysis:Megaproject simpactsonhostregions General EconomyandTourism

77 67 3.2InterviewswiththeHZMB sstakeholders StakeholdersarethosewhoaredirectlyaffectedbytheHZMBevenbeforeits completion.thus,theunderstandingsofthehzmb spotentialimpactson stakeholdersandstakeholders perceptionsabouthowthehzmbwillimpactthe regionarecritical SelectionofInterviewees ThoughtheHZMBaffectsmanyaspectsoftheGPRDregion,thepresentresearch solelystudiesitsimpactsoneachregion seconomyandtourism,andthebridge s stakeholders.intervieweeswereselectedaccordingtotheirsegmentsofindustry andtheimpactsofthehzmbprojectwouldhaveonthem.moreover,thehzmb affectsthreedifferentmunicipalgovernments:guangdong,hongkong,andmacau sotheintervieweeswereamixofindividualsfromthesethreegeographicareas. TheresearcherhadcontactedvariousmembersoftheHZMBbridgecouncil,and askedforpermissionstoconductinterviewswiththem.afterunderstandingthe purposeoftheinterviewandpresentresearch,somemembersofthebridgecouncil agreedtoparticipateandintroducedotherstakeholderswhoarenotinthecouncil butwereinvolvedinthehzmbprojecttotheresearcheraspotentialinterviewees. Snowballeffectswereappliedintheprocessofselectinginterviewees. Therewereeightinterviewsconducted.Threeofthestakeholderswhowere interviewedaremembersofthehzmbbridgecouncilincludingtwoofficersofthe immigrationdepartmentsandthedirectorofatourismdepartment.theremaining

78 68 fiveintervieweesaretwoofthethreevicepresidentsofthehzmbauthority,a representativeofmacauinthenationalpeople scongressofchina,theceoofa multi)regiontravelagency,andatourismprofessorfromguangdong DesignoftheInterview Eachinterviewconductedutilizedathree)section,semi)structuredinterview process.open)endedquestionswereasked.thefirstpartoftheinterviewis designedtodeterminehowmuchintervieweesknowaboutthebridge:thepurpose, evolutionandconstructionprogressofhzmb.thesecondpartoftheinterviewwas designedtounderstandhowstakeholdersperceivedthepotentialimpactsofthe newbridgeonthegprd seconomyandspecificallytourism.questionsregarding interviewees perceptionsabouttheimpactsofthehzmbwillhaveontheregion wereasked.thelastpartoftheinterviewconsistedofquestionsaboutstakeholders perceptionsonhowthehzmbwillimpactthem. AlleightinterviewswereconductedthroughSkypephonecalls.Theagendaof interviewandalistofinterviewquestionsweresenttoeveryintervieweethree dayspriortothescheduledinterview,inordertoallowintervieweestohave preparationtime.theaverageadministrationtimeforceofseveninterviewswas approximately40minutesandinterviewswereconductedinmandarinchineseand Cantonesedependedonthespecificinterviewee sfirstlanguage.eachinterviewwas transcribedandtranslatedinenglishafterwards,andtheywereanalyzedfor

79 69 variousthemescameacrossthroughout.thendatawasanalyzedtofind commonalitiesamongstakeholderswithresultingthemesemerge InterviewQuestions Section1.Interviewee sknowledgeofthehzmb 1) Howlonghaveyouknownaboutthisproject? 2) Haveyoueverheardaboutthepurposeofconstructingthebridge?Ifso, pleasebrieflydescribethepurpose.ifnot,whatdoyouthinkisthepurpose ofthebridge? 3) Areyoufamiliarwiththeconstructionprogressofthebridge,suchas startingdateandexpectedcompletion?ifso,pleasebrieflydescribeyour knowledgeregardinghzmb sconstructionprogress. Section2.Stakeholders perceptionsconcerningpotentialimpactsofthenewbridge onthegprd seconomyandtourism 1) InwhataspectsdoyouthinktheHZMBisgoingtogreatlyaffectregional economy? 2) InwhataspectsdoyouthinktheHZMBisgoingtogreatlyaffecttourism? 3) WhatotheraspectsoftheGPRD sregionaldevelopmentdoyouthinkthe HZMBwillhaveimpactson? Section3.TheHZMB simpactsonstakeholders 1) Inwhatway(s)doyouthinktheHZMBwillimpactyourprofessionalfield? 2) Inwhatway(s)doyouthinktheHZMBwillimpactyourorganization?

80 70 CHAPTER4RESULTSANDDISCUSSIONS Chapter4presentsresultsofsecondarydataanalysisandqualitativeanalysisof stakeholders interviews.resultsincludesimilaritiesanddifferencesofthehong Kong)ZhuHai)MacauBridge(HZMB)andfourmegainfrastructureprojectsstudied, thegreaterpearlriverdelta(gprd) ssituationanalysis,thehzmb spotential impactsontheregion,andthemesidentifiedfromtheinterviews. 4.1SecondaryDataAnalysisofMegaprojects KeyinformationoftheHZMBandthefourmegaprojectswerestudiedinchapter 2:PalmJumeirah,ChannelTunnel,ØresundBridge,andHKIAwerecompared duringsection4.1.1.suchkeyinformationcomparedincludepurposeof construction,usageofthemegaproject,issuesduringandpostconstruction,and theirimpacts.appendixaonpage156summarizedcontextualdifferencesand similaritiesbetweenhostregionsofthesefourmegaprojectsandthehzmb PalmJumeirah BackgroundandIssuesInvolved PalmJumeirahlocatedinDubai,UAEisthelargestman)madearchipelagointhe world,createdthroughtheprocessoflandreclamation(nakheel,2011).the

81 71 constructionareaofthearchipelagois12squaremiles.constructiontimeforitwas 9years,whiletheestimatedconstructioncostwas$14billion("Dubai'sfirst'palm'," n.d.).thepalmjumeirahwasdevelopedduringaneconomicboomindubaiforthe purposeofincreasingdevelopmentspacesoftourismandluxurylivingfacilitiesof thecity(gibling,2013).themainusesofpalmjumeirahincludecommercial,retail, residentialandhospitalityofferings(nakheel,2011). ThemainissueduringconstructionofPalmJumeirahwasrelatedtoengineering. Landreclamationwitha7.15)milelongbreakwaterwasthemostchallenging processduringconstructionoftheman)madearchipelago.severalmajorissues relatedtothearchipelago slandreclamationprocess:obtainingthesuitable materialstoconstructthethreelayersofbreakwater,findingtheaccuratelocation todepositthosematerials,andcreatingthe palm shapeofthearchipelagoduring thedepositingprocessofsands(gibling,2013).landreclamationhadtobe redesignedwhentheprocesswasnearcompletionin2003duetoaproblemof watercirculationwithinthebreakwater(gibling,2013). Oneofthemajorpost)constructionissuesofPalmJumeirahcontinuestorelateto landreclamation.developmentoftheman)madearchipelagointroducedanew pieceoflandwheretherepreviouslywasnone;thus,theenvironmentwould naturallywanttogobacktoitspreviousstate(gibling,2013).therefore,erosionsof thenewlandareon)goingandsedimentshadtobereintroducedinerodedareason aregularbasistomaintainthearchipelagoandpreventitfromsinking(gibling, 2013).Landreclamationcausedconcernsregardtheecosystemaswell.

82 72 ConstructionofPalmJumeirahhasalwaysbeencriticizedfordestroyinghabitatsof variousmarineorganisms(gibling,2013). RegionalImpacts ThemajorimpactsofPalmJumeirahontheDubairegionhavebeenreflectedin socio)economicandtourismdevelopment.theurbanizationratehasgrownrapidly duringthe9)yearconstructionperiodinareassurroundingpalmjumeirah. InfrastructuresinDubaiwereimprovedduringthearchipelago sdevelopingstage aswell,suchasconstructionofthepalmmonorail,anewwatersewagetreatment plant,andanewwaterpipeline(sell,2007;"dewalaunchesnew,"2013; Palm water, 2006). Growthinthehospitalityproductsuppliesandstrongnumbersofhotels key performanceindicatorsdemonstratedpalmjumeirah scontributionstolocal tourismdevelopment.palmjumeirahhasdominatedthehotelmarketindubaiby showingthestrongestoccupancyrate,adr,andrevparamongallregionsofthe city(gandhietal.,2013).thedevelopmentofthearchipelagoalsohasintroduced share)ownershiphospitalityproductsindubaitosatisfytheneedsoffrequent travelerstolockintheirfuturevacationswithpresentprices(robinson,2006).

83 ChannelTunnel BackgroundandIssuesInvolved TheChannelTunnel,thelongestunderwatertunnelintheworld,isa31.4)mile undersearailtunneldirectlyconnectskent,unitedkingdomandnord)pas)decalais, France.Totalconstructioncostofthetunnelwas$15billion;constructiontimeof thisprojectwasfouryears(sen,2004).themainpurposetoconstructthechannel Tunnelwastohaveafasterandmoreconvenienttransportmeansbetweenthe UnitedKingdomandFrance.Thenotionofhavingsuchatunnelwasfirstbroughtup intheearly1880 sandfinallywasactualizedtoactionsin1986(hay,meredith& Vickerman,2004). CommunicationissuesbetweentheBritishandFrenchteamswerethemain issuesduringconstructionofthechanneltunnel.disagreementsandquestions regardingspecificationsoftheprojectofthesetwoteamsdelayedconstructionand casedittotake20%longerthanexpectedtocomplete.asaconsequence, constructioncostincreasedby80%(hay,meredith&vickerman,2004). Multipleissuesincludingfailuretocreateacommonlabormarket,high emigrationrates,andtraditionalindustrystructuresofkentandnord)pas)decalais constrainedeconomicimpactsofthechanneltunnel(thomas&o'donoghue, 2013).Bothregionslosttheireconomiccompetitivenesstoforeignerbecausethey reliedheavilyontraditionalindustries,suchasagricultureandmanufacturing(sen, 2004).Lossofqualityworkersduetohighratesofimmigrationsalsoputgreat pressuresontheregions economicdevelopment.failuretocreateacommonlabor

84 74 marketbetweenkentandnord)pas)decalaispreventedeconomiccooperationand integrationofthesetworegions,furtherconstrainingeconomicimpactsofthe ChannelTunnel(Thomas&O'Donoghue,2013). Illegalimmigrationwasanotherpost)constructionissuefortheChannelTunnel. IllegalimmigrantstriedtoentertheUnitedKingdombywalkingthroughthetunnel orsmugglingthemselvesoncargotrains(hay,meredith&vickerman,2004).most often,thesepeopleareasians,northafricans,orrefugeesfromnationsrestless especiallyinthemiddleeast.sometimestheseillegalactivitieswouldaffect operationsofthetunnel.thoughtheunitedkingdompressuredthefrench governmenttoimprovesecurityonthefrenchendofthechanneltunneltoprevent illegalimmigrants,casesofillegalimmigrationshavenosignofstopping(hay, Meredith&Vickerman,2004). RegionalImpacts ImpactsofChannelTunnelcanbecategorizedinthreeareas:regional,socio) economic,andtourismimpacts.thetunnel smajorregionalimpactsonkentand Nord)Pas)deCalaisreflectedasacatalysttolocaleconomicdevelopment.Duringthe firstfewyearsofoperations,minoreconomicgrowthwasshowninthesetwoplaces (KentCountyCouncil,2009).TheChannelTunnelalsohasintroducedsomenew typesofindustrytotheregions,suchaslogisticsandroadfreights(hay,meredith& Vickerman,2004).

85 75 Socio)economicimpactsofthetunnelwerereflectedinchangingresidents perceptionofboundariesanddailyactivities.thechanneltunnelmadeitveryeasy forresidentsinkentandnord)pas)decalaistotraveltoeachother sregion;thus, residents conceptsofboundariesbetweenthesetworegionshavebeenremoved (Thomas,2006).Shoppingtripstotheoppositeregionbecamedailyroutinestothe residentsofkentandnord)pas)decalais(thomas,2006). Touristimpactsofthetunnelwerenotassubstantialasexpected.TheChannel TunnelhasstimulatedinboundtourismoftheUnitedKingdom,byseeinga47% growthininboundtouristarrivalfrom1991to2000(sen,2004).theunited Kingdomlostasignificantamountofinternaltouristsbecausethetunnelmadeit easierforbritishtotraveloutsideofthecountry(sen,2004).yetthescopeofthe ChannelTunnel stouristimpactsisfairlysmallandonlycoversareasaround LondonandSoutheastUnitedKingdom,mainlybecausethetunnelhasapoor transportationnetworktotherestofthecountry(barrett,2009;thomas& O'Donoghue,2013) ØresundBridge TheØresundBridgeisacombinationofbridgeandtunnel,withatotallengthof 10miles(ØresundsbroKonsortiet,n.d.).Projectcostwasapproximately$5.2billion andconstructiontimewasfiveyears(oecd,2003).themainpurposefor constructingthebridgewastore)energizeandconnecteconomicdevelopmentof SouthernScania,SwedenandCopenhagen,Denmark(ØresundsbroKonsortiet,

86 ).TheideaofhavingafixedroadlinkbetweenMalmöandCopenhagenwas firstbroughtupinthe1930 sandlateractualizedintheearly1990 s(øresundsbro Konsortiet,2008).TheØresundBridgeisadual)usageroadlinkthatcontains highwayandrailway;itallowsbothvehiclesandtrainstotransportpassengersand goodsbetweenmalmöandcopenhagen(øresundsbrokonsortiet,n.d.). BackgroundandIssuesInvolved Theenvironmentalissuewasthemainconcernduringbothconstructionand post)constructionperiodsoftheøresundbridge.environmentalauthoritiesfrom bothswedenanddemarkhadtheirenvironmentassessmentteamparticipatedin thedesignphaseofthebridgetoensureminimalenvironmentalimpactstosealife (ØresundsbroKonsortiet,2008).ThegovernmentsofDenmarkandSweden requiredøresundsbrokonsortiettosubmitanannualenvironmentalassessment aboutthebridgetomonitorenvironmentalimpact.windandextremetemperature aretwomajorconcernsregardingenvironmentalimpactsforthebridge (ØresundsbroKonsortiet,2008). Afteropeningthebridge,pricingbecamethemainissue.Peakingat20,000per daydirectlyafteropening,trafficflowontheøresundbridgehasdecreased dramaticallyto6,000crossingsperday.thecostofcrossingandpricingstrategies arethemaincausesofdiminishedusageofthebridge.majorcompaniesofdenmark andsweden,suchasikea,bannedtheiremployeesfromusingtheøresundbridge

87 77 duringbusinesstripsduetobudgetconcerns.bothcountriesfacetroublesabout returnoninvestmentofthebridge. RegionalImpacts TheØresundBridgehasmultipleimpactstoDenmarkandSwedenregarding regionalintegration,economicdevelopment,tourismdevelopment,andhousing marketgrowth.ithelpedtocreatethestrongesteconomyofbothcountries,the Øresund,whichaccountsfor27%ofthecombinedGDPofDenmarkandSweden (ØresundStatisticsandAnalysis,2011).Theresultofeconomicintegrationof MalmöandCopenhagenregionswasalsorevealedinincreasingnewbusinessand employmentopportunitieswithintheregion(øresundsbrokonsortiet,2011).a commonlabormarketwasthenestablishedwithintheøresundregionforresidents frombothsidestobeabletofindidealworkopportunitiesacrossthebridge (ØresundsbroKonsortiet,2011). StrongeconomicpowerandincreasingworkopportunitiesintheØresundhave attractedimmigrantstotheregion,stimulatingthehousingmarketespeciallyin Malmö(OECD,2003).TheØresundBridgealsohelpedtocreatenewtraveling patternsinscaniaanddenmarkthroughconvenienttransportation.thenumbersof travellerstravelbetweenmalmöandcopenhagenandovernightstaysonbothsides ofthebridgeincreasedafterconstructionofthebridge(øresundsbrokonsortiet, 2011).

88 HongKongInternationalAirport HongKongInternationalAirport(HKIA)istheworld sbusiestairportintermsof bothcargoandpassengertraffic,withaconstructionareaof4.85squaremile(aa, n.d.a;aa,n.d.b).theairport stotalconstructiontimewassixyears,atacostof$6.5 billion(aa,n.d.b).thepurposeofconstructingthehkiawasthattheold internationalairportinhongkonghadreacheditscarryingcapacity.anewairport wasneededtosupporteconomicgrowth(aa,n.d.a). BackgroundandIssuesInvolved Engineeringissuesrelatedtoconstructionweremajorconcernsduring constructionofthehkia.landreclamationwasrequiredbecausemostofthe airportisonaman)madeisland.duetothegeographiclocationofhongkongsoft mudupto393.7feetundertheseaareaofaman)madeisland,themudhadtobe removedbeforethereclamation( Hkairport,2011).Partoftheairportwas constructedonlantauislandmostlycoveredbymountains;thus,approximately 200milliontonsofrockswereremovedbeforeconstructingtheHKIA( Hkairport, 2011). EnvironmentalimpactoftheHKIAwasamajorissuepost)construction.The publicpaidcloseattentiontoproblemsregardingairemissions,noiseproductions, andsolidwastesofthehkia(aa,n.d.a).thehongkonggovernmenthad departmentstomonitorgreenactionsofthehkiatokeepitsnegativeimpactson theenvironmentataminimallevel(aa,n.d.a).

89 79 RegionalImpacts ImpactsoftheHKIAarereflectedinthreeaspects:economy,tourism,and developmentoflantauisland.asexpected,thehkiahelpedtoconsolidatestrong economicgrowthofhongkong.aviationandotherbusinessatthehkia contributedapproximately$10billionandcreated185,000jobstohongkong(aa, 2010;C&SD,2013).AsthemaininternationalcargohubofthecityandtheGPRD, thehkiaisdrivingdevelopmentofbothlocalandregionaltradingandlogistics industries(aa,2010). Connectingtomorethan180destinationsworldwide,theHKIAhasgreatly improvedhongkong saccessibility.in2011,13.7%oftouristarrivalsentered HongKongthroughtheHKIA(HongKongImmigrationDepartment,2011).The HKIAalsoattractsinlargeamountsoftransitpassengers,contributingover$313 billioninrevenuetohongkongin2012(hktb,2012c). SincetheHKIAislocatedinLantau,anunderdevelopedregionofHongKong,the governmenthasplanstoestablishlantauasanewcommercialandtouristdistrict ofthecity(lantaudevelopmenttaskforce,2004).lantauisbelievedtobea populardestination,especiallyfortransitpassengerstothehkiauponcompletion ofitsdevelopmentplan("developingnewnorthern,"2013).therefore,thehkia hasstimulatedtheurbanizationanddevelopmentoflantauisland.

90 80 Table5.SummaryofKeyInformationoftheHZMBandotherMegaprojects

91 ComparisonsoftheHZMBwithOtherMegaprojects Table5onpage80isasummaryofkeyinformationoftheHZMBandotherfour megaprojectsstudiedinthepresentresearch:location,length/area,construction cost,purpose,usage,andissues.byresearchingimpactsoffouroftheworld s largestmegaprojects:palmjumeirah,channeltunnel,øresundbridgeandthe HKIA,afewpatternsofhowmegaprojectscanimpactaregionhavebeen determined.withpalmjumeirahandthehkia,constructionofmegaprojects becamethedrivingforcesforurbanizationofnearbyregions.constructionofpalm JumeirahhascontributedtourbanizationofDubaibycontinuallycreatingbusiness andemploymentopportunitiestolocalresidentsnearby.thehikaisdeveloping theurbanizationinlantauislandarea,creatingneweconomicandcommercial districtsontheisland.thoughmajorcitiesthatareadjacenttothehzmbare alreadyhighlyurbanized,citiesinthewesternpearlriverdeltawillbedirectly connectedtohongkongbythehzmbcontinuetosufferfromloweconomicgrowth andlimitedurbanization.hence,thehzmbcanbeexpectedtogeneratenew developmentopportunitiesforthewesternpearlriverdeltacitiesthusdrivinglocal urbanization. Regionalintegrationsintermsofsocialandeconomicdevelopmentarealso commonimpactsofmegaprojectsthatconnecttwodifferentregions,provenbythe regionalimpactsofchanneltunnelandøresundbridge.concerningsocio) economicimpacts,bothmegaprojectshavecreatedaborderlessregionconsistsof twooriginallyseparatedareas.thechanneltunnelhascausedresidentsfromkent

92 82 andnord)pas)decalaistoperceivethesetwoareasasoneregion.theøresund BridgehasstimulatedformationofØresund,ahighlyintegratedregionthatconsists ofscania,denmark,andmalmö,sweden.citizensfromdenmarkandswedeninthis regionhavegainedtheirnewidentityasøresundresidentsthatshareeducation, businessopportunities,laborsandotherfacilitiesonbothsidesofthebridge.thus, thehzmbshouldbeablepromotethefurtherintegrationofthegprd. Tourismandhospitalityarealsostimulatedbymegaprojectsrelatedto accessibilityandfacilities.palmjumeirahisacomplexconstructiondesignedfor hotels,entertainmentfacilities,andluxuryresidences.themegaprojecthasindeed driventherapiddevelopmentofhospitalityindustryindubai.palmjumeirahhas driventheleisuretouriststotraveltodubaiforshort)termvacationsonaregular basisaswell,thusstimulateddevelopmentofshare)ownershipbusinessesunder theumbrellaofhospitalityindustry.theøresundbridge,ontheotherhand,has contributedtotheformationofanewtravelpatternamongresidentsonbothsides ofthebridge.becauseoftheenhancedaccessibilitytotravelacrosswater,leisure travelersfrombothsidesofthebridgetravelmoreoftentotheoppositesideand alsomakeshortertrips.thehkia,asanairport,simplyencouragedhongkong s tourismdevelopmentbyenablingmillionsoftouriststotraveltohongkongbyair onaregularbasis.accordingtotheresearchonthesemegaprojects,thehzmbwill stimulatethetourismdevelopmentintermsofshort)termandmorefrequenttravel amongthecitiesinthegreaterpearldeltaregion;thereisgreateraccessibilityfor residentsfrombothbanksofthepearlriver.

93 83 Allofthefourmegaprojectsstudiedhavestimulatedregionaleconomicgrowthin someways.palmjumeirahstimulatedtheeconomicgrowthindubaibyattracting touristsandhospitalityinvestmentfirmstothecity.channeltunnel,thoughitdid notmeettheanticipatedimpactsonregionaleconomicdevelopmentofkentand Nord)Pas)deCalais,theGDPandemploymentrategrowthareseeninthesetwo regionsafteropeningofthetunnel.theøresundbridgehashelpedcreatethe strongesteconomicpowerthataccountsfor27%ofdemarkandsweden s combinedgdp,theøresundregion.thehkiacontributedtosustainhongkong s economicgrowthbysupportingthecity slogisticsandtourismdevelopment.on basisoftheresearch,thehzmbwillconnectmultipleeconomicandtourist resourcesinthegreaterpearlriverdeltaregion,tohaveagreatimpactonthe regionaleconomicdevelopment. 4.2SituationAnalysis:theHZMB spotentialimpactsonthegprd Section4.1.2analyzeddatagatheredinsections2.2and2.3andprovideda situationanalysisofthegprdintermsofstrengthsandweaknessesoftheregion. ThreeareasoftheGPRD:HongKong,PearlRiverDeltaandMacauwereinitially reviewedindependently.afterwards,anoverallanalysisoftheregionwas conducted.thepearlriverdeltaisaregionundertheadministrationsofdifferent municipalsinguangdongprovince.thus,datafromguangdongprovincewere analyzedanddataofthepearlriverdeltawereincludedintheanalysisoftheentire province.appendixbonpage157summarizedthelimitationsandbenefitsofhong

94 84 Kong,Macau,andGuangDongincontinuingdevelopmentaswellasgovernmentsof theseareas projectionsonthehzmb spotentialimpacts HongKong)SituationAnalysisonEconomicandTourismForces HongKongislocatedontheeasternGPRD.Itisoneofthetwospecial administrativeregionsofthepeople srepublicofchina(prc).hongkonghadbeen underadministrationoftheunitedkingdomfor156yearsbeforethetransferof sovereigntybacktochina;hongkonghadbeenimplementingacompletely differentpoliticalandeconomicsystemfromtheprcsincethecountrywasfounded in1949.thus,china sgovernmentestablishedhongkongasaspecial administrationregionandallowedthecitytocontinuetousethecurrent administrationsystemwhentransferofsovereigntyovertohongkongoccurred. ThetotalareaofHongKongis4.58squaremiles,withapopulationofover7)million (C&SD,2012a). HongKonghasalwaysenjoyedthestrongesteconomyofChina,mainlyrelyingon fourindustries:logisticsandtrade,financialservices,producerandprofessional services,andtourism(c&sd,2013).bothgdpandpercapitagdpofhongkong havebeenincreasingduringthepastsixyears(2005to2011)despitetheworst economicdownturnindecadesfrom2008to2010(dsec,2012).hongkong sgdp isrankedasthesecondamonghongkong,macauandguangdong,whilehong Kong spercapitagdpwasrankedasfirstamongallthreeareasuntil2006when Macau spercapitagpdsuppressedit(dsec,2012a;nbs,2011).thegdpofhong

95 85 Kongwas$ billionin2012,the36 th highestintheworld.thepercapitagdp ofhongkongwas$36,667inthesameyear,24 th highestintheworld(c&sd,2013). Accordingtostatisticsin2013,thefourmainindustriesofHongKongaccountedfor over58%ofhongkong stotalgdp(c&sd,2013). TourismisoneofthefourmainindustriesofHongKongcontributingmorethan 15%ofthetotalGDPofHongKongincludingdirect,indirectandinducedrevenue theindustrygenerated(hktb,2012a).hongkonghasthehighestnumberoftourist arrivalsamongalltheareasinthegprd;thenumberreachedarecord)highof48.6 millionarrivalsin2012(hktb,2013).mainlandchinesevisitorsaccountedfor approximately70%ofhongkong stotalvisitors,thelargesttouristmarketforhong Kong(UNWTO,2012a).Land)basedtransportationisthemainmeansof transportationofvisitorstraveledtohongkong,followedbyair transportation(c&sd,2013). Thereare174hotelsand58,344hotelroomsinHongKong,whileapproximately 43%ofthecity shotelsareupscalehotelstolow)tierofupperupscalehotels(hktb, 2012b).KeyPerformanceIndicators,occupancyrate,ADR,andRevPARshowed stronglodgingindustrydevelopmentofthecity.allthreeindicatorsexperienced dramaticgrowthduringthepastdecadedespite,theincreaseinroomsuppliesand impactsofeconomicdownturnaswellassars("hongkongreports,"2012).

96 86 BenefitsandLimitationsofContinuingDevelopment KwaiChungseaportisoneoftheworld sthebusiestportsandthehkiaisthe world sbusiestairportintermsofcargotraffic(cccc,2011,chapter1).bothof themdemonstratehongkong spositionastheworld slogisticcenter.hongkong earneditsimportanceasaninternationalhubbecauseitactsasanintermediate betweenoverseascountriesandmainlandchinaintradeandlogisticbusinesses (CCCC,2011,Chapter1).HongKong sgeographiclocation,opennessto internationalmarket,andproximitiestomainlandchina smarketareitsstrengths tosupportthecity stradeandlogisticindustry.hongkong sproximitytomainland Chinaalsocreatedstrengthforthecity stourismdevelopment.asmentioned previously,approximately70%ofthecity stouristarrivalsareresidentsof MainlandChina(HKTB,2012a). TwomajorconcernsconstrainevenstrongereconomicgrowthofHongKong. First,theHongKongInternationalAirportisreachingitscarrycapacity.Even thoughathirdrunwayisalreadyunderconstruction,itcanonlysatisfycapacity needsoftheairportatmostuntil2030(lao,2012).second,aneweconomicdriving forceforhongkongneedstobefound.hongkong spositionofchina smost importantinternationalhubisthreatenedbyshanghaifreetradezone,whichisas opentotheinternationalmarketintermsoffinancialandmonetarypolicies.poor transportationlinkstowesternguangdong,wherehasnewlandandlaborsources forhongkong sfurtherdevelopment,havepreventedlargescopeofeconomic

97 87 cooperationandcausedextratransportationtimeandcostbetweenthecityand thatarea(lao,2012). TheHZMB spotentialimpactsfromthehongkonggovernment sperspectives HongKong sgovernmentiscategorizedintotwocategories:directeconomic contributionsandindirecteconomicbenefits(transportandhousingbureau(thb), 2012).Theseestimationswerebasedontheshortenedtraveltimebetweenwestern PearlRiverDeltarepresentedbyZhuHaiandHongKong.Table6showstraveltime comparisonsbetweenzhuhaiandtwomajorinternationalhubsofhongkong, KwaiChungContainerPortandtheHKIA. Table6.TravellingTimeComparison)withandwithouttheHZMB(THB,2012) ThedirecteconomicbenefitswiththeHZMBmainlyreflectsavingtransportation costandimprovingcommunicationefficiencyamongthegprd.economic specialistsofhongkonghavecalculatedeconomicbenefitsofthehzmbbasedon suchfactorsassavingsintransportationcost,valueoftimesavedfortravelers,

98 88 inducedtrafficvolumegeneratedbetweenthethreeareas,andvalueoftimesaved fortransportinggoods(tbh,2012).itisestimatedthattheneteconomicbenefitof thehzmbtothethreeareasisapproximately$6.6billionatthepresentvalueovera 20)year)period:$3.76billiontoHongKong,$2.12billiontoMainlandChina,and $650milliontoMacau(TBH,2012). IntermsofindirecteconomicbenefitsoftheHZMB,theHongKonggovernment officialsthoughtthatthebridgewouldbringsubstantialbenefitstohongkong, Macau,andthewesternPearlRiverDelta.Theindirectbenefitswereanalyzedby threecategories:stimulatingeconomicgrowthofwesternpearlriverdelta, alternativeinvestmentopportunitiesofhongkong,andcooperationbetween airports. 1. TheeasternPearlRiverDeltawasabletoattractsubstantialforeign investmentbecausetherearefourroadlinksthatconnectittohongkong; whereasthewesternsidehasminimalforeigninvestmentduetonodirect roadlinkbetweenthewesternsideandhongkong(thb,2012).thehzmb willactastheconnectorbetweenthewesternpearlriverdeltaandhong Kong,thusattractingforeigninvestmentcapitaltotheregion. 2. BothHongKongandGuangDongareseekingneweconomicgrowth, especiallybecauseeconomicdevelopmentoftheeasternpearlriverdelta hasreachedamaturestage(liu,n.d.).thewesternpearlriverdeltahas abundantlandandcheaplaboryettobefullyexploited;ithassignificant growthpotentialtodriveneweconomicdevelopmentofhongkongandthe

99 89 province(thb,2012).thehzmbisexpectedtoallowfrequenteconomic interactionsbetweenthewesternpearlriverdeltaandhongkongthus createneweconomicgrowthpointstobothareas. 3. HongKonggovernment sofficialsalsobelievedthatthehzmbwould encouragemorevisitorstoflytothehkiaandtraveltomainlandchina,and viceversa(thb,2012)becausearoaddirectlyconnectsthehkiaandthe bridge.thehzmbisalsoexpectedtocreatesynergyforthehkiaandzhu Haiairport,connectingthedomesticflightnetworkofZhuHaitothe internationalnetworkofhongkong(thb,2012) Macau)SituationAnalysisofEconomicandTourismForces MacauisaspecialadministrationregionofChinalocatedonthewesternGPRD.It hadbeenundertheadministrationofportugalfor442yearsbeforeitstransferof sovereigntytochinain1999.china sgovernmentofficialsallowedmacautokeep usingitsoriginalpoliticalandeconomicsystemfromportugal sadministration period;thusthecentralgovernmentestablishedmacauasaspecialadministration region.theareaofmacauis11.39squaremileswithapopulationis591,000(dsec, 2012). TheserviceindustryisthestrongesteconomicdrivingforceofMacau,accounting forover90%ofthecity stotalgdp(dsec,2012b).gamingcontributesthemost economicrevenueamongallservicesectors;taxfromgamingrevenueaccountedfor approximately88%ofmacaugovernment sincome(bankofchinamacaubranch, 2012).MacauhasthesmallestGDPcomparedtoGuangDongandHongKongat

100 90 $44.3billionandrankedasthe98 th intheworldin2012.ontheotherhand,macau hasthehighestpercapitagdpcomparedtoguangdongandhongkongsince2006 (DSEC,2012b;NBS,2011).In2012,thepercapitaGDPofMacauwas$77,353andit wasrankedas4 th highestintheworld(dsec,2012b). AsthegamingcapitalofAsia,gamingisthemainpurposeforMacau svisitors. MainlandChinesevisitorsarethemaintouristmarketforMacau,whichaccountsfor 57.72%(UNWTO,2012b).Approximately30%ofMacau stotaltouristarrivalsare fromguangdong(dsec,2012g).hongkongisthesecondlargesttouristsourceof thecity,accountingfor27.08%oftotaltouristarrival(unwto,2012b).thegaming industryinmacauexperiencedtremendousgrowthafteropeningthecity sgaming concessionsin2002.thenumbersofcasinosincreasedbymorethanthreetimesto 35andannualgamingrevenuehasincreasedbyover12timestoover$38billionin 2012(UNLVCenterforGamingResearch,2013). Thelodgingsectorofthecityisalsoverystrong.Thecityreportsgrowthof30% inroomrevenuefortwoconsecutiveyearsin2010and2011(dsec,2012c).room supplyofthecityis25,450and5)starhotelsaccountfor16,659oftotalroom suppliesaccordingtothelatestnumberin2012(dsec,2012c).theaverageroom occupancyisapproximately85%andaveragelengthofroomnightstayis1.52 (DSEC,2012c).Roomrevenuereached$2.35billionin2011(DSEC,2012c).

101 91 BenefitsandLimitationsofContinuingDevelopment Macau sbenefitsarereflectedintwoaspects,highqualitysuppliesandhigh demandsfromnearbymarkets.thecity sproximitytomainlandchina,themain sourceofthecity srevenue,isthemostimportantstrengthinmacau seconomic development.itiseasytoaccess,moreapproachable,andrelativelycheaperto MainlandChinesegamblersthanothergamingjurisdictionsintheworld.Casino hotelsuppliesaretheotherstrengthofmacau.theworld sbestcasinossuchasthe Venetian,Wynn,MelcoCrown,andMGMandworld sbesthotelchainssuchasfour Seasons,St.Regis,Conrad,andMandarinOrientalhavepropertiesinthecity(DSEC, 2012e). Macau slimitationisthecity sfragileeconomicstructure.gamingistheonly economicdrivingforceofmacau,largelyrelyingonmainlandchinesevisitors(cccc, 2011,Chapter1).Macau seconomywouldbeendangeredifaneconomiccrisisor foreigncompetitionstrikesthegamingindustry,orthecitylosesitsattractiveness tomainlandchinesevisitors.also,limitedlandsupplyisanobstacleformacauto developlargetouristattractionsotherthancasinohotels.pooraccessibilityto overseasmarketpreventsthecityfromtargetingworldwidetravelers. TheHZMB spotentialimpactsfromthemacaugovernment sperspectives TheMacauEconomicAssociationpublishedastudyontheHZMB spotential impactsonmacau seconomicdevelopmentin2012.expectedtrafficflows,impacts

102 92 onmacau spositioningastheworld sleisuretravelcenter,andimpactson diversifyingmacau seconomicstructurewerethethreepartsoftheprojections. 1. Expectedpassengerflowswerebasedonsuchfactorsaspoliciesand Year transportationcost.thus,theassociationestimatedhighandlowpassenger flowsreflectingthebestandworstscenariostakingtheabovefactorsin consideration.forecastedpassengerflowsbyferry,whichisthemainform oftransportationbetweenhongkongandmacau,werepresentedtoshow theexpectedproportionofpassengerflowsthatwillusethehzmb.the HZMBisnotexpectedtobecomeamainmeansoftransportationbetween ZhuHaiandMacaubecausethesetwocitiesareconnectedbyland.Thus, followingestimationsonlyreflecttheexpectedpassengerflowsbetween MacauandHongKong. Table7.EstimatedPassengerFlowsbetweenHongKongandMacau(Lao,2012) Passenger Flows Between HongKong andmacau PassengerFlowsusingthe HZMBbetweenHongKong andmacau Low High Estimation Estimation PassengerFlowsusingFerry ServicesbetweenHongKong andmacau Low High Estimation Estimation ,180,950 12,008,500 13,523,250 9,172,450 7,657, ,741,590 17,702,500 20,385,250 4,039,090 1,356, ,221,305 23,980,500 25,732,500 10,240,805 8,488, ,399,360 26,243,500 29,419,000 11,155,860 7,980, TheMacaugovernmentplannedtopositionthecityastheworld sleisure travelcenter.thoughmacauhasmanytouristfacilitiessuchaslargecasinos,

103 93 hotels,andtheunheritagesites,theshortageoflargetouristattractionslike DisneyLand,singlevisitorstructure,andpooraccessibilitytoeasternGuang DongandoverseascountriesarefactorsthatconstrainMacau stourist development(lao,2012).thehzmbwillhelpthecityovercometheabove shortagesbyconnectingittotheeasterngprd.thebridgewillencourage thetourismcooperationbetweenmacauandtheeasterngprdbyintegrating differenttouristresourcessuchasgamingfacilitiesinmacauandlarge touristattractionsinhongkong(lao,2012).thehzmbalsowillmakeit easierforamericanandeuropeantravelers,oneofthemaintouristmarkets forhongkong,tovisitmacauanddiversifymacau svisitorstructure.itwill onlytake20minutestotravelbetweenmacauandthehkiawiththehzmb, whichmeansaccessibilityofmacauaretobelargelyimprovedwiththe openingofthebridge(lao,2012).overall,thehzmbwillhelpmacauto cleanupsignificantobstaclesthatpreventittobecometheworld sleisure travelcenter. 3. TheHZMBisalsoexpectedtohelpdiversifyMacau seconomicstructure.as mentionedpreviously,oneofmacau sweaknessesisitslargerelianceonthe gamingindustrywhichaccountsforover90%ofthecity stotalgdp.goods andpassengerflowswillbecomemoreefficientandfrequentupon completionofthehzmb,thusdrivingtouristexpenditureinretail,financial services,andothercomponentsoftheservicesector(lao,2012). Conventionserviceisexpectedtobecomeanincreasinglyimportant

104 94 economicdrivingforceofmacauuponcompletionofthehzmb.thebridge willconnectmacautohongkong,theinternationalfinancialcenterwhere frequentbusinessactivitiesoccurandwherethereishighdemandforlarge conventionandexhibitionfacilities(lao,2012) GuangDong)SituationAnalysisofEconomicandTourismForces Guang Dong is one of the 31 provincial administrative divisions of Mainland China,locatedinSoutheastChina.GuangDongis15 th largestprovinceofchina,with atotalareaof69,400squaremiles.theareaofpearlriverdeltais21.136square miles(cccc,2011,chapter2).guangdongisthemostpopulatedprovincialdivision of China, with a population of over 105 million people (GDSTATS, 2012). The population of the Pearl River Delta is million, according to the latest census reportin2011(gdstats,2012). According to the latest statistics released in 2013, the GPD of Guang Dong province in 2012 was approximately $ billion with a growth of 10.2% comparedtotheprioryear(gdstats,2013).guangdonghasbeenrankedasthe highest of all administrative divisions of China in terms of total GDP since 1989 (CCCC,2011,Chapter2).Whereas,percapitaGDPofGuangDongalwayshasbeen thelowestcomparedtothoseofhongkongandmacau(dsec,2012b;nbs,2011). ThePearlRiverDeltahasthestrongesteconomicforcecomparedtootherregionsof GuangDongandcontributedover83%ofGuangDong stotalgdp(gdstats,2011).

105 95 ThemainindustriesoftheeasternandwesternGuangDongprovincearequite different.aftertheopenpolicyin1978andunderinfluencesofhongkong,eastern GuangDongespeciallytheeasternPearlRiverDeltahasreliedonservicesectorof theeconomysuchasit,tourism,andtrade(cccc,2011,chapter1).whereas, westernguangdonghasheavilyreliedonthesecondarysectoroftheeconomy, suchasmanufacturing(dsec,2012b). Asmentionedpreviously,tourismisoneofthemainindustriesofeasternGuang Dong,especiallyeasternPearlRiverDelta.Basedontheyear)by)yeartouristarrival comparisonsinsection2.2.3,thenumbersoftouristarrivalstoguangdonghas alwaysbeenincreasing.thelargesttouristmarketforguangdongishongkong, followedbyoverseasvisitorswhichaccountforover20%oftotaltouristarrivalsto theprovince(cnta,2010;cnta,2011;cnta,2012).vehiclesarethemainformsof transportationforvisitorstoguangdong,accountingfor94.56%ofthetotal passengertraffictotheprovincein2011(gdstats,2012). DespiteGuangDonghavingsimilarnumbersoftouristarrivalsasHongKongand Macau,theprovincedoesnothaveasstrongofalodgingindustryasthetwospecial administrativeregions.thelodgingindustryinguangdonghaslessstrict administrationbythegovernmentthanthoseinhongkongandmacau,because over86%ofhotelsintheprovinceremainunrated(gdta,2012).thelodging marketinguangdongmaybeexperiencingproblemsofsupplysurplus,sincethe numberofroomproductsavailablehasbeendoubledduringthepastdecadewhile

106 96 averageoccupancyratehasremainedat60)69%levelwithinthesametimeframe (GDTA,2012). BenefitsandLimitationsofContinuingDevelopment ThebenefitofGuangDongthathasbeendrivingstrongeconomicgrowthofthe provincesinceimplementationoftheopenpolicyin1978is:itscloserelationship withhongkongintermsofgeographiclocationandcooperation.whenchina allowedforeigninvestmentinguangdongbeginningin1978,hongkongbusiness begantobringinvestmentcapital,intelligentlabor,andadvancedtechnologiesand knowledgetoguangdongprovince,helpingtodriveeconomicgrowththere(cccc, 2011,Chapter1).TheeasternGuangDong,especiallyeasternPearlRiverDelta,is geographicallyclosertohongkongthanthewesternside.thus,theeasternside hadprioritiestoimportcapitalsandadvancedresourcesfromhongkong.thiswas thetimewhentheeasternpearlriverdeltabegantotransformitseconomic structurefromrelyingonsecondaryindustriestoserviceindustries(cccc,2011, Chapter1). ThelimitationofGuangDong scontinuingdevelopmentwascausedby imbalancedeconomicdevelopmentbetweentheeasternandwesternsidesofthe province.easternguangdonghastransformeditsmainindustriestotheservice sectorsoftheeconomy,whilewesternguangdongcontinuestorelyonsecondary industryasitdid30yearsago.poortransportationlinkstohongkongmainly causedthedevelopmentgapbetweenwesternandeasternguangdong;capital,

107 97 goods,andhumanflowcannottravelbetweenhongkongandwesternguangdong easilyastheydobetweenhongkongandeasternguangdong(cccc,2011,chapter 1).Thedevelopmentgapproblemhasalreadyconstrainedtheeconomicgrowthof theprovince,giventhefactthatguangdongshowedthelowestgrowthrateingdp duringthepastdecadeaccordingto2012statistics(gdstats,2013).guangdong willhavetominimizethedevelopmentgapbetweeneasternandwesterntokeep strongeconomicgrowth(cccc,2011,chapter1). TheHZMB spotentialimpactsfromtheguangdonggovernment sperspectives UponcompletionoftheHZMB,ZhuHaiwillbetheonlycitythatdirectlyconnects withbothhongkongandmacau.thus,zhuhai roleinthegprdandeveninthe entirenationwillbecomemuchmoresignificant.thezhuhaigovernmentprojected thehzmb sfutureimpactsfromthreeaspects:zhuhai slocationinchina s transportationnetwork,developmentinthecity surbanplanning,andindustrial development. 1. Currently,ZhuHaiislocatedattheendpointofChina stransportation network;zhuhaionlyhasone)directionroadlinksconnecttothewestern GPRD.TherearesixhighwaysthatendinZhuHai:theyconnectZhuHai downtowntozhuhaiairport,gaolancargoport,allmajorcitiesinthe westerngprd,andmajorsouthwestprovincesofchina.thehzmbzhuhai roadlinksaredesignedtoconnecttothesesixhighways;thus,theentire transportationnetworkonthewesterngprdwillconnectwiththatofthe

108 98 easterngprd.zhuhai sroleinthegprd stransportationnetworkwill changefromtheendpointtoahubbetweentheeasternandwesternsidesof theregionuponcompletionofthehzmb.zhuhai,astheregional transportationhub,willstimulatethecombinedeffectsofregionalresources suchaslabor,goods,capitalandinformation. 2. TheHZMBwillpromotetheformationofamegacityintheGPRDregionand ZhuHaiwillbethecenterofthismegacity.Also,thebridgewillallowHong KongtoconnecttothewesternGPRDandsouthwestprovincesofChina throughzhuhai,thusincreasingzhuhai simportanceinregionalandeven nationaleconomicdevelopment.zhuhai sfutureurbanplanningwilltreat areasadjacenttomacauandthehzmbasthenewcitycenterfor development.therefore,functionallayoutsofdifferentareasinthecitywill change. 3. TheHZMBisexpectedtoincreaseZhuHai sattractivenesstoforeign investmentaswellasimprovedevelopmentindifferentindustriessuchas logistics,tourism,modernservices,it,andrealestate.accordingtoresearch conductedbythehongkongchineseuniversity,every1%decreasein distancebetweenpearlriverdeltaandhongkongwillresultina0.58%to 0.61%increaseinthenumberofforeignmanufacturingcompanies;a0.4%to 0.6%increaseinamountofforeigninvestmentcapitalinmanufacturing;an 0.34%to0.37%inthenumberofforeigncompaniesintheservicesector; anda0.2%to0.7%increaseinforeigncapitalinvestmentintheservice

109 99 sectorinthedeltaregion.uponcompletionofthehzmb,distancesbetween HongKongandmajorcitiesinthePearlRiverDeltawillchangeby approximately43.1%to81.3%.therefore,thebridgewillencourage industrialdevelopmentinthepearlriverdelta.zhuhaicanbecomean importantlogisticcenterofthegprdbecausethehzmbwillconnectthe city scargohubandairporttohongkong,encouragingcooperationofthese logistichubs.inaddition,completionofthebridgewillmakeitvery convenientforvisitorstotravelamongthegprdandpromotetheregionas asingletouristdestination.thehzmbisexpectedtobecomeatourist attractionaswell,drivingtourismdevelopmentofzhuhai TheGPRD)SituationAnalysisofCurrentRegionalPolicies HongKongandMacau,thetwospecialadministrativeregionsofChina,andthe PearlRiverDeltaeconomiczoneofGuangDongarethreeareasoftheGPRDregion. Thetotalpopulationofthisregionis64.8million(GDSTATS,2012),makingitthe mostpopulatedregioninchina.threeareasthatcomposethegprdarethe strongesteconomiesinchina;thegprdisthestrongestregionaleconomyofthe country.thegprdhassurpassedgreaterlondonandhasbecomethethirdlargest megacityintheworldfollowingnewyorkandtokyo(cccc,2011,chapter2).hong Kong,Macau,andGuangDongareunderdifferentadministrationsystems;andany activitiesbetweeneachoftwoplacesareconsideredcross)border.therefore,

110 100 regionalcooperationpoliciesandimmigrationregulationssignificantlyaffectthe regionaleconomicdevelopmentofthegprd. RegionalCooperationPoliciesoftheGPRD CloserEconomicPartnershipAgreements(CEPA),thesinglemostsignificant cooperationpolicybetweenhongkong/macauandguangdong,wasfirst implementedin2003(departmentoftaiwan,hongkong,andmacaoaffairs,2006). ThisisaseriesofagreementsenablingfreetradeactivitiesbetweenMainlandChina andthetwospecialadministrativeregions.duringits10yearsofimplementation, thecepaallowedmorefrequentactivitiesandcooperationwithintheregionin termsoftourism,tradeandinvestment,andlogisticsindustries(departmentof Taiwan,HongKong,andMacaoAffairs,2006). ThegovernmentsofGuangDong,HongKongandMacauhaveestablishedjoint conferencesthatoccurannuallytodiscussframeworksofhongkong/guangdong andmacau/guangdongcooperationpolicies.cooperationjointconferencesset directionsandinstructionsofcooperationamongthegprdareasinaspectsof economy,internationaltrade,infrastructuredevelopment,transportationnetworks, immigrationpolicies,andsustainability(cccc,2011,chapter2).associated departmentsofthespecificaspectwilllaterrefinetheseframeworkstodetailed actionplansbasedonlocalconditions.thehzmbisoneofthemaintopicsofhong Kong/GuangDongandHongKong/Macaucooperationjointconferences(CCCC, 2011,Chapter1).

111 101 ImmigrationRegulations MainlandChineseresidentsneedtoholdlegaltraveldocumentationwhen travelingtohongkongand/ormacau.themajorformofmainlandchinesetravel permitistheindividualscheme.macauandhongkongresidentsneedtoholdthe HomeReturnPermitasthelegaltravelingdocumentationwhenvisitingMainland China.ItismoreconvenientforMacau/HongKongresidentstovisitMainlandChina thanmainlandchinesetovisitmacau/hongkong,becausethereisnorestrictionon maximumlengthofstayandthenumberofvisitswithintheexpirationdatesof HoneReturnPermit.YettherearesuchrestrictionsofIndividualScheme(CCCC, 2011,Chapter1;GDPSD,2011b).GuangDong,HongKong,andMacaugovernments alsoallowvehiclestotravelbetweenborderswithdualdrivingplates.limited numbersofsuchdrivingplatesareissuedtoeligiblecompaniesorindividualsbythe immigrationdepartments(gdpsd,2011b).macauandhongkongresidentscan visiteachother scityfornomorethan180dayswithouthavinganytravelpermits (CCCC,2011,Chapter1). Allthreegovernmentsallowtransitingtravelers,thosewhostopoverinthecity butdonothavetheregionorcountry svisa,tovisittheircitiesforaspecificlength oftime.transitingpassengershaveupto48hourstovisithongkong/macau(psp, 2012;HongKongImmigrationDepartment,2012).GuangDongonlyallows transitingpassengerswhoarriveinguangzhoutoentertheimmigrationborder withoutachinesevisa;theyhaveupto72hourstovisitthecity(gdpsd,2011a). TheGuangDonggovernmentalsoallowsforeignvisitorswhohavelegal

112 102 immigrationdocumentationtohongkong/macaubutnottomainlandchinatovisit GuangDongunderarrangementsofregisteredtravelagenciesandstayinthe provincefornomorethan144hours(gdpsd,2011a). 4.3InterviewResultsandDiscussions Therewereeightprofessionalsfromdifferentfields:economy,government, tourism,andeducation.table8onpage103isalistoftheintervieweesandbasic informationincludingtheiroccupations,organizations,fields,andrepresentedareas. AppendixConPage158summarizedinterviewees responsesbyintervieweeby question.appendixdonpage160summarizedmajorthemesfromstakeholders interviewsbyquestion.

113 103 Table8.ListofIntervieweesandKeyInformation

114 SectionOne)Stakeholders KnowledgeoftheHZMB Sectiononeoftheinterviewconsistedofthreequestionsaboutinterviewees knowledgeofthehzmb:howlonghavetheyknownaboutthehzmbproject,their understandingsofthepurposesofconstructingthebridge,andtheconstruction progressofthebridge.thefollowingthreesectionsareresultsanddiscussionsof thethreequestionsinsectiononeoftheinterview. QuestionOne) Howlonghaveyouknownaboutthisproject? Interviewees2,3,4,5,and6haveknownthisprojectsincethe1990 s,butnoneof themwasabletorecallaspecificeventofthehzmbduringthe1990 s. Interviewee2said: Irememberinthe1990 s,zhuhaiandhongkonggovernmentshadaserious discussionabouthavingabridgeconnectingthesetwocitiesbuttheplandid notworkout.ithinkoneofthemainreasonswasthatthecentralgovernment wasnotfullyinvolvedinthediscussions. Interviewee6expressedhisunderstandingofthegovernmentsdisapproving thehzmbprojectinthe1990 s.hestated: Inthe1990 s,ihadalreadyheardabouttheplanofconstructingabridge connectingzhuhaiandhongkong.thebridgeplanwasthensuspendedand replacedbythehzmbprojectin2003.ithinkthecentralandlocal governmentswaitedsolongtoapprovethehzmbbecausetherewasnourgent needtohavesuchabridgeinthe1990 s.

115 105 Interviewee1hasknownaboutthisprojectsince2003whenthecentral governmentapprovedtheproject.interviewee1alsosaidthathedidnothear muchaboutthebridgeandhehadtodoresearchbeforehecoulddothe interview. Interviewees7and8haveknownthisprojectonlysince2009whenthe constructionofthehzmbstarted,butneitherofthemwasabletorecalla specificstartingtimeoftheconstruction.bothofthemsaidthatthey rememberedthetimefromseeingnewsaboutstartingconstructionsofthe HZMB.Interviewee7statedthatshesawthenewsonTVtalkingaboutstarting constructionofthehzmb,butshedidnotoftenseethehzmbonthenews afterwards. QuestionTwo) Haveyoueverheardaboutthepurposeofconstructingthebridge? TheCentralgovernment spurposes.allofeightintervieweessaidthatthey understoodthemainpurposeofconstructingthebridge:toencourageahigher degreeofintegrationofthegprdandstimulateanotherroundofeconomic growthaftertheopenpolicyintheregion.interviewee1said: Thecentralgovernmentwantedtofollowtheglobaltrendofregionintegration, sothepurposeofconstructingthehzmbatthisspecificdecadeotherthan anytimeofpreviousdiscussionswastomakethegprdahighlyintegratedregion inchina.

116 106 Tofollowingtheglobaltrendwasanotherpurposeofthecentralgovernment supportingthehzmbproject.interviewee1said: ThepurposeofconstructingtheHZMBwastotietheresourcesandeconomic developmentofdifferentareasinthegprd,andincreasetheregion s competivenessinglobaleconomiccompetitions. Interviewee6expressedthatanotherpurposeofChina scentralgovernment approvingthemulti)billionprojectwastoseekforaneweconomicdrivingforce aftertheopenpolicyperiod.hesaid: ImplementationoftheOpenPolicysince1978hascreatenumerouseconomic growthsinchina.theimpactsofopenpolicyarediminishingafter35years andthecentralgovernmentwantedtofindneweconomicdrivingforceforthe country.toincreasetheeconomicpowerofthegprdregionandcreateoneof thestrongestregionaleconomicintheworldwasanotherpurposeofthe centralgovernmentbeingverysupportiveforthemultisbillionproject. TheHongKongGovernment spurposes.interviewees4,5and6saidthatthe purposefromthehongkonggovernment sperspectivewastofindthecity snew economicgrowthpointbyaccessingvariousresourcesinwesternguangdong. Interviewee6said: HongKong seconomicdevelopmentisconstrainedbythelimitedresourcesthe citycaneasilyaccess.after30yearsofcloseeconomiccooperationwiththe easternguangdong,hongkonghasalmostutilizedvariousresourcesinthe easternareaandeconomicdevelopmentofthecityhascometoasaturatedstage.

117 107 HongKongneedstoseeknewresourcestostimulateanewroundofeconomic growth,andwesternguangdonghasmuchunexploredresourcesthatcansatisfy HongKong sfurtherdevelopmentneeds.thus,thehongkonggovernmentwas verysupportiveinconstructingthehzmbforthepurposeofcreatinganew economicgrowthpointofthecity. Interviewees2,4,and6alsosaidthatHongKongwouldliketousetheHZMB asadrivingforcetostimulatetheeconomicandcommercialdevelopmentwithin thecity.somecommentsfromtheseintervieweesare: HongKongwilllargelyenhanceconnectivitywithinthecityalongwith constructionofthehzmb,becausethegovernmentisbuildingtwomajorroad linksthatareconnectingwiththebridge:oneconnectsthebridgetokwai Chungharborwhichisontheeastsideofthecityandtheotherconnectsthe bridgetohongkonginternationalairportonthewestsideofthecity.sothe easternandwesternsidesofhongkongalsowillconnectwitheachotherupon completionofthehzmb.theeasternroadlinkgoesasfarasshenzhen.so HongKong sinternalconnectivitywillbewellimproved,thusdevelopingthe efficiencyofgoodsandhumanflowsandenhancinggrowthpotentialofhong Kong. TheHongKonggovernment spurposecanbeseenfromthechoiceofthe HZMB sconnectingpointtothecityanddesignsofthebridge slocalroadlinks. HongKongchosetolettheHZMBconnectthecityinLantauIslandinsteadof DongChungthatwasoriginallysuggestedbecauseLantauislessdeveloped

118 108 thandongchungandthehzmbwouldbringnecessaryresourcestolantauto stimulatetheisland seconomicandsocialdevelopment. TheMacaugovernment spurposes.interviewee2saidthatthepurposeof Macau sagreeingofconstructingthehzmbwas tohaveaccesstobiggermarketsuchasamericanandeuropeanmarkets, andmoreresourcessuchaslaborandcapitalfromwesternguangdongand HongKong. QuestionThree) Areyoufamiliarwiththeconstructionprogressofthebridge? Interviewees2,3,4,5,and6wereabletodescribetheprogressindetail.Some commentsoftheseintervieweesare: IamveryfamiliarwiththeHZMB sconstructionprogressbecauseiama memberoftheconstructionteam.themostimportantandlatestnewsabout thebridge sconstructionprogressisthatfirsttubeoftheunderwatertunnel wassuccessfullyplacedinitsdesignatedspotintheseaonmay6,2013. Iknowthebridge sconstructionprogressverywellbecauseiaminvolvedin theprogressandialsoparticipatedintheonsgoingdesignoftheimmigrations ofhongkong sonthehzmb. Interviewees1,7,and8onlyknowtheexpectedcompletiontimeisin2016. Interviewee7said: Thegovernmentsdidn'tpromotetheHZMBenoughsocommonpeopledonot reallyknowmuchdetailsaboutthebridgebesidesthecompletiontime.ihadto

119 109 dosomeresearchtoknowtheanswersoftheprevioustwoquestions(questions 1and2ofinterviewsectionone). Interviewee1expressedsimilaropinionsasinterviewee7: Iroughlyknowsomeinformationaboutthebridge,butIhadtodoresearch beforeicouldpreciselyanswerprevioustwoquestions(question1and2of interviewsectionone) SectionTwo)Stakeholders PerceivedImpactsoftheHZMBontheGPRD Sectiontwooftheinterviewwasdesignedtoaskinterviewees opinionsonthe bridge sfutureimpactswithspecificfocusesoneconomyandtourism.three questionswereaskedinsectiontwo.thefollowingthreesectionsareresultsand discussionderivedfrominterviewees responsestothethreequestionsininterview sectiontwo. QuestionOne) InwhataspectsdoyouthinktheHZMBisgoingtoaffectregional economy? Encouragingregionalcooperationandintegration.Allintervieweessaidthat thehzmbwoulddefinitelyencourageaclosercooperationandrelationship amongcitieswithinthegprdintheaspectsofeconomy,industry,education, employment,tourism,andsociallife.interviewee2said: ThecompletionofthisquickchannelwithintheregionwillhavefarSreaching impactsontheregion sintegrationofbotheconomyandsociety.itisalsogoing

120 110 tohavesignificantimpactsonthedevelopmentofwesternguangdong, especiallyinrestructuringitseconomicstructuresandcoordinatedevelopment withtheeasternsideofguangdong. Interviewee1mentionedaboutcreationofa3)hourtransportnetworkwithinthe GPRDaftercompletionoftheHZMB.Hestated: CompletionoftheHZMBwillcreatea3ShourtransportnetworkwithintheGPRD thatradiatesfromhongkongasitscenter.sociallife,economicdevelopmentand travelingactivitieswouldcloselytietoeachotherbetweencitiesinthegprd. Interviewee2discussedindetailofhowtheHZMBwouldhelppromoteregional economicintegration.hestated: TheHZMBistoincreasetheregionaleconomicactivities.Oneofthemain reflectionsisanincreaseintheareaofthehinterlandofhongkong seconomic development;theotherisaboutbringingmanydevelopmentopportunitiesto westerngprdtostimulatecoordinatedeconomicdevelopmentoftheeastern andwesterngprd. IfthewesternGPRDcanbeincludedina3Shourdrive radiusareaofhongkong,therewillbemoreroomforhongkong sfurther economicdevelopment(byutilizingtheresourcesinthewesterngprd).hong Kongcanfindnewgrowthopportunitiesofinternationaltrade,financial servicesandtourismdevelopmentbyworkingwiththewesterngprd. Enablingareastoutilizeeachother scomplementaryadvantages.all intervieweesmentioned, complimentaryadvantages.mainlyindicatedthat

121 111 HongKong,Macau,andGuangDongcoulduseeachother sresourcesand expertisetofurtherdeveloplocaleconomy. Interviewees1,2,3,and6mentionedthattheHZMBwillestablisha3)hour livingandeconomiccirclewithinthegprd,whichmeanseconomicandsocial resourcescanbetransferredfromonecitytoanyothercitiesintheregionwithin a3)hourlengthoftime.interviewee3said: TheHZMBwillshorteneddistancesintermsoftraveltimeandphysicaldistance betweencitiesinthegprd,thusestablishinga3shourcirclewithinthegprd. Establishmentofthe3Shourlivingandeconomiccirclehasverysignificant impactsonthegprd sintegration.thecirclewillincreasetheefficiencyof economic,capital,commercial,andinformationtechnologicalresourcessharing withintheregiondrivingincreasesineconomyandresidents livingstandards. Interviewees1,2,3,4,and6mentionedcomplimentaryadvantagesaremost obviousinthecaseofeconomicdevelopmentbetweenhongkongandwestern GuangDonguponcompletionoftheHZMB.Interviewee2said: Asknownbythepublic,HongKongisaninternationalfinancialandtransport center.itisalwaysveryconvenientforgoodstobetransferredtoandfrom HongKong.BecauseHongKongisthefinancialcenter,qualitylaborforcesuch asexpertsandspecialistsisaveryimportantadvantageaswell.ontheother hand,macauhassomeadvantagesthathongkongdoesn'thave Thehotels andrelatedfacilitiesofmacauarethemostdevelopedintheregion.people saidthattheworld sbesthotelshavealreadysettledinmacau. Macauhasa

122 112 verylongandstrongculture,22ofthecity stouristspotsthereareratedas WorldHeritagebytheUnitedNations.Atthesametime,Macauhasa500Syear longhistoryofhavingbothwesternandorientalcultures. Thewestern GPRD sadvantagesreflectedinthevariousresourcesithas,especiallyfree landsandcheaplaborforces.thehzmbwillhelpthesethreeareastobetter utilizeeachother sexpertiseandadvantagestodrivelocaleconomic development. Interviewees1,2,6,7,and8mentionedthatMacaucouldattractmorevarieties ofvisitorsotherthangamblersbyconnectingtoawidermarket,theoverseas market.theycommented: ThemajorityoftouristsinMacauaregamblersfromMainlandChina.Thecity cannotreachitsgoalofbecomingtheworld sleisuretravelcenterunlessithas morediversetouristsources.thehzmbwillhelptoenhancemacau s accessibilityandattractmoreoverseastravelerstothecity. TheHZMBwillmakeitmucheasiertotravelfromHongKongespeciallyfrom thehkiatomacau,andhongkongistheworld sbusiestfinancial,commercial andlogisticscenter.sotheopeningofthebridgewillbringmanyforeign businesstravelerstomacauanddiversifythetouristmarketforthecity. Interviewee2alsomentionedthatMacauhasgreatpotentialtobecomean internationalfreetradecenterwiththehelpofothercitiesinthegprd.hestated: Thetax(12%)isverylowinMacau,evenlowerthanthatofHongKong.Thisis oneoftheadvantagesofmacau.thecityalsohasaverylooseexistandentry

123 113 policies,andthereisnoforeignexchangecontrol.macauisamemberofthe WorldTradeOrganization(WTO)andhasitsowntariff.Alloftheseexplain Macau sadvantagewithitsmunicipalsystem.butmacaulacksanaturaldeeps waterport.thereareafewportsinthecitybecauseofthesiltfromthepearl RiveEstuarythewaterofalltheseportsisnotdeep.TheHZMBisgoingtohelp MacautoutilizethenaturaldeepSwaterportsinHongKongandZhuHai,such asthekwaichungportinhongkongandgaolanportinzhuhai.itisgoing tobenefitmacauintermsofdevelopmentininternationaltradeandforeign exports. Interviewee6statedthatHongKongwillbefacinggreatcompetitionfromthe newlyestablishedfreetradezoneinshanghai,thehzmbwillhelphongkongto staycompetitivebyallowingthecitytoutilizeabundantresourcesinthewestern GuangDong.Hecommented: EstablishmentoftheShangHaiFreeTradeZonewillcreatechallengestoHong KongbecauseHongKongearnedmuchbenefitsineconomicdevelopmentbybeing theonlyfreetradecenterinchina.shanghaifreetradezoneisbecomingthe secondone.hongkongwillneedthehzmbtoreachresourcesinthewesterngprd andsouthwestchinatoseekneweconomicforcetostaycompetitive. ReducingeconomicdevelopmentgapsbetweenthewesternandeasternGPRD. Interviewees1,2,3,4,5,6and7saidthattheHZMBcouldhelptoreducethe economicdevelopmentgapbetweenthewesternandeasterngprdby

124 114 connectingthewesterngprdtohongkong,becauseofincreasesinforeign investmentsfromhongkong.theycommented: TheHZMBwillallowdirectaccessbetweenHongKongandthewestsideofthe regionmakingitmucheasierforsharingqualitylabor,advancedtechnology andknowledge,andcapitalinvestmentbetweenthesetwoareas;thus,driving economicgrowthinthewesterngprd. TheeconomicdevelopmentofeasternGPRDisveryfastandsaturated;the economicdevelopmentofwesterngprdisbehind. Asyoumentionedearlier, thepaceofeconomicgrowthinthewesterngprdisfairlyslow.before implementingtheopenpolicyin1978,economicdevelopmentofboththe westernandeasterngprdwasverysimilar.butafter30yearsof implementingtheopenpolicy,theeconomicgrowthgap(betweenthetwo sidesofgprd)isconstantlyexpanding.(thehzmb)canlargelyincreasethe westerngprd sattractivenesstoforeigninvestment,becausethebridgeis goinghelpthewesterngprdtobeincludedinthe3shoureconomiccircleinthe GPRD.It(theHZMB)isgoingtoimprovetheeconomicdevelopmentofthe westerngprdandatthesametimeoptimizethestructuresofregional economyandindustry.itisalsogoingtohelppromoteregionalproductstothe overseasandinnermainlandchinamarkets.reachingtheoverseamarketis goodforbalancingeconomicdevelopment(ofeasternandwesterngprd). Establishmentofaregionalairportnetwork.Interviewees2and4mentioned thecooperationwithinregionalairports.interviewee4said:

125 115 TheHKIAhaveflightsto120overseasdestinationsincludingmanyAmerican, European,andOceaniadestinations.Macauinternationalairportsmainly connectthecitytosoutheastasiandestinations.mostflightsofairportsin PearlRiverDeltaconnecttheregiontovariouscitiesinMainlandChina.The HZMBwillconnecttheseairportsandbuildalargeairportnetworkwithinthe GPRDthatwillconnectthisregiontoalmosteverymajordestinationinthe world.thus,thegprdcouldbecomeaninternationalhubofcargoand passengertraffic. Interviewee5thoughtthattheHZMBwoulddrivetheaviationeconomyin HongKongbyconnectingHongKongtothewesternPearlRiverDeltamarket.He expressed: thehzmbdirectlyconnectsthehkiawithmainlandchina,soithinkthere willbemoremainlandchineseusingthehkiauponcompletionofthebridge, thusdrivingthedevelopmentofhongkong saviationeconomy. EstablishmentofafreetradeareaintheGPRD.Interviewees2and6 mentionedthatthehzmbwouldacceleratetheestablishmentofafreetradearea withinthegprd.interviewee2said: ThecentralgovernmentplanstoestablishfreetradezonewithintheGPRD, whichwillconsistofhengqinislandinzhuhai,qianhaiinshenzhenandnan ShainGuangZhou.Inconvenienttransportationandlackofeconomic communicationsofthesethreeprospectiveareasareobstaclesinestablishinga freetradezoneinthegprd.thehzmbisgoingtoallowdirectaccessbetween

126 116 HengQin,QianHai,andNanShaandeconomicdevelopmentwillbehighly integrateduponcompletionofthebridge.therefore,majorobstaclesof establishingthegrpd sfreetradeareawillbeovercomeuponcompletionof thegprd. Interviewee6mentionedthatservicetradeliberalizationcouldbeachieved alongwiththedevelopmentoffreetradeareainthegprd.hestated: ServicetradeliberalizationisahigherformoffreeStradebusinessthangoods tradeliberalization.becausethebridgewilltiethedevelopmentofservice industriesofcitiesinthegprdtogetheruponcompletion,itwillstimulate servicetradeliberalizationbetweenguangdongprovinceandthetwospecial administrativeregions,hongkongandmacau. Encourageflowsofproductionfactors.Interviewee2saidthattheHZMB wouldencouragetheflowofproductionfactorsinthegprd.theseproduction factorswillhelptodrivethediversificationofmacau seconomicstructure.he mentioned: TheeconomicdevelopmentofMacauisverymonotonous:gamingaccountsfor alargepartofit.thus,thegovernmentwantstodiversifytheeconomic structureandtheproductionfactors Withthebridge,communicationamong thethreeplaceswillbemorefrequentincludingtheexchangeofhighslevel administrativestaffandbusinessdealings.thus,thehzmbisgoingtopromote flowofregionalfactorsofproduction.

127 117 QuestionTwo) InwhataspectsdoyouthinktheHZMBisgoingtoaffecttourism? Integrationofregionaltouristresources.Interviewees1,2,6,7,and8agreed thatthehzmbwouldstimulatetheintegrationoftouristresourceswithinthe GPRDandencouragepromotingtheregionasasingledestination.Interviewee1 expressed: ThecompletionoftheHZMBwilleasetheprocessofcooperationamongthe GPRDregionsincetransportationismuchmoreconvenientthaneverbefore. Alsothebridgeisgoingtocontributetremendouslyinestablishingabrand nameofthegprdastheworld sfamoustouristdestination. Integrationofregionaltouristresourceswillcreateopportunitiesforregional cooperationintourism.interviewee1stated: HongKong,Macau,andthePearlRiverDeltahavedifferenttypesoftourist resources:mansmadelargetouristattractionsofhongkong,gamingand lodgingproductsofmacau,andnaturalattractionsofthegprd.thesethree areashaveneverworkedwitheachintourismdevelopmentpreviouslybecause theyhavenotbeenconnectedtoeachotherinthepast.thehzmbwillcreatea communicationnetworkwithintheregionandencouragetourismcooperation ofhongkong,macau,andguangdong. EnablingimplementationofoneFtripmultipleFcitiestours.Interviewees1,2,6, and8alsomentionedthetourismconceptofone)tripmultiple)citiespackagetour, whichwasapartofdiscussionsinthecepa.theysaidthatthehzmbwouldhelp toactualizetheconceptofone)tripmultiple)cities.interviewee8said:

128 118 TheconceptofoneStripmultipleScitieswasbroughtupafewyearsagointhe CEPA,butthecurrenttransportationnetworkwithintheGPRDprevents implementationofthistravelconcept.hongkongandmacau,twomain destinationsinthisconcept,arenotdirectlylinkedwitheachotherandthe ferryistheonlytransportationbetweenthem.transfertransportationmeans makesitinconvenienttoorganizesuchatrip,becausetourists shuttlebuses havetobechangedwhentheyreachtheothersidebyferryandoftentourist operatorshavetochangetoo.withthehzmb,touristscanstayonthesame busforthewholetripandtheydon thavetoworryabouttransferringluggage betweenbusesandferry;onetravelagencycanhandletheentiretripwithout needingtoaskforhelpinarrangingtransportationontheothersideofthe PearlRiver. ImpactsontourismwillbefirstseeninMacau.Interviewee4saidthatMacau willbethefirstcitythatrealizesbenefitsfromthehzmb,becausethecityhighly dependsontourismandtheincreaseinvisitorswilldirectlystimulatetourist revenuegrowthofmacau.hesaid: IthinkMacauwillbenefitthemostfromtheHZMBattheverybeginning. MacauemphasizesmuchongamingandtourismandithasalotofMainland andhongkongvisitors.now,visitorshavetotaketheferrytomacau,whichis verytimesconsumingandcostly.aoneswayferryticketisabouthk$200anda roundstripferryticketcostsabouthk$400.withthehzmb,thecostoftravel

129 119 willdroptoonlyaboutfewtensofhkdollars.soiexpectaninstantincreasein visitorarrivalstomacauoncethebridgeisopen. Increasesoftouristsfromsurroundingprovinces.Interviewee7stated: GuangDong stouristmarketforhongkongandmacauhasreacheda saturatedlevel,sothehzmbwillhavesmallimpactsonincreasingthenumber ofguangdong svisitorstohongkongandmacau.whereascompletionofthe HZMBwillstimulategrowthinvisitorsfromsurroundingprovinces,suchasHu Nan,GuangXi,FuJian,andJiangXi,totheGPRDbecauseoftheregion s greateraccessibility. TheHZMBwillbeanindependenttouristdestination.Interviewees1,4,6,and 7saidthattheHZMBwillbecomeatouristdestination,andwilldriveanincrease invisitors.interviewee4statedthatthehzmbauthorityhasplanstoestablish touristsitesonthehzmb.interviewee7mentioned: Chinesetouristsareveryattractedbynewandinterestingspots,theHZMBas oneofthelongestbridgeintheworldwillarousepeople sinterestsinvisiting thebridge.butwhetherthehzmbcanhavereturningvisitorswilldependon howwellthetouristsitesareestablishedonthebridgeandthemanagement teammarketsitasatouristattraction. EncouragingselfFdrivetravelwithintheGPRD.Interviewee7statedthatself) drivetravelisanewpopularformoftravelinginchina;completionofthehzmb encouragesdevelopmentofself)drivetravelinthegprd.shealsomentionedthat itwaspreviouslyimpossibletoimplementself)drivetravelinthegprdbefore

130 120 becausehongkongandthewesterngprdaredisconnectedbyland,thus openingofthehzmbwillallowimplementationsuchtravelingformintheregion. QuestionThree) WhatotheraspectsyouthinktheHZMBwillhaveimpactson? EnlargingMacau sinfluencesasaplatformforportuguesefspeaking countries.interviewee2statedthatmacauhasalwaysbeentheplatformfor economiccooperationbetweenchinaandportuguese)speakingcountriesdueto historicalreasons.thehzmbwouldconnectmacautomanymoreregions, enlargingmacau sradiateinfluencesastheplatform.someofdirectquotesfrom theinterviewinclude: TheHZMBisgoingtohelpMacautooptimizeitsimpactsastheplatformof economicandinternationaltradecooperationbetweenchinaandportugueses speakingcountriesaswellasacceleratethespeedofestablishingmacauasthe world sleisuretravelcenter.thecentralgovernmentalsohasadmittedthatwe aredevelopingmacauasaplatformandacenter:theplatformofeconomic cooperationbetweenchinaandportuguesesspeakingcountries,andthecenter ofworld sleisuretravel.foreignandhongkongeseinvestorsinhongkong andthewesterngprdcanbetterutilizemacauasaplatformtocooperatewith PortugueseSspeakingcountriesmainlyinthefieldofinternationaltrade,thus helpinghongkongesebusinessmentoexploretheemergingmarketsin PortugueseSspeakingcountries.

131 121 StimulatingZhuHai srealestatemarket.interviewee5statedthatzhuhai s realestatemarketwouldexperiencelargegrowthaftercompletionofthehzmb. Hesaid: MostHongKongresidentscannotaffordanapartmentintherebecauseofthe highrealestatepriceatapproximately$1300persquarefeetsotheyhaveto stayinparents homes.thoughshenzhenisclosetohongkong,itsrealestate priceisalsofairlyhighatapproximately$650persquarefeet;thus,shenzhen isaveryexpensivealternativeresidencetohongkongese.aftercompletionof thehzmb,traveltimebetweenhongkongandzhuhaiwillbeshortenedto approximately30minutesandzhuhai srealestatepriceisonlyat approximately$320persquarefeet.therefore,iexpectedthatmanyhong KongresidentswouldchoosetopurchasetheirapartmentsinZhuHai. Overallimpactswillnotbeenseeninstantly.Interviewee4statedthatthe effectsofthehzmb,especiallytohongkongandthewesternpearlriverdelta, wouldn tbeseenduringthefirstfewyearsofservicesbecauseeconomicgrowths willnotbeseenuntilinvestmentcapitalandcompaniesareestablishedand settledinwesterngprd.heexpectedsuchsettlementprocesseswouldtake approximatelyfiveyears. DrivingtheestablishmentofHongKong snewcommercialcenter. Interviewees4and6statedthattheHZMBwoulddrivetheestablishmentof HongKong snewcommercialcenter,lantauisland.becauseboththehzmb

132 122 connectingpointandthehkiaarelocatedontheisland,asexpectedlargepeople flowwillbringmanydevelopmentopportunitiestolantau. Encouragingderegulationsofimmigrationpolicies.Interviewees2,4,and6 saidthatthehzmbwouldencouragederegulationsofimmigrationpolicies betweenmainlandchinaandthetwospecialadministrativeregions.interviewee 6said: AllthreegovernmentsunderstandthattheHZMB simpactswouldnotbeas positiveasexpectedifimmigrationpoliciesconstrainhumanandgoodsflows. ImmigrationdepartmentsofMainlandChina,HongKong,andMacauare discussingderegulatingimmigrationpolicies,especiallyformainlandchinese tovisithongkongandmacau.onemainthoughtistoallowcitizensfromthe PearlRiverDeltacitiestoapplyforaoneSyearSmultipleSentryvisatoHong KongandMacau SectionThree)TheHZMB simpactsonstakeholders Section3oftheinterviewwasdesignedtounderstandinterviewees perceptions abouthowthehzmbwouldimpacttheirsectorsofindustryandtheirorganizations. Therearetwoquestionsinthissection.Resultsanddiscussionsofinterviewees responsesareasfollows.

133 123 QuestionOne) Inwhatway(s)doyouthinktheHZMBwillimpactyourprofessional field? OnecanrefertoTable8onpage103fortheeightinterviewees representing sectorsofindustry. Expectedimpactsonfieldsofpolicymakingandlegislation.Interviewee2has multipletasksingovernment:economy,regionaldevelopment,policymakingand legislation.hestatedthat: TheHZMBwillbringmanygrowthopportunitiesineconomicandregional development,butitwillcreatemanychallengesinpolicymakingandlegislation. Theregionhastohavecompatiblepoliciesandlegislationsthatallowfuture cooperationbetweenthepearlriverdeltaandhongkong/macau;forexample, deregulationsineconomicrestrictionssothatforeigncompaniescaninvestin thepearlriverdeltainawiderrangeofsectorsofindustry.governmentsalso havetopublishpoliciesnowtoimprovelocalinfrastructuresthatcansupport andaffordfuturelargeamountsofcapital,goods,andhumanflowsboughtby thehzmb.also,thehzmbwillprovidetheopportunitytoestablishafreetrade zoneinthegprdinareasofqianhaiofshenzhen,nanshaofguangzhou, andhengqinofzhuhai.policymakingandlegislationofficesneedtodiscuss detailsforestablishingguangdong sfreetradezone. Expectedimpactsonfieldofimmigrations.Alleightintervieweesagreethat immigrationpolicyplaysasignificantroleinefficiencyofthehzmb. Interviewees5and6whoworkforimmigrationdepartmentsbothsaidthatthe

134 124 HZMBbroughtbothopportunitiesandchallengestotheirfield.Interviewee6 stated: TheHZMBwillbringopportunitiesinthesimplifyingprocessofapplyingfor travelpermits,dualsdrivinglicenses,andgoingthroughimmigrationcheck. ThechallengesarehowtocoordinateimmigrationdepartmentsfromMainland China,HongKong,andMacauandovercomelawSrelatedobstaclesinachieving thegoalofderegulatingimmigrationrestrictions. Expectedimpactsonfieldoftourism.Interviewees1,7,and8whoworkfor tourismfieldsexpectsignificantgrowthinvisitorarrivalsinthegprd,especially inmacau.theyalsoagreethatthehzmbwillchangevisitors perceptionsonthe GPRDfromeachcityasanindividualdestinationtoamulti)destinationregion. Interviewee7said: TouristarrivaltotheregionhasbeenreportingdoubleSdigitgrowthduring thepastdecade.withthehzmb,iexpectedtheannualgrowthrateintourist arrivalstothegprdwouldexperienceadramaticincreasewithinthefirstfew yearsofthebridge sservices.ithinkthegrowthrateofguangdong stravelers tothegprdwillbearound20%andthatofinnermainlandchinesevisitorsto theregionwillbearound30%. Touristfacilitiesandattractionsalsowillbedevelopedrapidlyintheregion. Interviewee8said: AlongwithconstructionoftheHZMB,largetouristfacilitiesincludingasea parkresort,largeconventionhotels,andthemeparksarebeingdevelopedon

135 125 HengQinIsland(anislandlocatedbetweeneasternZhuHaiandtheCotaiarea inmacau).expectedcompletionofmostconstructionontheislandisveryclose totheexpectedcompletionofthehzmbandthehzmbisexpectedtobring largeamountsofvisitorstonewtouristattractionsontheisland. Creatingnewformofbridgemanagement.SincetheHZMBisthefirst transportationlinkthatconnectshongkong,macau,andmainlandchina,forms ofmanagementareveryprimitiveandhavemuchroomforimprovementinthe HZMBAuthority;threegovernmentshavetomanagethebridgetogether. Interviewee4stated: MakingadecisionisthemostchallengingprocessinthecrossSborderbridge s managementbecausethreegovernmentshavetoreachanagreementbefore makinganydecisionregardlessofthescopeofeachone. Interviewee3statedconstructionoftheHZMBhasbroughtmanychallenges tothebridge smanagementintermsoftechnologydifficulties,engineering complexities,environmentalimpacts,feasibilities,andappealingappearanceof thebridge.interviewee3alsosaidthatthecross)borderbridge smanagementis anewfieldofhiscareerpathandhaslargelyenrichedhisexperienceinpersonal careerdevelopment.

136 126 QuestionTwo) Inwhatway(s)doyouthinktheHZMBwillimpactyour organization? Impactsontourismdepartment.Interviewee1expressedthathisorganization isunderthepressureofcooperatingwithtourismdepartmentsofhongkong andmacau,andthey(officialsfromthetourismdepartments)areaimingto workoutaregionaltourismdevelopmentplanpriortoopeningofthehzmb.he stated: TouristdepartmentsofHongKong,Macau,andGuangDongdidnotofficially establishapartnershipbefore.withtheexpectedopportunitiesinregional touristdevelopmentbroughtbythehzbm,allthreetourismdepartmentsare nowhavingseriousdiscussionsonestablishingpartnershipintourism operations. Impactsonthecentralandlocalgovernments.Interviewee2expressedthat governmentisunderpressuretoestablishsupportinginfrastructuresincities connectedbythehzmb,especiallyasoundregionaltransportationnetworkthat canseparatetrafficflowsfromthehzmb.healsosaidthatconstructionofthe HZMBalreadyhasarousedtheneedtoadvanceregionalcooperationofthe GPRD.Directquotesfrominterviewee2regardingthistopicare: GuangDonghassignedcooperationagreementswithMacauandHongKong respectivelyandthenationaldevelopmentandreformcommissionhas publishedtheoutlineofreformingthedevelopmentofthepearlriverdelta Butthesearealloutlines.Whenitcomestorefinetheoutlines,weneedtolook

137 127 alittlecloseratfuturepictureswiththehzmb.onemainthingthatisincluded intherefinementoftheoutlinesisstablingafreetradezoneinthearea. Interviewee2iscurrentlyinvolvedindiscussionsofrefiningdevelopment outlinesofthegprd. ImpactsontheHZMBAuthority.Interviewees3and4,representingMacauand MainlandChina,workforthesameorganization:theHZMBAuthority. Interviewee3expressedthattheauthorityhastodealwithchangingrolesfrom constructiontothemanagementteamuponcompletionofthehzmb.hestated: TheHZMBAuthorityisstudyingfuturebridgemanagementissuesespeciallyin termsofcoordinationamongthehongkong,macau,andzhuhaigovernments intheorganization.efficiencyindecisionmakingwithintheorganizationin oneofthemainchallenges. Interviewee4didnotrevealtoomuchdetailregardingtheHZMB simpactson thehzmbauthority.hesaidthatalltopicsrelatedtothebridge soperation includingprospectivetouristspotsandpotentialemploymentsareinthe planningstage.theyareverychallengingissuessincetheyarerelatedto legislationfromthreedifferentgovernments. Impactsonimmigrationdepartments.Interviewees5and6areboth immigrationofficers,oneisfromhongkongandtheotherisfromzhuhai.both intervieweessaidtheimmigrationdepartmentsareundergreatpressuresof deregulatingimmigrationpolicies.interviewee6 simmigrationdepartmentis alsoinvolvedindesigningtheimmigrationbuildingonthezhuhai/macau

138 128 immigrationisland.itisaverychallengingprocessintermsofensuringsmooth flowofbothcarsandpassengers. Impactsontourismeducation.Interviewee7hasexpressedthattheHZMBwill bringmuchresearchopportunitiestoherorganization.theprofessorstated: TheHZMBwillstimulateenormousgrowthintouristarrivals.Revenue contributionsintourismmadebythebridgewouldbeaninteresting researchtopic.tourismrevenuecontributiontoaregioncanbe categorizedinthreeparts:directrevenue,indirectrevenueandinduced revenue.iaminterestedinusingsatelliteaccountsandmultipliereffectsto forecasttourismcontributionmadebythebridge. Impactsontravelagencies.Interviewee8expressedthattheHZMBwill encouragethedevelopmentofhongkong/macautravelbusiness.creationof newpackagetourswithinthegprdisalsounderdiscussionintheinterviewee s organization.hestated: TherearesomeverypopulartouristdestinationsinthewesternGPRD,suchas XinHui,JiangMenandYangJiang.TheHZMBwillconnectthesepopular destinationstohongkongsoourorganizationisplanningtocreatenew packagetoursthatconsistofpopulardestinationsinthewesterngprdand HongKong.

139 OtherIssues Duringtheinterviewprocess,someintervieweesmentionedissuesthatmightbe encounteredbythehzmb.theseissuesarerelatedthefutureimpactsofthebridge andbridgemanagement. PotentialobstaclesforoptimizingtheHZMB simpacts.interviewee4stated thatsinceimplementationoftheindividualschemein2003thatallows MainlandChinesetovisitHongKongandMacauindividually,thenumbersof MainlandChinesevisitorstoHongKonghavebeenincreasingwithdoubledigits. Hestated: HongKongresidentsarecomplainingthatMainlandChinesevisitorshave takenuptoomuchoftheresidentslivingspacesandmadethecitybecome overcrowded.thesevisitorshavealsodrivenupcommoditypricesofthecity, sothecostoflivingforlocalresidentshasincreasedaswell.thus,thehong Konggovernmentarenotlikelytoderegulateimmigrationpoliciesfor MainlandChinesetovisitHongKonginthenearfutureunderthepressuresof localresidents complainingabouthavingtoomanymainlandchinesevisitors. Threelocalgovernments rolesinthebridge smanagement.interviewee4 saidthatthehzmbauthorityisonlyresponsibleformanagingthemainbridge. Hestated: Localgovernmentsareresponsibleforenforcinglaw(includingmonitoring illegaldrivingbehaviorsandimplementingrespectivepenalties),andtheir responsibleareasonthemainbridgearedividedbydefinedborderlines

140 130 betweenmainlandchina,hongkong,andmacau.allareasareresponsiblefor assistingaccidentsonthemainbridge.therescueteamthatisclosestorhas fastestaccesstothepointofemergencywillhavethemainresponsibilityto assisttheaccident.

141 131 CHAPTER5CONCLUSIONS,IMPLICATIONS,ANDRECOMMENDATIONS Thepurposeofthepresentstudywastoanalyzethepotentialeconomicimpactof thehongkong)zhuhai)macaubridge(hzmb)ontheregionthroughexistingdata andstakeholderinterviews.theresearchstudiedthebridge sgeneraleconomic impactsonthegreaterpearlriverdelta(gprd)regionwithspecificfocusonthe tourismindustry.therewerefourresearchobjectives:(1)toreviewmega infrastructureprojectsonthescaleofthehzmb;(2)toreviewissuesinvolvedin developinganmegainfrastructureprojectofthescopeofthehzmb;(3)toanalyze thepotentialeconomicimpactsofthehzmbwithspecificfocusontourismindustry; and(4)tounderstandvariousstakeholders perceptionsofthehzmbandits impactsontheirsectorsofindustry.chapter5discussedtheconclusions, implications,andrecommendationsbaseduponthesecondarydataandinterviews analyzed. 5.1ResearchObjective1)ToReviewMegaprojectsontheScaleoftheHZMB 5.1.1CommonalitiesAmongMegaprojects Cost)Allofthesemegaprojectshaveconstructioncoststhatsurpassed$5billion, makingthemfallintothecategoryofmegaprojectsbaseduponthedefinitionfrom thefederalgovernmentoftheunitedstates.

142 132 Purpose)Themainpurposesofconstructingsuchmegaprojectsarerelatedto supportandstimulateeconomicdevelopment.themainpurposeofdevelopinga cross)borderinfrastructureistointegrateconnectingregion sresourcesand establishstrongregionaleconomies. Impacts)Constructionofcross)borderinfrastructureswouldleadtocreationsof newregionsormegacities,inwhichtwooriginallyseparatedregionsarehighly integratedinsocialandeconomicdevelopment.suchmegainfrastructureswould impactthetourismindustryforseveralidenticalreasons:theywouldprovide additionaltouristfacilitiesthatwouldstimulateincreasesintouristarrivals,they wouldenhancelocaltransportationnetworksovisitorswouldhavegreateraccess tolocalareas,theyprovidedamoreconvenientandfasterwaytotravel,andsome ofthemwouldbeanindependenttouristattractionsandmotivatetravelactivities UniquenessoftheHZMB TheuniquenessoftheHZMBreflectsinitsheavyrelianceonimmigrationpolicies initsfutureoperatingefficienciesandscopeoffutureimpacts.thehzmbisdistinct fromotherprojectsbecauseitistheonlyoneconnectingthreeareas(hongkong, ZhuHai,andMacau)inallmegaprojectsthathavebeenstudiedforthisresearch. Strictimmigrationpoliciesareappliedinanytravelactivitiesbetweentheseareas. Thelevelofstrictnessinimmigrationpolicieswouldsignificantlyaffectthepossible vehicleandhumanflowsacrossthehzmbthusaffectingthescopeofthebridge s

143 133 futureimpactsontheregion.levelofstrictnessduringimmigrationcheckswould affecttheefficiencyoftravelonthebridge. 5.2ResearchObjective2)IssuesInvolvedinConstructionsofMegaprojects 5.2.1CommonIssues Environmentalissues.Asthemostcommonconcernacrossdifferent megaprojectsduringallphasesofconstructionandusage,itincludesnegative impactsonsurroundingecosystemsconsideringtheamountofnaturalhabitatssuch projectswouldaffect.noisepollutionfromconstructionwork,andsolidandwater wastefromconstructionsarechallenging. Landreclamationissues.Megaprojectsthatincludelandreclamationalsohave issuesincorrosionofbreakwatersandnewlandpost)construction.thenatural environmentwouldresistoutsideobjectsandtrytoreturntoitsoriginalcondition. Suchlandreclamationprojectswouldencountertechnicalissuesrelatedtomake prospectivesiteproperforconstructingbreakwaters,locatetheexactplaceto depositmaterialsofbreakwaters,andfindtheappropriatekindofmaterialsduring construction. CrossFborderissues.Conflictsbetweenareasarecommonissuesthatwouldslow downconstructionprogressofcross)bordermegaprojectsandincrease constructioncost.suchissuesnormallyconcerndisagreementsinspecificationsof theprojectandinsharingcostsforadditionalconstructionexpenses.illegal immigrationisapost)constructionissuefacedbycross)bordermegaprojects.

144 ResearchObjective3)TheHZMB sfutureimpactsonthegprd 5.3.1TheHZMB sfutureeconomicimpacts 1. TheHZMBwillstimulateregionaleconomicgrowth.ThreeareasoftheGPRD connectedbythehzmb)hongkong,macauandpearlriverdelta)havedistinct strengthsyetinterdependentineconomicdevelopment.thehzmbwillallow morereasonable,andmoreconvenienttransportationbetweenareasofthe regionenablingefficientflowsofproductionfactorsineconomicdevelopment andstrengthenregionaleconomy. 2. TheHZMBwillencourageregionaleconomicintegrationoftheHZMB.Areasof thegprdhavecomplimentaryadvantagesineconomicdevelopmenttoeach other.thehzmbwillallowthemtobetterutilizeeachother scomplimentary advantagesbyshorteningdistancesbetweenareasofthegprd. 3. Thebridgewillleadtotheformationofoneoftheworld sstrongestmegacities ineconomicdevelopment,thegprd,whichconsistsofchina sstrongest economies:hongkong,macauandthepearlriverdeltaeconomiczone.the HZMBwillcreatea3)houreconomiccycleintheGPRD,meaningthatany businessactivitiescanbeconductedbetweenareasintheregionwithin3hours. 4. TheHZMBwilldrivegrowthinlogisticsandinternationaltradeindustriesofthe GPRD.Thebridgewillhelptolinkexistinghighways,airportsandportsinthe westernandeasterngprd,increasingcapacityandefficiencyindeveloping thesetwoindustriesoftheregion.

145 CompletionoftheHZMBwillhelpreducethegrowthgapineconomic developmentbetweenthedevelopedandunderdevelopedareasofthepearl RiverDelta.Thebridgewillallowdirectaccessbetweentheunderdeveloped areasandhongkong,increasingtheareas attractivenesstoforeigninvestors anddrivelocaleconomicgrowth. 6. TheHZMBwillleadtotransformationofwesternGuangDong seconomic structure.byhavingfrequenteconomicactivitieswithhongkong,themain economicsectorofwesternguangdongwillchangefromasecondarytoa tertiarysector. 7. HongKongwillfindneweconomicdrivingforcesthroughinvestinginthe unexploredandunderdevelopedareasofthepearlriverdelta.thehzmbwill connecthongkongwithunderdevelopedareasofthepearlriverdelta,where cheaplaborandlandresourcescansupporthongkong scontinuingeconomic growth. 8. TheHZMBwillincreasetransportationefficiencyfromtheGPRD(especiallythe westernside)tohongkong,thusallowinglargeamountsandmorefrequent cargotrafficstothecity.theincreaseincargotrafficwilldrivethedevelopment ofhongkong slogisticsindustry. 9. TheHZMB,whichisdirectlyconnectedtotheHKIA,isexpectedtobringlarge amountofcargoandvisitorstotheairportanddriveaviationeconomicgrowth forhongkong.

146 TheHZMBwillhelpHongKongincreaseitscompetivenesswhilefacing challengesfromthenewlyformedfreetradeareainshanghai. 11. Macaucandiversifythecity seconomicstructureandchangeitsheavyreliance ongamingindustry.macauwillbeabletoutilizethedeep)waterportsandlarge touristattractionsinotherareasofthegprd.thecity sownadvantagesinfree tradepolicieswilldevelopthelogisticsindustry,internationaltrade,andleisure travel. 12. Thebridgewillalsoincreaseoverseastravelers accessibilitiestomacau,by connectingthecitytohongkongandthehkia.macau stouristmarketwill becomemorediverseratherthansolelyrelyingonmainlandchinesevisitors TheHZMB sfuturetourismimpacts 1. CompletionoftheHZMBwillhelptoenforcethetravelconceptofone)trip multiple)citiespackagetourinthegprd.thebridgewillallowdirectaccess betweenanytwoareasoftheregions,makingitpossibleandconvenientto organizepackagetourswithoutworryingaboutchangingmeansof transportationmeansduringatrip. 2. Areasoftheregionhavedifferenttypesoftouristattractions:naturaltourist attractionsinthepearlriverdelta,massman)madeattractionsinhongkong, andlargeentertainmentfacilitiesinmacau.thebridgewillalsohelptointegrate touristresourcesandstimulateregionaltourismcooperation.

147 ConnectivitywithintheGPRDuponcompletionoftheHZMBwillallowshort) termandconvenienttravelbetweenareasintheregions.thegprdwillthen becomeasingledestinationandexperienceanoverallincreaseinregional touristarrivals. 4. ConstructionoftheHZMBwillstimulatethedevelopmentofHengQinIsland betweeneasternzhuhaiandcotaidistrictofmacau.newtouristfacilitiessuch asseaparksandconventioncenterswillbeaddedtothegprd. 5. Macau,currentlylackinglargetouristattractions,cantransformfromthe gamingcapitaltotheworld sleisuretravelcenterbyadjacenttonewtourist facilitiesandconnectingtoexistingtouristattractionintheregion TheHZMB sotherimpacts 1. TheHZMBwillleadtothecreationofoneoftheworld slargestmegacity,the GPRD,intermsofeconomicpower,population,andgeographicarea.Thebridge willnotonlycreateathree)houreconomiccirclebutalsoathree)hourliving perimeterwithingprd.botheconomicandsocialactivitiescanbeconducted within3hoursbetweenanyareasoftheregion. 2. TheHZMBwillenhanceaccessibilityandthetransportationnetworkofMacau, increasingthecity sradialeffectsasaplatformbetweenthenationand Portuguese)speakingcountries.Moreareaswillbeallowedtoparticipatein cooperationwiththesecountries.

148 ZhuHaiwillexpectgrowthinitsrealestatemarket.HongKongresidentswho cannotaffordbuyinganapartmentintheircitywillconsiderlivinginzhuhai wherecostsaremorethan50%lesstoownanapartment. 4. ConstructionoftheHZMBwillleadtotheconstructionsofotherinfrastructure oftheregion,suchaslocaltransportationlinks,touristfacilities,andlightrail. 5.4ResearchObjective4)Stakeholders PerceivedImpactsoftheHZMB 5.4.1TheHZMB sexpectedimpactsonstakeholders Fields Government 1. Immigrationswillencounterbothopportunitiesandchallengesinderegulations ofimmigrationpoliciesandeasethetravelexperiencewithintheregion. 2. Policymakersfromcentralandlocalgovernmentsareunderpressurestocreate andimplementpoliciesthatallowfurthercooperationbetweenareasinthe GPRD. 3. Politiciansandgovernmentofficialsarealsopressuredtocreatesupporting infrastructures,suchaslocalindustrialplants,roadlinksandtouristfacilitiesto facilitatefuturecapital,goodsand,humanflowsduetothehzmb. 4. ConstructionoftheHZMBwillcreateacross)borderbridgemanagement organizationinchina,thehzmbauthority.officialsinthisorganizationare expectingchallengesinmanagingthebridgebythreegovernments simultaneously,especiallythosecausedbydifferentformsoflegislation.

149 139 Tourism 1. TheHZMBwillstimulatecooperationinthetourismindustryandtourism departmentsbetweenareasoftheregion.thegprdwillgraduallybecomea singletouristdestinationuponcompletionofthebridge. 2. TheHZMBwillhelptocreatingnewpackagetourswithintheregion;itwillallow implementationofone)tripmultiple)destinationtravelconceptinthegprd. 3. Professionalsintourismarealsoverypositiveaboutlargergrowthinregional touristarrivalsafteropeningthebridge. TourismEducation 1. TheHZMBwillinitiateacademicresearchinstudyingthebridge seconomic contributions,suchasthedirect,indirect,andinducedtourismrevenuecreated bythebridge. 5.5ImplicationsandRecommendations 5.5.1ImplicationstotheHZMBAuthorityandFutureMegaprojectDevelopers ConsiderpreFprojectdevelopmentstatus.Asindicatedinsection4.1ofthe presentstudy,palmjumeirah,øresundbridge,andthehkiahavemetexpectations abouttheirpositiveimpactsonhostregions;thechanneltunnelfailedtomeet expectedimpactsonitshostregion.themajordifferencesbetweenhostregionsof theabovefourprojectsaretheregions pre)projectdevelopmentstatus.host regionsofthetunnel,kentandnord)pas)decalais,werethelessdevelopedregions

150 140 oftheunitedkingdomandfranceatthetimeofconstructionwhiledubai,malmö, Copenhagen,andHongKongarethemoredevelopedregionsoftheirnations.There werenotenoughresourcesinkentandnord)pas)decalaisforthechanneltunnel toinfluenceareasinthelong)term.thegrowthpotentialofhostregionsforfuture megaprojectsshouldbeevaluatedindeterminetheneedstohavesuchprojectsin theregions. ContractathirdpartyforcrossFborderprojectdevelopment.)Boththe ChannelTunnelandtheHZMBencounteredfinancingissuesanddelayed constructionprogressbecausedevelopersoftheseprojectsfailedtoagreeonhowto sharethecost.theøresundbridgedidnotencounterfinancingissuesordelaysin constructionbecausedevelopmentworkwascontractedtoathird)partycompanyis co)ownedbyswedishanddanishgovernments.forfuturecross)border megaprojectstoavoidpotentialconflictsduetofinancingorcost)sharingmethods betweenareasduringthedevelopmentphase,athirdpartycompanyshouldbe hiredtodevelopsuchmegaprojects. CreateacommoncommitteetomanageandmonitorcrossFborderprojects. Themainpurposeofconstructingcross)borderprojectsistointegrateconnecting regions,suchaswiththemainpurposesofconstructingthechanneltunneland ØresundBridge.TheØresundBridgesuccessfullycreatedthehighlyintegrated region:øresundconsistsofmalmöinswedenandcopenhagenindenmark.sucha successfulcaseoftheøresundregionsuggestedthatagovernmentalorganization liketheøresundskomiteenthatmonitorsintegrationsituation,establishesregional

151 141 cooperationpolicies,andnegotiatesdisagreementsanddifferencesbetweenareas ofacross)borderproject shostregionissignificanttooptimizesuchprojects regionalimpacts.areasofthegprd,thehostregionofthehzmb,haveestablished cooperativerelationshipsfordecades,butthereisnosinglegovernmental organizationthatmanagestheentireregion sdevelopment.thus,thegovernments ofhongkong,macau,andguangdongshouldinitiatediscussionaboutcreatinga regionalorganizationthatfunctionsascommongovernmentbetweenareas. Conductresearchontargetmarkets.Understandingoftargetmarketsfor subjectprojectiscriticalforprojectdeveloperstoleverageopportunitiesto optimizeamegaproject simpacts.thechanneltunnelfailedtomeettheforecasted trafficflowduetopooraccesstothetunnel stargetmarket,themarket spreferred meansoftravel,andthemarket swillingnesstopay.additionally,theøresund Bridgefailedtomeetexpectedtrafficflowduringthefirstfewyearsofservice becauseofhightollratesduetothebridgemanagement slackingofknowledge concerningthetargetmarket swillingnesstopay.casesofthechanneltunneland ØresundBridgehaveimpliedthattheHZMBAuthorityandfuturemegaproject developersunderstandthesubjectinfrastructureproject stargetmarket sneeds andwantsinaccessingandusingtheinfrastructure. Conductfeasibilityanalysisonsubstituteproducts.Similartoproductsinthe commoditymarket,amegainfrastructurewillcompetewithitssubstituteproducts inaparticularmarket.developers lackingofknowledgeofasubjectproject s competitors,willleadtofailuretooptimizethesubjectproject simpacts.boththe

152 142 ChannelTunnelandØresundBridgefailedtomeetforecastedtrafficflowsbecause ofhightollratesandlosttheircompetitionswithlow)costairlinesandferries. Developers knowledgeofsuchprojects competitorswouldatleastpartially determinewhethertheprojectcouldstaycompetitiveinthemarketandattract expectedflows.theferryisasubstitutemeansoftransportationbetweenwestern andeasterngprd;thehzmbauthorityshouldensurethattheorganizationhas adequateknowledgeofthebridge ssubstituteproductbeforedecidingthepricing andmarketingstrategiesofthehzmbtomeetanticipatedtrafficflows. Establishinvestigationteamstomonitorerosion.Erosionofnewlandand breakwaterisanunavoidablesituationformegaprojectsthatrequireland reclamation.thehzmbauthorityandfuturedevelopersofmegaprojectsshould considerestablishingateamtomonitorandinvestigatetheerosionsituationofthe breakwaterandnewland.theprimaryfunctionofsuchateamistoensurethatany potentialerosionproblemisdetected,reported,andresolvedearlybeforeit becomesamajorimpactontheoperationsoftheproject. Developmegaprojects supportinginfrastructures.thechanneltunnelfailed tomeetexpectedimpactsprimarilybecausethetworegionsbeingconnectedhad pooraccesstodevelopedregionsintheunitedkingdomandfrance.interviews fromthehzmb sstakeholdersindicatedthatcitiesconnectedbythebridgewillnot becapableofhandlingdramaticandimmediateincreasesinhumanandgoodsflows withoutsupportinginfrastructures,suchasasoundlocaltransportationnetwork thatcanseparateflowsfromthebridgeandtouristfacilitiestoaccommodate

153 143 additionalvisitors.thus,developingsupportinginfrastructuresofmain megaprojects(suchaslocalroadlinksandtouristfacilities)shouldbeimplemented atthesametimeastheconstructionofmegaprojects. Createpublicawarenessofmegaprojects.Megaprojectscommonlyinfluencing localtourismdevelopmentleadtoanotherimplicationforprojectdevelopers.they needtocreatepublicawarenessoftheseprojectstoattractpotentialvisitorsand leavetravelerswithsufficienttimetoplanatriptovisitorusetheinfrastructure priortocompletion.developersofpalmjumeirahhavesuccessfullymarketedthe megaproject;visitorseveninvestedinvacationhousesofferedonthearchipelago priortotheproject scompletion.whereasthehzmbdidnotgettoomuchattention fromthepublic;lackofpublicawarenesswillleadtolatereactionsfromvisitorsin tripplanninganddelaytourismimpactsofthebridge.therefore,developersof futuremegaprojectsshouldstartmarketingduringtheconstructionphaseand allowadequatetimeforvisitorstomakefuturetraveldecisionspriortocompletion oftheproject. Involvetouristexpertsinconstructionofmegaprojects.Inthecaseofthe HZMB,noneofthestakeholdersfromthetourismfieldwasinvolvedorfamiliarwith thebridge sconstruction.expertisefromtourismprofessionalscanhelpdesignsof projectstohaveadequatecarryingcapacitiestoaffordfuturevisitorflowovertime. Suchprofessionalsalsocanhelptomakemegaprojectsmoreapproachableand appealingtofuturevisitorssincetheyunderstandtravelmotivationsandneedsof

154 144 visitors.therefore,tourismexpertsshouldbeincludedintheplanningand constructionphasesofmegaprojectstooptimizetheseprojects impactsontourism. ReimaginetransportationnetworktoreFenergizeeconomicgrowth. Inconvenienttransportationandpooraccessibilityarecommoncausesforregions toencounterobstaclestoeconomicgrowth.constructionoftransportation infrastructureinsuchregionsareessentialtore)energizelocaleconomicgrowth. Enhancementofaregion stransportationnetworkwillleadtoimprovementofthe place slocationadvantage,thusimprovingthelocalinvestmentenvironmentand activityofbusinesses.anewtransportationinfrastructureshouldbeconsidered whenanareaencountersanyobstaclestoeconomicdevelopment. Involvelocaldestinationmarketingexpertstoensuregreattouristvalue.All ofthemegaprojectsstudiedinthepresentresearchhavetouristvalueandare touristattractionsthemselves.futuredevelopersofsuchprojectsshouldtake potentialtouristvalueoftheprojectsintoconsiderationduringtheplanningstage, andmaketheprojectmoreappealingandaccessibletofuturevisitors.ateamof localdestinationmarketingexpertsshouldbeinvolvedinthedevelopmentstageof themegaprojectandstartadvertisingthenewtouristattraction. CreateacommonlabormarketbetweenareasofcrossFborderprojects.Labor isanessentialproductionfactorineconomicdevelopment.developmentofnew cross)borderprojectswillallowmorefrequentflowsofproductionfactorsbetween connectingareas,includinglabor.creationofacommonlabormarketwillallowfree flowsofhumanresourcesbetweentheseareas,enablingbusinessestohavewider

155 145 selectionofjobcandidatesandgreateropportunitytofindqualitylaborfor positions,thuspotentiallyincreasingproductivity.forthehzmbandfuturecross) borderprojectstooptimizetheirimpactsonhostregions,developersofsuch projectshavetoattempttocreatecommonlabormarketsbetweenconnecting regions ImplicationstoPotentialInvestorsoftheGPRD IncreaseinvestmentopportunitiesintheGPRD.DevelopmentoftheHZMBwill leadtoexplorationofanewemergingmarket,thewesternguangdong.therewill beroomandspaceforforeigninvestment,especiallyintheservicesectorsofthe economyinthatregion.alsointegrationofmarketsinthegprdwillprovidea widerplatformfordevelopinginternationaltradeandlogisticsmorethananytime oftheregion shistory.inaddition,expectedincreasesintouristarrivalswillcreate largedemandsintouristandleisureproducts,suchashotels,restaurants,and shoppingcenters.therefore,therearegreatinvestmentopportunitiesinmost aspectsofindustryinthegprd.investorsshouldtakeadvantageofsuch opportunities. EstablishtheGPRD sfreetradearea.hongkongandmacauarecurrentlythe onlytwofreetradeareasinthegprd.uponcompletionofthehzmb,small individualmarketsoftheregionwillmergeintoonelargemarket.demandsfrom internationaltradesandthelogisticsindustrywillgrowalongwithintegrationof themarket.thecentralgovernmenthasaplantoestablishafreetradezoneinthe

156 146 GRPDthatconsistofHengQininZhuHai,QianHaiinShenZhen,andNanShain GuangZhou.Thefreetradezoneshouldbeestablisheduponcompletionofthe HZMBtomeetfuturemarketdemandsforinternationaltradesandthelogistics industryanddrivefurthereconomicgrowth. LeadtoliberalizationofChina sservicetrade.)servicetradeliberalizationis anessentialstepforchinatofurtherdevelopthecountry sinternationaltrade industry.completionofthehzmbwillstimulatedevelopmentofservicetrade businesswithintheregionbecauseofmorefrequentflowsofserviceproduction factors,makingthegprdthefirstplacetoimplementservicetradeliberalization withinthenation.thus,investorsintheservicesectoroftheeconomyshouldbe awareofvariousinvestmentopportunitiesinservicetradeactivitiesoftheregion. Stimulategrowthoftherealestatemarket.OneoftheHZMB sotherimpactsis tostimulatezhuhai srealestatemarketduetomorebuyersfromhongkong; whichmeansrealestatepricesofzhuhaiwillgrowdramaticallyuponcompletion ofthehzmb.forthosehongkongcitizenswhoplantoownahomeinzhuhaiand areabletoinvestimmediately,itiswisetomakeaninvestmentinzhuhainow ratherthanaftercompletionofthehzmbwhenrealestatepricesareexpectedto increase.

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167 APPENDICES

168 156 AppendixA.ContextualSimilaritiesandDifferencesBetweenHostRegions

169 157 AppendixB.ComparisonsofHongKong,Macau,andPearlRiverDelta

170 158 AppendixC.SummaryTableofInterviewees'ResponsesbyQuestion

171 159

172 160 AppendixD.MajorThemesfromStakeholders InterviewsbyQuestion 1.Familiarityofthe HZMB shistory NotFamiliar NotEnoughNewsCoverage 2.FamiliarityoftheHZMB s ConstructionPurposes StimulateRegional IntegrationoftheGPRD 3.Familiarityofthe HZMB sconstruction Progress NotFamiliar NotEnoughNews Coverage Encouragingregional cooperationand integration Enablingareastoutilizeeach other scomplementary advantages 4.TheHZMB spotential EconomicImpactsonthe GPRD Closingeconomicgaps betweenthewesternand easterngprd Establishmentofaregional airportnetwork Establishmentofafree tradeareainthegprd.

173 161 Integrationofregional touristresources. 5.TheHZMB s PotentialTourism Impacts Enablingimplementation ofone)tripmultiple)cities tours Increasesofvisitor arrivals TheHZMBwillbean independenttourist destination EnlargingMacau s in}luencesasaplatform forportuguese)speaking countries 6.TheHZMB sother Impacts StimulatingZhuHai sreal estatemarket Drivingtheestablishment ofhongkong snew commercialcenter

174 162 Challenges, opportunities,and pressure 7.TheHZMB s Impactson Stakeholder s ProfessionalFields Createdcross)border bridgemanagement form Positivegrowthin tourism}ield Con}lictsbetween areas 8.TheHZMB s Impactson Stakeholder s Organization Tourismcooperation Deregulate immigration regulations

175 163 AppendixE.SummaryGraphofImplicationsandRecommendations Considerpre)projectdevelopment status. Contractathirdpartyforcross) borderprojectdevelopment. Createacommoncommitteeto manageandmonitorcross)border projects. Conductresearchontargetmarkets. ImplicationstotheHZMBAuthority andfuturemegaprojectdevelopers Conductfeasibilityanalysison substituteproducts. Establishinvestigationteamsto monitorerosion. Developmegaprojects supporting infrastructures. Createpublicawarenessof megaprojects. Involvetouristexpertsinconstruction ofmegaprojects. Reimaginetransportationnetworkto re)energizeeconomicgrowth. Involvelocaldestinationmarketing expertstoensuregreattouristvalue. Createacommonlabormarket betweenareasofcross)border projects.

176 164 Increaseinvestment opportunitiesinthegprd. ImplicationstoPotential InvestorsoftheGPRD EstablishtheGPRD sfree tradearea. Leadtoliberalizationof China sservicetrade. Stimulategrowthofthereal estatemarket.