After a remarkable year the Association is now functioning independently for the first time, and has positioned itself to deliver a range of new, value added services to its expanding membership base. Increasingly a key factor to business success, the BBTS is now able to offer small and medium enterprises access to a pool of resources previously enjoyed by only much larger companies, as well as a proactive and collective voice in lobbying Government.

Following the cessation of the membership system of the Hong Kong Tourist Association, and its subsequent change to the Hong Kong Tourism Board (HKTB), we acted decisively to amend our Memorandum and Articles of Association through an Extraordinary General Meeting(EGM) held on 27 March 2001. All the resolutions put before the EGM were unanimously passed. This opened the way for the Association to start recruiting its own members from 1 April 2001.

Providing new and potential members with clarity regarding our role is vital to the expansion of the Association. I am pleased, therefore, that we have finalised and issued our Mission and Vision statements as well as our Codes of Practice. In short, the BBTS vision is to foster an environment that stimulates better business and tourism services in Hong Kong. In recovering from the difficult economic years of the late 1990s the support from the likes of the Tourism Commission, the HKTB, and the Government's marketing of Hong Kong abroad.

The resulting influx of tourists and increase in international interest bring with them new standards of excellence, which will drive local improvements. As one of the world's premier shopping destinations, there is an obvious relationship between business and tourism. Consequently our Mission is to be proactive in the setting of high ethical standards, and to enhance customer satisfaction through our Codes of Practice. In this way Hong Kong is able to set new world-class standards, rather than merely reacting to those imposed by foreign demand. To flourish, the industry's constituents must take ownership of the process of moving towards excellence as a community. The BBTS now provides the platform through which to do this.

In terms of clearly setting these world-class standards, the past year has seen the realisation of our Codes of Practice. Covering 13 broad areas it benchmarks the level of service that the industry requires in being a world leader. The proliferation of goods and lifestyle choices has made shoppers increasingly discerning. Price and quality are obviously important, but are by no means the sole determinants of what people choose to buy and where they choose to shop. Other important factors relate to the ethics of trade. Our Codes of Practice very clearly sets out a detailed range of ethical standards that our members pledge to observe. In a similar vein we have taken an appropriately direct view on the protection of intellectual property rights. I am also pleased that the Association has specifically addressed fair employment practices and environmental protection. These hold direct benefits for the broader society in which the industry operates. From the shoppers' point of view they are also increasingly determinants of choice. Our Codes of Practice covers all factors, and I can say with confidence that compliance with it will ensure Hong Kong's pre-eminence as the international shopping destination of choice.

In hard figures, the good news for 2000 is that 13.06 million visitors came to Hong Kong, surpassing the record of 12.97 million set in 1996, and making Hong Kong the world's top city destination. These figures were an impressive 15.3% improvement on 1999's figure, and outperformed both world and regional increases for the same period, put at 7.4% and 14.8% respectively. As a direct consequence of the increase in visitors, total Tourism Receipts increased by 9.4% to HK$61.5 billion. This increase is the first since a steady annual decline started in 1997. Mainland China, Taiwan and Japan remained the top three generators of visitor spending, with a 30.8%, 19.3% and 11.0% share of the total respectively. Interestingly however, it emerged that visitors are staying for shorter periods, (on average 3 nights) with a consequent 5.3% reduction in per capita expenditure. While a number of variables potentially explain this trend, it clearly indicates that competitiveness between industry operators is set to increase, as dollars become harder to wrest from customers whose confidence in satisfaction needs to be secured within increasingly short timeframes.

Going hand in hand with customer satisfaction is the raising of service quality, and the Association will take an active role in the provision of affordable training programmes as part of our continuous drive to add value to membership. In addition, we are able to enhance member visibility through offering a range of benefits including free listings in BBTS collaterals, increased publicity through participation in marketing programmes, international marketing opportunities, and access to a range of invaluable market information. We look forward to further increasing this exposure, and enhancing the networking opportunities of BBTS members through the development of our new website, planned for the second half of this year.

To create a profile acknowledging the Association's independence, the new BBTS Decal has been designed and launched. It now incorporates the year of membership to encourage the ongoing maintenance of standards that the Association's members subscribe to, and offers added reassurance to tourists who will rely on the Decals for a guide to quality and best business practice whilst in Hong Kong.

2000's record visitor numbers and reversal of negative receipt trends has demonstrated the positive impact of the HKSAR Government's ongoing support of the industry. Added to this, a rejuvenated HKTB is set to play an increasingly proactive role in the marketing of Hong Kong abroad. These factors significantly contribute to the positive industry forecast for 2001 of 14.08 million visitors bringing in HK$66.95 billion.

I have little doubt that these figures are well within our reach provided the marketing drive is matched by an equally aggressive commitment to the delivery of service excellence on the ground. In colloquial terms, we as Hong Kong must 'walk the talk'. The Association represents an integral resource in businesses' efforts to do so. The year ahead brings with it new members in the Governing Council. This will ensure the injection of new ideas and energy into the BBTS that will make the most of the current momentum. Membership is set to grow dramatically as small and medium businesses recognise the vital competitive advantages that the Association offers. I would like to thank the new office holders in advance for tackling the ever-increasing workload that their positions entail, and wish them the best of luck in taking the BBTS to new heights.

Finally I would like to reflect on the immense satisfaction that I have derived from being part of the Association. I have nothing but admiration for the enthusiasm, vision and work ethic of the Secretariat and Governing Council. It has given rise to a rejuvenated and independent Association, which is excellently positioned to foster an environment that stimulates better business and tourism services in Hong Kong. Their vision, recognising that benefits for tourists are synonymous with benefits for residents, should be an inspiration to all of us to come on board. In doing so we will actively participate in ensuring our industry's prosperity, and our unique city's well-being.

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