SKYLINE Technologies -- News Update (17 June 2005 )

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The government has thrown its support behind a $1.3 billion extension of the Convention and Exhibition Centre's atrium, dealing a victory to the Trade Development Council, which has long wanted more exhibition space at the Wan Chai venue.

The green light was given by the Executive Council. Plans for the proposed extension will be submitted to the Town Planning Board next week. If the blueprint is approved, construction could start as soon as next year, which avoids the World Trade Organisation conference in December. It is due to be completed in 2009.

The trade council said traffic would not be adversely affected as work would take place within the venue and large construction pieces would be transported by sea. There will be no reclamation work.

A contractor involved with the extension, Chan Sing-fung, said the height of the atrium would be increased to make room for three levels of exhibition space.

The project will be financed internally and by bank loans, although it is uncertain whether the venue's operator, New World Development, will invest in it.

"We must not slip and lose this opportunity. This is a win-win project for Hong Kong," trade council chairman Peter Woo Kwong-ching said.

The government said it had taken into consideration the future demand for exhibition space, including the extra 100,000 square metres that will be available when the $2.35 billion AsiaWorld-Expo centre opens at Chek Lap Kok at the end of this year.

The rival centres are understood to have buried the hatchet earlier this year after AsiaWorld-Expo chief executive Nicolas Borit said opposition to the expansion was "no longer on our agenda".

Relations also improved following an agreement with the trade council to stage six new shows at the AsiaWorld-Expo centre.

Trade show organiser Kenfair International, which has also been at odds with the trade council over competing toy fairs, welcomed the development.

The trade council said the 19,400 square metres of space in the atrium could accommodate more than 1,000 exhibitor booths. There is a waiting list of about 3,000 exhibitors, usually for fairs in April and October.

Regal Hotels International Holdings chairman Lo Yuk-sui says the company will spend $200 million to upgrade the facilities of its five hotels in Hong Kong to benefit from the increase in tourism.

Speaking after the company's annual general meeting yesterday, Mr Lo said Regal planned to add about 50 rooms to its Regal Riverside Hotel in Sha Tin and a number of rooms would also be added at Regal Hong Kong in Causeway Bay.

Spa facilities are planned for the Regal Airport Hotel while general renovations will be made to the Regal Kowloon in Tsim Sha Tsui and the Regal Oriental in Kowloon City.

Mr Lo said construction work at the Sha Tin hotel was likely to begin in January. Room rates were expected to rise by double digits after the renovations were completed.