Transforming Hong Kong into the “Monte Carlo of the East”: Developing a Yacht Industry Hub

President Xi has stated: “Lucid waters and lush mountains are invaluable assets.” To develop the economy, we must utilize and protect our resources. “Water” is Hong Kong’s greatest natural resource. In the early days of Hong Kong, British colonizers recognized the advantages of Hong Kong’s clear waters, year-round warmth, and deep-water harbor. Today, we should value and utilize these resources even more.

Another advantage of Hong Kong is that it has the motherland at its back and faces the international community. This year, Premier Li Qiang’s Government Work Report mentioned Hong Kong’s international role and the development of specialized industries. Meanwhile, Hong Kong and Macau Affairs Office Director Xia Baolong urged Hong Kong to “be courageous in reform, dare to break through bottlenecks, and continuously innovate.” SD Advocates believes Hong Kong should leverage its natural resources and historical mission to actively promote a “marine economy” by developing its cruise and yacht industries.

Victoria Harbor has been repeatedly rated by international shipping organizations as one of the world’s busiest and most efficient ports, making it ideal for developing cruise tourism. The Kai Tak Cruise Terminal, completed in 2013, soon faced disruptions from “Occupy Central,” riots, and the pandemic. Now, as the economy recovers and cruise tourism revives, 17 large cruise ships will dock in Hong Kong in March, bringing tourists from around the world.

Cruise tourism is a good start, but to fully develop the “marine economy,” Hong Kong must transform itself into an international yacht center.

Yacht tourism, known as a “floating industry on the sea,” can attract high-end international travelers and stimulate consumption. According to data from the International Council of Marine Industry Associations (ICOMIA), high-net-worth individuals often use yachts for cross-border investment and high-consumption activities. Annually, global yacht trade amounts to US$40 billion (approximately HK$300 billion); including related maintenance, management, and entertainment expenses, revenue can exceed US$50 billion (approximately HK$400 billion). Currently, the yacht market in the Asia-Pacific region is growing substantially. Between 2022-2024, approximately 529 super yachts over 30 meters were active in the Asia-Pacific region. The yacht industry has a long history in Hong Kong—the first rowing competition was held in 1845, the first yacht club was established in 1849, and the earliest international yacht show in Asia was held in 1982. Unfortunately, since the opening of the Aberdeen Marina Club in 1984, no new yacht clubs have been established in 40 years, leaving Hong Kong’s overall yacht industry stagnant.

Currently, Hong Kong faces a severe shortage of yacht berths. According to Marine Department data, Hong Kong has 12,330 licensed Class IV vessels (pleasure vessels), but yacht clubs and private mooring facilities together provide only about 4,300 berths, far fewer than the number of licensed yachts. Moreover, existing berths are scattered, some in remote locations lacking supporting facilities, and many typhoon shelters must be shared with various operational or commercial vessels. Therefore, planning and building a comprehensive yacht base is urgently needed to drive industry growth.

Last October, the Chief Executive proposed promoting yacht tourism in the Policy Address, planning to invite market participation in building and operating yacht mooring facilities at three locations: the expanded Aberdeen Typhoon Shelter, the old quarry on Lamma Island, and the waterfront site at Hung Hom Station. There are also plans to establish a yacht harbor with supporting facilities at Chek Lap Kok Airport. These four sites are scattered across Hong Kong Island, Kowloon, and the outlying islands, making it difficult to create synergy. An ideal yacht club location should not be in busy commercial or residential areas to avoid competition for land, resources, and development space, but should not be too far from urban areas to allow passengers convenient access for spending.

Looking closely at the four proposed locations, the most suitable is the old quarry on Lamma Island, which overlooks Sok Kwu Wan. This abandoned quarry has been idle for years and could perfectly utilize existing resources. Lamma Island is away from the hustle and bustle but easily accessible, just over ten minutes by boat from Aberdeen, with multiple ferry routes connecting to urban areas. Besides the island’s rich tourism and culinary resources, it is close to attractions like Repulse Bay, Deep Water Bay, and Middle Bay, allowing visitors to enjoy island-hopping tours, increasing their willingness to visit Hong Kong and extend their stay. The natural sheltered bays near the quarry—Luk Chau Bay, the beautiful Tung O Bay in southeast Lamma, and the area near the power plant and Ha Mei Wan to the northeast—are all excellent locations for building breakwaters and berths with their wide bays, deep waters, and beautiful, quiet environments. Building breakwaters would also improve transportation between the two sides of the harbor, achieving multiple benefits.

Besides developing a yacht club, part of the quarry could be designated for vessel repair workshops, filling the gap left by the Aberdeen Shipyard fire and providing one-stop services including repair, maintenance, and supplies for the entire industry.

Additionally, at the former site of the Jumbo Floating Restaurant in Aberdeen, two electrical bollards remain, capable of charging 6-8 electric boats simultaneously. As the international community increasingly emphasizes green energy, the electrification of yachts is imminent. These charging facilities could provide the infrastructure for future yacht bases, better meeting visitor needs and promoting the coordinated development of the yacht industry and marine environmental protection.

Therefore, SD Advocates believes that rather than developing yacht clubs and mooring facilities scattered across different parts of Hong Kong, it would be more strategic to develop Lamma Island as a yacht industry base.

Promoting yacht tourism requires not only hardware development but also good software support. Yacht enthusiasts note that Hong Kong’s beautiful scenery, visa-free policies for travelers from over 170 countries and regions, and mature financial, legal, and insurance systems make it attractive to high-quality yacht visitors from abroad. However, complicated immigration and customs procedures and insufficient berths discourage potential visitors. If Hong Kong could build an international-level yacht base with adequate berths and yacht clubs offering one-stop services, simplify entry/exit and customs procedures, and facilitate yacht maintenance, repair, and resupply during stays, it would attract a huge international market and potential high-net-worth travelers to visit and spend in Hong Kong, opening new economic opportunities.

The yacht industry can also generate derivative economic benefits. During last year’s Two Sessions, CPPCC National Committee member and Vice Chairman of K. Wah Group, Mr. Lui Yiu Tung, suggested that Hong Kong could learn from the Mediterranean region’s experience in hosting yacht exhibitions, attracting more international high-net-worth individuals to Hong Kong through world-class luxury yacht and sailing exhibitions and competitions. For example, boat races can generate considerable advertising revenue, while hundreds of sailing teams and spectators would spend money in Hong Kong, creating a strong suction effect for tourism.

Moreover, yacht tourism not only attracts external funds but also drives related industries such as repair, maintenance, and supply, creating new job opportunities. Legislative Council member Yiu Pak Leung pointed out that keeping a yacht in Hong Kong can support at least 5-7 jobs. According to industry insiders, building four breakwaters and at least 6,000 yacht berths in Sok Kwu Wan, Luk Chau Bay, Tung O Bay, and Ha Mei Wan on Lamma Island, plus vessel repair facilities and yacht clubs, could create about 10,000 jobs locally, promoting economic development.

As President Xi has proposed, we must “strengthen our maritime power,” fully leveraging our harbor advantages to ignite long-term economic highlights. To break through the stagnation in the yacht industry, authorities need goals, confidence, and cooperation with the industry to establish ten-year objectives and corresponding measures. We believe this will “break through bottlenecks and innovate,” transforming Hong Kong into the Monte Carlo of the East.

For Hong Kong to develop its yacht industry, Lamma Island is a ready resource, like a natural pearl hiding in an oyster, waiting to be harvested.

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