Introduction to Economics

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Introduction to Economics

• The Barrier-free travel scheme

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Presentation outline

• Introduction of The Barrier-free travel scheme
• The consuming mode
• Case study of SASA
• Employment situation
• Comparison of Hong Kong and Macau
• Social Problems
• Conclusion

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Introduction

• Recession period in
• Hong Kong
• China Joining the WTO

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China action helping Hong Kong

• CEPA (29th June 2003 )
• Allow dwellers traveling
• by their own identity
• Barrier-Free Travel
• Scheme visa

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The consuming mode
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General condition

• Increasing quantity on tourist
• Consume HK5,000-7,000
• per tourist
• 70 mainland tourist
• stay overnight

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Special situation

• Golden week
• National Day
• Lunar New Year
• The per capita
• consumption can reach HK10,000

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The top ten consumption

• Clothes and ornaments (famous brands)
• Accommodation
• Jewelry
• Electronic equipment
• Timepieces
• Cosmetic and perfume
• Leather products
• Computer products
• Daily commodities
• Video products

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Barrier-free travel schemes impact on Hong
Kong business
Case study of SASA
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Case study of SASA

• Basic Background
• a listed company
• cosmetic retail, cosmetic wholesales, facial and
  gymnastic services
• business on Hong Kong, China, Singapore, Malaysia
  and Taiwan
• internet purchasing

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Analysis
Benefit form the Barrier-free travel scheme

• Tourists
• affect
• SASA

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Analysis

• SASAs strategies---
• buying behaviors of the tourists
• 2. A larger spatial for shopping
• Real benefit from the Barrier-free travel scheme
• the favorite Hong Kong brand of the China
  tourists (???????????)
• the highest vote of the China tourist
  (????????????
• The future of open market in the mainland--
• Short term
• Long term

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• Barrier-Free Travel scheme
• AND
• Employment situation

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Unemployment rate 1997-2005
Census and statistics department/unemployment
statistics/
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Graph showing the derived demand for labor
Product market
Labour market
P
P
S
P2
P1
D2
D1
D2
D1
Q
Q
Q1
Q2
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The growth rate of employment between 3rd 2003 to
1st 2004
???????????????
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Private consumption expenditure
Census and statistics department/Hong Kong
Statistics/Private consumption expenditure /
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Labour market (low techniques job)
Wage
S
P2 P1
D1
D2
Q1
Q2
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Comparison of Hong Kong AND Macau
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Why we choose Macau forcomparison?
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Hong Kong
Macau
Mark six and horse racing
Casinos
Entertainment
Stable exchange rate to mainland
Quality Tourism Services Scheme (QTS)
Shopping
The Hong Kong Disneyland and the Ocean Park
Theme park
The Fishermans Wharf
Culture and arts were well promoted
Government allocated little on Culture and arts
Art and culture
Investment, entertaining in the casinos
Visiting, shopping and playing in the theme parks
The aims of visiting
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Social Problems Of Barrier-free
travel schedule
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Disadvantages

• Illegal workers
• Prostitution
• Beggars
• - 197 beggars in 2004
• The doubtful accounts of Hong Kong Hospital
• - healing patients first and then charging fees
• - 95 Chinese travelers

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Advantages

• Economy
• Employment
• Education
• - Cantonese
• - English
• - Putonghua

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Case Study on Disney

• Positive Effect
• Economy
• Unemployment
• Negative Effect
• Hygiene
• ? Hong Kongs reputation

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Conclusion
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Conclusion

• Barrier-Free Travel scheme creates prosperous
  tourism
• ?increasing economic profit
• Equation in accountant way
• Economic profit total revenue economic cost
• i.e Accounting profit total revenue
  explicit cost

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Comprehensive economic profit

• Considering the cost of implicit
• negative social effects derived from that scheme
• Equation
• Economic profit total revenues- explicit cost-
  implicit cost.

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Other factors lower the profit

• The implement of CEPA
• HK companies expand their business in China
• Total revenue decrease
• The imposition of custom tax
• Increasing the cost of travelers

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Conclusion

• Barrier-Free Travel scheme creates economic
  profit in the short run
• Suggestion
• Diverse the development of various industries

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The End