BUSINESSWEEK ONLINE: JULY 19, 1999 ISSUE

International -- Spotlight

Mickey Mouse Has Yet to Land...But a Big Buddha Is Already a Draw (int'l edition)

From his office window in Mui Wo, property agent Carlos Chau has a view of bland, low-rise residential blocks. But what Chau really sees is a bright future. This farming and fishing village of 4,000 is on the south side of Lantau Island, 15 kilometers west of Hong Kong's business district. The territory's new airport is on the island, and a Walt Disney Co. theme park may be on the way. ''In the long run, with all the government investment in the area, there will be an enormous amount of development,'' Chau says.

Environmentalists, however, glimpse a grimmer future. Today, they see cows grazing in the lowlands, sun worshippers basking on splendid beaches, and hikers trekking to reach the island's 900-meter peaks--and all of this threatened by urbanization. ''Basically, we're kissing Lantau goodbye,'' says Lisa Hopkinson, a member of the Lantau Eco-Transport Group.

Isolation has long been the key to Lantau's tranquillity. In the past, ferries were the only form of transportation to the island, with the journey often taking an hour. But the new airport, completed in 1998 on a man-made island just off Lantau's north side, set off rapid change. Some $20 billion was spent on the airport and its accompanying projects, including a suspension bridge linking Lantau to the rest of Hong Kong. The number of cars with access to the north side--the south side remains largely inaccessible for now--jumped from 1,000 to half a million. High-rises began to sprout up alongside fishing villages. The population of 30,000 is expected to soar to 350,000 by 2011.

That explosion is sparking a clash between environmentalists and developers. Lantau is one of the largest green areas in Hong Kong and is home to various rare species, including the Hong Kong newt and the ayu, a stream-dwelling fish threatened by roadwork. As the north side is developed, activists are looking to preserve the south. There is one single-lane road linking the two sides, and only 800 vehicles have permits to use it. The pivotal battle is a proposal to build a highway linking north and south, making the latter a prime spot for population growth. Under government review now, the project appears likely to be approved.

DIRTY BEACHES. Another flash point is the proposed Disney park on the island's eastern tip that the government wants to make the centerpiece of its project to revive tourism. Disney and local officials have been deep in negotiations since February, with a decision due by November. So far, scant information has been released about the park, but financial details seem to be the main sticking point.

The battle in Lantau is part of a broader environmental struggle. Hong Kong's population is 6.8 million and growing fast. Its air contains 40% more particulates than that of Los Angeles and is getting worse. Once sparkling beaches have also suffered, with 25% of them now graded as poor. All this, the activists say, also scares off investment. ''We've had two years of recession, and Hong Kong doesn't need any more disincentives,'' says Barrie Cook, convenor of the Hong Kong Business Coalition on the Environment.

As Disney waits to put its stamp on Lantau, Buddha is already doing so. The Lantau Giant Buddha, 24 meters high, is the world's largest bronze statue of the Enlightened One. Completed in 1993, it gives thousands of daily tourists who climb the 268 steps to its base a breathtaking view of the island's unspoiled wilderness.

Soon, even more people may be paying their respects. In May, 1998, the government proposed a $130 million cable car from the new airport to the Big Buddha. Transit passengers would have the chance to forgo the airport lounge for a quick spiritual uplift. But planning on the cable-car project has yet to be completed, even though construction was due to begin early this year. Officials are trying to devise a plan that would incorporate commercial development, making the project financially viable. Even without the cable car, up to 13,000 tourists a day are visiting the statue.

So while there is renewed skepticism over when Mickey Mouse will land in Hong Kong, the Big Buddha is already putting its own unique mark on the territory's tourism industry.

By Michael Cheung on Lantau Island





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Mickey Mouse Has Yet to Land...But a Big Buddha Is Already a Draw (int'l edition)

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