The Aviation Industry in China and Hong Kong - Coursework Example

• The Aviation Industry in Hong Kong and China
• Introduction

 Statistics show that China’s economy has been growing at an average rate of 10% for the past 30 years. This growth and expansion has been witnessed in most of its industries (Guo, 2011). However, China’s aviation industry has been somewhat slow as compared to other industries and aviation industries in other countries. Nevertheless, a critical look at the historical developments in this industry shows that there have been some significant developments (Zhang, 2004). In Hong Kong, the aviation industry has developed step by step synonymously with the region’s economy. Developments in this industry have mainly been boosted by the booming trade in the region and the business and leisure travel of people in this region.

Currently, the aviation industry in both Hong Kong and China is still developing. The importance of this industry cannot be over emphasized. Being one of the world’s largest exporters of products, the aviation industry is very important to Hong Kong and China’s economy. The success and growth of this industry also boosts the country’s economy in sectors such as Information Technology (IT), education, health, tourism and hospitality and other socio-economic sectors. In addition to this, the aviation industry is a significant provider of employment opportunities. It is alleged that the slow growth in China’s aviation industry is highly attributed to the country’s communist rule which has seen the military take major control of the running of airports thus limiting the number of civil aviation facilities for privately owned aviation companies (Zhang, 2004). However, due the socio-economic importance of this industry, policymakers in this country has over time tried to develop this industry by instituting reforms geared towards creating a conducive operating environment that will catalyze growth in this industry. Evidently, there are numerous opportunities to seize in Hong Kong and China’s aviation industry, thus the government and private sector need to develop and implement concise, logical, practical and effective plans in order to effectively develop and capitalize on this industry (MacCorkle & Wong, 2009).

This paper seeks to provide an incisive and comprehensive outlook on the aviation industry in Hong Kong and China. Foremost, it will provide a brief background of the aviation industry in Hong Kong and China. Secondly, it will examine the history of this industry specifically in Hong Kong and China in general. Subsequently, this paper will describe the future and tendency of the aviation industry in both Hong Kong and China in general. In addition to this, this paper will look at some of the career options available in this industry. 2. Background of the Aviation Industry 2.

1 Hong Kong Hong Kong is geographically located at the southern coast of China. According to archaeologists human activities are said, to have started about 30,000 years ago. There were no formal records put in place that provide a concise history of Hong Kong until the arrival of the Imperial China and the British Colony. Hong Kong Island is believed to have started out as a fishing, salt production and trade region. There were no major activities besides the mentioned until it later emerged to be of great significance when the Island was made to be a military port and later on to an International financial centre standing at the sixth position in its GDP per capita.

Hong Kong supports 33% of China’s foreign capital flows. Currently, Hong Kong is one of the most populated regions in the world. It is estimated that over seven million people live in this region (Carroll, 2007). Over the years, Hong Kong has emerged to become a highly developed capitalist economy. After the Second World War, this region experienced a rapid trend of industrialization Hong Kong’s economy was mainly a manufacturing centre that was driven by exports. However with time, the region evolved into a service-based economy.

Subsequently, Hong Kong has grown to become a leading economic region flourishing in sectors such as IT, business, tourism and other professional services. It has also grown to become one of the leading international financial centers in the world. Its economy is mainly characterized by free trade and low taxation thus it attracts numerous investors and economic activities (Tsang, 2006; Carroll, 2007). As a result of Hong Kong’s booming economy, numerous economic activities and investors, transport is paramount to the region’s economy.

Although conventional means of transport such as ships, vehicles and trains help to facilitate transportation within and without the region, these means of transport are wanting. Air transport provides a fast, effective, effective and safe source of transportation. Furthermore, given that Hong Kong is one of the world’s leading bases for international trade, air transport is very crucial. Hence, the development of the aviation industry in Hong Kong plays a crucial role in facilitating the growth and expansion of the regions economy (Carroll, 2007; Zhang, 2004).

Hong Kong is one of the major developed administrative cities in China in which the aviation industry has grown and developed in step with the city’s economic growth. It one of the cities that had contributed a great deal and spearheaded and championed the aviation industry in China. Hong Kong made history when its very first plane, Spirit of Sha Tin took off from a privately owned airport on the 18th March 1911 by a Belgian pilot, Charles den Bron. However, during this era, Hong Kong’s aviation was in a somewhat critical stage due to wrangles involving land owned by two billionaires, Ho Kai and Au Tak.

After some time, the government procured the land with the aim of making the land an estate site. The land later became a small Royal Air Force base. In 1936, a small domestic airline company was set up with the passenger terminal completed in 1962 acquiring the name Hong Kong International Airport but still to date, popularly known as Kai Tak Airport. This aviation milestone marked a vital turning point for the aviation industry in Hong Kong.