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With air passenger traffic between the Chinese Mainland and the Hong Kong Special Administrative Region (HKSAR) in the past five years posting annual average growth rate of 12 percent, this rate is expected to be exceeded, an airline CEO said.

CEO of the Hong Kong-based Dragonair Stanley Hui made the remarks at the Asia Pacific Aviation Management Roundtable Thursday (Oct.31).

"Business travel is increasing as more overseas multi-national companies, as well as those from Hong Kong and Taiwan, take advantage of the businesses opening up in the post-WTO entry environment. Hong Kong and Taiwan traditionally have been among the top investors in the Chinese Mainland.

"The market totaled 5.9 million passengers last year. I believe this rate will be maintained -- and perhaps exceeded -- over each of the next five years, as the market continues to grow and develop," Hui said.

The ongoing economic integration of Hong Kong with the Pearl River Delta and various measures by the HKSAR government to improve the accessibility of the Hong Kong International Airport to the Pearl River Delta will see the further enhancement of Hong Kong as the aviation center in the region, he predicted.

"Numbers should continue to rise and will be boosted by the Olympic Games in Beijing in 2008. While, according to the World Tourism Organization, China will be the number one holiday destination worldwide by 2020 -- attracting 130 million tourists a year," said Hui, despite other aviation hubs being developed in China, mirroring the multi-hub situation in other markets, such as the United States and Europe.

Since the return of Hong Kong to the motherland in July 1997, expanding air services arrangements between Hong Kong and Chinese Mainland cities have been put in place. This has greatly enhanced the development of the Hong Kong/ Chinese Mainland air passenger and cargo market.

Hong Kong is now linked by direct air services to more than 40 cities in the Chinese Mainland, enhancing Hong Kong's gateway status.