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2024 August
LFS Development in Northern Metropolis to Create New Focus for Digital Technology and Ecotourism

The Development Bureau has recently proposed to develop the central area of Lau Fau Shan, Tsim Bei Tsui and Pak Nai (collectively referred to as “LFS”) into a digital technology hub, which could forge a partnership with Nanshan District in Shenzhen. LFS also has the potential to develop into an ecotourism destination and eventually become a “multi-stop” tourist hotspot within the Greater Bay Area.
 

Bernadette Linn

Leverage LFS to Create New Opportunities for I&T and Tourism Industries

As set out in the Northern Metropolis Action Agenda, LFS will be an extension of the Hung Shui Kiu/Ha Tsuen New Development Area (HSK/HT NDA). In the view of Bernadette Linn, Secretary for Development, LFS encompasses five planning features. At the industrial level, the HSK/HT NDA and LFS, situated within the High-end Professional Services and Logistics Hub in the western part of the Northern Metropolis, can collaborate with the Qianhai Cooperation Zone and Nanshan District to enhance and deepen high-end economic services. “We plan to develop a digital technology hub in Lau Fau Shan, which will not only complement with the development of HSK/HT but also generate synergy with Qianhai across Deep Bay.”

 

LFS plan has five features

Regarding tourism, Linn said that the natural beauty of Tsim Bei Tsui and Pak Nai could be a draw for tourists. The Government plans to create coastal protection parks to offer the public with outdoor ecological recreation spaces and amenities, ensuring that they are aligned with sustainable development principles.

 

Concerning transportation infrastructure, Linn anticipates that the completion of the planned rail lines and highways will transform LFS into a development area accessible from multiple directions. “For cross-boundary transportation, the proposed Hong Kong-Shenzhen Western Rail Link, which will have a station in Lau Fau Shan, will cross Deep Bay to reach Qianhai via Shenzhen Bay port. As for connections with other parts of Hong Kong, there will be two local rail lines intersecting at Hung Shui Kiu. Route 11, Tuen Mun Bypass and Northern Metropolis Highway will also enhance the road traffic connections between LFS and the New Territories. Among them, Hung Shui Kiu Station on the Tuen Ma Line is planned to open in 2030.

 

“For housing supply, residential development is mainly planned in the coastal area between Tsim Bei Tsui and the digital technology hub, and on the western bank of the Tin Shui Wai River. This is expected to provide 48,000 to 53,000 units.” Linn also said that in the planning of LFS, the authorities have taken the adjacent Tin Shui Wai New Town into consideration, aiming to beautify or rejuvenate the Tin Shui Wai River and to improve the existing and planned blue-green networks. The connection to the HSK/HT NDA will provide the Tin Shui Wai community with more job opportunities, housing choices, and recreational and community amenities.

 

Linkage with Nanshan District for digital technology hub development

Lau Fau Shan will be positioned as a digital technology hub through the relevant development plan. Linn explained that given Nanshan District’s extensive I&T talent pool, the establishment of a digital technology hub in Lau Fau Shan would undoubtedly bolster collaboration among Hong Kong’s digital community, Nanshan District and Qianhai. “The digital technology hub will concentrate on leveraging cutting-edge technology to foster the integration of the new and traditional economies. Concurrently, the authorities will entice young entrepreneurs to establish their businesses there by cultivating an outstanding entrepreneurial environment.”

 

Linn anticipates that the aforementioned development plan will also help develop HSK/HT into a modern service industry hub and boost the technological transformation of financial and other professional services. She added that Cyberport has received an invitation from the HKSAR Government to undertake further research on establishing a digital technology hub in Lau Fau Shan.
 

Abundant tourism resources especially to develop ecotourism

Beyond nurturing the development of digital technology, LFS also has the potential to develop into an ecotourism destination. Linn shared that LFS boasts one of the longest coastlines in the Northern Metropolis, with Pak Nai’s sunset famously dubbed the “mirror of the sky.” Moreover, the oyster farms in Lau Fau Shan stand as a distinctive cultural landmark, drawing numerous visitors.

 

“Preliminary interest surveys from the tourism and hotel industries indicate that Tsim Bei Tsui could develop into a dynamic ecotourism hub. Furthermore, picturesque Pak Nai is home to mangroves and abundant marine life. We propose constructing elegant and distinctive hotels, resorts and eco-lodges in the area to offer nature-centric activities without compromising nature conservation.” She added that the authorities can also consider developing a promenade along the coastal area between Tsim Bei Tsui and Pak Nai.

 

Regarding the Lau Fau Shan seafood market, Linn mentioned that the authorities will consider enhancements to the original site to offer tourists an improved experience. The authorities also plan to set up a performance venue at the waterfront open space in front of the digital technology hub.

 

Linn highlighted that the HKSAR Government formed the Task Force for Collaboration on the Northern Metropolis Development Strategy under the Guangdong-Hong Kong and Hong Kong-Shenzhen cooperation mechanism last year. This task force aims to strengthen liaison and coordination between Hong Kong and the Mainland on matters related to the Northern Metropolis. It collaborates with various departments, including the Civil Engineering and Development Department and the Planning Department, to ensure ongoing dialogue with pertinent Mainland authorities via multiple channels. “We aim to fully leverage the Northern Metropolis to bolster collaborative development with Greater Bay Area cities, particularly Shenzhen, and seek more cooperation opportunities.”
 

 

Ryan Ip

LFS to Become Vital Conduit Connecting Hong Kong and Greater Bay Area

The Development Bureau has announced a plan to advance the development of Lau Fau Shan, Tsim Bei Tsui and Pak Nai (collectively referred to as “LFS”). In this regard, Ryan Ip, Vice President and Co-Head of Public Policy Institute at Our Hong Kong Foundation, expressed hope that the governments of both Shenzhen and Hong Kong will accelerate the construction of cross-border transportation infrastructure. This acceleration would align with the optimisation of customs clearance arrangements, concurrently boosting the appeal of both Lau Fau Shan’s digital technology hub and Shenzhen’s Nanshan District (particularly the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone) to domestic and international businesses and talents.

 

Regarding the overall benefits brought by the LFS plan, Ip anticipates its impact to be evident on two major levels. At the local level, LFS is set to complement with the Hung Shui Kiu New Development Area. Taking job creation as an example, the development focus of Hung Shui Kiu is to boost traditional advantageous industries such as logistics and professional services. In addition, Lau Fau Shan’s digital technology hub will help cultivate new economic industries such as fintech and digital entertainment. These two industrial clusters, while close geographically yet distinct in focus, will offer a wider variety of professional job opportunities, enabling residents of the New Territories to secure jobs across diverse industries within their own region.

 

Adjacency to Nanshan can facilitate flow of capital and talents between both places

At the cross-border level, Ip envisions that LFS will become a vital conduit between Hong Kong and the Mainland cities within the Greater Bay Area. Lau Fau Shan’s digital technology hub is one of the few sci-tech innovation parks in Hong Kong that is directly adjacent to Shenzhen. It is closer to Nanshan District, known as the “Silicon Valley of China,” than the San Tin Technopole. Ip firmly believes that LFS will play a key role in the flow of factors such as talents, capital, goods and data between Shenzhen and Hong Kong. Furthermore, the benefits of LFS will complement with those of the Hong Kong-Shenzhen Western Rail Link (HSWRL). In addition, HSWRL is set to extend connectivity from Hong Kong Island West to the Hung Shui Kiu Rail Link, thus channelling the flow of people from the Mainland cities of the Greater Bay Area directly to the Kau Yi Chau Artificial Islands and the core downtown area of Hong Kong Island.

 

Accelerate cross-border transportation construction, attract leading companies to move in

Ip said that to enable the complementarity of strengths between Hong Kong and Nanshan District, transportation infrastructure development should be completed promptly. This will ensure that services are available before the initial group of companies and residents move in, thereby instilling confidence. At the same time, he expressed hope for the governments of the two places to adopt the “co-location” arrangement for HSWRL to boost interactions between the residents of Shenzhen and Hong Kong.

 

Regarding the challenge of establishing LFS as a new focal point in digital technology, Ip posits that it hinges on two key aspects: attracting investment and cultivating a dynamic industrial ecosystem. “The authorities should consider offering targeted incentives for the fintech and digital entertainment industries. For example, establish a legal framework to enable seamless cross-border data flow, etc., between Hong Kong and the Greater Bay Area, thereby forging a distinctive edge for the LFS sci-tech innovation community to excel in the intense global competition.”

 

Regarding the development of an ecosystem, he suggested that LFS should initially draw leading companies and key R&D institutions in the field of digital technology to establish themselves there. These “anchor organizations” would then attract other service providers and SMEs within the industry chain. This approach would continually generate increased service demand and encourage the emergence of new start-ups. “Community planning and design should be more meticulously detailed to foster a community that is appealing all day long, with a well-thought-out mix of public, private and various housing types in the area.”

 

Develop tranquil community and transform into “multi-stop” tourist destination

Ip concurs that LFS should aim to become a “multi-stop” tourist destination within the Greater Bay Area and develop into a tranquil community along the busy and bustling Shenzhen Bay border to foster a work-life balance. “The essence of planning a ‘multi-stop’ itinerary hinges on the ease of customs clearance and transport links. Hence, the ‘co-location’ arrangement, the completion and launch of HSWRL and the green mass transit system in the area, and the LFS transport link connecting to Hong Kong’s downtown area and airport are crucial elements.”

 

Looking ahead, Ip outlined three key expectations for the future development of LFS: The first is to “make the pie bigger” for the development local sci-tech innovation and start-ups in Hong Kong, creating a greater capacity and improving the structure of related industrial chains. The second is to establish an international eco-tourism destination that adapts to the changing spending patterns of visitors to Hong Kong to introduce more tourism products that meet new needs in the market, and generates additional resources for local ecological preservation and sustainable community development. The third is to develop into a vital conduit for the flow of domestic and foreign talents, capital and other factors into and out of the Greater Bay Area by realizing the first two expectations in conjunction with sound transport infrastructure and customs clearance arrangements.