Hong Kong toasts wines' success

Hong Kong - Wine imports to Hong Kong rose by more than 40% in the first eight months of the year as the city pushed forward in its bid to become Asia's wine hub, financial secretary John Tsang said on Wednesday.

The value of imports reached HK$2.9bn ($374m) between January and August - a 42% increase on the same period last year.

The city now also looks set to overtake London this year in becoming the second-biggest centre for wine auctions, just behind New York, with 10 auctions already held this year.

Hong Kong became the first free wine port among major economies last year when Tsang abolished all wine duties in his budget as the first step towards becoming the wine trade centre of Asia.

Since then wine imports have soared reaching a total of HK$2.3bn ($296m) throughout 2008, 80% higher than the previous year.

Speaking at the opening of the second Hong Kong International Wine and Spirits Fair on Wednesday, Tsang said following the abolishment of wine duty, customs procedures had been streamlined to help facilitate wine imports.

Hong Kong had also signed agreements with France, Spain, Australia, Italy, New Zealand and Hungary, to cooperate over wine trading and to fight counterfeit wines.

"When I eliminated wine duties in the budget last year, our goal was to establish Hong Kong as a wine trading and distribution centre in Asia. So far, so good - but we still have a long way to go," Tsang said.

Tsang said they were now focussing on mainland China where wine consumption is expected to book in the coming decade.

"As a wine trading hub in Asia we need to uncork the potential market on the mainland (China) which is predicted to be an important growing market for wine in the next decade and beyond," Tsang said.

More than 500 exhibitors from more than 30 countries and regions are taking part in the fair this week, double the amount at last year's inaugural event.

At present Hong Kong and China together account for more than 60% of the Asian wine market.

- Dpa