Author: Charlotte Gill

Met with anticipation and reverence each year, the tradition known as ‘Hanami’ has endured across Japan for centuries. The cherry blossom season is celebrated throughout the country, with crowds flocking to witness the celestial beauty of the country’s national symbol during a relatively small window of opportunity. Daily updates feature in newspapers and on television, providing forecasts of when and where the blossoming will occur, as well as which events are taking place to commemorate the event.

From one end of Japan to the other, the cherry blossoms (or ‘sakura’ in Japanese) bloom at slightly different times; commencing in Okinawa in the south from as early as January and with the last petal falling in the northern tip of the country in late April. Mother Nature’s steady rhythm provides a natural schedule and route for travel throughout the country, giving fortunate sightseers the chance to reach each destination just in time to bask in its own individual, scenic splendour.

The spirit of Japan
This annual wonder unites the country and transcends social hierarchy, with millions undertaking domestic travel in order to view Japan’s most iconic Hanami areas. The reasoning behind this level of adoration is multi-faceted, although one only has to see the bloom to understand why the beauty captivates the entire country.

Nonetheless, it’s not just the aesthetic dimension that enthrals the Japanese psyche – the essence of Hanami goes far beyond that, to a deeper, more intrinsic level. “This is just my personal opinion, but I think Japanese people love sakura because the flower’s life is so short and falls soon”, says Yoko Hayano, Senior Consultant for Japan Tourism Marketing Co. “We love not only full-blown blossoms, but also falling cherries. Wabi and sabi are [a] sense of beauty in Japan based on Zen, which admires something that is not perfect, such as [a] cracked teacup and the ‘Thirteenth Night Moon’ (nearly full but not [quite] a full moon). I think Sakura fits that kind of frame of mind.” This is particularly distinctive in the Japanese consciousness, which – from the time of the samurai – has been known for its focus on precision and desire for perfection.

The sakura capture the delicate and finite aspect of existence. The passing of each season marks the life cycle for all creatures, plus all of the beauty and charm that exists throughout each stage. As the almond-like fragrance fills the air every spring, those in the vicinity are reminded of new beginnings and fresh optimism for the coming year. The unique experience brings people together – not only through the seductive magnificence of the sight, but also by the allure of its transcendent spirituality.

Drawing communities together
Though its reputation grows with each passing year, the magic of the cherry blossom season is relatively unknown to those outside of Japan. That said, international tourists are beginning to join the Japanese in revelling at the short-lived marvel, choosing spring as their preferred time of travel. According to the Japan National Tourism Organization (JNTO), April 2014 saw the largest number of foreign visitors arriving from Europe and North America, with 120,433 and 107,388 tourists respectively. These figures rose by over 20 percent from the previous year, indicating that the season’s relative anonymity outside of Japan may now be a thing of the past. “The scenic beauty of cherry blossoms in Japan and our culture [of] enjoying them is Japan’s unique selling point. Almost all tour operators, which sell Japan travel, have tours to Japan in the cherry blossom season. That means cherry blossoms are a must see point for foreign tourists as well”, says Mamoru Kobori, Senior Executive Director at the JNTO. “With the power of word of mouth, cherry blossom season is getting even more popular among incoming tourists.”

Unlike other natural phenomena, the cherry blossom is not only confined to rural areas, with parks in major cities also drawing in the crowds. In Tokyo – a city known for high technology, electric lights and synthetic colour – soft hues of pink and white can be seen dancing in the breeze every year; a welcome respite for those living in the concrete jungle. Workers on their lunch breaks take a short walk to neighbouring parks in order to immerse themselves in the seasonal celebration. Hama-Rikyu Garden and Rikugien Garden are favourites among locals and tourists alike, although there are numerous other destinations to explore; each with pathways lined with vendors offering traditional food and drink.

Picnicking is one of the most popular activities for those revelling under sakura trees, where the consumption of sake, beer and festival specialities is commonplace. Bento boxes – containers for food that comprise individual sections – often hold food shaped like sakura petals or incorporating pink designs. Locals usually mark out their spots early in the morning with a blanket that includes their name and viewing times in order to secure the perfect space. “People from all over Japan, mostly adults, visit to see the cherry blossoms.

It is their culture to celebrate and have a picnic party during the season. Many businesses also have parties during this time”, Yumiko Henry, a tour operator with All Japan Tours, tells Business Destinations. Crowds tend to form at lunchtime, with festivities lasting until late into the night. The atmosphere grows more vibrant with the hour – trees are illuminated as dusk sets in, creating a mystical glow around them.

Touring the country
In Tokyo, the sight of Chidorigafuchi Koen Edo Castle covered in blossom is widely considered to be one of the city’s most breathtaking spectacles. Additionally, just a short ride away on the metro, visitors can find themselves among over 1,000 sakura trees at the dedicated sightseeing attraction, Yasukuni Shrine, or the equally impressive Imperial Palace Tokyo Gardens. The trees on show at the Shinjuku Gyoen gardens are of over a dozen varieties, while the annual showcase at Ueno Park is the city’s busiest.

Tourists can enjoy trips to one particular area, or if they have the extra time and money, they can book an excursion that spans the entire country. Every municipality offers its own cherry blossom tour, along with tips on how to best experience the season based on the famous sites within. However, the cost of undertaking such an expedition is predictably high, and so the number of people able to enjoy an all-encompassing experience is largely restricted. For those who do opt to travel the country during the Hanami season, however, travelling by train is the most popular method of transport, particularly as it allows visitors to enjoy the sight of the thousands of cherry blossom trees that line the country’s train tracks.

Those wishing to experience ancient Japan can visit Kyoto; the city known for its former geisha districts, traditional teahouses and Buddhist temples. The serene atmosphere of the city harks back to days gone by, and is a fascinating celebration of traditional Japanese culture. Then there is the tropical climate of Okinawa, which offers yet another dimension to Japan and its vast range of characters. The Nago Cherry Blossom Festival is the most famed on this island, offering a variety of performances for onlookers to enjoy – from brass bands, to taiko drummers and traditional Eisa dancers. Parades, carnival games and karaoke competitions further add to the festivities, making this a truly exceptional time of year to visit Japan’s southernmost prefecture.

With so much on offer, picking only one location in which to enjoy the sakura can be a difficult task for any traveller. “There are a lot of local cities and regions famous for their beautiful cherry blossoms, and it is a great opportunity for them to attract more tourists”, Kobori tells Business Destinations. “For example, the Hirosaki Park in Hirosaki, Aomori Prefecture, has the oldest Yoshino cherry tree [in the area], which was planted in 1882. The cherry blossom festival, Hirosaki Sakura Matsuri, is held every year when the cherry blossoms are in peak bloom.” In this renowned spot for inbound travellers, visitors can enjoy the sakura from the famous Hirosaki Castle, looking toward the view of the stunning slopes of Mount Iwaki. Tourists also like to rent small boats and leisurely meander through the west moat area under the cascading trees – and for those that miss the peak season, they can still catch the blanket of fallen blossom that covers the moat in a sea of fluffy pink for weeks afterwards.

Nature’s economic boost
Being an integral part of both Japanese history and the country’s cultural calendar, the cherry blossom provides a boost to the economy every spring by means of significantly increasing tourism and consumption. As well as visiting different sites and celebrating with friends, family and colleagues throughout the season, individuals tend to buy sakura-themed products, foods and drinks to mark the occasion. Hotels, restaurants and gift shops benefit from increased revenue, as do travel agents, transport services and tour operators. “The cherry blossom season is one of the busiest seasons for tourism in Japan. Our company’s sales increase by four times compared with any other month”, says Henry. As the festival approaches, competition within the industry becomes increasingly fierce, with some businesses struggling against the rising prices that plague the industry every season. “Travel agencies compete with each other every year to reserve hotels for their customers, as hotels raise their booking prices because of the busy season.

Hotels make more profit than travel agencies in some respect, because hotels may raise their prices, but we cannot suddenly raise the tour prices once advertised”, Henry continues.

Kakunodate is an example of a local economy that relies heavily on the cherry blossom season for revenue each year. While the Great East Japan Earthquake in 2011 caused a large decline in the number of tourists arriving in the town, such numbers now continue to grow each year and have almost returned to pre-earthquake levels, reaching 1.4 million in 2013. According to the Akita Economic Research Institute, the economic impact of the influx of visitors during the Kakunodate cherry blossom festival in 2013 totalled JPY 6.9bn ($8.9bn) in consumer spending, boosting the economy of the Akita Prefecture as a whole by JPY 11.1bn ($14.3bn). “We speculate [that] businesses in the service industry, including eating and drinking establishments, Japanese inns, hotels, transportation and communication services, are the main beneficiaries”, says Kazuhito Hosaka, Senior Associate Director of the International Tourism Section for the Akita Prefecture Government.

In Kakunodate, “visitors stroll down the streets of the samurai residences and alongside the bank of the Hinokinai River. The contrast between the black walls of the samurai houses and the overhanging cherry blossoms is a remarkable sight to see”, Hosaka tells Business Destinations. “The approximately 2km corridor of cherry blossoms along the Hinokinai River also makes for a spectacular scene. Many other notable tourist destinations, such as Lake Tazawa and the Nyuto hot spring village are located in the surrounding area. There are also many spots to view seasonal flowers like the katakuri trout lily and mizubasho, so visitors can enjoy a wide variety of sightseeing.”

Profiting from Hanami
Companies, both domestic and international, are able to take advantage of the special place that the cherry blossom season holds in the hearts and minds of the population each year. Cherry blossom motifs and pink-themed marketing dominate the scene, from a commuter’s transport route on the Tokyo Metro to the products that the population buys every day. During the season, McDonaldses across Japan feature a cherry blossom-themed menu, consisting of a pink-bunned burger and McFizz Sakura Cherry and McFloat Sakura Cherry drinks. “In general, Japanese love to celebrate with seasonal themes. Spring is an especially festive time after the cold winter, and Sakura is an icon of spring”, a McDonalds representative in Japan told Business Destinations.

Starbucks sells a selection of pink cakes and cherry blossom-decorated beverage holders, as well as offering the Sakura Frappuccino on its seasonal menu. Häagen-Dazs also went pink for its 30th anniversary year, when it released a sakura-flavoured ice cream, while the Sakura Matcha Kit-Kat bar is on shelves in Japan all year round. Aside from the food and drink industry, various other companies have also created cherry blossom products for the Japanese market, including a range of cosmetic creams by Garnier. Add these to the seemingly endless list of other Japanese brands and products embracing the sakura theme year after year, and it is evident that the festival holds a place in the country’s cultural core that extends far beyond just sightseeing.

International icebreaker
Being one the world’s largest economies, international companies have ample dealings with Japanese counterparts. The country’s business etiquette is held in high honour and is quite different from that of the Western world: for example, if you arrive to a meeting less than 15 minutes early, you are considered as being late. Exchanging business cards also has its own ceremony, with an intent look of interest required when being handed the prized object – putting it away without reading is considered a personal slight. And so, for those planning to communicate with Japanese customers or even visit the country itself, the language barrier and the need to negotiate through such customs can be an intimidating task.

The sakura season, however, provides the perfect icebreaker when adopting new business ties. So sacred is the event that genuine interest from a foreigner is very warmly received, making spring the perfect time for corporate travellers wishing to forge new business relations to visit Japan – not only because this is widely regarded as the best time to see the country in its natural splendour, but also because the sakura and the sensory explosion that they provide offer a unique opportunity for relationship building with clients and partners that only comes around once a year.

Growth spurt
Each year during the cherry blossom season, Japan’s international tourism increases exponentially. The country is not yet a traditional tourist destination, but the season nonetheless provides something unique and time-limited – both of which are tantalising for travellers. In addition to a one-off opportunity to witness Japan when it is awash with beauty and festivity, there are countless other highlights that the country has to offer. Such sights range from architecture, stylised gardens and art galleries, each comprising a design that is distinctively Japanese. There is an array of lively cities, and the country is also home to the greatest number of Michelin-rated restaurants in the world – sufficient to whet the appetite of any visitor.

Newer art forms, such as manga, anime, RPG games and the national icon that is Hello Kitty, all attract cult followings of their own. This juxtaposition between modern trends and customary artistries such as origami, calligraphy, kabuki theatre and bonsai provides a unique plethora of old and new attractions, which can appeal to a variety of tastes and interests. Additionally, the commercial opportunities in Japan are as varied as they are vast for those visiting on business. Traditional aspects of the country’s history, together with its ultra-modern tech scene, highlights the fascinating, rich and complex culture of Japan, making it a spectacular place to travel – during its favourite season, or any other time of year.

While the list of negative things that the British Empire did during its near-200-year rule in India is seemingly endless, there is at least one lasting legacy that has been enthusiastically embraced by Indians. The railways that stretch across the vast territory are widely regarded as one of the few positives to have emerged from Britain’s rule in India, connecting up far flung parts of the country and boosting trade across the region. They have been used extensively ever since, forming the backbone of India’s transport network. However, increasingly huge demand teamed with years of neglect has meant that many of the creaking services are no longer up to the standard needed to transport India’s 1.2 billion citizens.

The various improvements to be made to the network are likely to be substantial

At the beginning of this year however, the Indian Government, led by reformist Prime Minister Narendra Modi, announced that it would be undertaking a five-year investment in the railways. The $137bn scheme is aimed at dramatically improving the reliability, comfort and speed of services across the length and breadth of the country.

Jewel in the crown
The rickety old trains look like they need a massive upgrade, but they have nonetheless successfully served millions of users every year at the same time as providing a far more comfortable service than most business travellers would get in any other parts of the world. While not exactly gourmet eating, food is provided for travellers, as well as an unremitting supply of hot, sweet tea. Comfortable and spacious seats are also far more common than the hard-backed plastic ones that many commuters in the West are forced to sit on. For longer distances, there are also the world-famous sleeper carriages that many Western countries did away with during cost-cutting efforts decades ago.

With India serving as the ‘jewel in the crown’ of the British Empire, heavy investment in improving the infrastructure of the region was undertaken during the mid-1800s. In order to quickly gain access to all of India’s rich resources and ship them back to Britain, an extensive network of rail lines was constructed throughout the region: the first was the Great Indian Peninsula Railway, which opened in 1853 and ran between Bombay and Thane. A few years later, the entire network was dramatically expanded under the supervision of English engineer Robert Maitland Bereton. Bereton linked the route between Bombay and Thane with the East Indian Railway’s Allahabad-to-Jabalpur line in 1867, which expanded the network to around 4,000 miles in total, thus enabling easy access between the western port city of Bombay and the eastern coastal city and British Raj’s capital, Calcutta.

Officially opened in 1870, the route is famous for helping to inspire Jules Verne’s classic book Around the World in Eighty Days. It was one of the earliest examples of a train route that would enable people to travel from one remote region to another, and greatly accelerated the British desire to expand the network across the rest of the country.

Historic investments
Within a few years, British companies had invested nearly £100m in the network. These massive upgrades saw the system connecting all three major port cities – Bombay on the west coast, Calcutta on the east, and the southeastern city of Madras (now known as Chennai) – and stretching more than 9,000 miles in total.

The government had taken control of most of the network by the turn of the century, and by 1905 it had become a profitable enterprise. In the aftermath of the First World War – when the rail links were used predominantly to ship resources to the British Army troops outside of the country – a considerable effort was made to expand the network and repair existing lines. For the subsequent 10 years, it rapidly grew to 41,000 miles in length, catering for around 620 million passengers each year.

By the time that India gained independence from British rule in 1947, the government had control of the entire network, and in 1951 it created the state-owned Indian Railways company. However, the Second World War had done considerable damage to the grid, and despite it being in serious need of an upgrade ever since, there has been little in the way of investment over the last 70 years – certainly not at the levels seen in other developing nations.

India’s notoriously bureaucratic system of government and indecision over infrastructure projects has resulted in a network that currently stretches across the entirety of the country using out-of-date technology and unreliable trains, making it incapable of carrying the 23 million passengers who require it every day. With over 1.3 million employees and 8.4 billion journeys being made every year, Indian Railways has been in serious need of an upgrade on a scale that has never been seen in its 161-year history.

However, with business-friendly Prime Minister Narendra Modi sweeping to power last year, hopes were raised that a massive investment in updating the network could be just around the corner. Those dreams became a reality earlier this year, when a vast amount of money was set aside for a five-year plan that would bring India’s rail network in line with other modern rivals.

Announcing the new rail budget to India’s parliament in February, Railways Minister Suresh Prabhu said that it would restore the backbone of the country after years of neglect: “We must restore the strength of Bhartiya (India) Rail as the backbone of our country’s transportation infrastructure. Unfortunately, railway facilities have not improved very substantially over the past few decades. A fundamental reason for this is the chronic underinvestment in railways, which has led to congestion and over-utilisation. As a consequence, capacity augmentation suffers, safety is challenged and the quality of service delivery declines, leading to poor morale, reduced efficiency, sub-optimal freight and passenger traffic, and fewer financial resources. This again feeds the vicious cycle of under-investment.”

Overdue improvements
The various improvements to be made to the network are likely to be substantial. While a long-overdue digital platform for purchasing tickets has now finally been launched, other simplifications are necessary for the country’s overly complicated existing ticketing » system. At the same time, better connectivity on commuter trains would be greatly appreciated by India’s many businesspeople that have to travel long distances for work, and air conditioning as standard is also likely to be high on many people’s lists of improvements. Arguably the area of utmost importance to travellers, however, is improving the cleanliness of the trains – the terrifyingly squalid condition of many on-board bathrooms has long been an issue for the rail industry, and so the plans over the coming years also include the introduction of environmentally friendly bio-toilets.

The most important investment to the network itself, however, is in ensuring the trains are running reliably and on time. Faster trains would evidently be welcomed in such a vast country, but merely ensuring that services are both on time and cancellations are kept to a minimum will greatly improve conditions on the whole. At the same time, security will also need to be a key focus of the improvements – the five-year plan will focus on a number of areas, but in particular that of safety and security, said Prabhu. “Over the next five years, the railways have to undergo a transformation. We have to make Indian Railways a benchmark organisation in safety, security and infrastructure.”

The economic benefits of improving the rail network could be vast, believes Prabhu, and the continued period of underinvestment by successive governments must be terminated. “This cycle must be put to an end. Once it [is], the gains to the economy will be immense: better services, improved connectivity for all citizens including the poorer segments of our society, lower costs and improved competitiveness. Investment in the railways will have a large multiplier effect on the rest of the economy and will create more jobs in the economy for the poor. Investment in Indian Railways is also necessary for environmental sustainability and [the] wellbeing of future generations.”

Paying for all these improvements will prove costly, but fortunately for India’s rail travellers, it is the government that will foot the bill. The government would not be raising ticket prices in order to pay for the improvements, said Prabhu: “There will be no hike in railway passenger fares. We will focus on improving passenger amenities, including cleanliness.”

Luxury routes
India’s rail network was once the envy of the world and a source of great pride for its citizens. However, a lack of attention over the last half century has meant that other countries have since surpassed it in terms of both technology and reliability. Restoring this once-great network could be the catalyst that catapults India toward finally realising its economic potential.

However, while the routes that serve ordinary Indians have little regard for luxury, there are many tourist services that offer an extremely lavish experience. Serving many of the country’s busiest and most eye-catching destinations, these heritage routes offer travellers a method of travel that is more comfortable and scenic than most other forms of transport. Luxury sleeper cabins and gourmet dining can be enjoyed as tourists are shuttled between some of India’s most popular regions. Over the pages of this report, Business Destinations has gathered together some of the most exclusive luxury routes in the country.

Steep, winding alleyways lined with trendy boutiques wrap themselves around a phalanx of towering skyscrapers. Swathes of light bounce off the modern glass facades. This, the Central District on Hong Kong Island, has been the heartbeat of the city since the colonial age – the political and economic core that tells of a tumultuous, war-ridden history, and the site of rapid commercial development that characterised the second half of the 20th century.

This home of global financial headquarters and government buildings, however, has begun to reach bursting point. Hong Kong has started to become a victim of the very compactness that helped the city’s reputation to soar into the stratosphere in the first place: while its small size once worked in its favour by allowing for efficient business, it now means that CBD growth has come to a near-halt, in turn driving rent prices sky-high.

While New York, London and other major metropolises have been growing ever bigger, Hong Kong’s business district has kept the same commercial space for 10 years – approximately 23 million sq ft, according to CBRE Group. And while the world’s other megacities have been erecting wider buildings to supersede the very high, narrow skyscrapers constructed in former times, this hasn’t been a possibility in Hong Kong: buyers in Central tend to own certain floors rather than entire blocks, and so, with such limited supply and redevelopment, it’s little wonder that Central has become one of the priciest commercial spots on the planet. The most expensive offices in the area now cost around four times what they used to.

Across the harbour
With all this in mind, it is perhaps unsurprising that Central-based businesses have started to set their sights elsewhere. Among the new, up-and-coming districts catching the spill-over is Kowloon, a peninsula across the waters of Hong Kong Island’s Victoria Harbour. It has already managed to lure in Deutsche Bank, Morgan Stanley and Credit Suisse; corporations formerly found in the traditional business district. However, as a patch of little more than reclaimed scrubland, Kowloon’s lack of ambiance has so far held others back.

But a multibillion-dollar new development is set to change that. Hailed as the largest project of its kind in Hong Kong’s history, the West Kowloon Cultural District is expected to revitalise the area and strengthen its appeal to businesses already struggling with the drawbacks of being positioned in Central. The $2.4bn development is also set to turn the currently bland region into a hub for art and culture.

Until recently, both of those areas had taken a backseat in Hong Kong due to the severely limited space on the island – the citywide consensus was that, if there wasn’t sufficient space for commerce, there certainly wasn’t enough for culture venues. But as businesses and developers have been forced to make creative use of space both within and beyond the city’s original core, arts, culture and heritage sites have started to crop up. They have since begun to thrive alongside commerce, and the city has unexpectedly seen two previously unaffiliated worlds beginning to intertwine.

CBDs of the future
Located north of Hong Kong Island and south of the New Territories, the Kowloon peninsula started to develop as an alternative commercial spot in the 20th century. The arrival of new infrastructure – including the Kai Tak Airport, which served as Hong Kong’s international flight hub until 1998 – significantly increased the region’s standing, but it wasn’t until fairly recently that the district started to take off properly. In 2001, the eastern side benefited from considerable changes that saw the area – an abandoned former industrial base – rezoned for business use. The new ruling paved the way for commercial developments, and in 2010 a citywide redevelopment programme helped to realise those opportunities. As a result, Kowloon is now predicted to become Hong Kong’s CBD2, according to CBRE.

Top-tier commercial space in Kowloon East has doubled in the space of seven years, with the area’s affordability drawing in the back-end offices of banks, SMEs and creative industries. Rent averages at HKD 30 per square foot per month, compared with HKD 100 in Central, so – as the EKEO, an organisation promoting developments in the neighbourhood, points out – it is little wonder the area is now home to nearly 30,000 companies. Citibank is one of several companies to have recently bought a block in Kowloon East, which will house its regional headquarters. Around 2.5 million sq ft of additional office space is planned for construction in the region by 2018.

But it’s to the west of the Kowloon peninsula that the biggest changes are being seen. Home to the International Commerce Centre (ICC) – a 118-story skyscraper, completed in 2010 – West Kowloon is also seeing a surge in businesses relocating from the main island. The ICC, now Hong Kong’s tallest building, forms an inviting alternative to the sardine-like structures that fill the hilly streets of Central, and it’s to the area surrounding this glass giant that firms such as Deutsche Bank have flocked. With draws including the world’s highest bar, the Ritz-Carlton Hotel and Michelin-starred eateries within the ICC’s walls, that’s perhaps no surprise.

Five housing developments have now sprung up in West Kowloon, which are proving especially popular with investors from mainland China, according to Simon Smith, Head of Research at Savills: “[Mainlanders have] been significant buyers in some of these buildings, and they’ve not been put off by the prices”, he told the Financial Times. And though more expensive than Kowloon East, the prices are still relatively wallet-friendly compared with Central. A three-bed flat in The Arch or The Cullinan, two of West Kowloon’s new housing areas, cost around HKD 30m ($3.87m), according to the CBRE – the equivalent at The Peak, a prime spot overlooking the harbour in Hong Kong’s Central district, would cost up to HKD 90m ($11.61m).

But according to Jonas Kan, a property analyst at Daiwa Capital Markets, an even bigger driver for the shift to Kowloon has been a change in mentality. The area has seen a decline in the snobbery that once held up the original business district as a beacon for big firms to aspire to – the symbol of having ‘made it’. “There used to be a psychological barrier, when everything used to be about Central”, he told the Wall Street Journal. “The barrier has been broken.”

Increasingly connected
That barrier is likely to be further destroyed as a number of key developments get underway, gradually overcoming the issues still holding some back from relocating to Kowloon – first and foremost, a lack of connectivity and a glaringly apparent shortage of green, open space. The first of those is being addressed with rail links scheduled to open over the next few years, which could substantially reduce the current 30-minute trip from Kowloon East to Central. West Kowloon, meanwhile, has been chosen as the terminus for a new express railway that will halve the current journey time to Guangzhou on the mainland. The new 25-acre train station, which is costing a massive $8.5bn and has been under construction since 2011, is being hailed as the biggest underground high-speed station in the world.

The station’s striking contemporary design is likely to further revitalise the West peninsula while helping to distinguish the building from the more traditional, sky-scraping architecture of Central. It’s also set to drive major job creation in the area, alongside growth in tourism, retail and other sectors. An estimated 99,000 passengers are expected to walk through its doors each day by 2016 – an unprecedented influx of people that will be drawn to the Kowloon district. By improving connectivity, it’s likely to further establish the region as a viable choice for businesses, while also boosting its reputation on the mainland.

The high-speed rail station will further drive the potential shift away from Central and into Kowloon, by connecting underground to the West Kowloon Cultural District (WKCD) and leading directly onto Hong Kong’s new cultural hub. The HKD 21.6bn ($2.8bn) project is set to create green space and a vibrant ambiance in an area that is currently extremely short on both. West Kowloon lacks the alluring concoction of traditional Hong Kong culture and high-end business that characterises Central – so far it’s focused largely on the latter, but at the expense of authenticity, with private pools, luxury hotels and a growing number of designer stores creating a sense of man-made, purpose-built artifice while the ‘real’ Hong Kong gets left behind.

Hub for culture
Through the means of arts and heritage, however, the 40-hectare WKCD – funded by the Hong Kong Special Administrative Region (HKSAR) government – is likely to change that. Its latest development plans are expected to further strengthen West Kowloon’s appeal to businesses, while simultaneously making way for cultural space that’s always been so lacking in the city. These plans, designed by famed contemporary architects Foster + Partners, will see a 2km harbour-front promenade, park and 17 arts venues spring up. First proposed 15 years ago, the project is now finally under construction, with venues opening gradually over the next few years.

Michael Lynch, Chief Executive of the WKCD Authority (and former chief executive of both London’s Southbank Centre and the Sydney Opera House) hopes that the proposals will inspire creativity and artistic expression in the city. He says, “Our vision is to provide a new cultural quarter for Hong Kong – encompassing a collection of world-class venues for the visual and performing arts… spilling beyond the buildings and out into the open spaces.”

The park will present outdoor exhibitions, performances, pop-up shops and eateries in the run- up to the opening, forming what organisers are calling a “test-bed for creative programming”. Within it, attractions such as the Arts Pavilion (opening in 2016) and the Freespace outdoor stage (set to be launched in 2017) will sit beside hotel, office and residential developments. West Kowloon will also see the opening of the Xiqu centre – a space for traditional Cantonese theatre and the area’s first major venue – in 2017. Contemporary art museum M+ will follow in 2018. At 62,000sq m., M+ is set to be on a similar scale to New York’s Museum of Modern Art, and has already amassed a collection of 4,000 works.

All of this is expected to have far-reaching effects, according to Lynch: “We hope we can create a place that people can be proud of; a new landmark that has an impact throughout Hong Kong, into Asia and beyond.” And as Kowloon places itself at the heart of Hong Kong’s wider cultural scene, so the decentralisation of Hong Kong Island in preference for the peninsula will become increasingly likely.

Growing arts scene
The cultural scene has been developing rapidly over recent years, as Pearl Lam, director of several renowned art galleries in Hong Kong, Shanghai and Singapore, recognises. “The cultural scene is booming across the whole city”, she told Business Destinations. “I have watched the city gradually transform into a contemporary art hub attracting both an international and local audience to experience Asian art.” Lam opened her Hong Kong gallery in 2012, but just seven years previously she had left the area due to lack of local interest.

While Hong Kong’s status as a free port, combined with its lack of sales tax on art, has long held the city out to art dealers, it’s only recently that it has caught the attention of a wider audience. Hong Kong now has the third biggest share of the global art market, its reputation being cemented further by the number of new galleries cropping up across the city. In revitalising West Kowloon and drawing in businesses that are seeking more than a bland office block, WKCD is becoming part of a wider trend in Hong Kong – commerce and creativity are co-joining in a way that they never have before, seeing old spaces being utilised and re-imagined.

Fuelling gentrification
This re-imagining of space isn’t unique to Kowloon – it’s also happening in Central itself. More than 15 listed, disused buildings in the downtown business district have recently been revived and turned into new cultural venues. In April, the grade-three listed Police Married Quarters, located in Central and left neglected for years, opened as PMQ; a creative hub that will nurture local designers. As in West Kowloon, Hong Kong Island is gradually weaving heritage and culture into its commercial streets – as such, art is becoming a way of making use of otherwise wasted space in an environment where it is scarce.

This is something that is also being seen elsewhere. In the Wan Chai district – now a busy commercial area attracting SMEs and exhibition centres – a former school has been creatively re-imagined and turned into The Principal, a Michelin-starred food hub. Derelict buildings across Hong Kong have been revived into art galleries, again driven by a need to make use of desperately limited space. As that happens, and as the need to find alternative space becomes ever more apparent, the city is seeing rapid gentrification of previously dilapidated areas. Kennedy Town on Hong Kong Island, once the province of Chinese workers tending to slaughterhouses and warehouses, has started to see the rise of luxury apartments, chic French bistros and an influx of expats. Neglected residential sites in neighbourhoods such as Sham Shui Po are also set to be redeveloped, and rough-around-the-edges areas are becoming the go-to alternatives for businesspeople that the more traditionally upmarket Central simply cannot accommodate.

Making use of those areas is essential in a city famed for being so compact. Bernard Chan, member of the Executive Council, recognised this: “Our population and physical area are likely to grow along with the economy”, he wrote in an article for South China Morning Post. “Our definition of ‘downtown’ will expand, and something will have to give.” As such, West Kowloon – where a Balenciaga now sits beside a recently closed-down bookstore – is a perfect emblem of the wider changes happening in Hong Kong. As traditional districts on the island begin to overflow, businesses will inevitably spill into new regions, and with that increased space comes greater scope for creativity, arts and heritage sites that grow in perfect congruency with the city’s commerce.

As this decentralisation happens, the packed-together structure of Hong Kong that made flitting from meeting to meeting so easy is slowly being eroded. But that’s a sacrifice that the city must make if it is to sustain its reputation as a global centre of business and move into the 21st century, in line with other major cities.

It’s also a sacrifice that’s bringing with it new opportunities. As Hong Kong grows into a hub for culture as well as commerce, fine art as well as finance, it seems natural that its heart should shift to the peninsula where that new cultural scene has its core – and that Hong Kong Island, which has held sway for more than a century, should give way to new CBDs where growth and diversification can finally prevail.