THE FABULOUS 5: TOUCHING DOWN AT AMERICA’S TOP CARGO AIRPORTS

April 12th, 2019 Peter Frerichs Leave a comment

The U.S. air cargo market has been increasing at a steady clip. The economy has officially rebounded and in 2017 alone roughly 61.5 million tons of freight moved via airlines worldwide. Cargo airlines enjoyed healthy revenues of $95.9 billion, and there are a handful of American cargo airports that surged into 2019 as a result.

Memphis International Airport (MEM)

The leader of the pack, MEM is No. 1 in the U.S. and No. 2 globally. Hong Kong is the worldwide leader with Shanghai-Pudong following at No. 3.

At MEM, FedEx is a massive player and responsible in a large degree for Memphis’ substantial activity. The global delivery company accounts for roughly 99 percent of cargo that passes through Memphis every day. In fact, MEM registers 450-plus arrivals and departures daily.

FedEx maintains 40.9 million square feet of space (under lease) at MEM, and the sheer volume that FedEx moves allows the airport to maintain competitively low landing fees. This is the goal of every airport and MEM is gaining on the big boys globally as a result.

Ted Stevens Anchorage International Airport (TSAIA)

Three Air Cargo Excellence (ACE) Awards went to TSAIA, the No. 2 in U.S. cargo volume. Alaska is a bit of an outlier, figuratively and literally, but unbeknownst to the larger public, most big cargo airlines stop off at Ted Stevens to refuel as it is nearly halfway between Beijing and New York. There are planes that can fly non-stop from China to anywhere in the U.S., but they typically possess less cargo. If one prioritizes cargo over time, then greater cargo space planes equate to increased revenues as more refueling is necessary.

Ted Stevens’ spokespeople are famous for pointing out that the airport is less than 10 hours from 90 percent of the modern, industrialized world. Growth rates for air freight have skyrocketed over the past handful of years. In 2014, airlines transported an impressive 40 million metric tons of goods. However, that was less than 1 percent of world trade (measured by volume). Today, air freight is more than double that of shipping.

Ted Stevens comes in fourth in the world, and their ground handlers can nimbly turn a cargo plane around in less than two hours. The airport is named is after the late U.S. Senator Ted Stevens (R-Alaska), a master tactician who was able to funnel a tremendous amount of federal funding to Anchorage, which aided in the construction and maintenance of runways and the city at large. Roughly one in every 10 jobs in Anchorage is directly or indirectly (third-party providers, etc.) related to the airport.

Louisville International Airport

As with MEM and FedEx, when one thinks of Louisville International Airport, UPS springs to mind. United Parcel Service counts on a 5.2 million-square-foot processing facility that can sort a whopping 416,000-plus packages an hour. UPS maintains 12 sorting hubs and Louisville is by far the largest. With a 7.2-mile perimeter, the size of the runways dwarfs the passenger terminal.

But why Louisville of all places, you ask? First, the city has good weather and is only 2.5 hours from approximately 75 percent of the U.S. population. Zappos has set up shop nearby and Sprint and Nikon also use UPS for nearly all their shipping.

UPS’s Worldport is the largest, automated package handling facility worldwide. An impressive 300 flights arrive and depart daily, with December being the peak holiday shipping season.

O’Hare International Airport (Chicago)

On the heels of completing the second phase of a brand new cargo facility, don’t be surprised to see O’Hare jump a couple spots next year. In 2017, their cargo volumes were up by 15 percent, which makes yet another record year for freight arrivals and departures.

Financed by a $160 million investment from Aeroterm and roughly $62 million from the airport, the Phase II building measures a whopping 240,000 square feet. Once all phases are complete, 800,000 square feet will be available, which means up to 15 widebody aircraft will have the ability to unload at any time at O’Hare.

Trade with Asian countries is growing annually, with China being the top destination. Unsurprisingly, DHL also counts on a strong presence at O’Hare, namely a 54,000-square-foot gateway that cost $10 million to develop.

Miami International Airport (MIA)

MIA got off to a hot start last year, registering 4 percent growth in freight tonnage over the first three months. In fact, by the end of the year, MIA witnessed an increase of cargo volumes by 60,000 tons thanks to three new carriers. But perhaps most exciting for the fifth largest cargo airport in the States is their new partnership with Amazon Air.

A twice-daily freighter service was announced by Amazon Air last October, which made perfect sense being that the largest retailer on the planet already occupies four warehouses in Miami-Dade County alone.

MIA was up 17.25 percent in domestic cargo tonnage and 1.78 percent in international cargo tonnage in 2018. Demand from Latin America e-commerce is expected to be red hot, which should equate to potential record profits for MIA.

While the major U.S. airport players in air cargo are clear, nipping at their heels are the likes of Indianapolis, Los Angeles, Cincinnati/Northern Kentucky and John F. Kennedy (New York). The economy is humming, which means all these cargo hotspots are well into a busy 2019. Happy shipping!

Archives, Departments, Executive Getaways, Global Trade Daily

LOUNGES ARE IN THE CARDS: BEST AIRPORT BUSINESS CLUBS (AND ASSOCIATED CREDIT CARDS)

April 12th, 2019 Peter Frerichs Leave a comment

Business takes us to people and places that were previously unimaginable. Perhaps some were imaginable–trips to London, New York, Tokyo or Berlin. But Dubai, Sydney, Kuala Lumper or Lima? As a business traveler, the world is your client and airports do a fabulous job not only facilitating your comings and goings, but also offering premier options to relax, eat, work or a combination of all three.

Airport business lounges have rapidly evolved over the years. Initially offering simply a seat with an internet connection and perhaps a glass of wine and shrimp cocktail, lounges are now mini-hotels, replete with executive chefs, showers and buffets with more options than you could possibly desire and unparalleled ambiance.

Gaining access to an airport lounge can come in a variety of ways. If you are traveling in business or first class, you will typically receive free access to most lounges. If you’re in economy, you will likely need to pay. Either way, the plethora of lounges these days is extensive, but we’re going to dive into some of the best.

In no particular order, first up is the Plaza Premium Lounge, Terminal 2, at Rio de Janeiro Galeao International Airport. At a very affordable $32.72 per passenger, this lounge ranked an impressive 5 out of 5 from Netflights.com. Private relaxation rooms, showers, an ambiance that is nearly spa-esque but professional enough to get some work done, the Plaza Premium Lounge is a must access when flying through Rio. Made-to-order sandwiches get rave reviews online, as do the chocolate smoothies.

The 1903 Lounge, Terminal 3 at Manchester Airport is an “adults only” lounge, so if you’re towing along your 5-year-old to experience Manchester while you’re at work, you’ll need to pass on this option. At a buffet offering fit for none other than a king, you can expect nothing short of spectacular from the English with 1833 vintage reserve cheddar and real dairy ice cream from Cheshire Farm. The drinks menu will make you dizzy, but in a good way.

Another lounge that will keep the head spinning is Lounge @ B, Terminal 3 at Dubai International Airport. For $38.67 a pop, you can plop into a massage chair that rivals a real masseuse and also putting you in a relaxed mood are an array of pastries, Champagne and amazing customer service that rivals any lounge’s on the planet.

Ever had a craving for lamb pie? Or perhaps rice pudding? According to several users on Yelp, the Strata Lounge, International Terminal at Auckland Airport boasts perhaps the best lamb pies and rice pudding on the planet! This is a business lounge, through and through, but the food is where it truly stands out. Sleek, sliding glass doors and a range of New Zealand wine and beers will keep you satiated, but perhaps not in tip-top shape to work on that investor presentation.

While the lounges themselves are fabulous, a post on the best airport business lounges would need be complete without a mention to the credit cards that can gain you access to said lounges.

The Platinum Card from American Express

Before jumping into the card offers here, we should touch on Centurion Lounges, which can be found worldwide in the most premier, often-traveled airports, including San Francisco, Sydney, Sao Paulo, Houston, Miami, New York, Mumbai, Mexico City, Las Vegas, Dallas and Buenos Aires. Each location features a healthy square footage and an even healthier offerings of food, drink and amenities. In Dallas, for example, spa treatments await as does a menu designed by Dean Fearing, a James Beard Award-winning chef. Need a shower after a long flight? Hit San Francisco, shower to your heart’s content, and then ramble on over to their wine tasting station.

We could keep detailing city by city but the point here is the Platinum Card from American Express gives you access to Centurion Lounges. This card will also gain you access into Delta Sky Clubs if you’re flying that airline.

Citi/AAdvantage Executive World Elite Mastercard

A bit of a mouthful, this advantageous card from Mastercard brings with it Admirals Club membership coupled with access for immediate family members or two guests traveling with you. Admirals Club is a network of lounges operated by American Airlines. Originally started in 1936 to provide perks to loyal airline passengers, members of the club were referred to as admirals and greeted as such.

While you’ll likely be traveling with other adults while on business, having this membership is an added perk when you find yourself on vacation with the kiddies. The lounge has a great space for kids to unwind and play, which is music to any parent’s ears.

Delta Reserve Credit Card from American Express

This card is Delta-specific as the name suggests. You will receive access when flying Delta to its Sky Clubs, but a knock on this card is it previously allowed for complimentary guest access, which is now been rescinded.

As a card holder, you will also receive a free checked bag, 20 percent inflight savings as well as priority boarding. With the business version of this card, you are privy to some interesting perks that make that annual fee much more palatable.

Business lounges are in most major airports and if taken advantage of intelligently, they will allow the savvy traveler to rest up, eat up and even get some work done in between massages. Happy traveling and see you at the lounge!

Archives, Departments, Executive Getaways, Global Trade Daily

EXECUTIVE GETAWAYS: CHICAGO

February 5th, 2019 Peter Frerichs Leave a comment

The forgotten gem of the Midwest. For those who have been to or are from Chicago, the Windy City holds a special place in their hearts. Chicagoans take great offense at “fly-over city” being applied to the Second City, which is smack-dab in the heart of America. If you are going there for business, do not fret: The heartland metropolis has a wealth to offer that will leave you wanting more, guaranteed.

Where do most executive getaway articles begin? You guessed it, where to lay your executive head. The Chicago Loop (coupled with the rest of downtown) is the second largest business district in the country. Only Midtown Manhattan tops it in terms of scale. Major corporations such as Chase Bank, Exelon, Aon Corp., United Airlines, Blue Cross and Blue Shield Association and Sidley Austin and Morton Salt are all headquartered in the Loop. So where will you likely be laying your head? The Loop.

By far one of the best business hotels in the Loop is the Wyndham Grand Chicago Riverfront. Located on the edge of Chicago’s Theatre District, the Wyndham features 357 rooms with all the amenities you could ask for at very reasonable rates despite its first-class status. Another solid choice in the Loop is the Fairmont Chicago, Millennium Park. Nearly double the size of the Wyndham in terms of rooms (687), this David Rockwell-designed hotel is a stunner aesthetically. If you want to splurge a bit, check out the Fairmont Gold Concierge Level, which includes a private lounge and reception area with sweeping views of Lake Michigan.

If a direct location in the Loop is not a priority and you want to make this business trip one to never forget, the Waldorf Astoria Chicago is your only destination. Located in the swanky Gold Coast neighborhood, and a short distance from the Loop and downtown, the hotel features a top-notch restaurant (Balsan), an indoor lap pool, a world-renowned spa and sleek rooms. There is a plethora of conference space and from an amenities perspective, there is not a single thing missing in this hotel. The Astoria has truly taken business travel to another level with this property.

Now that you’re settled in and presumably exhausted after a long day in meetings, workshops, etc., it’s time to experience that one-of-a-kind Chicago dining that everyone raves about. Narrowing down our suggestions to fit a tight piece such as this is challenging to say the least. With that said, no trip to Chicago is complete without a taste of their infamous deep-dish pizza. New York versus Chicago is in full swing here, and Pequod’s Pizza in Lincoln Park will give any New York pizzeria a serious run for their money. Deep doughy pizza, caramelized crust and an assortment of toppings at Pequod’s might leave you with some calories to burn that next day, but they are entirely worth it.

Taking you from pizza to one of the world’s finest dining establishments, Alinea is the place to take only your most highly regarded colleagues and clients. Oh, and make reservations months ahead of time as this three-Michelin-starred restaurant is always in hot demand. Dishes change based on the season, but the edible balloon and tabletop dessert are present year-round. Another excellent choice for special guests is Maple & Ash. This Gold Coast steakhouse has been churning out creative twists on old, steakhouse classics for years. The wine list is extensive, and you might even see some Chicago celebrities/sports stars as well.

If you’ve got a more casual night, a bit more upscale than pizza, perhaps with a colleague or someone you do not need to wine and dine, go to Frontera Grill and Topolobampo. A bit of a mouthful, but mouths are filled here with south of the border fare in a casual, festive setting. This is the type of place you are angry at when 11 p.m. rolls around and you’re in full swing but need to wake up for your flight at 6 a.m. Great food, fantastic atmosphere.

If you’re lucky, dining will not be the only thing occupying your free time. Perhaps a nightcap will be in order. Chicago is not only a foodie town but a boozy town. You’ll get a real taste of the speakeasy culture at The Violet Hour, a hip cocktail lounge without a sign, but with a line–always. Once inside, the wait is most definitely worth it. The Sportsman’s Club is another Chicago staple, more informal but interesting, especially in the summer when top chefs from around the city flock to the patio to host cookouts. The food is otherworldly, and $20 will fetch you a hefty plate and one drink.

Finally, what’s to see in this city? Most business trips will yield the equivalent of one full day (a couple half days) or two if you’re lucky. A must, must, must for sightseers is the Art Institute of Chicago. A world-class art museum—and literally one of the oldest in the U.S.—it boasts collections ranging from modern to quite ancient. Don’t be surprised when a Gauguin, Manet or Picasso await you. The iconic lion statue outside is also an obligatory spot for a selfie pic.

Our next recommendation is neighborhoods. As generic as it sounds, Chicago neighborhoods are impressive. You’ve got Chinatown, Greek Town, Little Italy and a range in between. Immigrants from everywhere, similar to New York and Los Angeles, came to Chicago in search of a better life. Their culture arrived with them and is on full display in the Windy City.

To wind it up, the aquarium! You can take in the Shedd Aquarium, located on Chicago’s Museum Campus, where a charming backdrop of the lake welcomes visitors to a dazzling display of penguins, whales, sharks, piranhas, stingrays, dolphins … the list is endless. One of the country’s premier aquariums, this is a great option for burning a morning or afternoon before a flight.

We hope this post has been fruitful, and most of all, entertaining for your next business trip to the wonderful, Windy City!

Archives, Banking, Global Trade Daily

IF DAYS COUNT, HOW ABOUT HOURS? 2019 BANKING INDUSTRY OUTLOOK

January 29th, 2019 Peter Frerichs Leave a comment

Last year got off to an energetic start. It’s been a year now and how memories can fade, but economic growth worldwide was intensifying in January, advancing at a steady clip, and then … clunk. China, Japan, the Eurozone economies and the United Kingdom all began to weaken. The U.S. kept it moving but despite its acceleration, world markets continued to contract and pundits are now predicting a slowdown from 3.2 percent growth in 2018 to 3.0 percent in 2019.

With that said, however, the global banking system finds itself in one of its best positions in more than a decade. While recovery from the financial crisis has not been consistent across regions, total assets (per The Banker’s Top 1,000 World Banks Ranking for 2018) ascended to $124 trillion and return on assets (ROE) posted an impressive 0.90 percent. Banks in the U.S. have returned to health much more quickly thanks to forceful policy interventions and prudent regulatory measures. Total U.S. bank assets coming into 2019 hover in the $17.5 trillion range and efficiency ratios are posting new highs.

Within the larger transportation, logistics and supply chain management arena, banks and their ancillary collaborators play a critical role in financing a complex system of moving parts and players. Innovation is critical and for 2019 the banking outlook will be defined in large part by further technological developments and closer collaboration between actors.

Blockchain

We’ve been hearing about blockchain for a while now, but 2019 is poised to be a breakthrough moment for blockchain in the banking sector, with a notable focus on supply-chain management. Close to every major company worldwide runs enterprise resource planning (ERP) and supply chain management software. Yet, there are still some antiquated, human elements mixed in which make it difficult for firms to take full advantage of the technology. Global supply chains are giant ecosystems, with hundreds if not thousands or tens of thousands of moving parts, all trying to work together from a financial perspective to either achieve financing, transfer funds or get paid. Efficiency is at an all-time high, which means delivery times have been shortened and are putting pressure on middlemen (banks) to process funding for all transactional entities.

Blockchain has the potential to accelerate payment processing time and reduce transaction costs. According to an Accenture survey, “nine in 10 executives said their bank is currently exploring the use of blockchain.” Instead of relying on a central intermediary that would need to be negotiated with, managed and shared around the world, blockchains synchronize transactions and data across a shared network where everything is transparent and open to those on the network.

This last point is critical, however, as blockchain and distributed ledgers are only as valuable as the shared network they sit upon. Expect more integrated collaboration across countries with not only banks but financial technology companies (FinTechs) to arrive at a backbone in 2019 with which to underpin the system.

FinTech Collaboration

Mentioned earlier, FinTechs have exploded due to the ever-increasing integration of trade across borders. In earlier times, certain FinTechs concentrated their collaboration with individual banks, but 2019 is opening the door to a wider, broader banking ecosystem where FinTechs are developing and bringing to the table innovative technology—such as robotics, artificial intelligence and machine learning—to the collective table.

FinTechs make sense for banks as banks desire one thing: the best ROE they can achieve. In 2016, EY reported the largest 200 global banks reported average ROE of 7.1 percent. To get to 12 percent, for example, those same banks would need to increase revenues by roughly 15 percent and reduce their costs by just under 14 percent. FinTechs help banks streamline, drive down costs and enhance customer service. This is going to be front and center in 2019 and for years to come.

At the moment, approximately 12 percent of European supply chain finance programs are managed via FinTech platforms. The statistic in North America is not much different and while this figure perhaps will not double by the end of the year, the cooperation between FinTechs and banks will become much more pronounced.

Artificial Intelligence

Lastly, AI. Hardly confined to the financial sector, AI is revolutionizing how nearly every sector of the economy works. From virtual assistants such as Amazon’s Alexa to chatbots, at an individual level Accenture reports that 37 percent of U.S. consumers by the end of last year will have owned a digital voice assistance device. This has been spilling over into banking in a multitude of ways.

Customer service automation, especially vital across countries, languages and within supply chains, is resolving client issues at a fraction of the price as opposed to a real person. Autonomous predicted that AI could result in $450 billion in financial sector savings by 2030. In a similar vein, machine learning is integrating and analyzing data from multiple databases to arrive at a more holistic, 360-degree view of the customer or firm, which results in highly personalized products and services uniquely tailored per group. Behavioral data, credit and savings products and goals of the organization or person (personal goals) are shared and analyzed accordingly.

While not commonly associated with AI, fraud prevention and overall security will also be big issues for the banking sector moving into 2019. In this regard, AI is proving to be of excellent assistance with its unique ability to run through hoards of data and identify patterns that would otherwise elude the human eye. McAfee notes that cybercrime costs the world economy approximately $600 billion. AI can detect fraud in real time, providing banking and FinTech entities, as well as their customers and ancillary suppliers, information on the spot that could be disastrous if not managed correctly. With AI alone, Mastercard reduced “false declines” for its customers by 80 percent.

This year will likely see more radical banking changes as compared to 2018. As the world economy continues to work through some bumps and bruises, expect the banking outlook to be rosier.

Archives, Banking, Global Trade Daily

AND THE ENVELOPES, PLEASE

January 2nd, 2019 Peter Frerichs Leave a comment

What do a U.S. manufacturer, a Swedish retailer and a South African pharmacy chain all share in common? Hillenbrand (U.S.), ICA Group (Sweden) and Dischem Pharmacies (South Africa) battled it out with four other global firms recently at the 2018 Supply Chain Finance Awards.

Held Nov. 29 in Amsterdam, sponsored by global financial institution ING and organized by the Supply Chain Finance (SCF) Community, a global entity of professionals, private firms and knowledge institutions, their annual awards not only recognize achievements in the larger SCF world but also promote greater unity and collaboration as it grows and matures.

With industrial value chains becoming increasingly complex, manufacturers in 2018 relied heavily on interlocking supplier networks. More actors equate to increased risk, principally because parties do not know one another, and many times they are working across time zones and borders where physical relationships are nearly impossible to foster. Through shared new research and best practices, the SCF Community is helping to reduce complexity and risk and keeping cash liquid, something that benefits both sides of a transaction.

A typical contract is comprised of a buyer and a supplier. Each have distinct interests but both desire at least one thing in common: optimized cash flow. This produces a natural conflict as the buyer seeks to delay payment (to retain their cash) and the seller needs to release the product and invoice the buyer to receive payment as quickly as possible. With SCF, there is a third actor added to the mix–the funder or financing institution–which buys receivables or invoices at a discount from suppliers. The suppliers get their cash quickly and the bank then deals directly with the buyer.

The SCF process encourages collaboration instead of fomenting competition, which is a natural extension of a relationship where both parties desire the same, individually advantageous outcome. And SCF works even better when the buyer possesses a superior credit rating to the seller. A savvy buyer will use this to negotiate better terms from the seller, but the seller can also capitalize immediately by selling its receivables to the financing institution for immediate payment.

SCF at a Glance

It is useful to understand the SCF concept at a macro level because it does a lot of things but not everything. As such:

1. Not a loan – For the supplier, a true sale of its receivables is on the books, so supplier finance is simply an extension of the buyer’s accounts payable. Thus, the process is not considered a financial debt.

2. Multibank capacity – More than one financial institution can take part in the process, which adds a tremendous amount of flexibility.

3. Not factoring – In most circumstances, the supplier receives payment on the invoice (minus a standard transaction fee). Once the invoice is settled, there is no recourse burden on the supplier.

4. Equal opportunity – The beauty with SCF is it provides value not just for large companies but firms of all sizes (and credit ratings). This also includes SME suppliers.

The Awards

The 2018 Supply Chain Finance Awards jury, composed of the leading minds from the Fraunhofer Institute, the Luxottica Group, Nestrade S.A. and Metso, had its hands full this year. On the Transport & Logistics side, Kuehne + Nagel Group took home the award for Best SCF Solution. The Swiss-based holding with 1,336 offices worldwide and more than 75,000 employees had bested DHL Global Forwarding, Panalpina and DB Schenker in accounting for roughly 15 percent of the word’s sea and air freight business revenue.

This year, Logistics Kuehne + Nagel added an SCF layer on an already efficient Tradeshift e-invoicing platform, which now provides an unparalleled amount of transparency with regards to invoice status as well as all relevant SCF information. For small and medium-sized suppliers, early payment options are critical, and the Kuehne + Nagel solution gives them the ability to create invoices quickly online, which can result in payment within a matter of days.

The cash-conversion cycle lies at the heart of the matter with, again, both buyer and seller seeking to either maintain liquidity or add liquidity as soon as possible. The jury recognized Kuehne + Nagel’s ability to not only improve on this cycle but also advance the relationship between buyer and supplier, a natural win-win and one that the SFC Community seeks to foster. Kuehne + Nagel works with Citi to offer early payment options to more than 16 North American and European countries, spanning eight currencies. Asian and the Middle East are next for 2019.

Speed is crucial, and this is an area where Kuehne + Nagel set itself apart, having been recognized in the 2017 Adam Smith Awards in the category “Best Trade/Supply Chain Finance Solution.”

To stay abreast on news surrounding the 2019 awards, visit the regularly updated SCF Forum website: www.scf-forum.com/venue.html.

Archives, Global Trade Daily, Special Reports

BUSINESS TRAVELERS MUST BE CULTURALLY AWARE

November 3rd, 2018 Peter Frerichs Leave a comment

Hong Kong is special. In fact, “special” is part of its classification, a “special administrative region of the People’s Republic of China.” A newly formed colony of the British Empire post the First Opium War in 1842, the territory was held by the Brits until 1997, when it was returned to China but with the request that the area be maintained as “special,” a government distinct from that of mainland China.

The Chinese accepted and with a population of roughly 7.5 million folks crammed into 426 square miles, it is clear people want to be in Hong Kong, which is the world’s seventh largest trading entity. Firms from all over the world conduct a range of business in Hong Kong, where English is the most common language. While Hong Kong is chock full of skyscrapers and other “western” symbols, there are several cultural sensitivities one should be aware and mindful of as a business traveler to these 426 square miles in southern China.

First, hierarchy is still very much a major part of Hong Kong culture. Greeting business counterparts with their title and surname is recommended and if presented to a group of Hong Kong businessmen and women, do intend on greeting the eldest of the group first. Second, a handshake and a slight bow is commonplace and avoid any other contact beyond that of a handshake. Pats on the back and grabbing an elbow while shaking hands are no-nos. The less physical contact the better.

A common mistake many travelers make when visiting Hong Kong is referring to residents as Chinese. It is understandable as the official languages are Chinese and English, the regional language is Cantonese, and 92 percent of inhabitants are Chinese. But again, Hong Kong is a special administrative region and Hong Kongers like to be referred to as Hong Kongers, not Chinese. If you intend on presenting a gift to a business counterpart(s), avoid distributing presents in the denomination of 4. The number represents “death” in Cantonese, and that’s a bad way to begin what you’d like to be a fruitful relationship. Lastly, be careful with social drinking. Attempting to keep up with Hong Konger off-hours “business meeting” drinking could place you in a perilous position come the following morning. Be present but avoid going shot for shot.

When it comes time to pick an area to stay in, it is true that the plethora of hotels and activity in Hong Kong can be overwhelming. From a business perspective, Central Hong Kong is the financial center of the city and located in the general vicinity of some of the more visited spots such as Lan Kwai Fong (a series of small streets with restaurants and bars) and Victoria Peak. Downtown Hong Kong is also within walking distance and there are a series of affordable, luxury hotels such as the Four Seasons Hotel Hong Kong, Mandarin Oriental Hong Kong and Island Shanri-La Hong Kong.

Another fantastic option is Hong Kong’s main commercial area, Wan Chai. In good weather one can stroll between Central Hong Kong and Wan Chai, which is also home to the world famous Hong Kong Convention & Exhibition Center. Adjacent to Wan Chai is a neighborhood known as Admiralty and due to its proximity, most refer to the general area as Wan Chai/Admiralty. Affordable, business and luxury hotels in Wan Chai/Admiralty are the JW Marriot Hotel Hong Kong, Grand Hyatt Hong Kong and Conrad Hong Kong.

It will be quickly evident that the major difference between corporate travel and business in Hong Kong compared to many other cities in Asia is language. English is by far more widely spoken in Hong Kong than Tokyo, Seoul, Shanghai or even Mumbai. The British influence is felt strongly, but in conjunction with a strong Chinese culture energy that is distinct in Hong Kong. As such, it is always recommended to add on a couple days either before or after a business trip to take in the city. Be it the horse racing at Sha Tin or Happy Valley or snapping a photo in front of the Big Buddha at Lantau Island, the sights and sounds are completely unique and will keep you longing for another trip back to this very “special administrative region.”