Hong Kong Airport Authority to reshape 11 Skies as a high-end tourism landmark

The Airport Authority will reposition the 11 Skies commercial project after taking it over next April, with the government expecting it to become a high-end tourism landmark with minimal public investment, the transport chief has said.

Speaking for the first time since developer New World Development (NWD) announced on Wednesday that it would return the 11 Skies project to the authority next April, Secretary for Transport and Logistics Mable Chan said on Saturday that the two sides had reached an agreement on commercial and contractual principles.

“From the government perspective, we are pleased and welcome to see both sides trying to resolve this matter as far as practicable,” she told a radio programme.

The handover includes an entertainment complex and three office towers. Debt-ridden New World will provide more than HK$3 billion (US$382.3 million) in cash or equivalents, following major losses.

On Wednesday, the authority said it was taking forward the project “full steam ahead” and aimed to create a unique entertainment hub that would open in the 2028-29 financial year.

Chan said the authority would align the project with its Airport City development, with the aim of making 11 Skies a core landmark for high-end tourism activities.

Airport City is a development blueprint to expand Hong Kong International Airport as a key aviation hub while creating a new destination for business and leisure.

“The agreement allows the Airport Authority to set a clear road map and timetable to take over and reposition the project,” she said.

“We expect the authority to turn the project into a core landmark for high-end aviation, luxury retail, arts and culture, tourism and water sports like yachting.”

She added that a dedicated team would upgrade the offices, shops and restaurants in the original 11 Skies plan, adding more experiential activities for passengers, particularly those in transit.

Chan said the authority would align the project with the opening of Airport Terminal 2 at the end of 2027 and the completion of AsiaWorld-Expo Phase 2 in 2028, allowing visitors to enjoy concerts. The project would also integrate with autonomous vehicles to provide smart transport through a “SkyCity Corridor” linking the Hong Kong-Zhuhai-Macau Bridge.

“The project would provide seamless connections for passengers from around the world. Travellers can experience Hong Kong’s business, entertainment, dining and tourism without leaving the airport area,” she said.

She added that the authority also planned to invite expressions of interest next year for two future tenders: an art storage facility and a marina bay in Airport City.

On government investment in the project, Chan said that under Hong Kong’s five-year plan, the government would oversee the authority’s Airport City development to ensure it required minimal public investment.

“The authority must conduct careful commercial operational estimates including calculating its rate of return for each item to keep its own direct investment to a minimum. We also hope to attract investors into the project which will be put into tender for every smaller item,” she said.

The 11 Skies project was intended to complement the authority’s plan to develop Skytopia, a HK$100 billion landmark surrounding Hong Kong International Airport, with commercial, cultural, leisure and entertainment elements.

The HK$20 billion 11 Skies development was originally expected to include three grade A office towers totalling 52,955 square metres (570,000 square feet), alongside about 247,000 square metres of retail and dining space – 70 per cent of the entire project.