Sustainable Development of Seafood Restaurants in Sai Kung SOSC562/301E Fall 2006 Ka Lok CHAN Christine LEUNG David MA Raymond YIU Qi ZHOU

"What is the biggest problem in this world?" ~Mao Zedong

"What is the biggest problem in this world? Eating it is!" ~Mao Zedong

Fisherman's Wharf San Francisco, California

Seafood Paradise Sai Kung, Hong Kong

Stakeholders Suppliers: Fishermen, fuel/electricity/water supply, retailers of rice/vegetables/meat/furniture, etc. Restaurants: Entrepreneurs, corporations, shareholders, management, employees Customers: Locals, foreign tourists Government: Waste water & solid waste treatment, tourism board, district council, medical services, Agriculture, Fisheries and Conservation Department Society: Taxpayers, nearby residents FISH

Externality

Negative externality Deadweight loss

Externality example 1: Smoking Allowed in Restaurants Smoking is permitted in restaurants Waiters/waitress breathe in second-hand smoke >>> Suffer severe health damages, e.g. cancer Restaurant owners are making good profits Diners are smoking happily Yet, employees are not compensated And, society and our next generation paid the medical bills Source: Sustainable?

Externality example 2: Waste treatment of Restaurants Air Noise Waste water Solid waste Taxpayers spend billions of dollars on sewage treatment works and landfill sites Yet, restaurants are not paying the full cost for waste disposal arising from their business Source: Sustainable?

Externality example 3: Impact on nearby residences 1. Should the proposed restaurant use be supported? 2. In consideration of nearby residential uses, would the proposed hours of operation reasonable, including the terrace dining? Should live music (acoustic only) be allowed outside the building? 3. Should the future house location be considered at this time given the concerns addressed by the Fire Department? Is the architecture of the proposed development compatible and complimentary to the existing facility? 4. What are the effects on property prices/rental values/life quality of nearby residents? Source: nagy.pdf#search=%22restaurant%20impact%20on%20nearby%20re sidence%22 nagy.pdf#search=%22restaurant%20impact%20on%20nearby%20re sidence%22 Sustainable?

Environment Water Control Seafood Safety Waste Disposal Food Supply

Water Control EPD Marine and Riverine Water Quality Monitoring Stations in Port Shelter Water Control Zone

Water Control Water Pollution Control Ordinance (Cap. 358): “Provides for the designation of control zones within which discharges of effluent other than domestic sewage into a foul sewer must be licensed.”

Water Control Ordinance imposed from 1989 Any changes now? Sustainable in the upcoming years? The regulations of the Food and Environmental Hygiene Department (FEHD) cause investors need to balance the business revenue and environment cost at the same time. Source: TalkingSeafood.html TalkingSeafood.html

Seafood Safety Seafood and Preventable Neurological Problems The National Academy of Sciences issued a 1999 report estimating that 60,000 children are born in the US each year with neurological problems caused by mercury exposure in the uterus. Although most fish contain trace amounts of mercury, the benefits of most seafood outweigh the risks. But large fish that feed on other fish can accumulate enough mercury to irreversibly damage a baby’s nervous system. Accordingly, the US Food and Drug Administration issued a consumer advisory for 2001: Pregnant women, nursing mothers, young children, and women who may become pregnant should avoid eating swordfish, shark, king mackerel, and tilefish. They did not include fresh tuna steak on the list, although consumer groups such as the Mercury Policy Project and the Center for Science in the Public Interest believe it should also be avoided. Source:

Food Supply Marine Fish Culture Ordinance (Cap. 353) empowers the Director of Agriculture and Fisheries to take prosecution action against any person who pollutes the water in any fish culture zone. Rest period measure Effects to the ecology and its sustainability? Carrying Capacity in Sai Kung?

Waste Disposal Licensing scheme administered by the Director of Environmental Protection such as Water Pollution Control Ordinance Resource recycling possible? for instance, –Waste-to-Energy Incinerators –Sludge Incinerators –Major sewage and waste treatment/disposal facilities

Community

Local community Some Hakka, Hoklo came to Sai Kung in Ching dynasty because Sai Kung was not controlled by big family Part of them became fishermen. However, majority of fishermen in Sai Kung were Canton people in 1950s

Decline of fishery After 1970s, fishery declined sharply. Fishermen changed their career. Some of them lived on yachts and some lived on sea food restaurant. Some chambers of commerce was set up by sea food businessmen. Source:

Conflict and interaction The seafood street somehow disturbs the residents nearby. (noise, hygiene, etc) We want to know more about this. The relationship between boat owner and restaurant owner? Any cooperation? The regulations of the Food and Environmental Hygiene Department (FEHD) makes the street hard to increase business and fulfill the requirements at the same time. Source: More stakeholders are involved!

Seafood Street Promotion Hong Kong Tourism Board –Guidebooks, which mention Sai Kung Sea Food Street, are free for tourists –Sea Food Festival –Website Promotion –Have any plans for further promotion?

Society and Economics

Basic Demographic information of Sai Kung Central (2001) Population: –Under 15 years old: 16.3% –15-64: 73% –65 or above : 10.7% Number of Household: 3849 Average Household Size: 3.3 Labour Force: 7568 (66.1%)

Sai Kung Economy People in Sai Kung usually do not work locally. According to the Hong Kong Census 2001, fewer than 40% of the working population live in Sai Kung Central have their jobs locally.

Indigenous economy – Sai Kung as a Tourist spot Food Paradise –Sai Kung has deservedly won both local and international acclaim for its fine seafood cuisine. In true Chinese desire for fresh food, the restaurants along the waterfront’s Sai Kung Hoi Pong Street feature an aquarium-like display for dinners to choose from a wide variety of live, colourful fish and crustaceans for their meal. Source: Home Affairs Department

Location of Seafood Restaurants Mainly clusters around the waterfront

Indigenous economy – Sai Kung as a Tourist spot The Garden –Most of the land in Sai Kung District, except the village areas as, falls within two country parks - namely the Sai Kung East Country Park and the Sai Kung West Country Park. The two parks cover more than 7,500 hectares and attract hundreds of thousands of visitors annually who use the picturesque scenery 27 of green hills and waterways for family or group outings. Source: Home Affairs Department

Indigenous economy – Sai Kung as a Tourist spot History Cherished –There are more than 200 heritage sites in Sai Kung District, including the Hung Shing Temple and Sheung Yiu Folk Museum. Source: Home Affairs Department

Major Customers of Seafood Restaurants Explore conducted a small survey of four seafood restaurants in Major clients: Local people An increase in the number of mainland Chinese A decrease in Westerners Source:

Consumption pattern of Seafood of Hong Kong people The value of fishery industry far exceeds Hong Kong’s total annual seafood production by its entire traditional capture fleet. (Lee and Sadovy, 1998) e.g. Hong Kong is the largest importer and exporter of Live Reef Food Fish Worldwide.

Conclusion

Internalize the negative externality Deadweight loss