1. 2012Comparison of the three rising stars of the East
Paritosh Kashyap Comparison of the three rising stars of the East
01-Jan-12
2. Comparison of the three rising stars of the EastSingapore,
Hong Kong, and Dubai are three major city states of international
standing in Asia.All of them have undergone a phenomenal growth in
the last few decades and plays a verypivotal role in the economy of
their respective nations and regions. Considered among some ofthe
best marketed destinations in the globe; they bring in a huge
amount of investments alongwith human capital. All these three city
states constantly feature among the list of top 10 mostvisited
cities in the world. The given analysis has done a comparison of
the following placesacross a wide range of qualitative as well as
quantitative parameters.General Introduction Dubai: is one of the
most well marketed destinations across the globe. In the three
decades, the small emirate has seen itself leapfrogging from a
sleepy town to one of the biggest success saga of Middle East.
Placed between the cross roads of East and West, Dubai is also
sometimes known as the gateway of the Middle East to the world. The
biggest strength of Dubai lies in its visionary and extremely
efficient leadership and liberal culture- helping it attract expats
from all over the world. It is among the very first Gulf States
that has successfully diversified its economy into various sectors
such as- tourism, real estates, retail, trade, media, financial
services etc.The very first thing that comes to mind with brand
Dubai is the state of art real estate constructions. Dubai boasts
some of the biggest, most expensive, state of the art buildings,
hotels and real estate assignments- Al Burj, Burj Khalifa, Palm
islands etc. Other than these world famous landmarks Dubai offers
plethora of state of the art shopping malls, amusement parks,
museums, resorts and spa, golf courses, sports stadiums, convention
centers etc.Paritosh KashyapPage 2
3. Comparison of the three rising stars of the EastSingapore:
The small city state which once got freedom in 1963 from Malaysia;
is notonly among one of the most visited cities across the globe
but also an epicenter of trade,commerce, finance, technology and
innovation. Considered among the biggest successsagas of 20th
centuries, Singapore had witnessed an average growth rate of 7.9
percentsince 1963. The Singapores success story is based on four
pillars- liberal govt. policies,skilled workforce, state of the art
sea ports and strategic location.During the time of 60s and 70s
when this tiny state was suffering from highunemployment, liberal
policy frame work was put in place along with investments inlabor
incentive industries. In the later stage, Singapore successfully
transformed itselffrom a labor incentive industry to an innovation
driven industry. Today it is home toaround 500 financial
institutions and most of the MNCs of the world. It also has anumero
uno position in the ease of doing business index (World Bank data,
2010).Singapore is also great tourist hub with state of the art
hotels, resorts, shopping malls,casinos etc. In 2009 it received
9.7 million tourists and was among the list of most visitedcities
in the world (annual report on tourism statistics 2009, 2011).Hong
Kong: Its a place where East meets the West. Before being handed
over to Chinain 1997, Hong Kong was under British Rule. Even today
other than foreign relations andmilitary defense, it maintains a
high degree of autonomy. In contrast to mainland China,it enjoys a
capitalist structure marked by free trade and low taxation. It is
considered asone of the freest economies of the world. Famous
economist Milton Friedman oncedescribed that if someone wants to
see free economy, he should go to go to Hong Kong.Like Singapore it
is a major trade and financial center.In line with the other three
Asian tigers (Singapore, Taiwan and South Korea) HongKong underwent
industrialization during 60s and successfully transformed into
aservice sector economy during 80s. In 2010 service sector has
accounted for 92.5percentage of GDP, against Industry contributing
just 7.4 percentages (CIA World FactParitosh Kashyap Page 3
4. Comparison of the three rising stars of the East Book,
2010). A blend of Chinese and Western culture, Hong Kong is also a
fabulous tourist destination attracting tourists from all over the
globe.DemographicsAll these three places are trade centers and
financial capitals of their respective regions, besidesbeing great
tourist destinations; there by attracting a large number of expats-
businessmen,travelers, working professionals, academicians,
celebrities etc. According to the surveyconducted by Dubai
Statistics Center in 2006, 17 percent of the population consists of
localEmiratis whereas the rest 71 percent of the population consist
of Asian which mainly includes-Indian, Pakistani, Srilankan, etc. 3
percentage of population has been categorized as Western.In
contrast to this in Hong Kong, according to 2006 census 95
percentages of the work force isChinese followed by Filipino (1.6
percentage), Indonesian (1.3 percentage) and others 2.1percentage
(Index Mundi, 2011). In Singapore out of the total population of
5.08 million, 3.77million are Singapore residents against 1.31
million foreign residents (Comprising of tourists).Out of 3.77
million, residents 3.23 million are citizens where as 0.54 millions
are permanentresidents. Major ethnic communities include Chinese,
Malay, and Indians etc. 0.3 percentage ofthe population can be
categorized as Western (Department of statistics Singapore,
2011).Paritosh Kashyap Page 4
5. Comparison of the three rising stars of the EastHong Kong
7.12Singapore 5.07Dubai 1.9 0 2 4 6 8Fig 1: compares the population
of three states for the year 2010. Source of data: Dubai
Statisticscenter, Singapore Statistics center and CIA World fact
book.876.947.12 6.8765 5.24 5.074.79 4.27 Hong Kong44.03 3.52
Singapore3 3.05Dubai2.4122.071.9 1.310.90.6 0.20.2750 197019801990
200020052010Fig 2: Shows the population of the three city states in
millions, over the period of time. Source ofdata: Hong Kong year
book, Dubai Chamber of Commerce, Department of Statistics
Singapore.Paritosh Kashyap Page 5
6. Comparison of the three rising stars of the EastArea (SQ Km)
Population Density Coast LineHong Kong 1104 6480 733Singapore
7787315 193Dubai 1,287.4408.18 70Table 1: compares the three city
states across geographical parameters.Median Age Literacy
(percentage)Annual PopulationGrowth (percentage)Hong Kong 43.4 93.5
0.45Singapore 47 95.9 1.8Dubai 27 90 1.6Table 2: compares the three
city states across various parameters. Reference year: 2010;
Sourceof data: US department of State, Index Mundi etc.EconomicsThe
following section will compare the three city states across some of
the economicparameters- Gross Domestic product (GDP), Foreign
Direct Investments (FDI), Cost of livingIndex etc.Paritosh
KashyapPage 6
7. Comparison of the three rising stars of the EastHong Kong
325.8Singapore 291.9Dubai 79.9 050100150 200 250300 350Fig 3:
showing the GDP of the three city states, US $ billions, for the
year 2010. Source: CIA FactBook, Al Arabia news. 16 1414.5 12 108.7
8.88 Dubai 7.4 7.1776 6.46.1 Singapore 5 5.14 Hong Kong22.3 1.5
1.40 -0.7 -0.8 -2200520062007 2008 2009 2010 -2.7 -4Fig 4: showing
the GDP growth rate of the three city states in the past few years.
Source: WorldBank, Dubai Statistics CenterParitosh KashyapPage
7
8. Comparison of the three rising stars of the East8070 68.960
59.6 54.452.45045 Dubai40 38.6 37Singapore33.63029.3 Hong Kong20
21.715.5 16.615.311.6 13.71010.2 8.6 4 02005 20062007
200820092010Fig 5: showing FDI inflow of the three city states in
US $ billions, over the last 6 years. Source:World Bank, Dubai
Statistics center. CPIRent Index Groceries IndexHong
Kong80.5498.6981.24Singapore100.55
90.0693.59Dubai86.3967.8769.03Table 3: compares the 3 city states
across various cost of living indices. Source: NUMBEOTourism
statisticsOther than being epicenter of trade, commerce and
financial activities, the three states are alsoconsidered among
some of the greatest tourist destinations in the globe. Constantly
featuringamong the top 10 most visited cities in the globe, they
have some of the most magnificent hotels,resorts, casinos,
convention centers, amusement parks etc. The following line graph
of thereport will compare the 3 city states in terms of annual
tourist arrivalsParitosh Kashyap Page 8
9. Comparison of the three rising stars of the East 40 3536
3029.5 29.628.2 2525.323.5 21.5 Dubai 20Singapore 15Hong Kong 11.6
109.810.3 10.1 9.78.9 7.88.7 7.69 7.01 7.76.26.554.802002 2005 2006
2007 2008 2009 2010Fig 6: showing annual arrival of tourists in
millions. Source: Dubai Tourism and CommercialMarketing (DTCM),
Press releases by Hong Kong tourism board, Singapore Tourism
Board.The comparatively higher figure for Hong Kong is on account
on Chinese travelers, whichaccount for approximately 2/3rd of
tourist arrival.BRAND ESSENCEThis part of the report will try
figuring out one word which can describe the brand of these
citystates.Dubai had successfully ventured into wide range of
activities ranging from various forms oftourism (leisure, shopping,
sports, cultural, dessert, business etc)- trade, businesses,
industriesetc but one word describing brand Dubai can be luxury.
Its a place where modern daydynamism blends well with traditional
Arabic tranquility. Be it the state of the art hotels orresorts,
shopping malls or villas, Dubai reflects luxury everywhere.Paritosh
KashyapPage 9
10. Comparison of the three rising stars of the EastFor
Singapore that one word could be innovation. Singapore is the hub
of high techinnovation. According to Global Innovation Index 2011,
Singapore has been ranked as 3 rd mostinnovative nation in the
world and 1st in Asia (Sgentrepreneurs.com, 2011).Similarly one
word that can reflect the brand essence of city state Hong Kong
could beliberty. Hong Kong is one of the most free and liberal
states in the world. It practices libertyin almost every sphere of
life- economic, social, political, etc. It offers a top notch
livingconditions to its residents. Ranked 13th on the Human
Development Index, it is one of the bestplaces to live. Singapore
has a rank of 26, whereas Dubai (UAE) has a rank of 30
(HumanDevelopment Index and its Component, 2011). Dubai- Luxury
Singapore- Innovative Hong KONG-LiberalFig 8: Shows the brand
essence of the three city states in one word.Analysis &
ConclusionThe given report had tried analyzing the three city
states of Asia across various parametersrelated to demography,
economy, tourism etc. With the help of various charts it could be
seenParitosh KashyapPage 10
11. Comparison of the three rising stars of the Eastthat Dubai
is still catching up with the Singapore and Hong Kong and may take
some moretime to reach their level.Dubai is an Emirate with
extremely big ambitions. For instance by 2015, the Dubai Tourism
andCommercial Marketing aims at reaching an annual tourist arrival
of 15 million. Though timewill tell how far Dubai will excel to
realize this ambition- but if realized Dubai will be the
mostvisited tourist destination in the world. Similarly in other
spheres also the 2nd largest emirate ofUAE holds huge ambitions.
Exp: Jebel Ali, the largest man made harbor is also
undergoingexpansion and once completed in 2030- is expected to be
the biggest container port in the world.The social and economic
structures of these three city states have their own similarities
as wellas differences. Singapore and Hong Kong are quite synonymous
to each other in terms ofknowledge economy, high degree of social
freedom & liberty and international trade centershowever Dubai
offers a slightly different case.Though Dubai has successfully
diversified its economy (presently Hydrocarbons account foronly 2.1
percentage of GDP, contrary to 1985, when it had a giant share of
55 percentages) intoreal estate, trade and tourism; it is still far
behind from becoming a knowledge economy.Similarly in terms of
demographic break up, Dubais economy is completely dependent
onexpats, in contrast to local Emiratis which constitute only 17
percentage of population(Dubaidreams.net, 2011). It is the other
way round in Hong Kong and Singapore.year % of oil revenue in
Dubais GDP1985 55 %2000 10%2003 7%2005 5.4%2010 2.1%Paritosh
KashyapPage 11
12. Comparison of the three rising stars of the EastTable 4:
shows the diminishing percentage of oil in Dubais GDP. Source: USA
Today, AMEinfo.com, Dubai Chamber of Commerce.Dubai has its own
advantage. It is yet to realize its full potential and hence has a
long way to go.In the form of its ambitious 2015 plan, it aims at
implementing strong social and economicreforms and transformations.
It is one of the fastest growing Emirates and prior to the
economiccrisis that led to real estate bust was enjoying a double
digit growth rate. Considered as anepicenter of trade, finance,
investments, culture and tourism in the Middle East region, it
hadhelp attracting a lot of investments, trade and human capital
for the region.If IT and Technology defines Singapore and Hong
Kong; real estate defines Dubai. It is markedby luxury, which gets
reflected in the wide range of high profile construction projects
incubatedby the Emirate. One of the reasons, it can accommodate
such projects, is the availability of largeamount of free space.
While Singapore and Hong Kong are becoming vertical cities, Dubai
stillenjoys a population density of 408 per square Kilometer, much
lesser than most of the majorcities in the world. It is also
comparatively economical in comparison to the other two cities.
(asshown in table 3). In a nutshell, Dubai has carved a unique
niche for itself. Created amidst adessert, it has successfully
transformed itself from a sleepy oil rich emirate, where
oncehydrocarbon accounted for more than 50 percentage of GDP to one
of the most economicallydiversified and socially liberal state in
the region.In terms of political structure Dubai and Singapore
share a similar kind of structure. Both ofthem are blessed with
visionary political leadership, which played a pivotal role in
theirexorbitant growth. They have got an extremely efficient
political and bureaucratic apparatus,known for executing big
projects swiftly. Contrary to this in Hong Kong, govt. has a
minimalrole to play in the economic ambit. In fact Hong Kong has
one of the most liberal economiesacross the globe.Paritosh
KashyapPage 12
13. Comparison of the three rising stars of the EastIn spite of
having differences across various economic and social parameters,
there are also lotsof things common in the three states. On
Economic front all of them have liberal economicpolicies marked by
low tax and tariff rates, helping them attract a large amount of
investmentsand top notch human capital. All of them have shown
phenomenal growth rate in the recentpast. They share a lot of
similarities in terms of landscape and geography. They are
islands,have extended coastlines, and are situated in strategic
locations, which helped them morphedinto excellent trading
centers.Not blessed with much of exotic natural landscapes, they
made huge investments in developingstate of the art hotels, beach
resorts, golf courses, convention centers, shopping malls; there
bytransforming into magnificent leisure and business tourism
destination. High tourist arrivalshave also been very advantageous
for their retail sector. On social front, all three of them
aremarked by open and liberal cosmopolitan culture, attracting
expats from all over the globe andproviding a platform to grow and
flourish. This ability of attracting diversified human resourcefrom
various parts of globe had eventually been very beneficial to
them.The three city states converges as well as diverges across
different parameters; but one thingthat is common to all is the
phenomenal success story they have scripted for themselves in sucha
small interval of time. They came from nowhere and today are
destinations of internationalstanding. These city states, developed
from scratch are product of- strategic planning, die
hardentrepreneurial spirit and openness towards change. Hong Kong,
Singapore and Dubai are therising stars of the East, without any
substantial past, but definitely with an illustrious presentand
future.Reference:Paritosh KashyapPage 13
14. Comparison of the three rising stars of the East 1>
Index Mundi,2011, HongKong demographicsprofile, availableat 2>
WorldBank, 2010,ease ofdoingbusiness
index,availableathttp://data.worldbank.org/indicator/IC.BUS.EASE.XQ
3> CIA WorldFact Book,2010, Economy,
availableathttps://www.cia.gov/library/publications/the-world-factbook/geos/hk.html
4> Annual statistics on tourism sector 2009, tourism sector
performance, 2011, p-4 5> Department of Statistics, 2011, Census
of Population 2010, p-13 6> Sgentrepreneurs.com,2011, Global
InnovationIndex 2011,availableat 7> HumanDevelopmentIndexand its
component,20011, availableat 8> DubaiDreams, 2009, Raceand
Nationalityin Dubai, availableat Paritosh KashyapPage 14
