It might seem a far cry from designing ships to working in China's North West region - among the camels, the "ships of the desert". But for one Hong Kong entrepreneur this transition does not seem strange at all.

Peter M.K. Wong, managing director of North West Development Ltd, has more than 25 years' experience in industrial, commercial and public service.

Trained originally in naval architecture Wong went on to win an award for his contributions to shipbuilding.

Now he is a pioneer investor involved in developing and operating cultural resources in the region of the ancient Silk Road, where he says he sees renewed and good business.

"The western region of China has a lot of untapped resources, including rare earths, minerals, oil and gas," he says.

"There are great pasturelands for animal husbandry as well as opportunities for agriculture and fruit cultivation. The service sector is also promising.

"The government will have resource allocation preferences and strategic preferences to encourage local industries there."

Wong recalled that the Silk Road linked China with the rest of the world. He believes this culturally important link will be fully restored in the course of time.

As his work now includes developing tourist hotels and cultural properties, Wong finds his architectural experience comes in handy.

"An architect is an architect," he says. "A naval architect has to learn a little more than an architect on land."

Wong took part in the mission of Hong Kong businessmen to the western region that was led by Donald Tsang in 2001.

"2001 was just a start," he says. "It led to deals for some big enterprises in major infrastructure projects.

But now there are chances for small and medium-sized enterprises to get involved in downstream business activities connected with the oil and gas industry and mineral exploitation, as well as in the trading of goods.

There is a big vacuum which will be filled in the next three to five years."

His own company is an example of what contribution a Hong Kong entrepreneur can make to the development of the country in the cultural sphere.

"The mission of North West Development Ltd is to unlock the market value of our cultural resources," the businessman explains.

Its scope of business includes the development and management of hotels, including the development of "cultural hotels"; cultural property development; the sale and marketing of cultural products; and the operation of tour services.

"The concept of 'culture hotels' was conceived by us," says Wong. "This is a new classification now recognized by the tourism industry."

His company specializes in developing such hotels, which are rich in cultural flavour. They are developed with the idea of combining conventional hotel services with elements from China's cultural heritage and are dedicated to capturing the cultural spirit of the country.

"They are more than star hotels or conventional resorts."

One of the most well known is the LuSong Yuan Hotel in Beijing that is built in the Ming and Qing dynasty style. It was converted from a Manchu general's courtyard residence in the part of the city famous for its traditional lanes known as hutongs.

Although it is only a three-star property, the hotel is rated by travel guides alongside seven five-star hotels as being the most popular with foreign tourists.

The flagship property of the company, however, is the Silk Road Dunhuang Hotel in Gansu, a showcase property built in Han and Tang architectural style and located against the backdrop of the rolling sand dunes near to the famous Mogao Grottoes.

Other culture hotels that have been developed include the Islamic-style Silk Road Turpan Oasis Hotel in Xinjiang with its strong Uygur flavour; the Tibetan-style Silk Road Tsongkha Hotel near the Taer Monastery in Qinghai; and the Dongguan Hillside Hotel with traditional Cantonese gardens and pavilions.

The company's ventures are not limited to hotel development, however.

While visiting Xinjiang with the Hong Kong businessmen's mission in 2001 Wong learned that the regional government was planning to redevelop the old bazaar quarter of Urumqi, the regional capital, turning it into a central business district.

Wong objected that this would kill off an important part of the local culture and suggested instead the construction of a new complex that would be in the Islamic style.

"To my surprise, the government accepted the idea and moved ahead with it at a fast pace."

A local developer was found for the project, dubbed the Erdaoqiao Cultural Region. It is now a centre of attraction in the city with Central Asia-type grand bazaars and caravanserai, albeit with Kentucky Fried Chicken, McDonalds and Carrefour also present. "That's what I call cultural exchange," quips Wong.

"We have confined their logos and display so that they are not too invasive into the overall architectural style.

We seek to preserve local culture while at the same time introducing elements of new and popular culture."

"You have to strike a balance between development and preservation," he says.

Following the success of this project, Wong's company has been asked to participate in building other cultural properties like it."There's been a ripple effect."

North West Development is cooperating with different regional governments to develop local heritage sites through suitable commercial projects.

"We hope that besides the local heritage being preserved the market value of these sites can be unlocked so that they are turned into valuable cultural properties," says Wong.

In Dunhuang a "Five Dynasties Cultural Region" is to be built at the foot of Mingsha Hill that will incorporate the architectural features of the Han, Tang, Song, Yuan and Ming dynasties.

There will be facilities for exhibitions, dining, lodging and cultural performances, the entrepreneur says.

Next month World Heritage will have an international forum in Suzhou and that city in Eastern China wants to revitalize its old features. Wong's company has been asked to participate.

"There'll be no high-rise buildings, it'll just be back to basics," he says.

Another area of Wong's business is a chain of theme stores known as "Bazaar on the Silk Road".

There are branches in Dunhuang, Turpan and Hong Kong, with the last named, based in Wyndham Street, dealing exclusively in silk carpets.

The idea is to specialize in ethnic arts and crafts souvenirs, but the entrepreneur says that the stores have not yet taken off and he is looking to source a better range of products.

He himself has dabbled in Tibetan medical herbs and in trying to tap the potential of the vineyards next to his hotel in Dunhuang.

Wong also has his own travel company, the Silk Road Travel Agency Ltd, and is interested in developing its business on the mainland.

The company specializes in designing cultural theme tours that allow travellers to focus on the art, culture, history, crafts, architecture, religion and lifestyle of China's rich and ancient heritage.

The travel sector used to be barred to outside businesses, but the central government is now liberalizing access ahead of its WTO commitments.

In December a joint venture involving a German company, TUI, became the first Sino-foreign tourism firm allowed to register an office on the mainland. It is 75 per cent controlled by foreign capital.

"But the entry fee is still too high," says Wong. Under the regulations you need an annual turnover of at least US$40 million to qualify for having a controlling stake in a travel agency on the mainland - and one of at least US$500 million if you want to set up a wholly owned travel agency. "No Hong Kong travel company can attain that sum."

"I'm fighting with the China National Tourism Authority to lower that limit. It should be lowered to US$5 million - and even that would still be very high."

Non-mainland companies are also still not allowed a share of the lucrative outbound tourism market.

"We are fighting on this point," says Wong, who is also a deputy to the National People's Congress.

He says that the original aim of his travel firm was to tap the European and North American tourist market.

"However, in the last three years there has been a big increase in mainland tourists - mostly young and with high income."

In fact 60 per cent of his customers are now local. Wong plans eventually to extend his operations to Central Asia too - to Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikstan, as well as Iran and Turkey.

"I've been working on this plan for three years. We'd originally hoped to start with Uzbekistan but conflict there two months ago has set us back. The plan is now on hold."

Wong, who once won the "Young Industrialist" award, has advice for young people looking for business chances on the mainland:

"The Pearl River Delta and the Yangtze River Delta offer a lot of opportunities for anybody who is prepared to work hard.

People from Hong Kong will have to compete with the locals, of course. But their versatility, their exposure and access to information would give them an edge. This edge won't last.

For those who are more adventurous, the western region should be tried," Wong says.

They must be prepared to work in a relatively harsh environment, he warns.

But they will be amply rewarded for their contribution to helping develop the country.

(HK Edition 05/11/2004 page16)