The number and range of added-value services that relocation companies are offering their customers is helping the industry to continue growing at a time when most businesses are stalled.

Santa Fe Group Chief Executive Officer Lars Lykke Iversen said the number of inbound relocations to Hong Kong that the company has handled this year is up over 30 per cent compared to 2000.

He feels the pool of people entering into Hong Kong is partly due to many businesses returning after pulling out of the territory in 1998, which was spurred by downsizing at the height of the Asian financial crisis.

Randy Chiu, general manager, Interdean Interconex (Far East) Ltd, is equally upbeat that the market will continue to grow. The company, which already owns a 30,000 sq. foot warehouse in Hong Kong, will move into a 60,000 sq. foot facility early next year.

The number of inbound clients that movers handled in November declined due to the September 11 incident, but relocation companies expect this to be a short-term dip.

Despite the recession in the United States and weak economies in Asia, Mr Iversen said he does expect to see a big outflow of people similar to that of 1998, but pointed out that that really depends on whether or not companies start to downsize.

Interdean Interconex, which has offices in Beijing and Shanghai, is planning to open a Guangzhou office early next year. It will also look at other cities in Asia, but Mr Chiu said the company traditionally takes a very cautious approach when expanding.

Foreign moving companies have to enter into a joint-venture agreement with a Mainland partner if they want to do business in China. For relocation companies, which take great pride in the quality of services they provide, finding the right partner is obviously critical for the businesses future.

Because the relocation business is very personal, involving moving families and their possessions, service is also very personal. Companies now use a single point of contact when moving clients, so that the relocation company can build a close relation with customers to make the move as smooth and easy as possible, Mr Chiu said.

Among other services, Santa Fe, for example, even offers familiarization programmes, visa services, school search, and even handyman services to help its clients move in and be up and running in the shortest possible time.

Mr Iversen said Santa Fe, which set up its Beijing office in 1985, has been very lucky in finding an ideal Mainland partner to expand its China business.

The company is well represented with offices in many of China's major cities and is planning to expand into western China as part of the Mainland's drive to encourage investors to set up shop there.

China is a market which will undoubtedly continue to grow as more companies move in and set up their investments there, but Mr Iversen pointed out that a growing market there is not just relocating into China, but between Mainland cities.