HI.

I'M RUDY MAXA, VENTURING TO THE SHORES OF ASIA AND ONE OF THE WORLD'S MOST THRILLING DESTINATIONS.

WE'RE ABOUT TO DISCOVER WHY GREAT TRAVEL EXPERIENCES ARE MADE IN HONG KONG.

NEXT UP, IT'S HONG KONG ON "SMART TRAVELS."

>> MAJOR CORPORATE SUPPORT FOR "SMART TRAVELS WITH RUDY MAXA" IS PROVIDED BY... OVER THE YEARS, PUBLIC TELEVISION HAS SHOWN YOU THE WORLD, EDUCATED YOU ABOUT IT, AND INSPIRED YOU TO SEE IT FOR YOURSELF.

EXPEDIA CAN HELP YOU GET THERE WITH FLIGHTS, HOTELS, AND VACATION PACKAGES.

"SMART TRAVELS WITH RUDY MAXA" IS BROUGHT TO YOU IN PART BY THE PEOPLE AT EXPEDIA.

>> ADDITIONAL SUPPORT FROM MEDJETASSIST.COM.

MEDICAL EVACUATION MEMBERSHIP PROTECTION FOR TRAVELERS.

TAKE TRIPS, NOT CHANCES.

ADDITIONAL SUPPORT FROM CATHAY PACIFIC.

"SMART TRAVELS" IS A GRAND TOUR OF THE WORLD'S GREAT DESTINATIONS--THE PEOPLE, PLACES, AND UNIQUE LOCAL FLAVORS.

NOW TIPS, TRIPS, AND SECRET PLACES ON "SMART TRAVELS: PACIFIC RIM."

>> WHEN YOU CATCH YOUR FIRST GLIMPSE OF HONG KONG AND THE SKYLINE UNFOLDS ABOVE THE HARBOR, YOUR HEART IS SURE TO BEAT A LITTLE FASTER.

NO DOUBT ABOUT IT, THERE'S SOMETHING EXCITING HERE.

FROM FUTURISTIC SKYSCRAPERS TO INCENSE-FILLED TEMPLES, FROM HORDES OF SHOPPERS TO BOBBING WOODEN BOATS, THE MANY FACES OF CHINA ARE REVEALED IN THIS DRAMATIC PACIFIC RIM CITY.

HONG KONG IS A MAGNIFICENT BALANCING ACT, EFFORTLESSLY JUGGLING EAST AND WEST, PAST AND PRESENT, COMMERCE AND MYSTICISM.

ALTHOUGH IT WAS A PRIZED COLONY IN THE BRITISH EMPIRE UNTIL 1997, HONG KONG IS FIRMLY ROOTED IN CHINESE CULTURE.

THIS CITY ANCHORS ON THE SOUTHWEST CORNER OF CHINA.

WE'LL EXPLORE THE DOWNTOWN CORE THAT STRADDLES HONG KONG ISLAND AND THE KOWLOON PENINSULA.

THEN WE'LL ESCAPE THE CROWDS AS WE VISIT SAI KUNG PARK, LANTAU ISLAND, AND SOME HISTORIC SITES IN THE NEW TERRITORIES.

WESTERNERS FIND HONG KONG AN EASY INTRODUCTION TO ASIA.

ARRIVING AT THE CITY'S ULTRAMODERN AIRPORT, YOU'LL QUICKLY DISCOVER THAT ALL SIGNS HERE, AS WELL AS IN THE CITY, ARE IN BOTH ENGLISH AND CHINESE.

AND MOST BUSINESSES CATER TO ENGLISH SPEAKERS.

TO BEGIN, WE'LL HIT HONG KONG'S NUMBER-ONE TOURIST ATTRACTION: THE TRAM THAT CLIMBS VICTORIA PEAK.

THIS IS THE WORLD'S STEEPEST FUNICULAR RAILWAY AND IT FEELS LIKE IT.

BEFORE THE TRAM WAS BUILT, A RIDE UP TO THE PEAK MEANT A 3-HOUR TRIP BY SEDAN CHAIR.

BY 1888, THE TRAM HAD REDUCED THAT TIME TO ABOUT 7 MINUTES.

IN THE EARLY DAYS OF COLONIAL RULE, BEFORE AIR CONDITIONING AND REFRIGERATION, THE BRITISH DISCOVERED THEY COULD GET RELIEF FROM THE HEAT BY LIVING UP HERE ON THE TOP OF VICTORIA PEAK.

ONLY SOCIETY'S UPPER CRUST WAS ALLOWED TO BUILD HOUSES AT THESE LOFTY HEIGHTS.

TO THIS DAY, SOME OF HONG KONG'S MOST EXPENSIVE HOMES ARE HERE.

FOR VISITORS LIKE US, THE LOOKOUT PROVIDES MAGNIFICENT VIEWS OF THE CITY AND HARBOR.

WONG TAI SIN IS HONG KONG'S MOST POPULAR TAOIST TEMPLE.

IT WAS NAMED AFTER A LEGENDARY SHEPHERD WHO ACQUIRED A POWERFUL ART OF HEALING.

CHINESE TEMPLES ARE TYPICALLY ARE BUILT WITH RED PILLARS, GOLDEN ROOFS, AND MULTICOLORED CARVINGS.

HONG KONG ESCAPED THE RELIGIOUS REPRESSION THAT SPREAD THROUGH COMMUNIST CHINA DURING MUCH OF THE 20th CENTURY.

WHILE MANY TEMPLES WERE DESTROYED ON THE MAINLAND, HUNDREDS HERE REMAINED INTACT.

TRADITIONAL CHINESE RELIGIOUS PRACTICES OFTEN WEAVE TOGETHER ELEMENTS OF TAOISM, BUDDHISM, AND OTHER ANCIENT BELIEF SYSTEMS, SOMETHING THE CHINESE DON'T FIND INCOMPATIBLE.

THERE IS NO SPECIAL DAY SET ASIDE FOR WORSHIP; PEOPLE SIMPLY STOP BY A TEMPLE WHENEVER THEY WANT TO PAY THEIR RESPECTS OR FEEL THE NEED FOR SPIRITUAL GUIDANCE.

TAO ESSENTIALLY MEANS "THE WAY OF THE UNIVERSE."

TAOISTS BELIEVE THAT THERE ARE MANY DIFFERENT GODS WHO ACTIVELY INTERVENE IN DAILY LIFE.

BELIEVERS TRY TO HONOR THE GODS WITH INCENSE AND OTHER OFFERINGS IN ORDER TO ATTAIN GOOD FORTUNE.

SINCE TAOISTS BELIEVE IN LUCK, YOU'LL OFTEN FIND FORTUNE-TELLERS AT THESE TEMPLES.

THEY MIGHT READ PALMS AND STUDY FACIAL FEATURES, AS WELL AS CONSULT ASTROLOGICAL BIRTH CHARTS AND FORTUNE CARDS.

>> YOU KNOW, YOU ARE GOING TO LIVE A VERY LONG LIFE?

DO YOU KNOW THAT?

>> NO, I DIDN'T KNOW THAT.

>> AH, HA, HA.

YOU SEE, THIS CAREER LINE IS VERY LONG.

NOW, YOU SEE?

>> SO I'M GOING TO WORK FOR DECADES MORE.

>> AH, YES, AH.

>> IS THAT GOOD NEWS?

I'M NOT SURE.

>> OH, BECAUSE, OK, YOU ARE ACTIVE PERSON.

>> YES.

>> YOU DON'T WANT TO SIT LAZY AT HOME.

>> NO, NO.

>> SEE, SEE, THE RED COLOR?

>> MM-HMM.

>> THE RED COLOR, THAT MEANS TOO MUCH HEAT INSIDE YOUR BODY.

>> I SEE.

>> THIS [INDISTINCT] MEANS THE BLOOD CIRCULATION IS NOT VERY STRONG.

>> HER CONSULTATION ALSO CAME WITH A FEW CAVEATS ABOUT MY HEALTH.

>> AH, HA, HA, HA.

>> SO, NO COFFEE, NOT A LOT OF SALT, MORE EXERCISE--WHAT A SURPRISE--AND THINGS LOOK OK. >> AH, HA, HA, CERTAINLY.

>> THANK YOU, [INDISTINCT] THANK YOU VERY MUCH.

>> WELCOME.

>> HONG KONG'S EFFICIENT TRANSPORTATION SYSTEM INCLUDES TRAMS AND BUSES, AN EXCELLENT SUBWAY SYSTEM, AND REASONABLY PRICED TAXIS.

BUT MY FAVORITE TRANSPORTATION BARGAIN IS THE STAR FERRY.

THESE GREEN AND WHITE FERRIES HAVE LINKED HONG KONG ISLAND WITH THE KOWLOON PENINSULA FOR THE PAST 100 YEARS.

THE JOURNEY TAKES ABOUT 10 MINUTES AND TICKETS COST ONLY ABOUT A QUARTER.

AND WITH THESE VIEWS, IT'S OBVIOUS WHY THE FERRY IS ONE OF THE CITY'S MOST POPULAR ATTRACTIONS.

WHEN YOU'RE IN HONG KONG, MIGHT AS WELL DO AS THE LOCALS DO.

WHEN THEY'RE NOT WORKING, THEY'RE SHOPPING--SERIOUSLY.

FOR MANY, HONG KONG IS SYNONYMOUS WITH SHOPPING.

AND FOR GOOD REASON.

THE CITY IS A PRIME DISTRIBUTION CENTER FOR MUCH OF THE WORLD'S PRODUCTS.

IN FACT IT'S DIFFICULT TO FIND ANYPLACE HERE WHERE YOU CAN'T SHOP.

THOUSANDS OF MALLS, DEPARTMENT STORES, AND DESIGNER BOUTIQUES OFFER EVERY IMAGINABLE NAME-BRAND LUXURY, AS WELL AS FACTORY SECONDS AND DESIGNER KNOCKOFFS.

IN STARK CONTRAST ARE THE MANY TRADITIONAL OPEN-AIR MARKETS NESTLED IN AMONG THE TOWERING SKYSCRAPERS.

HERE, DEDICATED SHOPPERS HONE THEIR BARGAINING SKILLS.

SHOPPING IN HONG KONG EXTENDS FAR BEYOND BUYING LIFE'S NECESSITIES.

IT'S A RECREATIONAL AND SOCIAL ACTIVITY.

SO, UNLESS YOU'RE A COMMITTED NON-SHOPPER, BEST TO LEAVE A LITTLE EXTRA PACKING ROOM IN YOUR SUITCASE.

SO, APART FROM SHOPPING, WHAT'S HONG KONG'S MOST POPULAR PASTIME?

I'D PUT MY MONEY ON HORSE RACING.

HERE, BETTING ON THE PONIES ISN'T JUST A SPORT, IT'S A PASSION.

MILLIONS OF PEOPLE FOLLOW THESE EVENTS AND THE AVERAGE BETTING TURNOVER PER RACE IS THE HIGHEST IN THE WORLD.

THE FIRST RACE WAS HELD HERE AT THE HAPPY VALLEY TRACK MORE THAN 150 YEARS AGO, AND THE TRACK EVEN REMAINED OPEN DURING THE JAPANESE OCCUPATION OF THE CITY IN THE 1940s.

UNTIL RECENTLY, HORSE RACING WAS THE ONLY LEGAL FORM OF GAMBLING IN HONG KONG.

AND, WITH AN ANNUAL TURNOVER EQUIVALENT TO MORE THAN A BILLION U.S.

DOLLARS, THE SPORT OF KINGS DEFINITELY REIGNS.

THE HONG KONG TOURIST BOARD'S "CULTURAL KALEIDOSCOPE" PROGRAM MAKES IT REALLY EASY TO GET A CRASH COURSE IN CHINESE CULTURE.

EVERY DAY, YOU CAN TAKE A DIFFERENT WORKSHOP ON IMPORTANT TRADITIONS THAT WILL HELP YOU MORE FULLY APPRECIATE YOUR VISIT HERE.

AND BEST OF ALL, THE CLASSES ARE FREE.

FOR EXAMPLE, ONE DAY YOU CAN LEARN HOW TO DO TAI CHI.

>> NEXT PATTERN.

TURNING AND LOOKING AT THE MOON.

ABOUT 45 DEGREES [INDISTINCT] TO YOUR LEFT AND RIGHT SIDE.

LET YOUR PALMS FACE EACH OTHER.

>> ANOTHER DAY, YOU CAN TAKE A CLASS IN THE ANCIENT DESIGN METHOD OF FENG SHUI.

>> GOOD MORNING, EVERYBODY, AND WELCOME TO HONG KONG AND WELCOME TO OUR FENG SHUI CLASS THIS MORNING.

>> LITERALLY TRANSLATED AS "WIND WATER," FENG SHUI DESCRIBES HOW HOMES AND WORKSPACES CAN BE DESIGNED TO ACHIEVE HARMONY WITH THE SPIRITS OF NATURE.

>> THERE ARE DIFFERENT KINDS OF NATURAL FORCES AND ENERGIES IN OUR ENVIRONMENT.

WE CALL THESE NATURAL FORCES, OR ENERGIES.

THEY'RE CHI.

>> MOST HONG KONG CHINESE BELIEVE IN ALIGNING WALLS, FURNITURE, AND OBJECTS TO CREATE A NATURAL FLOW OF ENERGY THROUGH THEIR HOUSES.

I WAS CURIOUS ABOUT CHINESE MEDICINE, SO I SIGNED UP FOR A WORKSHOP WITH AN HERBALIST.

>> IN CHINESE MEDICINE, EVERYTHING IS CONSIDERED TO HAVE THE CHARACTERISTICS OF EITHER YIN OR YANG.

FOR EXAMPLE, HERBS THAT ARE COLD [INDISTINCT] ARE REGARDED AS YIN MEDICINE, AND HERBS THAT ARE HOT IN NATURE ARE REGARDED AS YANG MEDICINES.

>> ACCORDING TO THIS TRADITION, HUMAN ORGANS AND TISSUES ALSO HAVE ATTRIBUTES OF YIN AND YANG.

WHEN THESE FORCES ARE OUT OF BALANCE, A PERSON WILL DEVELOP SYMPTOMS OF DISEASE.

CERTAIN HERBS ARE THOUGHT TO RESTORE HARMONY.

A LEGACY OF SHIPPING AND TRADE HAVE MADE HONG KONG THE CITY IT IS TODAY.

AN INTERESTING PLACE TO LEARN ABOUT SOUTH CHINA'S SEAFARING PAST IS THE MARITIME MUSEUM IN STANLEY.

HONG KONG'S DEEP AND PROTECTED HARBOR HAS BECKONED VESSELS SINCE ANCIENT TIMES.

BUT IN THE 20th CENTURY, THE SHIPPING INDUSTRY MUSHROOMED.

IN 1900, AN ESTIMATED 11,000 SHIPS DOCKED HERE.

WITHIN 10 YEARS, THAT NUMBER HAD DOUBLED.

HONG KONG CONTINUES TO IMPRESS THE BUSINESS WORLD WITH ITS IMPORT/EXPORT PROWESS.

>> THE SINGLE MOST FASCINATING THING IS PROBABLY A PRESENT-DAY STATISTIC--THAT HONG KONG'S LITTLE KWAI CHING CONTAINER PORT, ABOUT A KILOMETER BY A KILOMETER AND A HALF, HAS THE ANNUAL THROUGHPUT CAPACITY OF EVERY SINGLE CONTAINER PORT OF THE WEST COAST OF THE USA PUT TOGETHER.

>> WOW.

NO QUESTION, THIS MARITIME MUSCLE IS NOT TO BE TRIFLED WITH.

>> YES, IT'S HARD FOR FOLK TO KNOW HOW BIG A REALLY BIG SHIP IS, AND TO SHOW THEM, WE TOOK HONG KONG'S TALLEST BUILDING, 420 METERS, 86 STORIES, AND STOOD THE WORLD'S LARGEST SHIP ON ITS STERN RIGHT NEXT DOOR TO IT.

BIG SHIPS ARE VERY, VERY BIG.

>> ALL OF THE COMMERCE ROLLING THROUGH THIS PORT CREATES PLENTY OF DEMAND FOR HIGH-END HOTELS.

WHILE HONG KONG IS GENERALLY INEXPENSIVE, HOTEL COSTS ARE ON PAR WITH MAJOR AMERICAN AND EUROPEAN CITIES.

THE HOTTEST NEW PLACE TO STAY IS THE LANDMARK MANDARIN ORIENTAL, WITH A GREAT LOCATION RIGHT IN THE MIDDLE OF THE CENTRAL SHOPPING DISTRICT.

THE STATE-OF-THE-ART ROOMS HAVE SOPHISTICATED ELECTRONICS AS WELL AS MARBLE BATHS.

AND THE ORIENTAL SPA OFFERS THE ULTIMATE IN RELAXATION.

VISITORS WHO ANTICIPATE NOTHING BUT SHOPPING AND CROWDS ARE OFTEN SURPRISED AT HONG KONG'S ABUNDANCE OF OPEN SPACE AND NATURAL BEAUTY.

IF YOU'RE WILLING TO EXPLORE BEYOND THE HIGH-RISE JUNGLE OF DOWNTOWN, YOU'LL DISCOVER THAT MUCH OF THE REGION IS MADE UP OF RURAL COUNTRYSIDE AND UNSPOILED COASTLINE.

THERE ARE PLENTY OF EASY DAY-TRIPS.

WE'RE CHECKING OUT SAI KUNG, AN ENORMOUS COUNTRY PARK POPULAR WITH LOCALS, AS WELL AS THE CULTURALLY RICH ISLAND OF LANTAU.

BEFORE 1970, SAI KUNG PARK WAS A REMOTE AREA THAT COULD ONLY BE REACHED BY FOOT OR ON FERRY.

THEN, DEVELOPMENT OF A HUGE NEW RESERVOIR BROUGHT IN SEVERAL ROADS AND OPENED UP EASY RECREATION FOR HONG KONG'S WORKAHOLIC RESIDENTS.

RELATIVELY UNKNOWN BY TOURISTS, THE PARK CAN BE REACHED BY A 20-MINUTE TAXI RIDE OR BY LOCAL BUS.

LOCATED NEAR THE EDGE OF THE PARK, THE TOWN OF SAI KUNG IS A BUSY MARKETPLACE AND CONVENIENT GATHERING SPOT FOR FISHERMEN AND LOCAL VILLAGERS.

YOU CAN EASILY HIRE A SAMPAN BOAT AND TAKE A RELAXING RIDE THROUGH THE SERENE WATERWAYS.

LOOKING AT THESE LITTLE ISLANDS, IT'S EASY TO IMAGINE HOW HONG KONG ISLAND ITSELF MUST HAVE LOOKED, BEFORE THE BRITISH TOOK CONTROL IN 1842.

FOR THOUSANDS OF YEARS, THIS WAS A QUIET, REMOTE CORNER OF CHINA OCCUPIED BY SMALL SETTLEMENTS OF FISHERMEN AND FARMERS, AND THE OCCASIONAL BAND OF PIRATES.

BACK IN SAI KUNG TOWN, DON'T MISS A CHANCE FOR ONE OF THE BEST SEAFOOD MEALS ANYWHERE IN HONG KONG.

MANY RESTAURANTS LINE THE PIER OFFERING TANKS WITH YOUR PICK OF FISH AND SHELLFISH.

JUST POINT OUT WHAT YOU WANT, AND THE RESTAURANT WILL COOK IT TO ORDER.

WHAT ABOUT ONE OF THE SOUTH CHINA SEA LOBSTERS?

THE GREEN ONES?

AND YOU WILL COOK IT FOR US FOR DINNER.

EXCELLENT!

EXCELLENT.

ALL RIGHT.

THANK YOU.

MY FRIEND AND TOUR GUIDE DENNY IP HAS THE INSIDE TRACK ON GREAT LOCAL FOOD.

>> NOW, CANTONESE COOKING IS ABOUT FRESHNESS.

>> RIGHT.

>> SO, THEREFORE, CANTONESE CUISINE ARE QUITE MILD TASTES.

>> WELL, THIS WAS SWIMMING 10 MINUTES AGO, SO WE KNOW IT'S FRESH.

>> YES, THAT'S RIGHT.

SO THE TASTE IS QUITE MILD BECAUSE WE WANT TO TASTE THE FRESHNESS OF [INDISTINCT].

ONE THING VERY IMPORTANT ABOUT CHINESE CUISINE IS IF THE FOOD HAS ITS TASTE, WE BRING THE TASTE OUT.

IF THE FOOD HASN'T HAD A TASTE, WE BRING THE FLAVOR IN.

>> WELL, THIS HAS GOT A LOT OF TASTE.

IT REALLY DOES--I MEAN, IT'S REALLY GORGEOUS.

>> THAT IS WHY THAT WE SPECIALLY COME TO SAI KUNG JUST FOR THE FRESH SEAFOOD.

>> I WANT TO MOVE TO SAI KUNG.

MY KIND OF TOWN, SAI KUNG.

ANOTHER GREAT DAY TRIP IS AN EXCURSION TO ONE OF HONG KONG'S MANY OUTLYING ISLANDS, AND LANTAU ISLAND IS AT THE TOP OF THAT LIST.

AN HOUR-LONG FERRY RIDE TAKES US TO THIS LARGE, MOUNTAINOUS ISLAND FILLED WITH EVOCATIVE SCENERY AND INTERESTING SITES.

THE FERRY DOCKS IN SILVERMINE BAY, WHERE YOU CAN RENT A BICYCLE FOR A FEW DOLLARS AND SET OFF ON THE FLAT ROADS THROUGH THE TOWN.

HERE YOU'LL GET A SLICE OF TRADITIONAL CHINESE VILLAGE LIFE, WITH CROPS GROWING IN FIELDS AND LOCALS ENJOYING A GAME OF MAH JONGG.

LANTAU ISLAND IS TWICE THE SIZE OF HONG KONG ISLAND, AND YET IT'S LARGELY UNDEVELOPED.

TO SEE LANTAU'S MOST FAMOUS SITES, YOU'LL HAVE TO EITHER HOP A LOCAL BUS OR, IF YOU WANT MORE FLEXIBILITY, HIRE A TAXI.

NO OUTSIDE CARS ARE ALLOWED ON THE ISLAND, AND EVEN RESIDENTS ARE RESTRICTED FROM DRIVING DURING CERTAIN HOURS.

THE ISLAND'S STEEP INTERIOR HILLS HOLD ONE OF HONG KONG'S PREMIER ATTRACTIONS-- THE GIANT BUDDHA.

UNVEILED IN 1993, IT'S SAID TO BE THE LARGEST OUTDOOR SEATED BRONZE BUDDHA IN THE WORLD AND TOWERS 112 FEET HIGH.

FEW STATUES HAVE SUCH A POWERFUL IMPACT AS THIS ENORMOUS BUDDHA WITH ITS SERENE EYES AND RAISED HAND, READY TO DELIVER A BLESSING.

YOU HAVE TO CLIMB SOME 260 STEPS TO REACH THE STATUE, BUT IT'S WORTH IT.

THE BUDDHA WAS BUILT ON THE SITE OF THE PO LIN MONASTERY, HOME TO A DEVOUT COMMUNITY OF BUDDHIST MONKS.

BUDDHISM WAS INTRODUCED INTO CHINA ALMOST 2,000 YEARS AGO FROM INDIA.

THE CHINESE MINGLED TRADITIONAL BELIEFS, SUCH AS CONFUCIANISM AND TAOISM, WITH BUDDHIST PRINCIPLES OF PEACE AND ACCEPTANCE.

BUDDHISTS SEEK ENLIGHTENMENT IN ORDER TO MOVE BEYOND LIFE'S SUFFERING, AND THE MONKS HERE LIVE QUIET LIVES OF MEDIATION.

AFTER CLIMBING ALL OF THOSE STEPS, WE'RE IN NEED OF A LUNCH BREAK.

THE MONASTERY'S ONLY RESTAURANT IS INEXPENSIVE AND STRICTLY VEGETARIAN.

HERE YOU'LL EAT AS THE MONKS DO, WITH TEA, SPRING ROLLS, AND TASTY ALL-VEGETARIAN DISHES.

ON THE WESTERN SIDE OF LANTAU ISLAND, WE DISCOVERED THE PICTURESQUE TOWN OF TAI O.

SOME REFER TO IT AS "HONG KONG'S VENICE" BECAUSE THE TOWN FEATURES MANY CRISSCROSSING WATERWAYS, AND THE ONLY REAL TRANSPORTATION IS BY BOAT.

TAI O MANY SMALL HOUSES ARE BUILT OVER THE WATER ON STILTS.

ALONG THE BANKS OF THE CANAL, VILLAGERS CLEAN FRESH FISH, AND THE FISHERMEN STILL SUN DRY THEIR CATCH USING TRADITIONAL TECHNIQUES.

SPREADING OUT NORTH OF THE KOWLOON PENINSULA, THE AREA THAT CONNECTS HONG KONG TO MAINLAND CHINA IS KNOWN AS "THE NEW TERRITORIES."

THERE ARE LOADS OF FASCINATING HISTORICAL SITES TO CHOOSE FROM.

WE'LL SAMPLE JUST A FEW OF THEM.

THE NEW TERRITORIES ARE A KIND OF LIVING MUSEUM OF CHINESE HERITAGE.

IN 1898, TO CREATE A BUFFER BETWEEN THEMSELVES AND THE MAINLAND, THE BRITISH LEASED THE AREA FROM CHINA FOR A PERIOD OF 99 YEARS.

AS THE EXPIRATION DATE OF THE LEASE NEARED, TALKS BETWEEN THE UK AND THE PEOPLE'S REPUBLIC OF CHINA HEATED UP.

BRITAIN AGREED NOT ONLY TO RETURN THE NEW TERRITORIES TO CHINA, BUT ALSO ALL OF HONG KONG.

PART OF THAT AGREEMENT WAS THAT FOR 50 YEARS, HONG KONG AND ITS OUTLYING AREAS WOULD BE CONSIDERED A SPECIAL ADMINISTRATIVE REGION, AND WOULD BE ALLOWED TO CONTINUE OPERATING UNDER A FREE-MARKET SYSTEM.

ONCE RURAL AND UNDEVELOPED, THE NEW TERRITORIES ARE UNDERGOING RAPID CHANGE.

BUT, ALTHOUGH ENORMOUS HOUSING PROJECTS ARE SPRINGING UP AT A STAGGERING RATE, YOU CAN STILL FIND QUIET VILLAGES THAT FOSTER TIME-HONORED TRADITIONS.

THE CHINESE VENERATE THEIR ANCESTORS, AND YOU'LL FIND ANCESTRAL HALLS THROUGHOUT THE AREA.

THIS HALL, NEAR HANG MEI VILLAGE, BELONGED TO THE TANG CLAN, ONE OF THE 5 GREAT CLANS OF HONG KONG.

MIGRATING HERE FROM CHINA'S NORTH CENTRAL PLAIN, THESE CLANS DOMINATED THE REGION FOR HUNDREDS OF YEARS.

EVEN TODAY, THEIR DESCENDANTS WIELD POLITICAL AND ECONOMIC CLOUT.

THIS HALL WAS BUILT ABOUT 700 YEARS AGO AND CONTAINS THE SOUL TABLETS OF CLAN MEMBERS.

MOST CHINESE BELIEVE THAT, IN THE AFTERLIFE, ANCESTORS HAVE SPECIAL POWERS THAT CAN INFLUENCE THE FATE OF LIVING DESCENDANTS.

FARTHER EAST IN THE NEW TERRITORIES, WE CAN WALK THROUGH LO WAI WALLED VILLAGE.

THIS WAS THE FIRST WALLED VILLAGE BUILT BY THE TANG CLAN.

RURAL VILLAGES WERE OFTEN BUILT INSIDE A PROTECTIVE WALL AS A DEFENSE AGAINST WILD ANIMALS, BANDITS, AND RIVAL CLANS.

PEOPLE LIVING IN THE WALLED VILLAGES WERE USUALLY LARGE, EXTENDED FAMILIES.

AT ONE TIME, 600 PEOPLE CROWDED INTO THIS VERY SMALL AREA.

TODAY, THE VILLAGE IS OCCUPIED BY A FEW DOZEN RESIDENTS.

MANY OF THE YOUNGER PEOPLE LEAVE THE VILLAGE LOOKING FOR WORK AND NEW OPPORTUNITIES, NEVER TO RETURN.

LOCATED IN THE VILLAGE OF LAM TSUEN, THIS WISHING TREE IS SAID TO HAVE MAGICAL POWERS.

DURING CHINESE NEW YEAR, THOUSANDS OF HONG KONG PEOPLE MAKE A PILGRIMAGE TO THIS SPOT SO THAT THEY CAN HANG THEIR WISHES ON THIS CELEBRATED BANYAN TREE.

HOW DOES IT WORK?

WELL, YOU BUY SPECIAL, COLORFUL PAPER THAT'S ATTACHED TO AN ORANGE.

THEN YOU WRITE YOUR NAME AND YOUR WISH ON IT.

TO KEEP FROM OVERSTRAINING THE TREE BRANCHES, VISITORS ARE ENCOURAGED TO HANG THEIR WISHES ON THESE NEARBY WOODEN POSTS.

BUT THE MAGIC IS SAID TO BE JUST AS POWERFUL.

HONG KONG HAS SO MANY FACES.

THE CACOPHONY OF DOWNTOWN STREETS, THE SOLITUDE OF LITTLE HARBORS, AND THE MANY SACRED RITUALS.

LIKE PLUMES OF INCENSE, THEY PERMEATE THE SENSES AND LEAVE MEMORIES THAT LINGER ON.

I HAVE ONE MORE WISH TO MAKE: THAT IT WON'T BE LONG UNTIL I'M BACK IN HONG KONG.

HERE'S HOPING ALL YOUR TRAVEL WISHES COME TRUE.

I'M RUDY MAXA.

JOI GIN.

>> TO ORDER THE TWO-EPISODE DVD OR VHS ON SHANGHAI AND HONG KONG, OR ANY OTHER "SMART TRAVELS" DESTINATIONS, PLEASE VISIT US ONLINE AT SMARTTRAVELS.TV, OR CALL 800-866-7425.

DVDs AND VIDEOS ARE $24.95 EACH PLUS SHIPPING.

EACH DVD INCLUDES MORE THAN AN HOUR OF EXCLUSIVE BONUS CLIPS AND RUDY'S TRAVEL TIPS.

ORDER AT THIS TOLL-FREE NUMBER OR ONLINE.

>> MAJOR CORPORATE SUPPORT FOR "SMART TRAVELS WITH RUDY MAXA" IS PROVIDED BY... OVER THE YEARS, PUBLIC TELEVISION HAS SHOWN YOU THE WORLD, EDUCATED YOU ABOUT IT, AND INSPIRED YOU TO SEE IT FOR YOURSELF.

EXPEDIA CAN HELP YOU GET THERE WITH FLIGHTS, HOTELS, AND VACATION PACKAGES.

"SMART TRAVELS WITH RUDY MAXA" IS BROUGHT TO YOU IN PART BY THE PEOPLE AT EXPEDIA.

>> ADDITIONAL SUPPORT FROM MEDJETASSIST.COM.

MEDICAL EVACUATION MEMBERSHIP PROTECTION FOR TRAVELERS.

TAKE TRIPS, NOT CHANCES.

ADDITIONAL SUPPORT FROM CATHAY PACIFIC.