Lau stated the town needed to improve its competitiveness with new methods to draw traders and expertise, given huge disruption within the world provide chain amid rising US-China tensions.
“Western nations have diminished their reliance on China’s exports, whereas Hong Kong has been hit by an exodus of funding and expertise previously few years. Town wants to search out methods to faucet new markets and appeal to new traders and expertise,” Lau defined.
Lau was talking after the Hong Kong authorities introduced the border with mainland China would return to regular operations from subsequent Monday with pre-departure polymerase chain response (PCR) exams and the quota system dropped.
Three extra crossing factors – Lo Wu, Heung Yuen Wai and Lok Ma Chau – can even be reopened.
The one remaining pandemic measure for Hong Kong would be the masks mandate, which officers stated would stay in place as the danger of a winter surge in Covid-19 circumstances remained.
The border announcement got here solely a day after Chief Govt John Lee Ka-chiu kicked off a tourism marketing campaign he dubbed “the world’s greatest welcome ever”, with 700,000 free air tickets, vouchers and occasions to lure again travellers and traders.
The lifting of measures was anticipated to spice up the town’s battered financial system by producing a higher movement of individuals, funding and capital.
However analysts warned that it could take time, from at the least six months to greater than two years, for Hong Kong to revive the financial system.
Economist Simon Lee Siu-po, an honorary fellow on the Asia-Pacific Institute of Enterprise at Chinese language College, estimated that it could take at the least two years to return to pre-pandemic ranges.
He stated the town’s financial revival hinged on China’s choices, together with the visa coverage for travellers and businessmen.
“Hong Kong has lagged behind different locations by way of opening as much as worldwide journey whereas the way in which it has dealt with anti-government protesters has put it in a foul gentle globally,” Lee stated.
“Hong Kong is deemed as a stopover for travellers and traders to go to the mainland. However many have been postpone by China’s altering and stringent Covid-19 insurance policies previously. Buyers will wait and see if they need to return to China once more.”
Alfred Wu, an affiliate professor in Lee Kuan Yew Faculty of Public Coverage on the Nationwide College of Singapore, agreed Hong Kong wanted to spice up its enchantment to abroad professionals and traders.
“Whether or not Hong Kong can retain its attraction to expertise will depend on its political and institutional programs, together with the rule of regulation,” Wu stated.
Iris Pang, chief economist for Better China at monetary companies agency ING, predicted it could take at the least six months to see indicators of financial restoration, however Hongkongers would face issues with excessive inflation.
She added that extra folks would go to the Better Bay Space for alternatives.
“It takes time for varied industries to renew full service with enough manpower. However the rest will appeal to extra folks and traders to the Better Bay Space,” she stated.
Many mainlanders stated they have been thrilled over Hong Kong’s rest of restrictions and deliberate visits to the town.
Michael Chen, a Beijinger who deliberate to go to Hong Kong twice this yr, stated he was delighted that he didn’t have to undergo the ordeal of a protracted queue for a PCR take a look at once more.
He added he had waited nearly three hours to be examined earlier than a go to to the town final month.
“I used to go to Hong Kong yearly earlier than Covid-19 pandemic, however didn’t go for the previous three years, Chen stated. “I benefit from the go to and can go there once more for rest and buying.”
Li Feng, a Shenzhen resident whose daughter is at a Tin Shui Wai major faculty, stated he was happy to see the border reopen as a result of his daughter can cross the border for in-class educating once more.
“She had three years of college life in entrance of a pc. It has been very tough for her and for us,” Li stated.
Sze Lai-shan, deputy director of human rights group the Society for Group Organisation, suggested the federal government to regulate the movement of mainland tour teams and particular person travellers to keep away from potential issues.
“The federal government ought to focus on with the tourism business controls on the movement of solo travellers and mainland tour teams to cut back the potential conflicts between locals and mainlanders,” she stated. “There must also be some pleasant reminders to mainland vacationers concerning the ‘dos and don’ts’ in Hong Kong to cut back quarrels with locals.”
