Weijian Shan

Opinion | Hong Kong must ditch its damaging Covid-19 hotel quarantine policy to restore the economy

With vaccination levels now among the world’s highest, Hong Kong is in a position to reconnect with the world, stem the economic pain and talent exodus, and start restoring its position as Asia’s financial hub and major tourist destination

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Weijian Shan

Published: 8:45am, 12 Jul 2022

Hong Kong is losing out to other Asian cities, particularly Singapore, as a financial hub and a tourist destination, all because of its hotel quarantine policy.

Services, including financial services and everything related to tourism such as airlines, hotels, restaurants, shops and entertainment, represent more than 90 per cent of Hong Kong’s economy. All are at risk.

For the last three years of 2019-2021, Hong Kong’s net outflow of people numbered 59,100. But in the first three months of this year alone, the number has reached 140,000.

The leading cause of the increase, according to media reports, is the quarantine policy. “If the situation looks like 2023 is going to be more of the same in Hong Kong – hotel quarantine restrictions, all that sort of stuff – we’re moving to Singapore,” one expatriate told CNBC. “It gets to a point where it’s just too much.”

How has the outflow turned from a trickle to a torrent this year, even though the government has cut the quarantine from three weeks to two in February and, further, to one week in April?

There are two reasons. The first is that most countries have lifted the Covid-19 restrictions that brought global travel to a standstill, and people can leave Hong Kong freely.