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Hong Kong economy
OpinionComment
Franklin Koo
Franklin Koo

Opinion | With mainland China border set to reopen, Hong Kong must rethink tourist policies

  • The relaxation of travel curbs will bring tourists, including those from the mainland, back to the city
  • Hong Kong must try to avoid a repeat of the post-Sars problems, such as a flood of parallel traders

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Tourists share a light moment at the Avenue of Stars on the Tsim Sha Tsui promenade in Hong Kong during the mini-golden week holiday on the mainland on May 2, 2019. Photo: Sam Tsang
Franklin Koo
After removing nearly all social distancing measures and announcing the aim of reopening the border with mainland China this month, Hong Kong is gradually returning to a semblance of normality. While these are positive moves, they could also mean that some pre-Covid problems could also make a comeback. This could be Hong Kong’s chance to rethink and reset certain policies.
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When the Individual Visit Scheme was introduced in July 2003 following the end of the severe acute respiratory syndrome (Sars) outbreak, empty streets became overcrowded with armies of parallel traders towing luggage between pharmacies and cosmetics shops. In capitalising on and catering to the influx of tourists from the mainland, there was a 1,500 per cent surge in the number of these shops between 2004 and 2013.

Seeing many cookie-cutter tenants reap greater profits thanks to the tourists, landlords were more than happy to increase their share of wealth by raising rents across the board, which meant forcing out less profitable shops that catered to the local community.

The plan to rescue the economy was simple. Opening the tap of tourists to fill Hong Kong’s tiny shot glass would revitalise the economy instantly.

But a shot glass can only hold so much. Once the glass is full, the uninterrupted flow of tourists would spill out uncontrollably, leaving behind a mess of stressed social infrastructure and resentment.

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When the tap became too addictive and profitable, no one could afford to slow down the flow. This tap not only quenched thirst, it had become an economic lifeline.

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