[Salon] Key to Hong Kong’s success is to stay as China’s international city



https://www.scmp.com/opinion/hong-kong-opinion/article/3271870/key-hong-kongs-success-stay-chinas-international-city?module=top_story&pgtype=section

Key to Hong Kong’s success is to stay as China’s international city | South China Morning Post

28 Jul 2024
Lunchtime in Central on June 18. When it comes to drawing talent, Hong Kong must now focus its promotion efforts on North America, Europe and Australasia. Photo: Jelly Tse
Three of Hong Kong’s highest-scoring students in the recent Diploma of Secondary Education examinations attended the RTHK studio last Monday to discuss their results and aspirations. The young men, all from Diocesan Boys’ School, impressed with their demeanour. They were articulate about their next steps for study and employment.
Two were going into medicine, would attend university in Hong Kong then practise here after graduation. They were keen to pay back to the community that had nurtured them. The third, who wants to study urban planning, was deciding between a local and UK university.
It was encouraging that all three saw their future in Hong Kong; we want our best and brightest to stay. At the same time, we want them to have the broader international perspective that can only come from a long-term stay overseas, whether for study or work early in their career.

But the more successful we are in persuading our young people to get that international exposure, the greater the risk that other economies will attract them away. We must walk a fine line.

Hong Kong has a plethora of programmes to attract talent and capital from anywhere in the world. The main ones are the Top Talent Pass Scheme, Immigration Arrangements for Non-local Graduates, Quality Migrant Admission Scheme, and the Admission Scheme for Mainland Talents and Professionals. There is also the new Capital Investment Entrant Scheme (CIES).
Only one of these explicitly targets mainlanders. But all the signs are that qualified mainlanders are also applying successfully under the other schemes, coming direct from the mainland or other economies. For the Top Talent Pass Scheme, they accounted for more than 90 per cent of the admissions.
For the CIES, Hong Kong’s cash-for-residency scheme, more than 75 per cent of applicants were from Guinea-Bissau and Vanuatu. I mean no disrespect to the two countries when I say this seems unlikely to be the whole story.

Let me say right away that I see absolutely nothing wrong with this pattern. It is natural in every country for the most talented to congregate in the major cities for business, education, professional services, the arts and so on. In Britain, it is London and to a lesser extent, Birmingham and Manchester; in France, it is Paris plus Lyon and Marseilles; in Italy, Rome and Milan.

The United States and Germany both spread their activities among several different cities and because of its size, so does China. We are right up there with Beijing and Shanghai, and it is normal for us to attract our share of the best and brightest.

Moreover, since many of the arriving mainlanders already have the overseas exposure we need to maintain our cosmopolitan flavour, they fit right in.

So this is good, but it is not good enough. Hong Kong’s role is to be China’s international city. Last year’s tourism figures lay bare just how far we are falling short in this respect.
Mainland tourists visiting Golden Bauhinia Square, Wan Chai. Photo: Dickson Lee

Of the almost 34 million visitors we attracted last year, nearly 80 per cent were from the mainland and less than six per cent were from Western countries. This imbalance is beginning to correct itself this year, but far too slowly.

We all know the reasons for the sluggish recovery. We were the last major tourism destination to drop our Covid-19 controls. It was only in March last year that the requirement to mask up in public was cancelled. Memories of our stringent regime during the pandemic will take some time to fade.
Many Westerners who left Hong Kong during the three years of pandemic restrictions either went home or relocated elsewhere in Asia. For geopolitical reasons, Western countries are down on China at the moment and that, of course, affects us too. Incredibly, some even maintain travel warnings about Hong Kong, advising visitors to be cautious.

We must waste no time in getting the true story out there. In addition to the traditional business advantages of our city, which we are all familiar with and have plugged relentlessly, Hong Kong is a very safe place to live in, work in and visit. It has an extraordinary and beautiful landscape.

07:46

‘Hong Kong is my home’: Expats explain why they’re staying put

And importantly, from the perspective of the international business community, it is English-speaking. It is possible to survive here perfectly well for half a century with only a smattering of the local lingo – as I have.

But there are also areas where we could do better. We are still building far too many small homes. Nobody is going to settle here with a family in a flat of just 200-300 sq ft, when houses 10 times that size are available in their own countries, and cheaper too.

Education here is very expensive. We used to subsidise school fees at the English Schools Foundation by an amount which equated to the cost of educating a local child in a local school. Some years ago, for reasons still a mystery to me, the arrangement was scrapped. What can taxpaying foreign companies and senior executives expect for their money now?
Above all, we must focus our promotion efforts on North America, Europe and Australasia. We must restore the international balance to fulfil our national duty. This is a task for the whole community, we cannot just leave it to the Tourism Board, Trade Development Council and InvestHK. We have to all get out there, using all the tools at our collective disposal.

Mike Rowse is an independent commentator



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