Published: 01:17, May 24, 2024 | Updated: 09:44, May 24, 2024
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Expanded IVS brings more than economic benefits
By Sam Lai Nuen-san and Kacee Ting Wong

Giving full support to Hong Kong’s tourist sector is always at the top of the priority list of the central government. From May 27, visitors from eight more mainland cities will be able to visit Hong Kong and Macao without the need to join group tours under the expanded Individual Visit Scheme (IVS), including Taiyuan, Shanxi province; Hohhot, Inner Mongolia autonomous region; Harbin, Heilongjiang province; Lhasa, Xizang autonomous region; Lanzhou, Gansu province; Xining, Qinghai province; Yinchuan, Ningxia Hui autonomous region; and Urumqi, Xinjiang Uygur autonomous region. Visitors from these provincial or regional capitals can stay in Hong Kong or Macao for up to seven days at a time.

Eager to provide a timely shot in the arm to the city’s tourist sector, the central government introduced the IVS to help Hong Kong get through the toughest of times in the post-SARS period in 2003. It is worth recalling that the SARS outbreak had a devastating impact on Hong Kong’s economy. One night, the world-famous Peninsula Hotel had just three paying guests.

The expanded IVS has reinforced the perception that the central government will never abandon Hong Kong to its fate at a time of great economic difficulties. The expanded IVS is expected to bring great benefits to Hong Kong.

Economically, the expanded IVS is a timely godsend to help the city’s tourism industry navigate its way out of the low-growth trough and stormy geopolitical headwinds. The Labor Day Golden Week holiday reminds us that Hong Kong’s tourism industry is still struggling to recover, with the number of trips to the city over the holiday reaching only two-thirds of pre-pandemic levels. To make matters worse, budget-conscious travelers like to spend their nights in cheaper hotels across the border.

The expanded IVS is greeted with a dose of optimism because the program is expected to bring about 300,000 additional visitors to Hong Kong and generate up to HK$1.5 billion ($192 million) in additional revenue each year, with its spillover effects benefiting the retail, catering, hotel and other related industries of Hong Kong and Macao.

Taking a broader perspective, the expanded IVS is not just about tourism but also about fortifying the economic and trade relations between those cities and Hong Kong. Because of its geographical position, Xinjiang has established close economic ties with major Central Asian countries. The three major markets in Central Asia accounted for 47.2 percent of Xinjiang’s total exports in 2020. Harbin is also an important gateway to Russia.

Taking a broader perspective, the expanded IVS is not just about tourism but also about fortifying the economic and trade relations between those cities and Hong Kong

It makes little sense to assess the benefits of the expanded IVS by simply relying on economic data. We need to look at other benefits.

First, the program has strengthened the emotional bond between the central government and Hong Kong at a time when heightened economic and geopolitical challenges are the new order of the day. It is worth noting that the United States, Canada and Australia have issued travel advisories for the city over the enactment of national security laws. Chief Executive John Lee Ka-chiu has expressed gratitude to the central government for further expanding the IVS. Never before has a strong sense of national consciousness been in the city’s spotlight as much as it is now. The perceived rise of patriotism in the city is forged on the basis of deeper emotional ties and trust between the mainland and Hong Kong.

Second, the expanded IVS can promote two-way cultural exchanges between residents of Hong Kong and visitors of those eight cities. Together with the recent addition of Xi’an, Shaanxi province, and Qingdao, Shandong province, the expanded IVS will now cover 59 cities across the mainland, offering an opportunity for local creative and entertainment industries to introduce their cultural products to more mainland visitors. In addition to the K-wave, the T-wave is gaining popularity on the mainland because Thai dramas are being imported through streaming channels such as Tencent and iQiyi. Hong Kong’s creative and entertainment industries should not miss the boat.

The expanded IVS will also strengthen Hong Kong’s status as an aviation hub in the region. According to the Airport Authority, only four of the newly added cities have nonstop direct flights to Hong Kong. The authority said some airlines plan to resume direct routes between Hong Kong and Harbin from next month, and increase flights to Urumqi. It also encourages airlines to establish their own direct flights to those eight cities.

As Hong Kong Tourism Association Executive Director Timothy Chui Ting-pong has pointed out, setting up more direct travel routes also ensures the city can contribute to the country’s development drives. As an international financial center, Hong Kong can become a gateway that connects the inland west and northwest to the outside world. Chui further added that the IVS can make it easier for businesspeople from those eight cities to connect with the outside world and do business in Hong Kong.

Finally, the tourism industry should frame the expanded IVS as a blessing as well as a challenge. Chief Executive John Lee Ka-chiu urged the industry to be vigilant and adaptable, improve its quality, and strengthen the perseverance and strength of service providers. It is hoped that Hong Kong will introduce more policies to make the city more attractive to mainland visitors. One encouraging example is the recent proposal to introduce a new halal certification system, paving the way for the opening of more halal restaurants in the city. This proposal is aimed at catering to Muslim visitors from Xinjiang and Ningxia as well as visitors from Muslim countries around the world. The Tourism Board says the city has only 105 halal-certified restaurants, far fewer than the 4,000 halal restaurants in Singapore.

Sam Lai Nuen-san is secretary-general of The Society for the Coordination and Promotion of Eastern District, co-director of district administration of the Chinese Dream Think Tank, and a district councilor.

Kacee Ting Wong is a barrister, a part-time researcher of Shenzhen University Hong Kong and the Macao Basic Law Research Center, chairman of Chinese Dream Think Tank, and a district councilor.

The views do not necessarily reflect those of China Daily.