Since the Hong Kong Special Administrative Region government announced the first batch of low-altitude economy regulatory sandbox pilot projects on March 20, accelerating development in this emerging sector has dominated public discourse. The low-altitude economy, which is capable of spawning multiple industries and could become a new engine for economic growth, constitutes a critical “new frontier” that Hong Kong must urgently accelerate. Its advancement demands concerted government-stakeholder efforts to forge synergistic momentum.

Hong Kong holds three distinctive advantages in developing this sector.

First, the city’s geographical features — full of mountainous terrain — impose elevated logistics and temporal costs on ground transportation, creating a compelling case for intraisland and interisland transportation via low-altitude aircraft as a cost-optimized solution. Hong Kong, in comparison with numerous cities, manifests a more pronounced imperative to develop the low-altitude economy.

Second, the city’s high-end logistics sector harbors substantial potential, evidenced by robust demand for rapid and efficient delivery of high-value-added commodities, including luxury goods, medical supplies, and fresh food.

Third, the city boasts world-class research and development capabilities in drone systems and artificial intelligence from institutions like the University of Hong Kong and Hong Kong University of Science and Technology, which will provide strong support for development of the low-altitude economy with cutting-edge technologies and solutions.

But of course, being an emerging sector, the development of a low-altitude economy is not without risks and challenges, which demand rigorous attention. Four critical dimensions require particular attention:

Airspace management complexities must be tackled. Hong Kong’s constrained airspace is already struggling to cope with the existing densely clustered civil aviation routes. A more sophisticated airspace management regime is imperative as low-altitude vehicles proliferate. Anything less is a recipe for causing trouble or even disaster.

Elevated technical and safety thresholds are required: The city’s dense high-rises and complex electromagnetic environment dictate stringent requirements for drone navigation, obstacle avoidance, and communication systems.

Regional industrial competition should be properly handled. Shenzhen, Guangzhou and other cities in the Guangdong-Hong Kong-Macao Greater Bay Area have established a lead in drone-industry development, enjoying first-movers’ advantage in the low-altitude industry chain. Hong Kong must adopt a differentiated positioning strategy in developing its low-altitude sector.

Public acceptance is a crucial factor for success. Privacy concerns, noise pollution anxieties, and fear of accidents among residents need to be properly addressed.

Regional industrial competition should be properly handled. Shenzhen, Guangzhou and other cities in the Guangdong-Hong Kong-Macao Greater Bay Area have established a lead in drone-industry development, enjoying first-movers’ advantage in the low-altitude industry chain. Hong Kong must adopt a differentiated positioning strategy in developing its low-altitude sector

To propel the development of Hong Kong’s low-altitude economy, efforts should focus on five strategic directions:

Scientific spatial planning: Hong Kong must transcend its limited airspace and embrace the integrated airspace of the Greater Bay Area, fostering intercity coordination. Market segmentation, industrial layout, and airspace management in different Greater Bay Area cities should be complementary rather than conflicting. The creation of an “R&D in Hong Kong + intelligent manufacturing in Shenzhen + regionwide operation” industrial ecosystem is crucial to the successful development of a low-altitude economy, leveraging the advantages of each partner city in the region.

Timely legal reforms: While Hong Kong’s conservative approach to legal revisions ensures legal rigor and stability, laws must evolve to drive societal progress and improve public well-being along technological revolutions. Current aviation regulations, particularly the Civil Aviation Ordinance’s strict altitude and zonal restrictions on drones, urgently require amendments through either exemption clauses or specialized legislation.

Cross-border coordination: Given Hong Kong’s constrained territorial airspace and the operational necessity for drones to traverse Greater Bay Area airspace, complex challenges emerge encompassing airspace management and regulatory standards alignment. Consequently, robust coordination mechanisms between Hong Kong and Chinese mainland authorities become imperative. The establishment of the Working Group on Developing Low-altitude Economy, announced in Chief Executive John Lee Ka-chiu’s 2024 Policy Address, as well as the inception of the Greater Bay Area Low-Altitude Economy Alliance in September 2024, designed to coordinate stakeholders in advancing cross-border low altitude economy development across the Greater Bay Area, mark a positive beginning. Subsequent efforts ought to intensify collaboration between Guangdong province and Hong Kong.

Innovation advancement: The construction of drone logistics networks involves collaboration among e-commerce entities, medical institutions, landing sites, and various nodal points, requiring innovation in operational models; drone applications in building inspections, traffic monitoring, and environmental law enforcement, along with the development of cross-border express delivery, necessitate institutional innovation; the creation of projects such as low-altitude sightseeing tours over Victoria Harbour’s night vista and ecological monitoring in country parks demands technological innovation; the development of supporting industries such as data services, insurance, and maintenance calls for industrial innovation.

Public education: The proliferation of drone operations raises public concerns about potential community disruptions and other related issues, which demands government-orchestrated coordination with operators to conduct comprehensive advocacy campaigns, systematically dispelling misconceptions to foster societal receptiveness.

In a nutshell, the acceleration of low-altitude economic development requires concerted efforts from all stakeholders.

The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference and chairman of the Hong Kong New Era Development Thinktank.

The views do not necessarily reflect those of China Daily.