After three years of effective shutdown, travelers and shoppers are expected back in droves and investment is flowing in, and stimulating tourism brightens the outlook for the entire region.
03.04.2023 | 09:30 Uhr
We believe the time is ripe to invest very opportunistically in Hong Kong and China, as reopening the second-largest economy positively impacts other markets throughout Asia-Pacific. Relaxed monetary and fiscal policies, easing COVID-19 restrictions, resuming tourism, and falling interest rates, are fueling China’s recovery. After three years of effective shutdown, travelers and shoppers are expected to return in droves, investment is beginning to flow in, and stimulating tourism brightens the outlook for the entire region. Tourism accounted for approximately 10% of the Asia-Pacific region’s gross domestic product in 2019 and 10% of jobs, according to the World Travel and Tourism Council.
Tourism accounted for approximately 10% of the Asia-Pacific region’s gross domestic product in 2019 and 10% of jobs, according to the World Travel and Tourism Council.
Cross-Border Travel Resumes Between Hong Kong, Macau, and China
Travelers from the mainland accounted for more than 75% of total visitors to Hong Kong pre-COVID-19 in 2019. While visitor arrivals to Hong Kong and retail sales still lag far below pre-pandemic levels, the resumption in issuance of tourism and business visas to Hong Kong and lifting quarantine for travel to the mainland are significant and will likely bolster consumer and business sentiment and activities. We anticipate a return of Chinese luxury shoppers will revive a major contribution to Hong Kong’s GDP after a three year absence.
The Hong Kong economy has dealt with dual shocks, as social unrest in 2019 coincided with the pandemic, hampering output and diverting government and private sector resources and attention away from longer-term plans. Absent further shocks, we believe there is opportunity for Hong Kong to focus on longer-term economic growth and development plans, such as the Northern Metropolis development strategy, a large-scale urban project introduced by the Hong Kong government for the northern districts bordering the city of Shenzhen, with a total land area of 30,000 hectares. Stronger connectivity and linkages will fuel greater economic growth and faster recovery, stimulating retail, tourism, gaming, residential real estate, and wealth management.
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