Under a scheme aimed at revitalizing Hong Kong’s economy, eight more Chinese cities have been permitted to send their residents to Hong Kong as individual travelers instead of in tour groups. This development is part of the broader efforts to aid Hong Kong’s recovery from the economic downturn triggered by a national security crackdown and the stringent COVID-related controls, which resulted in a significant decline in both local and expatriate populations and a stark reduction in tourist numbers compared to pre-pandemic levels.
The scheme, known as the “Individual Visit Scheme” (IVS), was initially launched in 2003. It was a collaborative effort between mainland China and Hong Kong, designed to enhance Hong Kong’s economic standing by allowing residents from mainland China to visit Hong Kong on an individual basis, foregoing the need to be part of a tour group. Until now, the program included 51 cities, and the recent addition includes cities such as Taiyuan in Shanxi Province, Hohhot in Inner Mongolia Autonomous Region, Harbin in Heilongjiang Province, Lhasa in Tibet Autonomous Region, Lanzhou in Gansu Province, Xining in Qinghai Province, Yinchuan in Ningxia Hui Autonomous Region, and Urumqi in Xinjiang Uygur Autonomous Region.
According to Hong Kong’s city leader, John Lee, these cities were selected because they are provincial capitals with substantial populations, economic growth, and high spending power, which could significantly contribute to Hong Kong’s tourism sector.
Despite an official report showing 2.7% economic growth in the first quarter compared to the previous year, the atmosphere in local business areas remains subdued. Descriptions from local businesses paint a grim picture, portraying shopping malls as nearly empty and many storefronts displaying signs indicating they are available for lease or announcing upcoming openings. This sentiment is further echoed by statements from a lawmaker who informed the city’s legislature that over 20,000 companies had deregistered in the first quarter of 2024, marking an increase of over 70% from the same period the previous year.
The backdrop of these economic efforts is marked by the imposition of a sweeping national security law by China in 2020, following the pro-democracy protests in 2019. Additionally, in March, a new set of security laws was enacted, which has been criticized by some foreign governments as a move that further erodes rights and freedoms in the territory.
