Hong Kong
CNN
—
China will fully reopen its borders with the special administrative regions of Hong Kong and Macao next week, which is expected to be a major boost to the two cities’ economies.
From Monday, travelers entering mainland China from Hong Kong or Macao will no longer need to provide proof of a negative Covid test result, as long as they have not traveled abroad. last week, the State Council’s Hong Kong and Macao Affairs Office said in a Friday statement. Daily quotas on the number of tourists will also be eliminated.
The resumption of normal travel is expected to greatly support the struggling economies of the two cities. Hong Kong is a major international financial center, and before the pandemic, Macao was the casino capital of the world.
Hong Kong’s economy contracted last year, according to preliminary government datadown 3.5% from 2021. The city’s GDP fell 4.2% in the fourth quarter, significantly more than economists had forecast.
Over the past three years, restricting cross-border travel to mainland China has been listed as a top concern for businesses across the city, according to industry groups.
Enterprises Starting to feel relieved last month, when residents of Hong Kong and mainland China was allowed to continue two-way travel, without being quarantined.
In partial reopening, travelers are required to test negative for Covid-19 and book online for trips in advance under a daily quota system.
That is no longer necessary, Hong Kong Chief of Staff Chan Kwok-ki said at a news conference on Friday, adding that both sides will soon be able to return to “normal travel” often”.
According to Frederic Neumann, HSBC’s chief Asia economist, citing mainland Chinese tourist spending, when restrictions are lifted, Hong Kong could finally see growth. economic 3% or 4%.
Goldman Sachs analysts are also expecting the city to change soon.
“We remain optimistic about Hong Kong’s economic recovery,” they wrote in a note this week, adding that they were expecting 3.5% growth this year due to ” reopen the border with mainland China and remove most of the social distancing measures.”
Hong Kong is working to rebuild its condition as one global business center.
On Thursday, city leader John Lee announced the government would give away up to 500,000 free flight tickets to take home tourists, in what he calls “the biggest welcome the world has ever seen.”
