‘Play the long game’: experts weigh in on new travel permit to mainland China

Kevin Tsui Ka-kin, the chief economist at research firm Orientis, predicted there would be some impact on consumption in the city, but insisted it would be short-term.

He added the policy could attract more people from overseas to the city in the long run, which could also help broaden a talent pool dominated by people from the mainland.

“A lot of expatriates left during the pandemic. This could serve as a new incentive for them to come back to Hong Kong, which will be beneficial for local consumption and the overall business environment as well,” he said.

“But it would be great if the government could lower the threshold and, for example, let people that have not yet obtained permanent residency to apply for the visa to make it more attractive.”

Simon Lee Siu-po, an honorary fellow at the Asia-Pacific Institute of Business at the Chinese University of Hong Kong, said he believed the move would damage Hong Kong’s catering and retail businesses, which were already losing customers to the trend of spending across the border.

But Lee added the new policy would save time for travellers as they would no longer have to apply for visas separately and queue for manual checks at the border.

He said the policy also underlined the positive message that permanent residents were being treated on an equal footing.

Lee added that companies might also deploy non-Chinese staff to the mainland more often under the relaxed rules.

The two were speaking after the National Immigration Administration announced the new visa arrangements on Monday, which will allow permanent residents with foreign passports to travel to the mainland for investment, to visit relatives, and for tourism, business, seminars and exchanges, with stays of up to 90 days.

They will also be allowed to use self-service clearance at control points when they have completed procedures such as having their fingerprints taken.

The news came as it was revealed that Hong Kong’s retail sales had dropped 11.5 per cent year on year to HK$30.5 billion (US$3.9 billion) in May.

It was the second month in a row with a double-digit decrease, blamed on the continued trend towards increased spending across the border.

Allan Zeman, the chairman of entertainment and property giant the Lan Kwai Fong Group, said Beijing’s new deal would be a “game-changer” for business travellers.

“Chinese people could always go right through customs very quickly, but expats had to go and line up with tourists,” he added.

“They also had to have an invitation letter and hold it in their hands because sometimes the immigration officers are really tough, and so it delays everything, and even when you come back to Hong Kong … it kind of leaves a bad taste.”

Zeman said the arrangement would attract more companies to open offices in Hong Kong because doing business on the mainland would be easier.

“It just helps Hong Kong to attract new industries and new people, which is exactly what we need,” he added.

But he said he hoped authorities would lower the threshold as a next step and allow people who live in the city, but have yet to meet the seven-year residency requirement, to apply for the visa as well.

“It would be very, very helpful if any foreigner that has an ID card which has been approved by the immigration department could also apply for maybe another kind of visa where they can go on business trips without slowing down the process.”

Zeman added he was confident that Beijing’s opening of the door to more people from south of the border would not hit spending in Hong Kong.

He said many non-Chinese nationals with permanent residency would still stay in the city at weekends because China was a foreign country to many and Hong Kong was easier for them to get around.

Mer Singh, the operations manager at Ebeneezer’s Kebabs & Pizzeria, said he would apply for a multi-entry visa so he could visit Shenzhen and Foshan to buy crockery and furniture for the chain’s new restaurant and visit old friends.

Singh added he used to work on the mainland but had not been back for more than a decade because of strict visa rules which required early application and a long processing time.

“Now our new restaurant is coming, so I’m hoping I can get the visa very, very fast, and then I can visit there,” he said.

“If we could get the visa easily, maybe we can open a new branch there as well … because many Chinese people love our food.”

Hong Kong General Chamber of Commerce CEO Patrick Yeung Wai-Tim said many of his members were pleased about the new arrangement.

He added that the change could further cement Hong Kong’s standing as a smart city.

“It is definitely a good thing that can save travellers’ time in crossing the border and avoiding bureaucratic hassles,” Yeung said.

Additional reporting by Denise Tsang