The Effect of Recent Multi-Entry Permit Scheme of Mainlanders on Hong Kong Economy with an Emphasis on the Tourist Industry
1. Introduction
1.1 Background Basically, there are nine types of entry-permit arrangements for Mainland visitors to Hong Kong. They are Settlement, Official visits, Private visits, Transit, Employment in Hong Kong, Training in Hong Kong, Study in Hong Kong, Residence in Hong Kong, and Holders of foreign passports in the Mainland.1 The Individual Visit Scheme (IVS) is part of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), which was launched in 2003.2 Mainland visitors spent a huge amount of money in Hong Kong that fire up the recovery of HK’s economy, which was badly hit by the SARS outbreak in 2003. Under the IVS, entry permit scheme is implemented, which influences the four key industries of Hong Kong, such as financial services, tourism, trading and logistics, as well as product and professional service. 1.2 Assumption Since there was an Economic Crisis in 2008, the visitor arrivals in Hong Kong from other countries/ territories are decreasing since the year 2008 (Figure 1), except those visitors from Mainland China are increasing from year 2003 to year 2011 (Figure 2).
1 Arrangement for Entry to Hong Kong from Mainland China http://www.immd.gov.hk/ehtml/hkvisas_9.htm#settlement 2 2010 Update of CEPA's Impact on the Hong Kong economy (Individual Visit Scheme) http://www.tid.gov.hk/english/cepa/statistics/files/individual_visit.pdf
It is assumed that this is mainly because of the implementation of individual visit scheme that have motivated Mainland Chinese visitors to come, as well as both the legal and illegal attractions to Mainland China visitors. In the legal way, it can be viewed as the attractions of high quality goods (for example, luxury products, and infant formula); duty-free shops; and tourist attractions (for example, the Ocean Park and the Peak). In the illegal way, Hong Kong attracts numerous of traders coming here for buying goods and trade back to the Mainland. We will probe into these issues in the later
1.1 Background Basically, there are nine types of entry-permit arrangements for Mainland visitors to Hong Kong. They are Settlement, Official visits, Private visits, Transit, Employment in Hong Kong, Training in Hong Kong, Study in Hong Kong, Residence in Hong Kong, and Holders of foreign passports in the Mainland.1 The Individual Visit Scheme (IVS) is part of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), which was launched in 2003.2 Mainland visitors spent a huge amount of money in Hong Kong that fire up the recovery of HK’s economy, which was badly hit by the SARS outbreak in 2003. Under the IVS, entry permit scheme is implemented, which influences the four key industries of Hong Kong, such as financial services, tourism, trading and logistics, as well as product and professional service. 1.2 Assumption Since there was an Economic Crisis in 2008, the visitor arrivals in Hong Kong from other countries/ territories are decreasing since the year 2008 (Figure 1), except those visitors from Mainland China are increasing from year 2003 to year 2011 (Figure 2).
1 Arrangement for Entry to Hong Kong from Mainland China http://www.immd.gov.hk/ehtml/hkvisas_9.htm#settlement 2 2010 Update of CEPA's Impact on the Hong Kong economy (Individual Visit Scheme) http://www.tid.gov.hk/english/cepa/statistics/files/individual_visit.pdf
It is assumed that this is mainly because of the implementation of individual visit scheme that have motivated Mainland Chinese visitors to come, as well as both the legal and illegal attractions to Mainland China visitors. In the legal way, it can be viewed as the attractions of high quality goods (for example, luxury products, and infant formula); duty-free shops; and tourist attractions (for example, the Ocean Park and the Peak). In the illegal way, Hong Kong attracts numerous of traders coming here for buying goods and trade back to the Mainland. We will probe into these issues in the later