Hong Kong's struggles with the pandemic - in all facets of life - have been well documented. Aside from struggles from an epidemiological standpoint, one of the more clear and well-known issues has been with the economy. March 2022 saw Hong Kong drop 4% in its Gross Domestic Product in the first quarter of 2022. A once thriving metropolis was diminished into a shell of its former self, devoid of the charm and tourism that led to its identity as 'Asia's World City'. It was clear to everybody involved that something had to change. Yet despite that, the government shocked the world with its decision to give away free airline tickets to Hong Kong, an entirely unprecedented move that will undoubtedly lead to many conversations in the months that follow.
What is it?
Along with the recent slashes to Covid restrictions, the government decided to stimulate tourism through the distribution of free airline tickets. It is exactly as the name suggests: a trip to and from Hong Kong paid for entirely by the government. The 500,000 tickets, worth around 2 billion HKD, were bought by the government to support Hong Kong airlines in 2020. Inevitably, the tickets would need to be used, and by giving them away it is clear that, at least ostensibly, the tickets are being put to good use. Scheduled to be distributed in 2023, it is currently unannounced through what channels of distribution the tickets be obtainable, but it will be available for tourist, commercial, and citizen use, thereby reinvigorating HK's place as both a tourist attraction and also a business haven, while also enabling Hong Kong residents to return home.
What necessitated such drastic action?
In short, the economy. Tourism amounts to around 4.5% of the GDP in Hong Kong and creates jobs for roughly 6.6% of the population. Hong Kong saw 56 million visitors in 2019, a 14.2% decline from 2018. This decline has only further increased at an even more alarming rate with only 184,000 visitors in the entirety of the first 8 months of the year. Now while the large majority of this was due to the pandemic, the effect of Hong Kong's persistence and monolithic nature to change, regarding quarantine and social distancing rules, cannot be understated. While the entirety of the world began to open up, Hong Kong remained closed. If coming to Hong Kong meant hotel quarantine and rigorous COVID testing, why would tourists choose to come here over other locations? This was extended to airlines as well, with Virgin Atlantic stopping operations in Hong Kong. This inevitably damaged not only tourism on a monetary level, but also implicitly, with the reputation of Hong Kong as a tourist destination also taking a hit. This was clearly unsustainable, and thus it was clear that the government had to act.
Will the giveaway work?
If restrictions were to end, then there is no reason it wouldn't - to a certain extent. As Prudence Lai, senior analyst at market research firm Euromonitor International, said to the BBC, "The pre-Covid status of Hong Kong represents the market potential of a full recovery," The precedent of Hong Kong being a strong tourist destination is there, the allure of the fusion between old culture and new modernity is still here - and thus there is no reason that Hong Kong should not return to what it once was.
But on the other hand, we have to consider that the reputation of Hong Kong as a tourist destination may be hindered more permanently than we anticipate. Both the events of 2019 and HK's response to Covid-19 may have altered its image in the eyes of the international tourist audience. In this way, the demand to come to Hong Kong may not be as high as the government hoped. Sure, people may come to Hong Kong with the novelty of free tickets. But what happens next? When push comes to shove, there is a chance less will come calling than hoped.
While this plan doesn't necessarily guarantee instant success, merely planting the seeds and giving tourists a glimpse of Hong Kong will ensure that it is all worth it. Nevertheless, we will have to wait and see if such an audacious plan will bear fruit, but for the sake of Hong Kong and its identity, let's hope that it does.
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Written by : Eric Wang
Edited by : Rachel yu
Graphics by : Alysha Lau
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