Hongkongers see few benefits from influx of mainland tourists

No country the size of Hong Kong, with a population of seven million, handles 54 million tourists a year. About 75 per cent of these visitors are mainlanders, and it is this geographical proximity and small physical size that should prompt the SAR government to limit tourist numbers.

Hongkongers do not discriminate against mainland tourists because they are from north of the border, but they do feel the adverse effects of 40 million mainlanders entering the city each year.

Yuen says Hong Kong is in danger of losing tourists to the likes of South Korea, Malaysia and Singapore. South Korea - about 90 times larger than Hong Kong - handles 11 million tourists a year, three million of whom are mainland Chinese. Malaysia is 300 times larger, with about 25 million tourists, two million of them mainlanders. Singapore had 15 million tourists in 2013, of whom 2.3 million were mainlanders.

These countries are a few flying hours from China and have generally higher taxes than Hong Kong; with taxation, tourism revenue benefits a wider spectrum of people there.

In low-tax Hong Kong, regardless of the high cost to society from inflation and overcrowding, retail tourism benefits mainly landlords, property developers and jewellery shops. Local neighbourhood shops and restaurants frequented by Hong Kong's grass roots are forced out by high rents.