Two-thirds of passenger flights between Hong Kong and Taiwan would be replaced by direct cross-strait flights following full implementation of the 'three direct links' between the mainland and Taiwan, a study by a policy think-tank has concluded.
The study by the Bauhinia Foundation Research Centre also estimated that full implementation of the links would result in a 50 per cent reduction in air freight between Hong Kong and Taiwan.
But the five-month study, which was released yesterday, projected Hong Kong's annual gross domestic product would grow by an additional 0.94 of a percentage point - or HK$643 billion - by 2038 if the city formed a common market with the mainland and Taiwan.
The research centre, which is closely linked to Chief Executive Donald Tsang Yam-kuen, proposed Hong Kong and Taiwan introduce reciprocal visa-free treatment and relaxation of work visas, as well as sign an economic co-operation agreement to facilitate bilateral ties.
The think-tank's chairman, Anthony Wu Ting-yuk, suggested Mr Tsang visit Taiwan, adding that the two governments should set up reciprocal offices.
Zhu Wenhui, a senior research fellow with the centre, said Hong Kong would lose about 50 per cent of its air freight volume between the city and Taiwan following full implementation of air, sea and postal services between the island and the mainland.
