Hong Kong travel restrictions push 53 per cent of American Chamber of Commerce members to consider leaving on personal grounds, survey finds
- A recent survey by American Chamber of Commerce found travel restrictions were harming business sentiments among members, with one-third forced to delay investments
- Group president Tara Joseph says poll could be a ‘launch point’ for making city a top business destination
Covid-19 restrictions have pushed over half of the members of an influential American business group to consider leaving Hong Kong on personal grounds, with about one-third being forced to delay new investments, according to its poll.
Only 10 per cent of AmCham members said they were unlikely to quit the city while another 36 per cent remained neutral, the survey reported.
Conducted between September 10 and October 8, the poll found another 33 per cent were likely to leave the city for business reasons, while 7 per cent did not have an exit plan and 59 per cent remained neutral.
“I hope this survey will serve as a launch point for discussion and collaboration to make Hong Kong a top destination for businesses from across the world,” AmCham president Tara Joseph said.
However, 41 per cent of firm leaders said they were optimistic about Hong Kong’s business outlook, while 29 per cent planned to expand investments over the next two years, expressing confidence in transport and logistics, as well as financial services sectors.
The survey also found that 41 per cent of AmCham members said they had recorded year-on-year revenue growth at an average of 27 per cent in 2020.
On assessing future plans, only 5 per cent answered that they would definitely move their headquarters out of Hong Kong, with 47 per cent saying they were unsure and 48 per cent having no such plans.
While 48 per cent of those surveyed considered Hong Kong to be competitive as a global hub, 80 per cent of respondents said Singapore was the biggest threat to the city, given its strategic location and pro-business approach.
The survey also asked members if they felt that foreign businesses were less welcome in Hong Kong than in 2020, with 36 per cent agreeing and 57 per cent saying there was no change. But six out of 10 respondents answered that the government was either “unconcerned” or “dismissive” about business issues.
About 68 per cent of respondents said Hong Kong’s rule of law had worsened and another 48 per cent reported a lack of confidence in it.
Joseph said the survey showed US companies were still keen to do business in Hong Kong, especially in specific sectors such as finance.
“But the stringent travel restrictions are an overwhelming problem and with no signs of light at the end of the tunnel, it’s only getting more arduous,” she told the Post.
Joseph urged the government to learn to live with Covid-19 by opening up international travel.
“We really hope the government can understand that signalling a full-scale reopening plan is crucial,” she said. “So far we have seen flip-flops on restrictions. Covid-19 is going to be with us around the world for some time, so we need to learn to live with it.”
She said the survey reflected a worrying aspect that many individuals and companies believed the government was unconcerned and less welcoming to international business.
“We hope that trust and partnership can be rebuilt,” she said.