Hong Kong, mainland China in talks over bringing back multiple-entry visas for Shenzhen residents before Lunar New Year: government source

Government insider says resumption of scheme possible before Lunar New Year, but final decision has yet to be made
Liaison office director meets Guangdong party secretary, provincial governor to discuss ways to enhance cooperation and boost development of Greater Bay Area

Hong Kong tourism

Lo Hoi-ying

Published: 12:32pm, 11 Jan 2024

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Talks are under way between Hong Kong and mainland China to resume a multiple-entry visa scheme for Shenzhen residents before Lunar New Year, a government source has said, with the retail sector praising the potential move as a boost for the economy.

But the insider on Thursday also said a final decision had not been made yet, as many cross-border measures required further discussion with mainland officials.

“It’s possible [to resume the scheme before Lunar New Year],” the source said. “The government remains open to any measures that can help promote the city’s tourism industry.”

‘Beijing should let mainlanders visit Hong Kong more easily, boost duty-free’

The talks were held as the director of Beijing’s liaison office in Hong Kong, Zheng Yanxiong, went to Guangzhou to meet Guangdong party secretary Huang Kunming and the province’s governor, Wang Weizhong, to exchange views on ways to enhance cooperation and boost development of the Greater Bay Area.

Huang said he hoped the liaison office would continue to guide and support Guangdong in collaborating with Hong Kong to promote construction of the bay area, according to a statement from the office.

He added efforts should be made to strengthen the “hard connectivity” of infrastructure and the “soft connectivity” of systems and rules, accelerate the integration of the bay area market, deepen industrial and technological cooperation, and join hands in building a high-level talent hub in the region.

Zheng said they would continue to act as the “super liaison officer” and “super server”, and work with Guangdong to deepen cooperation in fields such as the economy, trade, science and technology. The bay area is Beijing’s scheme to link Hong Kong, Macau and nine Guangdong cities into an economic powerhouse.

Lawmaker Michael Tien says negotiations over multiple-entry visas may be complicated by Shenzhen not wanting to lose spending to Hong Kong. Photo: Jelly Tse

Lawmaker Michael Tien Puk-sun said he expected Hong Kong would bring back the visa scheme ahead of the holiday period in February, which would allow visitors from neighbouring Shenzhen to travel to the city more than the current once a week.

But Tien, who is also the convenor of political group Roundtable, said the negotiations could be complicated by Shenzhen not wanting to lose spending to Hong Kong.

“It’s something Hong Kong really wants, but it becomes a concern for Shenzhen as both sides need to boost their economy,” he said on a radio show. “If half of their population comes to Hong Kong to spend, this reduces their domestic consumption.”

No longer belle of the ball? Hong Kong faces stiff competition for tourism

The multi-entry visa scheme was introduced in 2009 to allow Shenzhen residents to make as many trips as they wanted to Hong Kong within a year. It was replaced by once-a-week visit permits in 2015 amid concerns over parallel trading and Hong Kong’s capacity to handle surges in single-day visitors.

“But now the situation is not balanced,” Tien said. “Hongkongers can go to the mainland as frequently as they wish, but mainlanders can only come once a week.”

He added that the current entry restrictions caused the city to lose out on tourist dollars over peak holiday periods, as many mainland visitors made day trips but could not return soon after they left.

How Hong Kong hopes to avoid repeat of New Year’s Eve’s border chaos

He referred to a recent incident where thousands of mainland visitors became stranded as they tried to return home from Hong Kong on New Year’s Day.

“Rooms were expensive or sold out, so mainland tourists had to leave,” he said. “But after they leave, they cannot re-enter the city. So even if the government organises many events throughout the holidays, tourists cannot come back to participate.”

More flexible entry requirements are not the only moves in the spotlight to boost tourism numbers and retail sales.

Hong Kong ‘steadfast’ in driving Northern Metropolis project as hub for bay area integration

North district councillor Ko Wai-kei echoed recent calls by Starry Lee Wai-king, the city’s sole delegate to the nation’s top legislative body, for the central government to increase the duty-free goods allowance for mainland visitors returning home from 5,000 yuan (US$702) to 30,000 yuan.

According to Chinese customs data, items exceeding the 5,000 yuan duty-free concession will be taxed from 13 to 50 per cent.

A 20 per cent duty is set to be levied on personal items, such as bags, watches and clothes, while jewellery, tobacco products and alcohol will be taxed at 50 per cent.

Tien raised the visa issue at a Legislative Council meeting on Wednesday, saying that while Hongkongers had been flocking to the mainland, the number of visitors coming from across the border had decreased significantly, which had dealt a heavy blow to local consumption.

Tourists at Victoria Harbour. Hong Kong’s retail sector says mainland Chinese visitors are spending less. Photo: May Tse

Raistlin Lau Chun, acting secretary for culture, sports and tourism, told lawmakers the government had been in close communication with mainland authorities, but had nothing to add “at this stage”.

The Hong Kong Department Stores and Commercial Staff General Union said a survey of 392 members between December 28 and January 5 showed that almost 70 per cent supported the resumption of the multiple-entry scheme, as the move would boost the local retail sector.

More than 65 per cent of members supported expanding the visa scheme to other parts of the Greater Bay Area, and half agreed the government should manage crowds better to prevent traffic jams and pedestrians blocking roads.

Lam Chi-chung, chairman of the Electrical and Audio Visual Trades Employees Association, told the same radio show on Thursday that the industry supported the return of multiple-entry visas, even if consumer habits had changed and mainland tourists were no longer spending as heavily.

Hong Kong restaurants dealt double blow on New Year’s Eve by tourist trends

“They will publicise their positive experience in Hong Kong on social media and promote the city to their friends, who might want to come and see for themselves,” he said. “This is helpful to Hong Kong’s tourism.”

Ko welcomed the news of the talks and said he believed the issue of parallel trading would not resurface after the relaxation.

“During the pandemic, many of these parallel trading businesses folded and workers switched jobs. The variety and price of goods available on the mainland are also competitive, I believe the demand for parallel traded items has fallen.”

Additional reporting by Danny Mok