Resuming multiple-entry visas for Shenzhen residents will bring few economic benefits for Hong Kong: experts

Local authorities are in talks with counterparts across the border to bring back multiple-entry visa scheme for Shenzhen residents before Lunar New Year

Hong Kong reported slower-than-expected retail and tourism recovery following Covid-19 pandemic, as residents left in droves to travel abroad

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Hong Kong stands little to gain from reintroducing a multiple-entry visa for Shenzhen residents, economists have said. Photo: Xiaomei Chen

Published: 8:45am, 12 Jan 2024Updated: 6:11pm, 15 Jan 2024

Corrected [6:11pm, 15 Jan, 2024]

[6:11pm, 15 Jan, 2024]
This story has been amended to clarify that the 13 to 50 per cent tax on purchases made in Hong Kong that exceeded 5,000 yuan per individual trip was introduced in 1996, not 2015 as originally stated.

The resumption of a multiple-entry visa scheme for Shenzhen residents will bring few positive benefits for Hong Kong’s economy given the latter’s weakened competitiveness and costly currency compared with the yuan, economists have said.

Local authorities are currently in talks with their counterparts across the border to bring back a multiple-entry visa scheme for Shenzhen residents before the Lunar New Year holiday, the Post has learned.

Hong Kong reported a slower-than-expected retail and tourism recovery following the Covid-19 pandemic, as the city’s residents left in droves during the holidays for destinations such as Japan and Shenzhen.

Hongkongers left in droves for destinations such as Shenzhen during major holidays last year. Photo: May Tse

Gary Ng Cheuk-yan, a senior economist with Natixis Corporate and Investment Bank, said that while the scheme’s return could increase the number of visitors, the boost to the economy and tourism revenue would remain limited.

“It does not solve the fundamental problems of Hong Kong’s weakening relative competitiveness in tourism and the generally lower per capita spending of mainland [Chinese] tourists,” he said.

An influx of mainland tourists, particularly in border towns such as Sheung Shui, caused tensions in previous years as residents complained of visitors crowding streets and bulk buying daily necessities to sell across the border.

The trend caused frequent protests and led to the Hong Kong government introducing a two-can limit on taking baby milk formula, one of the most sought-after items, out of the city in 2013.