Tara Joseph, president of the American Chamber of Commerce in Hong Kong. Photo: May Tse
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https://scmp.com/news/hong-kong/hong-kong-economy/article/3163861/hong-kong-travel-restrictions-push-53-cent Hong Kong economy
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
An American Chamber of Commerce in Hong Kong survey found that only 10 per cent said of members were unlikely to quit the city. Photo: Reuters
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.
In a recent survey of 262 members of the American Chamber of Commerce in Hong Kong (AmCham), about 53 per cent of firm leaders said they had considered quitting the city for personal reasons because of stringent travel restrictions.
“Hong Kong still holds business opportunities but an array of issues, especially draconian travel restrictions and worsening US-China relations weigh on sentiment,” the chamber said.
With quarantine measures affecting businesses, about one-third of respondents said they were forced to delay new investments while another 30 per cent had struggled to fill senior executive roles.
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.
Most members, 86 per cent, said US-China relations had affected their businesses and were generally pessimistic that the situation would improve.
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.
A majority, 80 per cent, of AmCham members reported that their operations had been affected by the national security law, with 47 per cent saying staff morale had suffered and 45 per cent losing employees to emigration.
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.
Hong Kong has one of the strictest anti-pandemic regimes in the world. Photo: Dickson Lee
“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.