'Departed Firms Will Rethink Now Border Is Opening'

Top foreign business associations in Hong Kong said on Friday that the full reopening of the border with the mainland would encourage international companies that pulled out during the pandemic to consider returning.

They were speaking hours after authorities on both sides of the border announced a further easing to pandemic restrictions for travellers, with all of the SAR's land crossings to the mainland reopening from Monday, an end to a daily limit on the number of people crossing and the abolition of testing for most people.

Inaki Amate, chairman of the European Chamber of Commerce, told RTHK that the full resumption of quarantine-free travel signalled a return to how business was conducted in pre-pandemic days.

"Some organisations had to leave the mainland, some organisations had to leave also Hong Kong. I think this will send the message that now is time to reconsider how they are going to be approaching the fact that they can go back to China," he said.

"There would be a large number, a significant number of people and companies that would like to go back...But we also anticipate that there would be those that are still cautious about going right away to China, probably wanting to wait and see how the next week or the next month develops."

The vice-chairman of the International Chamber of Commerce, George Cautherley, said overseas companies that have yet to establish themselves in China could now be interested in exploring new opportunities.

"They now may feel it is time to have a serious look at investing opportunities in China, to some extent, the same thing to Hong Kong," he said.

"In terms of companies that withdrew foreign staff from the area, they will probably return most, if not all, of them. In terms of companies that left because they found the manufacturing environment is getting too difficult, and supply chain problems etcetera, they may be more cautious about returning."

The Travel Industry Council, meanwhile, said the number of tour groups to the mainland could reach 30 to 40 percent of pre-pandemic levels by early May, but executive director Fanny Yeung said challenges remain for the tourism sector.

“We have a lack of manpower and it is rather difficult for us to recruit back the experienced people,” she said. “Even though the demand is there, we won’t be able to go back to 100 percent...Our manpower resources are around 30 percent of pre-pandemic levels.”

The Hong Kong Tourism Board, for its part, said it is confident the full border reopening, coupled with the "Hello Hong Kong" promotional campaign launched on Thursday, will attract mainland and overseas visitors to the city.