Hong Kong’s Struggles and the Individual Visit Scheme (IVS)
Hong Kong’s economy is facing challenges. Following a national security crackdown and Covid-19 restrictions, many residents (both local and expats) have left the city, and tourist numbers have plummeted to a fraction of what they were before the pandemic.
In an effort to revive its economy, particularly the retail and hospitality sectors, Hong Kong has expanded its “Individual Visit Scheme” (IVS). This program, initiated in 2003 as part of a cooperation agreement with mainland China, allows Chinese citizens from participating cities to travel to Hong Kong independently, rather than being restricted to tour groups.
Eight New Cities Added to the IVS
The expansion adds eight new cities to the program, bringing the total to 59. These cities include major provincial capitals with significant populations and economic power, potentially increasing the number of high-spending visitors to Hong Kong.
Challenges Remain Despite Economic Growth
Although official figures show some economic growth (2.7% in Q1 2024 compared to the previous year), local businesses paint a different picture. Many report deserted shopping malls with low foot traffic and numerous vacant storefronts. Additionally, a recent report suggests a significant increase in company deregistrations compared to the same period last year.
Security Laws and Hong Kong’s Future
The national security law implemented by China in 2020, following pro-democracy protests, and further security measures enacted in March 2024 have raised concerns from some foreign governments regarding potential limitations on rights and freedoms in Hong Kong. The Hong Kong and Chinese governments, however, maintain that these laws have brought stability to the region.
