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Politics


HONG KONG SCRAPS CURBS ON ARRIVALS, CONTACT TRACING APP

 * City is speeding up reopening after Beijing dropped Covid Zero
 * Cross-border travel seen as biggest boost to city’s economy

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China's Covid Shift: Massive Outbreak of Cases Expected
By

Shirley Zhao and

Jennifer Creery

+Follow
December 13, 2022 at 2:38 AM GMTUpdated onDecember 13, 2022 at 8:21 AM GMT


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Hong Kong is scrapping some of its last remaining Covid restrictions following
China’s rapid shift away from the zero-tolerance approach.

The government will lift a ban on international arrivals going to bars or eating
at restaurants, and stop requiring people to scan a QR code on their phones to
enter venues, Chief Executive John Lee said at a press conference Tuesday. Some
venues will still need proof of vaccination upon entry, he said, without
mentioning whether the government intends to remove the mask mandate.

“All people want to have less restrictions as much as possible, while ensuring
activities socially and economically can proceed as much as possible,” Lee said.

Covid curbs have hobbled the city’s economy and hurt its outlook as a financial
hub. Economists expect gross domestic product to contract this year for the
third time in four years, while the city’s population dropped the most in at
least six decades in the 12 months through June as people fled the restrictions
and a crackdown on dissent.


WATCH: John Lee speaks at a press conference on Tuesday.
 

Analysts said the easing would help boost inbound tourism, though the bigger
impact would come from a yet-to-be-confirmed relaxation of border controls with
mainland China. Quarantine-free travel with the mainland may start as soon as
next month for the first time in almost three years, according to local media
reports. 




“This swift adjustment is very positive for economic sentiment,” said Michelle
Lam, Greater China economist at Societe Generale SA. “As for the economy, the
real shift will happen when China reopens with the rest of the world, which
could be happening soon.”

At a separate press conference later Tuesday, Secretary for Health Lo Chung-Mau
detailed some measures including the scrapping of Covid tests at border control
points for mainland travel and reduction in compulsory testing notices to
buildings. Travelers still need a negative PCR test result obtained within 48
hours before entering the mainland and Macau.

But some curbs still remain, including the need for PCR tests for visitors
arriving in Hong Kong and rapid antigen tests for school students. People should
continue to wear masks outdoors.



At present, only about 1.6% of international arrivals test positive, compared
with 2.5% of local residents, meaning the risk of importing the virus is low,
according to Lo.

Read more:

China May Partly Open HK Border by Late January, Reports Say

China Braces for ‘Massive’ Covid Outbreak on Faster Reopening

Morgan Stanley Says Hedge China Reopening Trades on Growth Woes

Hong Kong to ‘Use All Means’ Against Google Over National Anthem



The city will likely be one of the biggest beneficiaries of China’s moves to
exit Covid Zero and reopen its economy, Goldman Sachs Group Inc. economists said
earlier this week. They estimated Hong Kong would get a 7.6% boost to GDP as
exports and tourism income climb.

Stocks in the city extended gains after Lee’s announcement, with the MSCI Hong
Kong Index climbing almost 2%. Mall operators surged, led by Wharf Real Estate
Investment Co., while Jardine Matheson Holdings Ltd. Cathay Pacific Airways Ltd.
rallied. 



“This is for sure good news for Hong Kong economy as this could boost inbound
tourism,” said DBS Bank Ltd. economist Samuel Tse. “A fundamental reversal would
hinge crucially on the reopen of border with mainland China. After all, almost
80% of visitors to Hong Kong were mainland Chinese tourists.”

Hong Kong hosted about 250,000 arrivals in the first nine months of this year,
compared with more than 46 million in the same period in 2018 — before citywide
protests in 2019 curtailed travel and the pandemic closed the mainland Chinese
border.



On the border, Lee said reopening will depend on how Covid develops in the
mainland.

“Of course our goal is to resume normal travel as soon as possible, but we need
to move this forward based on the actual situation,” Lee said. “As we all know,
there are a series of things the mainland needs to consider, including the Covid
situation, the number of confirmed cases and other related facilities.”

The moves came after Lee said on Sunday the government will conduct a full
review of the city’s Covid measures, including the city’s Leavehomesafe app.
Last week, Hong Kong said it would shorten the isolation period for people who
test positive for Covid and their close contacts, and require two fewer rapid
tests for inbound travelers. This is despite a recent rise in local cases. Hong
Kong reported 14,717 cases on Monday, and 25 deaths.



— With assistance by Linda Lew, Jill Elaine Disis and Sofia Horta e Costa

(Updates with details from health secretary starting in seventh paragraph.)




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