With inbound tourism haven fallen 6 percent over the past two years, both Hong Kong and Macau must improve both their tourist offerings and visa processes if they are to encourage growth, according to a report by analysts at CLSA Asia Pacific Markets.
Having seen phenomenal growth of 216 percent in the decade from 2003, CLSA says neither Hong Kong nor Macau has done enough, particularly in regards to attracting visitors from mainland China.
“Hong Kong and Macau make it very difficult for mainland Chinese to secure tourist visas, it says. “We argue the process should be simplified and expanded in ways that allow higher-spending tourists (and not day traders) more regular visitation rights. One option would be to grant Chinese passport holders long-term multiple-entry visas similar to Japan (five years) and the USA (10 years).”
CLSA believes Hong Kong must reinvent itself with some major infrastructure improvements, including “a comprehensive makeover of the Victoria Harbour … we envisage iconic architecture, waterfront hotels, retail and restaurants promenades plus walking/cycling paths and better promotion of Hong Kong’s nature, such as national parks and waterways. A major yachting event could also help celebrate these.
“A true world-class event such as a Hong Kong F1 or even a “Pearl River Delta” Olympics would be well received. Hong Kong’s arts & culture scene are below the standards expected of “Asia’s World City”.
On Macau, CLSA says it “would benefit from a more long-term strategic development plan, including earlier clarity on concession renewals. Long-awaited infrastructure improvements such as the bridge, LRT and Taipa ferry terminal would help. The gaming companies need to keep investing in non-gaming assets and events such are more “meetings, incentives, conferences and exhibitions” (MICE), family-friendly activities and entertainment that appeals to millennials.”
Unfortunately, CLSA says, few of these changes appear to be on the cards anytime soon.
