Editorial | Economic challenges from Hainan must not deter Hong Kong
- City still has a lot of advantages despite new regulations that will allow the tropical island to attract domestic and international visitors as well as businesspeople
Hainan’s future has brightened after the central government charted a course for the island to be transformed into a world-class free-trade hub. While the changes unfolding for “China’s Hawaii” pose challenges for Hong Kong, the city should set its sights on seizing opportunities to collaborate with the province.
Located off the southernmost tip of China, Hainan is well placed to capitalise on air and sea routes linking the nation with its biggest trade partner – the Association of Southeast Asian Nations.
The island and its tropical beaches will be promoted as a tourist destination for Southeast Asians as well as a centre for duty-free shopping and offshore financing.
A simplified visa policy will make it easier for foreigners to visit or do business and an independent customs regime is due by late 2025.
Hong Kong and its neighbours in the Greater Bay Area development zone should not feel left out by what is expected to be a game-changer for China’s economy.
While Hainan’s development will focus on areas such as tourism, hospitality and other service industries, which have long been economic drivers for Hong Kong, the city has new roles to play as the region evolves into an economic hub.
