Shenzhen’s “Multiple-Entry Permit” Scheme Resumes, No Surge in Visitors to Hong Kong on Sunday

File Photo: Closed shops in a Hong Kong shopping mall, August 5, 2022. Hong Kong's economy contracted for two consecutive quarters due to weak exports and investment, exacerbated by pandemic-related restrictions. (Photo by Anthony Kwan/Getty Images)

[People News] Following Chief Executive John Lee's "successful negotiations," the "Multiple-Entry Permit" scheme, a critical measure to address Hong Kong's economic challenges, resumed on Sunday (December 1). The scheme allows Shenzhen residents to make individual trips to Hong Kong. It has been expanded to include non-Shenzhen residents holding residence permits. While the Hong Kong government and the retail and dining industries eagerly awaited the influx of visitors to boost the economy, reports from Radio Free Asia and various Hong Kong media outlets indicate that no significant surge in Shenzhen travelers occurred on the first day of the scheme’s resumption.

According to Radio Television Hong Kong (RTHK), a steady number of people visited Shenzhen's self-service permit processing centers, though some required manual processing at counters, delaying their trips to Monday. Some Shenzhen residents noted that the resumed scheme made traveling to Hong Kong much more convenient. However, due to Hong Kong's high accommodation costs, many planned to return to Shenzhen on the same day.

Radio Free Asia reported that the Hong Kong government had prepared extensively, allocating extra vehicles and personnel across transportation networks. The MTR Corporation also announced readiness to adjust train schedules based on demand. However, according to i-Cable News, morning traffic at the Lo Wu border checkpoint was comparable to normal levels. The previous bustling hotspot for parallel traders, Sheung Shui, showed little change. Hong Kong 01 reported that while some travelers who successfully obtained permits shopped in Sheung Shui on the same day, the area’s “parallel trading streets” remained sparsely populated. Pharmacy storeowners noted no noticeable increase in foot traffic but expressed hope that the resumption of the scheme could revitalize their businesses.

In contrast, pro-Beijing outlet Ta Kung Pao painted a more optimistic picture, claiming that reporters observed more tourists in Causeway Bay, with crowded streets and bustling activity.

"Multiple-Entry Permit" Once Triggered Hong Kong-Mainland Conflicts, Canceled in 2015

Financial Secretary Paul Chan Mo-po stated in his blog that the new policy will not only support Hong Kong’s tourism, retail, and catering sectors but also facilitate smoother and more convenient two-way travel between Hong Kong and Shenzhen. He acknowledged that local consumption and service exports still need improvement and expressed optimism that a series of supportive measures from the central government will inject vitality into Hong Kong’s economy.

The Multiple-Entry Permit policy was introduced in 2009 to revive Hong Kong’s weakened economy following the global financial crisis. It allowed Shenzhen residents to travel to Hong Kong an unlimited number of times within a year. While the policy initially contributed to a quick economic recovery, it also led to deeper issues, including the influx of parallel traders, shortages of baby formula, and overwhelming numbers of visitors that disrupted the lives of Hong Kong residents. These issues heightened tensions between Hong Kong and mainland China, prompting then-Chief Executive Leung Chun-ying to propose its cancellation. The policy was ultimately abolished in April 2015.

Post-pandemic, while the Multiple-Entry Permit was replaced with a One-Trip-Per-Week scheme, Hong Kong has not experienced a resurgence of large numbers of mainland tourists. Furthermore, since reopening the border, it has become evident that mainland Chinese tourists’ travel habits have changed. They are now more focused on in-depth experiences rather than shopping sprees. Many young travelers even visit Hong Kong for "budget travel" adventures.

As such, how effective John Lee’s recycled policy will be remains uncertain. Its impact will become clearer in one or two months.