No matter how uncertain the external environment is, the full support given by the central authorities to Hong Kong is a certainty. We are immensely grateful to the central authorities for extending the Individual Visit Scheme (IVS) to cover Xi’an and Qingdao. The IVS already covers 49 mainland cities, including first-tier and second-tier ones such as Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Chongqing. The program allows residents of these cities to visit Hong Kong on their own rather than by joining tour groups. The share of IVS arrivals increased from 35 percent of all mainland visitors in 2004 to 57 percent before the outbreak of the pandemic in late 2019.

Xi’an, with a population of nearly 13 million, is home to the Terracotta Warriors and marks the start of the Silk Road. It is the first city in Shaanxi province to be added to the program. Like Hong Kong, Qingdao is a beautiful coastal city, with a population of 10 million. It is one of the largest cities in Shandong; previously, only Jinan of the province was in the program.

Hong Kong Chief Executive John Lee Ka-chiu welcomed the Lunar New Year’s gifts from the central government. He noted that the GDP of Xi’an and Qingdao reached 1.2 trillion yuan ($166.7 billion) and 1.6 trillion yuan respectively in 2023, growing by 5.2 percent and 5.9 percent year-on-year. Weighing the high incomes and spending power of these two cities’ residents, Lee said that the expanded program “will benefit the local tourism sector and economy”. Our think tank believes that the expanded program will put extra wind in the sails of the tourist sector toward full recovery.

Some commentators are unconvinced of the economic benefit anticipated by the Hong Kong Special Administrative Region government. For example, Simon Lee Siu-po, an honorary fellow of the Asia-Pacific Institute of Business at Chinese University, opined that tourists from the two cities are unlikely to bring significant economic benefits to Hong Kong. Some even have downplayed the tourism sector’s contribution to the local economy.

The truth is, the tourism industry is one of the traditional pillar industries of the Hong Kong economy. Before the outbreak of the COVID-19 pandemic, the industry contributed around 3.6 percent of Hong Kong’s gross domestic product and employed around 232,700 people, accounting for about 6 percent of total employment. The tourism industry provides jobs across various sectors such as hospitality, retail, transportation, convention and entertainment. The industry plays an important role in sustaining livelihoods of the lower-income groups in the city. Employment in hospitality and retail industries, which is less affected by rapid technological progress, tends to be more stable than employment in industries with rapid technological innovation and growth. Recently, Amazon, Google, Meta, Microsoft and TikTok have collectively let go of about 25,000 employees.

With the arrival of more inbound tourists, property developers will have incentives to build more hotels in the city. The spillover effects of the building boom cannot be underestimated. Furthermore, the tourism industry has been a catalyst for infrastructure development in Hong Kong. The city’s extensive transportation network and attractions are testaments to the continuous investment and development driven by the demands of the tourist sector.

Some people might be worried about a recurrence of a household-goods shortage because of stronger demand to be brought about by the expanded IVS. Before 2019, the problem of the shortage of household goods was serious at some northern districts in the city. To be fair, complainants should also point their accusing fingers at the unregulated activities of local parallel traders. However, changing circumstances will stop leaving the normal supply of household goods at the mercy of parallel traders and mainland tourists. Taking preventive measures to deal with the shortage problem is a primary concern of the HKSAR government. Unlike previous IVS tourists, more and more mainland tourists do not like to saddle themselves with tight shopping itineraries.

With the arrival of more IVS tourists, we must guard against a revival of anti-mainland sentiment previously instigated by political fanatics. Chan Wai-keung, a scholar at the Hong Kong Polytechnic University, believes that it is unlikely that another radical anti-mainland movement will occur like the one during the pre-pandemic days. In the past, some local residents discriminated against mainland visitors because of exaggerated reports about the rowdy behavior of a very small number of mainland visitors in the city. We should adopt a zero-tolerance attitude toward the attempts by anti-mainland disruptors to demonize the expanded IVS. Hong Kong Tourism Association executive director Timothy Chui Ting-pong said the discrimination against mainland visitors comprised isolated incidents.

While the latest expansion of the IVS might not have been as large as players in the tourism industry expected, the sector should sharpen its competitive edge and prepare for the arrival of more IVS visitors, lest Hong Kong lose out to competitors like Singapore, Thailand and other Southeast Asian markets that are likely to benefit from the new visa-free arrangements between them and the Chinese mainland. The coverage of the IVS could be expanded further if the new expansion proves to be beneficial to all stakeholders.

Sam Lai Nuen-san is secretary-general of The Society for the Coordination and Promotion of Eastern District, co-director of district administration of the Chinese Dream Think Tank, and a district councilor.

Kacee Ting Wong is a barrister, a part-time researcher of Shenzhen University Hong Kong and the Macao Basic Law Research Center, chairman of the Chinese Dream Think Tank, and a district councilor.

The views expressed are not necessarily those of China Daily.