The term “low-altitude economy” (LAE) has been making waves in recent times, and I’m here to join the conversation.

As its name suggests, the LAE encompasses a wide range of economic activities conducted within the airspace below 3,000 meters. This exciting economic model harnesses the power of drones and other low-altitude flying vehicles, and its potential applications span from revolutionizing logistics and transportation to transforming urban management. The LAE offers a glimpse into a future brimming with possibilities, and forward-thinking cities like Hong Kong are poised to take flight.

Globally, fierce competition has emerged to capitalize on the LAE. The United States established its dominance with the Advanced Air Mobility Coordination and Leadership Act of 2022, while the European Union countered with its Drone Strategy 2.0. This competitive landscape underscores the immense potential of the LAE, urging cities like Hong Kong to take proactive steps to secure a leading position in this nascent market.

The applications of the LAE are as diverse as they are groundbreaking. Imagine drones not just capturing breathtaking aerial photographs or performing dazzling light shows, but also serving as crucial tools for emergency responders. These versatile flying machines can play a vital role in search-and-rescue missions, meticulously mapping remote areas for disaster relief efforts, or swiftly extinguishing wildfires. The world of logistics stands to be revolutionized as well, with drones and electric vertical takeoff and landing aircraft taking center stage in small-scale deliveries, streamlining urban transportation networks, and potentially easing traffic congestion.

As prominent international financial center and a modern metropolis, Hong Kong is uniquely positioned to thrive in the LAE. Its well-established legal and regulatory framework provides a stable foundation for the industry’s structured growth. The city fosters a thriving culture of technological innovation, nurturing the talent and technical expertise crucial for LAE development. Additionally, Hong Kong’s strategic location within the Guangdong-Hong Kong-Macao Greater Bay Area grants access to a vast market and rich resources, further expanding the potential applications of LAE activities.

Demonstrating its commitment to fostering the LAE, the Hong Kong Special Administrative Region government has implemented a series of policy initiatives to create an enabling environment for this burgeoning industry. A key step in this direction was the proposal to establish a cross-departmental working group, to be led by Deputy Financial Secretary Michael Wong Wai-lun. This group will coordinate efforts across various policy bureaus and departments to further propel the growth of the LAE.

However, to truly propel Hong Kong’s LAE ambitions, further advancements are necessary. Expediting the enactment of legislation governing low-altitude airspace management is crucial. This will establish a robust and comprehensive regulatory framework, ensuring the safety and orderliness of LAE activities. Increased investment in research and development is also essential. By focusing on low-altitude flight technologies, Hong Kong can enhance the performance and safety standards of its low-altitude aircraft, fostering public trust and confidence in the LAE.

Investing in talent development is another critical step. Cultivating a skilled workforce equipped to navigate the complexities of the LAE, from drone operation and maintenance to data analysis and air traffic management, will be essential for long-term success. Finally, fostering international collaboration offers immense benefits. By partnering with international leaders in the LAE, Hong Kong can accelerate knowledge exchange and foster cooperation, propelling industrywide progress and innovation.

Looking abroad, success stories abound. Amazon’s Prime Air project, leveraging drones for rapid delivery, serves as a prime example of the transformative power of the LAE. Pioneering companies like Skydio and Joby Aviation in the US are pushing the boundaries of low-altitude aircraft technology, demonstrating the vast potential of this sector.

By learning from these international front-runners, Hong Kong can establish itself as a leader in various LAE segments. Early adoption of drone logistics solutions can revolutionize urban delivery networks, while pioneering advancements in urban management applications can optimize city infrastructure and enhance public safety. Similarly, capitalizing on the burgeoning aerial-tourism market offers immense potential for economic growth and diversification.

The LAE presents a golden opportunity for Hong Kong’s future. By embracing this revolutionary economic model, the city can soar to new heights. This will not only bolster its competitiveness as a global financial hub but also inject fresh dynamism into its own growth and that of the Greater Bay Area. The sky, quite literally, is the limit for Hong Kong’s potential in the LAE.

The author is chairman of the Asia MarTech Society and sits on the advisory boards of several professional organizations, including two universities.

The views do not necessarily reflect those of China Daily.