MR YIU SI-WING (in Cantonese): President, in the past one and a half years, as the Chief Executive said in the Policy Address, Hong Kong experienced multiple blows which were unprecedented. These included the social unrest arising from the opposition to the proposed legislative amendments to the Fugitive Offenders Ordinance and other anti-government acts; and the shrinking economy and rising unemployment rate caused by the COVID-19 pandemic. Hong Kong is now facing an unprecedented challenge since its return to the Motherland.

 

Tourism is an important pillar of the economy in Hong Kong. It directly and indirectly employs almost 800 000 people, though it only accounts for 5% of the GDP. The disturbances arising from the opposition to the proposed legislative amendments in the year before last already dealt a blow to the tourism industry. The COVID-19 pandemic, apart from threatening people's lives and safety, has halted inbound and outbound travel, as well as local tours, for almost one year. The tourism industry has been frozen and the associated sectors, such as travel agents, hotels, guesthouses, land/sea/air transport, conventions and exhibitions, retails and catering, have also been hit to different degrees. The impact has been widespread.

 

As warned by Financial Secretary Mr Paul CHAN the day before yesterday, the fourth wave of the pandemic will further drag down the economy. The unemployment rate is expected to surpass the previous peak 16 years ago, meaning that this quarter's unemployment rate may climb to 7%; and the total unemployment rate on the consumer sector and tourism-related segment (i.e. retail trades, accommodation and food services sectors) may pass 10%, much higher than our average unemployment rate.

 

In view of the global pandemic situation, even if we manage to put our pandemic under control, we estimate that the global will not be optimistic in the short run and it will take a long time to recover. The International Air Transport Association forecasts that aviation recovery will be slower than expected. It is estimated that the pre-COVID travel volume in 2019 will not be regained until 2024. So, the tourism industry in Hong Kong is the earliest to be hit, the hardest and the latest to recover. Yesterday, another tour agency trimmed down 120 tour guides, which is a very worrying sign.

 

Before the delivery of the Policy Address, I, together with those from the industry I represent, went to see the Chief Executive and the related bureau officials to convey the plight of the tourism industry, which was met with understanding and sympathy. With the majority of the pro-establishment Members signing their support, together with the joint signature of the tourism associations in the tourism sector of the Election Committee, we hope that the Government can continue to provide additional resources to help the tourism industry. Thanks to the Chief Executive who, after listening to our words has made a timely response in the Policy Address with a commitment of $600 million to support the tourism industry and the associated practitioners.

 

Certainly, the four rounds of relief measures launched by the Government can only act as a temporary relief for the most pressing needs. If we are to revive the economy of Hong Kong, address the livelihood issues of the people and the problems of our industry, the border and boundary crossings must be reopened for tourists, and we are allowed to freely travel. Hence, the most important task of the Government in the future is its anti-pandemic fight. Only when we manage to keep the infection cases at a low level, or even achieve zero case, can there be hope of reopening the border and boundary crossings and reviving the tourism industry.

 

President, the pandemic in Hong Kong has fluctuated since the end of January last year. As compared with the measures adopted in the Mainland and Macao, our measures are obviously inadequate. The main reason is that the "suppress and lift" strategy adopted by the Government failed to work. As a result, the anti-pandemic policies taken by the related departments appeared too stringent or too relaxed at times, thus contributed to a fluctuation of the pandemic situation. On the other hand, some measures which should have been effective have failed to work due to various reasons. For instance, only 1.78 million people participated in the Universal Community Testing Programme last September. The participation rate was lower than expected. Although the Programme failed to achieve a satisfactory participation rate, it found 32 asymptomatic cases. If the Government had remained alert at that time and immediately took targeted and decisive actions, we would not have been left in such a passive situation now.

 

Another example is the "LeaveHomeSafe" app. The app may help track the whereabouts of new COVID-19 patients. However, the Government does not have any mandatory supporting measures; and people are allowed to download the app on a voluntary basis. Besides, there is not any arrangement for helping elderly on its usage. As a result, not many people have used the app even though some consumer premises are required by the Government to install the QR code, with limited effect. The successful experience in the Mainland in fighting COVID-19 tells us that apart from using technology, there must also be compulsory supporting measures to trace the source of the virus and prevent the spread of the pandemic.

 

Regarding virus testing, the Government has established a number of Community Testing Centres to subsidize people to take the COVID-19 nucleic acid test. However, taking into account the booking and laboratory testing, people usually have to wait until the next day, or even a longer time, before obtaining the test result; and the scope of compulsory testing is limited, all of these have failed to achieve extensive virus tracking. A company has developed a speed testing kit for COVID-19. It is reported that the result can be obtained in 20 minutes and the testing kit is not expensive. Singapore has been testing it. The Singaporean Government requires its people to take the test immediately before entering the venues of large-scale activities to prevent the spread of the virus. In fact, Hong Kong can learn from this experience. When the pandemic is under control in Hong Kong, the Government can require people to take the speed test before entering scenic spots, hotels or boarding a flight. People can even take the test in advance before joining local tours or organizing exhibitions and conventions, so as to minimize the risk.

 

President, based on the current pandemic situation, the tourism industry is unlikely to recover in the short term. Taking into account the content of the Policy Address, I have the following suggestions. First, I hope the Government can continue to support the tourism industry. If the industry will remain frozen in the coming period of time, it is hopeless that the industry can have any rebound in their income, and I certainly do not wish to see this happen. I hope the Government will continue to help us tide over this difficult time. It may, among others, consider launching a new round of subsidy scheme to safeguard jobs and support enterprises; continue to exempt the licence fees for travel agents, hotels and airline companies; and extend three programmes for one more year, namely the Travel Agents Incentive Scheme (Inbound), the Travel Agents Incentive Scheme (Outbound) and the Green Lifestyle Local Tour Incentive Scheme. The last one will expire in March. We hope that it can be extended for one more year. Apart from extending the allocation, we hope that the allocation can be increased by $100 million to benefit all travel agents.

 

Second, it should encourage spending. I hope the Government can reconsider the proposal to hand out shopping vouchers … Mr Michael TIEN made this suggestion just now and I support it, so as to stimulate spending. In fact, the Mainland Government and many local governments have handed out digital shopping vouchers to expedite the recovery of their economy. People can directly use the vouchers in restaurants and retail shops. For example, Japan has launched a $4.6 billion dine-out scheme for four months to save its hard-hit catering industry. Taiwan has the Taiwan Triple Stimulus Vouchers to stimulate its economy. South Korea will implement a $3.5 billion shopping voucher scheme in its budget 2021 (i.e. this year) to stimulate spending among its people. Singapore has a similar strategy. Each eligible Singaporean citizen will be given $580 shopping vouchers for hotel staying, buying scenic spot tickets or joining local tours.

 

The SAR Government handed out $10,000 for each eligible citizen earlier. However, due to the uncertain economic situation, many people have kept the money instead of spending it. The measure failed to stimulate spending. So, if the Government wishes to stimulate spending and help local retail trades, the catering and tourism industries, I hold that it should hand out shopping vouchers when the pandemic is under control. I notice that many Members echo this view.

 

Third, we should explore more local tourism resources. In the past year, outbound tours have been halted by the pandemic. Since inbound and outbound tours were no longer feasible, the Mainland, Taiwan, Macao and Japan changed to promote their local tours. They hope that with the help of local tours, local spending can be boosted and travel agents, catering business, local transport and retail trades can also directly benefit from it. Although the sales and revenues generated from local tourists are incomparable to those from the inbound tourists, they can bring in some business and cash for the hard-hit sector.

 

In fact, Hong Kong has been in a similar situation. The Government launched the Green Lifestyle Local Tour Incentive Scheme in the year before last. The Scheme was subsequently extended due to the severity of the pandemic. Whenever the prohibition on group gathering was relaxed, the industry made use of the subsidy from the Scheme to organize local tours. Local tour participants were very happy. They have stayed at home for so long and now they have the opportunity to come out and walk around. And the tour fee already covered expenses for food and transport. The participants could go to different scenic spots in Hong Kong that they had heard of but had never been to and learn more about these places, and they had found that Hong Kong had lots of natural scenic spots and historic and cultural heritage. So, organizing local tours not only benefits the people, but also the tourism industry because the latter can know more about the different tourism resources in Hong Kong and develop different tour routes, so as to better prepare for the inbound tours in the future.

 

Actually, I think the industry organized similar activities in the past few years. The Hong Kong Tourism Board ("HKTB") also launched similar products, such as the "Old Town Central" and "The Hong Kong Neighbours: Sham Shui Po", which offered participants an enriched experience of culture and natural scenery. And the Tourism Commission also launched a green tourism programme on Yim Tin Tsai, Sai Kung, which was well-received by the public. So, they have all organized similar activities in the past. However, given that HKTB has focused its overseas promotion on shopping, food and traditional scenic spots in Hong Kong, travel agents are thus used to focusing on traditional itineraries when they design their tours.

 

Amid competition from similar facilities in the region, such as the Water World in Zhuhai and the Shanghai Disneyland, Hong Kong will gradually lose its edge if we still maintain the old mindset in promoting our traditional tourism resources. I believe that after the pandemic … Just now, I said that many industry players had started organizing local tours. They should have accumulated some experience in terms of local tour products. I thus hope that when the pandemic subsides, the Government and HKTB will encourage the tourism industry to promote tour products with local characteristics from a strategic point of view, so that our Hong Kong tour products will no longer be as traditional as in the past.

 

Certainly, like I just said, when the restrictions on group gathering are relaxed, I hope that the Government can expeditiously resume the arrangement of local tours, just like the way the Government handled the consumer sectors. Given that travel agents have stopped organizing local tours for quite a while, if the arrangement can be resumed, travel agents can at least have some business. HKTB launched the Free Tour Programme. The response has been overwhelming. I hope that HKTB will launch this activity again, so that Hong Kong people can benefit from and enjoy a tour while spending, and the industry can make some money through the activity.

 

Fourth, it is to expeditiously join the internal circulation of the Mainland economy. Recently, President XI Jinping talked about a new development model which emphasizes the internal circulation as the mainstay, with the dual circulation of the domestic and international markets which complement each other. It is an important strategic task in the 14th Five Year Plan of China. The pandemic, which has been spreading worldwide, has resulted drastic changes in the global economic structure and people's way of living. Invigorating domestic demand and stimulating internal spending are a major strategy at this time of economic downturn. Our country needs both internal circulation and dual circulation of domestic and international market. However, with a population of only 7.5 million, the spending power is very limited if Hong Kong relies on its internal circulation. Joining the internal circulation of the Mainland will be our only prospect.

 

I am grateful to the Chief Executive for responding to my question at the Chief Executive's Question and Answer Session, and she has already fulfilled her promise. I notice from her answer to Legislative Council questions last week that she has already convened a high-level interdepartmental meeting to review the position of the tourism industry in Hong Kong in the current new normal. They have also outlined the follow-up actions to be taken for the future. In this connection, the Chief Executive is rather efficient as she has immediately proposed the follow-up actions in this regard. At present, business people in both Hong Kong and the Greater Bay Area have huge demand in respect of commerce, business travel, family visit and tour. In fact, Hong Kong can establish close economic cooperation with the cities in the Greater Bay Area first, and then jointly develop the industries with competitive edge in Guangdong, Hong Kong and Macao.

 

Regarding tourism, we notice that the Ministry of Culture and Tourism recently promulgated after conducting a research the Culture and Tourism Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area ("the Plan"). The Plan provides a major guiding view on the culture and tourism development of the whole Greater Bay Area, and it will help consolidate Hong Kong's role as an international cultural metropolis and travel hub. The Government should take this opportunity to propose joint tourism projects and put them to test in the Guangdong-Hong Kong-Macao Greater Bay Area, so that Hong Kong can take a leading role in the internal circulation of the Mainland and in the Greater Bay Area cooperation. The project, among others, that we often propose is multi-destination tourism. So, we can put more effort on the marketing of multi-destination tourism. Besides, we can also consider whether we can offer travel concessions for people living in the three places or provide mutual concessionary packages to facilitate people visiting tourist spots in the three places. I hope the Chief Executive, or the SAR Government, will create more favourable conditions for Hong Kong to join the internal circulation of the Mainland. We can start from the Greater Bay Area.

 

Next, I wish to talk about the pandemic in Hong Kong. This involves the Health Code of Guangdong and that of Hong Kong. If we are to have more interaction with the Greater Bay Area, we must have an effective means first. We very much hope that the Government will not shelve the Health Code because the pandemic in Hong Kong is now out of control. But rather, it should proactively continue the foundation work in this respect. Once our pandemic is under control and the Mainland agrees to open the boundary crossings again, we can immediately launch our Health Code. In this connection, I hope the SAR Government, including Secretary Patrick NIP who is here, will continue the work, so that when the boundary crossings reopens, we can launch the Health Code. And our tourism industry and the economy can quickly recover.

 

Fifth, we should continue to discuss with overseas countries and places on establishing travel bubbles. Although the Hong Kong-Singapore Air Travel Bubble arrangement is deferred due to the fourth wave of the pandemic, the Government should proactively maintain connection with those countries which are suitable for such arrangements. The Government should not feel discouraged by the postponement of its arrangement with Singapore. We hope that the Government can restart studies on whether we can establish travel bubbles with other countries and places in addition to Singapore. If so, I hope the Government can make good preparation as soon as practicable.

 

HKTB has considerable resources left idle. Now is January. After the delivery of the Policy Address, the Budget will soon follow. I hope HKTB will be well prepared for promoting our tourism. Apart from proposing expenditures on tourism promotion, more importantly, it should directly use the resources for the industry so that it has the funds and energy to promote the tourism industry while it is in the course of recovery, with a view to enabling the early recovery of the tourism industry in Hong Kong.

 

Deputy President, I so submit.