A recent survey conducted by the European Chamber of Commerce in Hong Kong (ECCHK) has echoed sentiments from AmCham in that half of European companies are reconsidering their presence and looking to exit from the city by 2023. The survey conducted at the beginning of the first quarter of the year, polled over 260 representatives across consultancy, financial services, telecommunications and retail.
The online survey, conducted prior to the recent relaxation road-map unveiled by Chief Executive Carrie Lam Cheng Yuet-ngor, revealed that the city’s stringent COVID-19 measures were the main reason why businesses are heading for the exit.
The results showed that a quarter of European companies will completely exit the city within the next 12 months whilst a further 24% are planning for a partial move. A third of companies are unsure of their future preferring to adopt a wait-and-see approach whilst 17 per cent stated they do not have any plans for relocation.
Ineffective assistance
The survey also polled respondents on the Hong Kong Governments handling of the pandemic. Only two per cent of participants rated the Government’s assistance a five out of five whilst the average score was much lower at 2.2. Companies also cited their difficulties in bringing in talents to Hong Kong namely quarantine requirements, travel restrictions and ongoing separation from family members as well as school closures as the biggest drawbacks to securing talent.
A representative from the ECCHK commented, “The ongoing zero-COVID strategy has come at a very high cost for Hong Kong’s business community. The single biggest advantage of Hong Kong is its connectivity to the world and position as a connector to the Mainland yet, it has been almost completely disabled. Among others, we recommend that the SAR Government allows fully vaccinated and tested incoming travellers to isolate at home and to expedite the adjustment of the travel requirements to bring them in-line with the Government’s latest guidance on self-isolation.”
Paul Arkwright
Publisher
