Friday 24 February 2012

More on the Mainland v Hong Kongers tensions.

Bernard Chan makes a good point below the  fold: that the rising number of Mainland visitors to Hong Kong only benefits the few. That it's not "win-win" as the government claims, but "some win, a lot lose".
Bear in mind that this is not racism, or xenophobia, since it's all Chinese we're talking about.  So, it's a cultural and practices issue.  The mainland Chinese as tourists only buy from certain retailers, hence their impact on sales and the Hong Kong economy is limited to the high end, not the middle and lower classes.
I see it myself here in Hong Kong: the large malls are losing their noodle stalls and general interest shops, to be replaced with yet another Prada or Louis Vuitton store...
As Bernard says:
... much of the proceeds from mainland shoppers and property investors go to Hong Kong's developers and landlords. It is also surely true that, as a result, homes are less affordable and noodle shops and cinemas enjoyed by locals have been driven out by big luxury retail chains....
If you are a big landlord or chain retailer in the right place, you will profit massively from this phenomenon. But for smaller businesses and the local customers who rely on them, it can be disaster: higher rents, closed businesses and reduced access to necessary goods and services.
Hong Kongers are entitled to express their angst and concern about these trends, without being labelled racist or xenophobic.  Indeed, just as Bernie Chan has here....


Uneven growth driving HK people's anger at mainlanders

Bernard Chan says the problem is mainland visitor influx benefits only the few

Although the debate about the impact of mainlanders onHong Kong seems to have calmed down, the basic causes remain. Indeed, a government plan to allow mainland drivers to bring cars into Hong Kong has perhaps made these issues clearer.
The cross-border vehicle idea should not, in theory, be a big deal. Imagine if New York City barred vehicles coming over from New Jersey and Connecticut - it would not even have the power to do it.
It is true that some cities on the mainland do ban cars from outside. This is a reflection of the traffic congestion in those cities, and critics in Hong Kong would have a good case if they said we should not admit more vehicles until the government has fixed our pollution and traffic problems.
But that is not what many of the plan's opponents are saying. Their angle is that mainlanders are lousy drivers, thus potentially dangerous, and they would be competing for local resources (roads and parking spaces). It is an argument we've heard before: mainland shoppers drive local business rents up, and mainland investors make housing unaffordable. The problem is not transport policy, but people - mainlanders.
The community is divided. One group, including government officials, sees the arrival of larger numbers of mainland visitors in Hong Kong as a good thing. Another thinks it is a bad thing.
After my column on this subject two weeks ago, a correspondent wrote to me and estimated that maybe 5 per cent of Hong Kong people benefit - and very significantly - from mainland tourism, while the other 95 per cent "bear the brunt of the influx". This may be an exaggeration, but it must be true that much of the proceeds from mainland shoppers and property investors go to Hong Kong's developers and landlords. It is also surely true that, as a result, homes are less affordable and noodle shops and cinemas enjoyed by locals have been driven out by big luxury retail chains.
This is not, therefore, just a difference of opinion. This is a conflict, and potentially quite a severe one. The middle class is shrinking, or at least it feels under great pressure, and evidence of poverty is becoming more visible in the form of things like partitioned flats and food banks.
And now we have a situation where one relatively small group of the population - mostly already wealthy - appears to be benefiting from something that hurts the interests of the majority. In other words, they are getting richer at the expense of everyone else.
Our officials like to talk about "win-wins" that benefit all of us. For years, we have seen tourism - one of our four "pillar industries" - as a good example. It brings money into the city and it creates jobs, so who can possibly have a problem with it? No one did have a problem when it consisted of 10 million visitors a year from several dozen countries all doing different things.
But a big change has taken place. Mainlanders have been coming in large, fast-growing numbers, pushing total visitor numbers up 22 per cent to 36million in 2010, and up 17 per cent to 42 million last year. They are now nearly two-thirds of total visitors, and they focus on buying particular types of goods in particular locations. If you are a big landlord or chain retailer in the right place, you will profit massively from this phenomenon. But for smaller businesses and the local customers who rely on them, it can be disaster: higher rents, closed businesses and reduced access to necessary goods and services.
This is not simply growth, but economic distortion. Our government seems unwilling to acknowledge that this is not a "win-win" but a situation of "some win, a lot lose". Some members of the community have been taking it out on mainlanders. That is unfair and unjustifiable, but so - to these people - are the higher rents, the closure of affordable restaurants and the difficulties in getting baby milk powder.
Our leaders - and those who want to be elected as future leaders - need to address this issue.
Bernard Chan is a former member of the executive and legislative councils