Pre-1997 China-Hong Kong Dynamics

Before 1997 British rule of Hong Kong

Although the thesis mainly focuses on the impact of Hong Kong's relationship with China on Hong Kong's tourism industry in the past 20 years, the development of Hong Kong's tourism industry before 1997 and the relationship between China and Hong Kong have laid the foundation for Hong Kong's tourism industry. Through the review of Hong Kong’s history and tourism development, it is also helpful to analyse Hong Kong’s tourism development in the past 20 years. Therefore, this section started with important events and changes of Hong Kong's tourism industry and Hong Kong’s relationship with China before 1997.

Changes in the political and historical relations between Hong Kong and China

China ceded Hong Kong to the United Kingdom. This was an important change in the relationship between China and Hong Kong; Hong Kong was no longer a Chinese city. In 1842, Hong Kong was ceded from China to the United Kingdom; it was designated as a free port. Goods that must be imported or exported to China will pass through Hong Kong, laying the foundation for Hong Kong's economic development. According to Liu, United Kingdom declared Hong Kong as a free port in 1842 and a special economic zone focusing on economic and trade development. Commodities in the special zone can be freely handled, transported, re-exported and processed. Foreign goods in the free port are exempt from customs duties and do not need to be inspected by customs officers. In addition to re-export trade, the free port also develops some businesses such as commodity processing, tourism and service industries. Freeport has a benefit in retail commodity prices, which is also an essential advantage in Hong Kong's development of shopping and tourism so far. In 1978, China began its economic reform and opening up, and it resumed its interaction with Hong Kong. In the 1980s, China began to allow the residents to visit Hong Kong. Chinese people's visit to Hong Kong from 1983 to 1998 was a form of visiting relatives. According to Wu, beginning in 1984, the State Council of China approved Chinese residents to visit the relatives in Hong Kong. There were two conditions for visiting relatives in Hong Kong during this period. The first is that relatives in Hong Kong must pay all travel expenses, and the second is that, they can only organise a group through China Travel Service (Chinese State-owned Company). According to Wang, Chinese tourists visiting Hong Kong at this stage can only be regarded as visiting relatives, rather than taking general tourism as the main purpose. However, this is an important beginning for Chinese visitors to visit Hong Kong.

China-Hong Kong relations affect the number of visitors to Hong Kong

According to table A. (Mainland Chinese Visitors to Hong Kong from 1988 to 1996, data published by the Hong Kong Tourist Association), the visitors from mainland China accounted for an average of about 15% of total visitors from 1988 to 1996. Therefore, the influence of Chinese visitors on Hong Kong during this period has not been significant.

In 1987, the Taiwanese government also opened up residents to visit relatives in mainland China after 38 years of Chinese civil war. However, the Taiwan government had not opened up direct flights to mainland China. The Taiwan government stipulated that, the people who visit relatives in mainland China must transit in Hong Kong because Taiwan and the mainland China government were still in a hostile relationship of civil war. However, this policy was very helpful to Hong Kong's tourism industry; because Taiwanese visitors travelled to mainland China must transit in Hong Kong. From Table B (data collected from the Hong Kong Tourist Association, Taiwan Visitors to Hong Kong from 1988 to 1996), the visitor data from Taiwan during the years 1988 to 1996 can be understood. Since the earliest year announced by the Tourism Association is 1988, it cannot compare with 1987 (Taiwan has not yet opened residents to visit relatives in China), but some conclusions can be drawn from the changes in these data. According to official data released by China, Taiwan’s population was only 19.5 million in 1988, while the population of Mainland China was about 1.1 billion, which was 56 times that of Taiwan. However, from 1988 to 1996, the number of visitors from Taiwan and Mainland China to Hong Kong accounted for about 17% on average, which is more than the number of visitors from Mainland China. This shows the importance of Taiwan visitors in this period. However, Taiwan residents passed through Hong Kong in order to visit relatives in mainland China. Thus, this can be regarded as China's influence on the increase in the number of visitors to Hong Kong during this period.

Hong Kong tourism before 1997

The Hong Kong Tourism Commission was established in 1957, which showed that, Hong Kong's modern tourism has officially started. The Hong Kong Tourist Association is the predecessor of the Hong Kong Tourism Board. The Hong Kong Tourism Board was established in 2001. The Tourist Association is a semi-official tourism organisation, mainly responsible for promoting Hong Kong's tourism industry externally and improving tourism development internally. The establishment of the Hong Kong Tourist Association was an essential symbol of the official start of Hong Kong's tourism industry. The period from 1971 to 1997 was the stage of rapid development of Hong Kong's tourism industry. According to Wu, Hong Kong's economy developed rapidly at that time. In 1971, Hong Kong's per capita GDP exceeded US$1,000, and by 1977 it had exceeded US$3,000. The income growth of local residents in Hong Kong has also increased the demand for local tourism in Hong Kong.

Summary of China's relations before 1997

This section analyses the impact on Hong Kong's tourism industry through the changes in the relationship between Hong Kong and China. China's relationship with Hong Kong at this stage had very limited effects on Hong Kong's tourism industry. Limited by China's national policies, it was difficult for Chinese visitors to visit Hong Kong during this period. However, China's opening of people to visit relatives in Hong Kong also laid the foundation for further opening up in the future. In addition, because Hong Kong was positioned as a free port by the United Kingdom, it had a price advantage in terms of commodities, which was a great help to Hong Kong's tourism.

1997 to 2002 Hong Kong transfers sovereignty and faces the Asian financial crisis

In 1997, Hong Kong's tourism industry faced two important issues, including the transfer of sovereignty to China and the 1997 Asian financial crisis. Both of these incidents reflect some suspicions and contradictions between Hong Kong and China.

Changes in the political and historical relations between Hong Kong and China

The relationship between Hong Kong and China underwent major changes in 1997. According to Yang, the sovereignty of Hong Kong was transferred to China on July 1, 1997, ending the British colonial rule for more than 150 years. After the return of Hong Kong, one country, two systems began to be implemented. Hong Kong is a special administrative region of China and has its own laws. Therefore, despite the return of Hong Kong, residents of mainland China cannot enter Hong Kong without an application. However, according to Qin, before Hong Kong returned to China in 1997, a large-scale immigration wave also occurred in Hong Kong from 1990 to 1994. Due to lack of confidence in the transfer of Hong Kong's sovereignty, about 300,000 Hong Kong people emigrated overseas during these five years, accounting for 5% of Hong Kong's population at that time. Therefore, it can be understood from the phenomenon of immigration at that time that some Hong Kong people have no confidence in China's rule of Hong Kong. In 1998, the interaction between China and Hong Kong further changed. According to Wu, since 1998, the Chinese mainland government relaxed the policy for residents to visit relatives in Hong Kong. In addition to increasing the number of applicants, the original requirement that relatives in Hong Kong must pay all travel expenses was also cancelled. These changes have increased the number of Chinese residents to Hong Kong. Although it is to visit relatives, visitors must visit Hong Kong with a group, so it is also helpful to Hong Kong's tourism industry. According to Wei, the number of travel agencies operating Hong Kong tourism in Mainland China increased from one to four in 1998. This has influenced the numbers of visitors to Hong Kong. Wu mentioned that in 2002, the Chinese government further cancelled the quota for Chinese visitors to visit relatives in Hong Kong, and China's international travel agencies also expanded from 4 to 67. These can be seen that the Chinese government was gradually allowing more visitors to visit Hong Kong.

China-Hong Kong relations affect Hong Kong's visitors

In addition to the transfer of sovereignty in 1997, Hong Kong's tourism industry also faced the 1997 Asian financial crisis. According to Yu et al., affected by the financial crisis, the number of visitors to Hong Kong from 1997 to 1998 did not grow for the first year since 1990. According to Table C (data collected from the Hong Kong Tourist Association, Mainland Chinese Visitors to Hong Kong from 1997 to 2002), changes in the total number of visitors in Hong Kong can also be found. According to Ge et al., in response to the Asian financial crisis, the Hong Kong government has proposed some improvement measures in tourism, including the reduction of hotel service tax, airport passenger departure tax, and terminal embarkation fees. In addition, Hong Kong's new airport opened in 1998, and the passenger flow increased to 35 million. Therefore, the new airport also provides an important basis for visitors to visit Hong Kong. The rapid increase in visitors from mainland China from 1997 to 2002 is an important symbol. From Table C, the change in the number of Chinese visitors to Hong Kong from 1997 to 2002 and the proportion can be observed. In 1997, due to the impact of the Asian financial crisis, the total number of visitors to Hong Kong decreased from 1997 to 1998, but from Table C, it can also be seen that the number of visitors from mainland China continued to increase from 1997 to 1998. This can be presumed to have two explanations. Either Chinese visitors to Hong Kong may not have been affected by the 1997 Asian financial crisis, or the number of Chinese visitors increased more than the number of visitors affected by the Asian financial crisis. But both showed that the importance of Chinese visitors to Hong Kong's tourism industry continued to increase. Since 2002, the number of visitors from mainland China has exceeded 6 million, accounting for nearly one-third of the total number of visitors from Hong Kong. According to table A and C, it can be found that the proportion of the Chinese visitors from 1997 to 2002 has doubled compared with the previous ten years. This shows that the number of visitors from mainland China has grown rapidly during this period.

Analysis of Debate on the 1997 Asian Financial Crisis

The 1997 Asian financial crisis is considered to be the first challenge faced by China after it ruled Hong Kong. According to Wang, the time when Hong Kong was affected by the financial crisis was around October 1997, it was less than three months after Hong Kong returned to China at this time. According to a report in the Southern China Business Newspaper by Chen, during the Asian financial crisis in 1998, the Chinese central government allocated huge amounts of funds to Hong Kong in response to the request of the Hong Kong government for helping Hong Kong tide over the financial crisis at that time. However, Gou stated in Hong Kong Ming Pao newspaper that in fact, Hong Kong itself had a reserve fund of 200 billion Yuan to deal with the Asian financial crisis at that time. So, it does not rely on the help of the Chinese central government. Hong Kong survived the Asian financial crisis at the time with the guidance of the then Chairman of the Monetary Authority and the Minister of Finance. Since the actual data and information have not been made public, it is not possible to verify whether the newspapers in Mainland China or Hong Kong were telling the truth. However, from this aspect, the contradictions between China and Hong Kong can still be found. Hong Kong seems to be inclined to disagree that, China is helpful to Hong Kong. Two analyses can be made from this question. Suppose that China was the main factor that helped Hong Kong survives the Asian financial crisis, or suppose that Hong Kong did not rely on China to survive the 1997 Asian financial crisis.

If China was the main factor that helped Hong Kong survive the Asian financial crisis

Since Hong Kong was under British rule before 1997, Hong Kong has the status of an Asian financial centre. Therefore, when Hong Kong returned to China in 1997, China naturally did not want Hong Kong's status in the world to decline immediately after Hong Kong returned to China. Shao mentioned related arguments, Hong Kong's return to China, in China’s side; China hopes that Hong Kong can develop better in the economy and in all aspects under its rule. The financial crisis occurred in various regions of Asia in 1997. However, if Hong Kong's economy declines rapidly after its return to China in 1997, it will be detrimental to China. China naturally hopes that Hong Kong will continue to maintain prosperity and stability after Hong Kong return to China, and even become more prosperous. This will also be a better reference for Macau, which is about to return to China from Portugal in 1999. Ning and Wan mentioned that, Macao’s return to China in 1999 pose another test for China.

If Hong Kong did not rely on China to survive the 1997 Asian financial crisis

Hong Kong is also very likely to survive the 1997 Asian financial crisis on its own. According to Zhang, Hong Kong's GDP in 1997 was more than 170 billion U.S. dollars, accounting for 18.4% of China's total. Therefore, Hong Kong's own economic strength can already equal one-fifth of China at that time. In addition, according to Wu, in 1997, Hong Kong required a minimum foreign exchange reserve of US$12 billion to face the Asian financial crisis. However, Hong Kong had US$15 billion of foreign exchange reserves at that time. This also shows that, Hong Kong has the ability to deal with the financial crisis in 1997. However, Hong Kong had ability to respond that does not necessarily mean that, the Chinese government did not help Hong Kong's economy at that time. China is still very likely to help Hong Kong. This is because after Hong Kong returned to China in 1997, the economies of the two places affected each other. According to Zhang, after the return of Hong Kong in 1997, the economies of Hong Kong and China have closely influenced each other.

Conclusion

Visitors from China continued to increase during this period, but there were still factors of instability. For example, Hong Kong’s tourism industry showed a trend of steady growth but facing the handover of sovereignty in 1997 and the Asian financial crisis, society still had different problems. For example, the wave of immigration that occurred before the handover of Hong Kong's sovereignty from 1990 to 1994 further shows that, some Hong Kong residents had doubts about China's rule. In addition, the contradictions between China and Hong Kong based on the different positions stated in the newspapers of China and Hong Kong can also be found. Therefore, the contradiction between China and Hong Kong mainly started from the handover of sovereignty around 1997. This will be a destabilizing factor in the tourism industry. This issue will also be discussed in the later chapters where social movements occur in Hong Kong.

2003 to 2013 Hong Kong faces the SARS pandemic and opens up IVS (Individual Visit Scheme) for Chinese tourists

The changes in the relationship between Hong Kong and China from 2003 to 2013 were mainly affected by two important events, the 2003 the SARS pandemic and the signing of the IVS (Individual Visit Scheme) between Hong Kong and China.

The 2003 SARS pandemic

In 2003 the SARS pandemic severely affected various industries in Hong Kong. According to Ge et al., in March 2003, Hong Kong was affected by the SARS pandemic, and the number of tourists dropped. From April to June 2003, the number of people fell by 57% from the previous month. Chi revealed that, in 2002, 85% of Hong Kong's GDP came from the service industry, and the tourism industry also accounted for a large proportion. The income of the tourism industry in 2003 was greatly reduced because of the SARS pandemic, at a time when Hong Kong's tourism industry was developing rapidly. SARS had brought high uncertainty to its tourism industry. As tourists avoid unnecessary travel, the number of visitors to Hong Kong had dropped, and the number of visitors also corroborates this phenomenon.

Changes in the China-Hong Kong relations

In 2003, the relationship between Hong Kong and China has also been changed further. In 2003, in order to save Hong Kong’s economy affected by the pandemic SARS, Mainland China and Hong Kong signed CEPA (Closer Economic Partnership Arrangement between Mainland China and Hong Kong). Wu mentioned that, the development of individual Visit scheme was announced because of the pandemic SARS in early 2003. IVS (Individual Visit Scheme) is a tourism-related project in the CEPA agreement. This has a significant impact on Hong Kong's tourism industry. One of the measures is to allow the residents of certain cities in mainland China to travel to Hong Kong as individuals. According to Chi, with the signing of IVS, Chinese tourists no longer need to go to Hong Kong with a group through travel agencies. Besides, as the economic and trade exchanges between Hong Kong and Mainland China became frequent, the demand for Chinese visitors to Hong Kong increased substantially. Therefore, the signing of CEPA quickly resolved the tourism crisis after the SARS pandemic in Hong Kong.

Individual Visit Scheme (IVS)

According to Wu, the opening background of Hong Kong individual Visit scheme in 2003 was that after Hong Kong returned to China in 1997, the economic and trade interaction between two sides became more common. On the other hand, due to the outbreak of SARS, China hopes to stimulate Hong Kong economy through this policy. The policy of Individual Visit Scheme in Hong Kong was first started in four cities in Guangdong Province (Zhongshan, Dongguan, Jiangmen, and Foshan) because these cities are close to Hong Kong. Besides, these cities speak Cantonese just like Hong Kong. From this phenomenon, it can be found that, China had adopted a gradual approach in opening the visitors to Hong Kong. This approach can reduce the conflict with Hong Kong caused by sudden increase in visitor numbers. It was not until 2007 that 49 cities (including a population of 260 million) in 22 provinces in China were opened, because these 49 cities are among the cities with relatively good economic development in China. These cities include Beijing, Shanghai, Guangzhou and Shenzhen. From this perspective, it can be understood that, China's opening of visitors to Hong Kong was to help Hong Kong's economy and promote Hong Kong's tourism industry. Wu further explained that, in 2009, Hong Kong opened Shenzhen (the city just next to Hong Kong) residents to apply for Hong Kong visas multiple times a year. From these measures, the closer interaction between Hong Kong and Chinese cities can be found.

The impact of China-Hong Kong relations on Hong Kong's tourism industry

Since the launch of individual visit policy by Chinese tourists to Hong Kong from June 2003 to 2013, Chinese tourists have stood for 75% of Hong Kong visitors. In 2004, the number of visitors to Hong Kong hit a record high over the years. This data can also be observed from Table D (data collected from the Hong Kong Tourism Board, Mainland Chinese Visitors to Hong Kong from 2002 to 2013). In addition to the help of the Chinese government, the Hong Kong government had also put forward some measures to improve the tourism industry in response to the pandemic SARS. Chi clarified that Hong Kong began to develop new tourism projects after SARS, such as Ocean Park and Disneyland. At the end of June 2003, the WHO (World Health Organisation) removed Hong Kong from the list of SARS-affected areas. The Hong Kong government has also quickly launched a global tourism promotion plan to promote Hong Kong's tourism image vigorously. According to Wei, to maintain Hong Kong's economy in response to SARS, Hong Kong government had also announced nine preferential tax policies for the service industry, including business tax, real estate tax, utilities and rent reductions. From Table D, it can be found that, due to the pandemic SARS in 2003, the total number of visitors to Hong Kong decreased compared to the previous year, but the number of visitors from mainland China continued to increase in the past two years. After the implementation of IVS policy, the number of tourists from China exceeded 20 million for the first time in 2004, which is 70% higher than the previous year's growth rate. This also shows that the IVS policy directly stimulates Hong Kong's tourism industry. Visitors from the mainland China accounted for 70.18% of total visitors in 2012, and reached 75% in 2013, which was as high as three-quarters of total visitors.

2.3.5. The analysis of countries that Mainland Chinese can visit before 2003

However, it was also very difficult for residents of Mainland China to travel to other countries in 2003. According to Ou, only San Marino was the only country that granted visa-free access to ordinary Chinese passports before 2003. However, only Italy has direct flights to this country, so the Mainland Chinese still cannot travel to San Marino. Therefore, in 2003, mainland Chinese residents with ordinary passports basically cannot go to any overseas area with applying for VISA. Besides, except the problem with the VISA, it was still difficult for Mainland Chinese to apply their passport before 2003. According to Ou, the total number of passports approved by China from 1949 to 1978 was only 210,000, which was a very small proportion of China's 1.2 billion total populations at that time. In addition, before 2002, the Chinese government was very strict in applying for passports for residents, which required strict political review. Thus, this also makes it very difficult for mainland Chinese people to go abroad. Hence, in 2003, the Chinese government gradually opened relatively more developed cities to Hong Kong for tourism, which was a rare tourism opportunity for mainland Chinese residents.

2.3.6. The impact of IVS on Hong Kong society and the extended problems

With a large number of visitors from mainland China coming to Hong Kong, in addition to bringing economic benefits, it has also caused a rise in Hong Kong's crime rate and social security problems. According to statistics from the Hong Kong Security Bureau, 13 out of every 10,000 Chinese tourists in the first half of 2004 committed crimes. These crimes involve illegal labour, prostitution and money laundering. Illegal labour is the most common problem. The problem of prostitution will affect the local ethics and culture. Finally, money laundering will cause problems for the local financial industry. However, these problem can be improved, as long as the Hong Kong government strengthens the management and inspection of the local service industry, and the Chinese government raises the rigor of applications for IVS in Hong Kong. Therefore, the more important issue is. Does Hong Kong wants more visitors to support the tourism industry, or does Hong Kong want less visitors to increase the quality of life in the city? Perhaps, most Hong Kong people do not have the right to choose in this respect. The perspective from China and Hong Kong will continue to be analysed.

2.3.7. Dialectical analysis of different newspapers in China and Hong Kong (Controversy over IVS policy)

According to Lin from the China Nanfang Daily, China’s position is that the IVS policy has brought Hong Kong a lot of economic and tourism revenue, which is a great economic opportunity and concession for Hong Kong. Zhao also mentioned in People’s Daily Overseas Edition that the IVS policy is more beneficial to Hong Kong than to Mainland China. Mainland China believes that IVS is a preferential treatment from Mainland China to Hong Kong. However, Wang in Hong Kong Ming Pao newspaper pointed that IVS has brought many social problems to Hong Kong. In addition, IVS has also accelerated Hong Kong's transformation into an ordinary Chinese city without complying with the promise of one country, two systems. Therefore, from the newspapers in China and Hong Kong, it can be seen that there are very different positions on the two sides. China believes that Hong Kong should shows grateful to the help. According to Wu, after the return of Hong Kong, China believes that it has helped Hong Kong a lot in terms of economy, especially in the tourism industry. However, Hong Kong believes that the IVS policy has actually brought a lot of hidden worries to Hong Kong, not just bring the economy. According to Zhang, many Chinese visitors came to Hong Kong after the IVS policy, which also caused many social problems in Hong Kong, such as illegal working. Thus, whether the IVS policy is more beneficial to Hong Kong or China will be discussed.

Is IVS (Individual Visit Scheme) more beneficial to Hong Kong or China?

IVS policy beneficiaries include Chinese cities that apply to this policy, as well as Hong Kong's tourism service industry. From China’s perspective, is the IVS policy beneficial to the Chinese government? Although Hong Kon returned to China in 1997, Hong Kong is still a special administrative region, residents of non-Hong Kong areas cannot visit without application. This may make some mainland Chinese believe that Hong Kong is not actually returning to China. According to Zhu, Hong Kong belongs to the Special Administrative Region of China after its return to China in 1997 and implements one country, two systems. Therefore, residents of Mainland China still have to apply for visas to Hong Kong. Therefore, it is beneficial to the Chinese government that the IVS policy allows some Chinese people to visit Hong Kong, because as long as some Chinese residents can visit Hong Kong, the people in Mainland China will more agree with the fact that Hong Kong has returned to China. The SARS pandemic occurred in Hong Kong in 2003, which caused a severe setback in Hong Kong's tourism industry. Therefore, it can be inferred that this gave the Chinese government a good opportunity to allow some mainland Chinese residents to visit Hong Kong. However, the Chinese government only opens up relatively affluent cities. So in addition to helping Hong Kong's tourism income, this can also prevent too many Chinese visitors at once. According to Rong et al., the IVS policy only allows 49 cities with better economic conditions to participate, such as Beijing, Shanghai, Guangzhou, and Shenzhen. Therefore, the IVS policy is not only helping Hong Kong's tourism industry, but also a very important political interest for the Chinese government. However, because China and Hong Kong have different perspectives on IVS policy, the people of Hong Kong and mainland China have gradually misunderstood and confronted each other. Mainland Chinese believe that Hong Kong should be grateful to them, but Hong Kong believes that IVS brings social problems. According to Wu, Hong Kong opened up individual visit for Chinese visitors in 2003, and conflicts and misunderstanding between the two regions have gradually accumulated.This is one of the potential causes of social and political movements in Hong Kong in the future.

Conclusion

In addition to the tourism industry, Hong Kong has experienced many important transitions in its relationship with mainland China since 2003. The most important thing is the IVS policy, which allows many mainland Chinese residents to visit Hong Kong. The number of visitors to Hong Kong began to rise gradually in 2003. However, IVS not only has impact on Hong Kong's tourism industry, but also has important political benefits for the Chinese government. Hence, in terms of IVS policy implementation, different perspectives from Hong Kong and China can be observed.

2014 to 2018 the relationship between China and Hong Kong began to deteriorate

2014 was a turning point for Hong Kong and China’s relationship. Besides, internal and external factors have caused negative growth in the tourism industry. According to Rong et al., 2014 was the first negative growth in retail sales in Hong Kong since the implementation of personal visits by Chinese visitors in 11 years. The main factor that contributed to the decline of Hong Kong's tourism industry was the social and political movements that took place since 2014. Other factors include the decline in Hong Kong’s attractiveness to Chinese visitors. This section will analyse the social movements since 2014 and other factors affecting Hong Kong's tourism industry in relation to China.

2014 Hong Kong’s Occupy Movement (Comparative Analysis of Viewpoints between China and Hong Kong)

The social and political movement that took place in Hong Kong in 2014 is also called the Occupy Movement. The main time of this movement is from September to December 2014. The main demand is to fight for the right of citizen nomination for the Chief Executive. According to Ge et al., this protest movement is the largest civic movement in Hong Kong history at that time. The occurrence of this incident has also increased the conflict between Hong Kong and mainland China. The relationship between China and Hong Kong began to deteriorate. From the different positions of Hong Kong and Chinese newspapers, different opinions between China and Hong Kong can be found. From this aspect, it can also be found that there are big differences between China and Hong Kong regarding the positioning of the social movement in 2014.

Hong Kong newspapers’ perspective

Hong Kong newspapers have different opinions on the Occupy movement. Liu explains in Hong Kong’s Apple Daily that this movement is for Hong Kong people to fight for their democracy. Hong Kong’s Apple Daily positioned this movement to defend Hong Kong’s democracy. Lin from Hong Kong People’s Daily defines this movement as a civil disobedience movement, and believes that Hong Kong people should encourage students participating in the Occupy movement. While, Chen opposes in Hong Kong's Sing Tao Daily, believing that this event will actually cause Hong Kong's own biggest loss. Therefore, from the comments of different Hong Kong newspapers on this social and political movement, it can be found that the Hong Kong media also have different opinions, support and disagreement.

Chinese newspapers’ perspective

According to Chang’s explanation in the Chinese Warrior News, China identified Hong Kong’s social and political movements in 2014 as illegal. Social movements have brought serious harm to Hong Kong’s society and economy, as well as a negative influence on its international reputation. At the same time, the Hong Kong policy of one country, two systems cannot be carried out normally. Huang stated in China Business Times that the Occupy movement in Hong Kong was deliberately intended to undermine the peace and stability of Hong Kong. This movement will pose a threat to the long-term economic stability of Hong Kong. Chen in Chinese People's Daily of China also revealed that the riots in Hong Kong had bad motives. So from this information, it can be found that China generally disagrees with Hong Kong's social movement in 2014. Therefore, it can be found from this information that China generally opposed these social movements in Hong Kong and did not explain the demands of the Hong Kong people. Therefore, newspapers in mainland China have the problem of opaque information.

2.4.2. The analysis of 2014 Hong Kong’s Occupy Movement

The social and political movements that took place in 2014 mainly reflected the conflicts between Hong Kong people and mainland China. Through the discourses of Chinese and Hong Kong newspapers, different views of the social and political movements in 2014 can be observed. The position of mainland China is mainly that this is an illegal riot. This will only cause harm to Hong Kong. Chen et al. mentioned that the riots of the Occupy movement have seriously harmed Hong Kong's economy and social security. Lin in China Nanfang Daily also mentioned that this is a symbol of Hong Kong's desire to break away from Chinese rule.

The Analysis of China and Hong Kong's position

If China’s interests are taken into consideration, China naturally does not want any social movement in Hong Kong. This will affect the legitimacy of the Chinese government’s rule. According to Li, although the judicial system in Hong Kong is different from that in Mainland China, social movements in Hong Kong will have an impact on cities in Mainland China, and similar social movements may also occur in other cities in Mainland China. However, for Hong Kong's position, in addition to the economic losses caused by the tourism industry, Hong Kong people may be more concerned with their political demands. According to Yang et al., ten years after the opening of the IVS policy, Hong Kong people began to care about other social and political issues instead of just looking at economic development. However, since the tourism industry is most impacted by social and political movements, the tourism industry generally opposes this Occupy movement. According to Cui, Hong Kong's tourism industry has been hit hard by the social movements and the number of visitors has declined. So it can be understood that there are different opinions on the Occupy movement in Hong Kong. The information generally obtained by the people in mainland China is about how social movements in Hong Kong caused the destruction of the city and threatened social security. In addition, the Chinese media generally define this social movement as a riot, so the Chinese media generally express opposition to the Occupy movement. According to Wang, people in mainland China generally see negative reports of the Hong Kong Occupy movement, and they have no chance to understand the true demands of Hong Kong people. Therefore, Hong Kong and Mainland China have received completely different reports in the media, which is one of the reasons for the deepening of the conflict between the two sides. Information asymmetry is still an important factor in misunderstanding between Hong Kong and China. Information asymmetry is also related to the subsequent social and political movements in Hong Kong in 2019.

Hong Kong's milk powder purchase restriction policy

The milk powder problem is also one of the indirect factors that caused the 2014 social movement in Hong Kong. Visitors from mainland China buy a large amount of milk powder in Hong Kong, causing Hong Kong's milk powder to often face shortages. From the milk powder purchase restriction policy implemented by Hong Kong in 2013, frictions between Chinese visitors and Hong Kong people can also be found. According to Yu et al., Hong Kong implemented a policy of restricting milk powder export in March 2013. Unless the purchaser has an export license issued by the Trade and Industry Department, ordinary visitors can only take up to two cans of milk powder out of the country. If the customs finds that they carry more than the quantity, they will be sentenced to two years in prison. Yu et al. elucidated that although there are restrictions on the quantity of milk powder purchased in other countries, only Hong Kong will be sentenced. The purchase of milk powder could be regarded as a hidden worry for the internal development of Hong Kong's tourism industry. Thus, Chinese tourists had not just brought tourism opportunities but also social problems. From this milk powder problem, more problems can be observed. Since Hong Kong residents cannot buy enough milk powder, they may have a negative impression on Chinese visitors, especially when too many tourists affect the quality of life of Hong Kong residents. However, it can also be found from the milk powder purchase restriction policy that the Hong Kong government is dealing with problems between China and Hong Kong. This policy could improve the shortage of milk powder in Hong Kong. After the implementation of the milk powder policy, the shortage of milk powder has been improved.

Increased choice of destinations for mainland Chinese tourists

Hong Kong's attractiveness to Chinese tourists had declined. According to Yu et al., during China's May Day Golden Week in 2015, Tongcheng Travel conducted a survey report. The report showed that South Korea and Japan are the most preferred destinations for tourists from mainland China, because mainland Chinese tourists who have been to Hong Kong would like to travel to other countries, especially the residents of northern China who are closer to Japan or Korea than to Hong Kong. Hong Kong has initially been the number one destination for tourists from mainland China, but now it has fallen to sixth place. The choice of destinations for Chinese tourists had increased. Hong Kong's declining attractiveness for Chinese tourists is due to the increased choice of destinations for travel. According to Yu et al., other parts of Asia and European countries have relaxed visas for tourists from mainland China due to the decline in air ticket prices. Therefore, Chinese tourists no longer choose Hong Kong as their first choice for tourism. According to Tian, mainland China also implements a tax-free shopping plan for outlying islands in four cities on Hainan Island. Therefore, if mainland Chinese tourists have shopping needs, they can also choose to go to its Hainan Island.

Debate between China and Hong Kong on Guangzhou-Shenzhen-Hong Kong high-speed rail

Border disputes under one country, two systems

Since Hong Kong is a special administrative region of China, entering Hong Kong from cities in mainland China still has to go through border inspections. Therefore, the border inspection of Shenzhen's high-speed rail to Hong Kong is at Hong Kong's high-speed rail station, so the interior of Hong Kong's high-speed rail station is under the jurisdiction of mainland China. Lin stated in Hong Kong Ming Pao newspaper that Hong Kong's high-speed rail stations are under the jurisdiction of mainland China, which would undermine the protection of one country, two systems. However, the Chinese and Hong Kong governments believe that this method can save time and is more efficient for the operation of high-speed rail. In this regard, Hong Kong and China are facing conflicts again.

China and Hong Kong have different attitudes towards Guangzhou-Shenzhen-Hong Kong high-speed rail

Wang from Hong Kong’s Apple Daily also stated that the implementation of Mainland China’s laws at Hong Kong’s high-speed rail stations will result in Hong Kong people without legal protection. Hong Kong still has its own legal system after its reunification in 1997, so some Hong Kong people will worry about the implementation of the laws of Mainland China at Hong Kong's high-speed rail stations. According to Li, Hong Kong has its own basic law, which is different from mainland China. Besides, Chen in Hong Kong Oriental Daily also mentioned that Hong Kong residents do not want the transportation from mainland China to Hong Kong to be too convenient. Therefore, some Hong Kong people do not want mainland Chinese residents to come to Hong Kong too easily. This is a difference in attitude between China and Hong Kong. However, in China Nanfang Daily, Yang stated that the Guangzhou-Shenzhen-Hong Kong high-speed rail can enhance Hong Kong's international competitiveness and deepen the exchanges between mainland China and Hong Kong. This will be more convenient for Hong Kong to go to cities such as Shanghai and Beijing in the future. The attitude of the Chinese mainland media is that this high-speed rail construction is helping Hong Kong. Therefore, through Hong Kong and Chinese newspapers reporting on the Guangzhou-Shenzhen-Hong Kong high-speed rail, it can be discovered that Hong Kong and China have always had different positions on China-Hong Kong relations. Hong Kong is repulsive of its relationship with mainland China. Hong Kong does not want its relationship to be too close to mainland China. Therefore, Hong Kong does not want high-speed rail to reach Hong Kong from mainland China. However, mainland China hopes that Hong Kong will quickly integrate into a normal Chinese city. These differences in political and social positions may be the reason for the contradiction between Hong Kong and China.

Analyse the impact of changes in China-Hong Kong relations on visitors from mainland China

Based on Table E, (data collected from the Hong Kong tourism board, Mainland Chinese Visitors to Hong Kong from 2014 to 2018), Visitors from mainland China declined in 2014 and 2015, Although the number of visitors from China to Hong Kong only dropped by 2% from 2014 to 2016, this is the first time the number of visitors from China has fallen since China and Hong Kong implemented the IVS (Individual Visit Scheme) policy in 2003. This also shows that the decline in the number of Chinese visitors that started in 2015 was due to the social movement in Hong Kong in 2014 and not accidental. Since the past ten years have been steadily increasing, the number of people has only declined since 2014. However, despite the decline in the number of visitors from China in 2015 and 2016, it still accounts for 77.5% and 75.5% of Hong Kong's total visitors. This shows that visitors from mainland China are still the main source of Hong Kong's tourism industry. From 2017 to 2018, there have been some adjustments in the relationship between Hong Kong and China. It can also be seen from Table E that the number of visitors from China had begun to pick up again in 2017. By 2018, Chinese tourists had made breakthroughs in both the number of visitors and the proportion of total tourists. However, Hong Kong began to restrict visitors from China. According to Yang et al., in 2015, the Hong Kong government cancelled multiple visas for Shenzhen residents and changed it to once a week because the Hong Kong government was worried about illegal work and illegal smuggling from mainland China to Hong Kong. However, in terms of transportation, the mode of transportation from Hong Kong in Mainland China has increased. According to Yang et al., the Guangzhou-Shenzhen-Hong Kong high-speed rail opened to traffic in 2018, and it only takes ten minutes to travel from Shenzhen to Hong Kong. In addition, the Hong Kong-Zhuhai-Macao Bridge was also completed in 2018, increasing the connections between cities along the south-eastern coast of China. However, while the traffic is shortening the distance, different views have emerged between Hong Kong and China. The conflict between China and Hong Kong has been accumulating.

2019 to 2020 Anti-Extradition Law Amendment Bill Movement and the Covid-19 pandemic

The changes in the relationship between China and Hong Kong from 2019 to 2020 are affected by the Anti-Extradition Law Amendment Bill Movement in 2019 and the Covid-19 pandemic in 2020.

2019 Anti-Extradition Law Amendment Bill Movement

The Anti-Extradition Law Amendment Bill Movement in 2019 is the extradition of suspects against Hong Kong by the Hong Kong people to mainland China for trial. Opponents do not trust the judicial system of mainland China and worry that the extradition of suspects to mainland China will lead to unfair interrogations, which will damage Hong Kong's independent jurisdiction under the one country, two systems. This socio-political movement is still going on. This movement has a great impact on Hong Kong's relationship with mainland China and Hong Kong's tourism industry. This socio-political movement started from the original sit-in in March 2019 to the parade in June, and clashes between demonstrators and the police began on June 12. The police were later commented by the Hong Kong media as an abuse of force. Opponents have made five major demands against the government, including the withdrawal of the Fugitive Offenders Ordinance, the withdrawal of the definition of this social movement as a riot, the establishment of an independent investigation committee (to investigate the abuse of force by the police), and the implementation of true universal suffrage in Hong Kong.

Understand from the perspective of Hong Kong newspapers

Scholar Lin from Hong Kong’s Apple Daily believes that this social and political movement is a war of values. The people of Hong Kong want to maintain their own democratic system. Gou stated in Hong Kong’s Ming Pao newspaper that this social movement was an accumulation of conflicts and contradictions between Hong Kong people and mainland China after Hong Kong returned to China in 1997. These conflicts and contradictions include the IVS (Individual Visit Scheme) policy, which caused a large number of Chinese visitors to Hong Kong, causing pressure on the city, and the social movement in Hong Kong in 2014. Different media in Hong Kong have different positions. Li explained in Hong Kong's Sing Tao Daily that the Hong Kong police lost the trust of the people after this social movement. Opponents were injured because of excessive police enforcement. However, some Hong Kong media support the Hong Kong police in law enforcement. Lian illustrated in Hong Kong Oriental Daily that not everyone in Hong Kong supports this social movement, and the rights of the Hong Kong people who did not participate should also be protected. It can be seen from this aspect that Hong Kong newspapers also have different voices for this Anti-Extradition Law Amendment Bill Movement.

Understand from the perspective of Mainland Chinese newspapers

Chen defined in China Rule of Law Daily that social movements in Hong Kong in 2019 as violent activities. These violent incidents have severely disrupted the social order and public security in Hong Kong and damaged the core values ​​of the rule of law in Hong Kong. The position of Scholar Li from the China Rule of Law Daily believes that this violent activity has seriously affected the bottom line of Hong Kong’s one country, two systems and does not agree with this social movement. However, the newspaper did not mention the demands of this social movement. Li from The Global Times of China also commented that this social movement was a violent activity planned by some Hong Kong legislators for the political interests of a few people. Li believes that this is because Hong Kong will hold Legislative Council elections the following year, so the opposition has planned these political activities. These violent acts should be severely punished by law. Chen revealed in China's Xinhua Daily that certain Hong Kong media spread rumours and instigated street violence and crimes, which is the biggest source of chaos in Hong Kong society. At the same time, it explains that certain Hong Kong media spread negative reports on mainland China and remarks attacking the Hong Kong SAR government. From the standpoint of these mainland Chinese newspapers, it can be found that most mainland Chinese media do not agree with Hong Kong’s Anti-Extradition Law Amendment Bill Movement. It is worth noting that Chinese newspapers generally do not mention the demands of Hong Kong’s Anti-Extradition Law Amendment Bill Movement. Mainland China’s perspective is mainly to report on the damage caused by the movement to the city of Hong Kong.

2.5.2. Comprehensive analysis of Anti-Extradition Law Amendment Bill Movement

Regarding the Anti-Extradition Law Amendment Bill Movement, due to the limited information available to the Chinese people, newspapers from foreign countries and Hong Kong will be subject to strict censorship. According to Yip et al., China has a strict censorship system in the media. Thus, the Chinese mainland media's comments on this social and political movement are more like a response from the Chinese government, and seldom mention the whole story of this movement. So many people in mainland China oppose this social movement, and they think it is a violent activity. Therefore, under the situation of asymmetric information, the people of Hong Kong and mainland China will have more misunderstandings. Under such circumstances, the previous misunderstandings between the Chinese and Hong Kong people will become deeper, and it is mainly caused by opaque information. This is because most people in mainland China do not even know the fundamental demands of Hong Kong’s Anti-Extradition Law Amendment Bill Movement. However, Hong Kong people do not understand that the information obtained by people in mainland China may not be equal. According to Li, the information obtained by the Chinese mainland in the media is closely controlled. This situation will only worsen the relationship between Hong Kong and the Chinese people. Although the five major demands of this social movement have not been approved by the Hong Kong government, the Hong Kong government has withdrawn the revised draft of the Fugitive Offenders Bill in October 2019. Therefore, the expression of political demands through social movements still has a partial effect in Hong Kong.

Analyse the impact of Anti-Extradition Law Amendment Bill Movement on the interests of Hong Kong and China

For Hong Kong, this social and political movement is beneficial for Hong Kong to further demand some political demands from the Chinese central government. Through demonstrations, protests and sit-ins, the demands of opponents can be heard. According to Yang, through protests, assemblies, and demonstrations, people can express their demands for the government. From the perspective of mainland China, they do not want any problem in Hong Kong. In particular, social and political movements are not allowed in mainland China. Although Hong Kong is a special administrative region and implements one country, two systems, the Chinese government still fears that such social movements will affect mainland China. According to Zheng et al., the Chinese government is worried that social movements in Hong Kong will affect China's rule of the mainland. Subsequently, no matter what the opponent's demands are, as long as it affects the rule of Mainland China, the position of Mainland China will not support social movement Hong Kong.

The impact of China-Hong Kong relations on Hong Kong's tourism industry

Overall, the Anti-Extradition Law Amendment Bill Movement is very unfavourable to Hong Kong's tourism industry. Social movements in Hong Kong have become an uncertainty factor in the tourism industry, especially for visitors from mainland China. Zhu mentioned that the social movement in 2019 impacted Hong Kong's economy, social security and many fields. Hong Kong's stock market was hit on the economic front, and the business environment has also deteriorated. According to Zhang, the overall performance of Hong Kong's retail industry declined due to social movements. Hong Kong's airport was unable to operate because demonstrators surrounded it. In terms of public security, Hong Kong also experienced many robberies. As a result of the demonstrations, 31 countries issued travel warnings to Hong Kong. These reasons have had a significant impact on Hong Kong's tourism industry. Therefore, in 2018, the tourism industry, which had gradually recovered its vitality, was hit hard again. Social movements not only caused residents or passengers to be unable to consume normally, but even the airport has also been unable to operate normally. Therefore, tourists could not usually enter Hong Kong; even if they entered Hong Kong, it was unsafe. From Table F (data collected from the Hong Kong Tourism Board, Mainland Chinese Visitors to Hong Kong from 2018 to 2020), visitors from Mainland China from 2018 to 2020 and the proportion of visitors from Mainland China to total Hong Kong visitors can be observed. From this chart, the impact of Anti-Extradition Law Amendment Bill Movement on Hong Kong's tourism industry in 2019 can be analysed. In the previous section, it was mentioned that the number of visitors to Hong Kong reached a new high in the past 20 years in 2018. There are about 51 million visitors from mainland China, accounting for 78.3% of the total visitors. However, the number of visitors from mainland China dropped by nearly 8 million in 2019. The proportion of visitors from China has not decreased, but the total number of visitors has decreased. However, the Anti-Extradition Law Amendment Bill Movement started in March 2019 and has not yet ended. After October 2019, the scale of social movements began to expand until 2020. Therefore, it is necessary to evaluate the number of visitors in 2020 at the same time, so that the analysis of information will be more objective. In 2020, the total number of visitors to Hong Kong is only 3.5 million, while visitors from mainland China account for about 2.7 million, accounting for 75.8% of overseas visitors. However, starting from 2020, the world is affected by the Covid-19 pandemic, people have begun to avoid unnecessary travel, and various countries have begun to restrict entry policies. Therefore, it will also have an important impact on the number of visitors to Hong Kong in 2020. Thus, the next part will discuss the Covid-19 pandemic's China-Hong Kong relationship and how it affects Hong Kong's tourism industry.

2020 the Covid-19 pandemic and its impact on China-Hong Kong relations

In 2020, the Covid-19 pandemic broke out globally, and Hong Kong's tourism industry was influenced once again. After the epidemic outbreak, Hong Kong closed many ports to mainland China and only opened the Hong Kong Airport, Deep Bay, and the Hong Kong-Zhuhai-Macao Bridge. These measures significantly reduced the number of visitors to Hong Kong. Due to the outbreak of multiple domestic cluster infections in Hong Kong in March 2020, the government issued laws restricting clusters. Zhang declared that many restaurants and entertainment venues were required to close or shorten their business hours. Hong Kong also announced in February 2020 that passengers returning to Hong Kong from mainland China must undergo a 14-day compulsory quarantine. A 14-day compulsory quarantine must also be carried out from Hong Kong to mainland China. Therefore, if visitors travel back and forth from Hong Kong to mainland China, they had to be quarantined for 28 days. The 28-day quarantine period resulted in a drastic reduction in people's willingness to travel. The Covid-19 pandemic has suspended social movements that were originally in Hong Kong. Due to border restrictions, the interaction between China and Hong Kong has gradually decreased. This has suspended the conflict between the two sides due to social movements. However, the quarantine measures in China and Hong Kong have also caused the interaction between the two sides to drop to the lowest level in the past 20 years. It can also be found from Table F that the number of Chinese visitors in 2020 is only 6% of 2019.

The Covid-19 pandemic measures' impact on Hong Kong's tourism industry

The pandemic completely shrunk Hong Kong's tourism industry. Yang revealed that the number of passengers carried by Cathay Pacific Airways in Hong Kong in 2020 was 86.9% lower than the previous year, and the number of passengers carried was less than 60%. According to the Hong Kong Tourism Board, the occupancy rate in December 2020 was less than 30%. Hotel prices in Hong Kong had also fallen sharply. According to Tables G and H (data collected from Hong Kong PartnerNet, Statistics of Visitors to Hong Kong 2019, 2020, and 2021 Jan), the total number of visitors to Hong Kong in 2020 was only about 3.5 million, decreasing 94% compared to the previous year. However, the pandemic Covid-19 had not officially erupted in January 2020, so the number of visitors to Hong Kong in January 2020 accounted for nearly 80% of the total number of people in 2020. This shows that starting from February 2020; there were almost no visitors in Hong Kong. In addition, it can be seen from Table H in 2021, visitors from China accounted for only about 60% of total tourist arrivals for the first time since the opening of individual Visit in the past ten years. The plight of Hong Kong's tourism industry was reflected in tourist destinations such as large amusement parks. Zhang cited that Hong Kong's tourism service revenue has fallen by 95%. According to data from the Hong Kong Census and Statistics Department in September 2020, most of Hong Kong's service industries had a 94.9% decline in 2020. According to Zhu, Hong Kong's famous amusement park Ocean Park was also on the verge of bankruptcy due to the pandemic. The Hong Kong government urgently assisted its finances, providing 5.4 billion Hong Kong dollars. Guan et al. also stated that, Hong Kong Disney had also suffered financial losses.