Impact of Hong Kong’s Economic Development on the Tourism Industry

Question

I can give you an example(what I wrote in midterm,and it got A level) Here’s an example: More and more Chinese tourists are going abroad for vacation. Due to the economic development and expanding middle class, Chinese people are no longer only buying things they need, but also things and experiences they desire. I’d like to research how China’s economic development has affected the tourism industry (that is, Chinese people going OUTSIDE of China for tourism)

So, you can choose another topic/country about tourism, e.g. you can write about HK – in terms of how HK’s economic development has affected the tourism industry (that is, HK people going OUTSIDE of HK for tourism.

Answer

Impact of Hong Kong’s Economic Development on the Tourism Industry

Contents

Introduction. 2

The History of Hong Kong. 3

The Economic Development of Hong Kong and Impact on Tourism.. 6

Conclusion. 12

References. 13

Introduction

Hong Kong’s economic development and historical development are directly linked to its geographical location which strongly influences its integration into the economic face of its region and the progression of economic activities. It has thus gown as a business port and hub for its relation and geographic position as a gateway for China and its massive trade or manufacturing power. With China emerging as an economic frontier, the financial capacity of individual citizens both in China and Hong Kong has equally risen over the last decades. With the sustainability of food, education and health infrastructure, the people have been empowered to seek out the secondary needs such as entertainment and vacations (Meyer, 2000). It is in this way that the tourismsector has evolved with a measure that is proportional to China and modern global tourism trends. The growth of the middle class in Hong Kong has paved the way for specific group and pattern in which local HongKongers embrace international tourists in their territory but also adopted a similar tourism process. The number of Hong Kongers travelling abroad for vacation or work as form of tourism has greatly increased in equal measure (Sing, 2009).

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            In order to widely understandthe effect of Hong Kong’s economic development and its effect to make the territory a tourism hub both for international and local people, an analysis must be conducted to understand the historical, political and social components of its society. More importantly, it is impossible to investigate the economic progress of Hong Kong (HK) without including China and its inclusion in the entire process (Meyer, 2000).

The History of Hong Kong

The territory has archeological evidence that shows population settlement and robust economic activity from early as the Stone Age period. In this period, there was a well developed stone tool making industry both in HK and in China. The territory was then incorporated into China and in the centuries that followed, it emerged as a naval base, a robust port and an international trading center. Undoubtedly, the stability of the region has fluctuated over the centuries depending on the ruling dynasties, regional wars and socio-political interactions with China and most of Eurasia (Sing, 2009). Remarkably, HK has long been characterized by negative immigration effects and a terrain that completely limits the prospects of agriculture. This forms a stark difference with mainland China who has been able to capitalize on agriculture for generations and even had up to four harvests in a year during the middle ages and even into the Renaissance periods.

It was during the period of colonization when HK was colonized by Britain and emerged as a widely and internationally recognized territory. It was then used as a port for military control and trade facilitation with significant tribes from China migrating into HK (Callick, 1998). Over time, more Chinese tribes moved to HK to increase the small population mostly made up of small population native tribes that were close knit and practice subsistence form of economic activities. Hong Kong was thus involved and holds much awareness of the Opium wars between China, Britain and India to someextension (Friedman, 1994). In a war that was influenced by Britain’s strategy of conquering the Asian markets through China and Hong Kong, Britain was able to push forward the Industrial Revolution and emerged as a frontier in the European Revolution. At the same time, the harsh weather conditions including typhoons and hurricanes were not experienced in HK making it an even more conducive space for military operation (Friedman, 1994).

In another capacity, Christian missionaries moved to the region and greatly implemented the processes of religion, modern education and healthcare. With a large population of native people who were aboriginal in their beliefs, it was difficult for the people to accept or fully utilize the institutions of healthcare and education (Callick, 1998). However, the break out of the Bubonic plague in the late 19th century forced the locals to seek to the mission health institutions in a process that offset a recognition and accommodation of the foreign health services (Friedman, 1994). Over time, even the missionary capacities adopted some of the local health wellness and health systems to make a holistic health care system that was both acceptable and functional. As China became weaker in the early 20th century, the fear of Hong Kong’s invasion and domination by a rising Japan continued to surge (Friedman, 1994). Eventually, Hong Kong was taken over and controlled by Japan for over four years during the Second World War.

During this period, Hong Kong was greatly depleted and run down. High taxes and rates of inflation completely incapacitated the growth of the people. Other severe forms of oppression included rationing of basic item such as food and even water became widespread in this four year period. Additional suffering was reported with the raping and mutilation of women in a form of gendercide. Eventually, these events stirred severe bitterness between the Chinese and Japanese and led to the Sino-Japanese War in a series of events that liberated Hong Kong through the intervention of Britain. In a short period, the population of close to one million was reduced by half through death and escape to mainland China or other countries (Friedman, 1994).

After the World War, the global move to independence paved the way for economic rejuvenation of HK. At this point, the population of mainland China was growing exponentially and a new wave of refugee moved to HK.With the previous recognition of the geographical advantage of HK in trade, more firms and investors began to relocate their stations to the territory amidst the boom of industrialization and manufacturing. The improvement of technology also facilitated by British existence in the region during the revolution greatly supported the establishment of textile and clothing accessories manufacturing. In a situation that appeared to overtake the industry’s, capacity worker squatter camps began to emerge. Despite the health and sanitary danger that these camps posed, there was an abundance of cheap and expansive labor in what has gone ahead to give China and HK in combination, a comparative advantage in product manufacturing.  In the years that followed the world war, HK has developed its economic and social identity in a manner that is independent even when the fundamental laws and political considerations combine it with China (Friedman, 1994). Women got more working rights in the factories just as the squatter camps were slowly converted into sustainable worker schemes.

In the 21st Century, Hong Kong’s political structure has continued to separate itself as a partial democracy contrary to mainland China (Pui-Tak, 2001). Land ownership structures have allowed for its Real estate sector to rise exponentially, parallel to the manufacturing growth. HK is now widely known for its creative and technology driven real estate sector that boosts some of the world’s highest sky scrapers (Pui-Tak, 2001). 

Even though the history of Hong Kong does not seem to bear much importance on the economic development and tourism sector:it almost singlehandedly shaped these factors.Patterns of political unrest and revolution have created an environment that is slightly more accessible and preferred to that of China. The social construction of the Hong Kong people and equally of the world in regards to the region has greatly shaped the tourism in its past present and greatly so in its future (Pui-Tak, 2001).

The Economic Development of Hong Kong and Impact on Tourism

The economy has morphed into a service oriented structure over the last two decades. One of the advantages of Hong Kong is that it has established itself into a global international financial center. Even though this may seem trivial for a manufacturing economy, the establishment of an economic financial market system links HK to the world’s financial markets sand puts its own and Chinese companies on the global platform for money markets (Luk, 1995). HK has developed strong ties and capacities with money markets such as New York’s Wall Street, London and Tokyo. Consequently, the financial flows into the territory have funded the booming technological, innovation and real estate sectors which directly rely on international money markets, financial regulations and investments (Luk, 1995).

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The trading of financial instruments on these assets is a strong method in which HK has sustained most of its industries. With a form of communism, much investment goes back into its economy following a cultural and social obligation to growth of infrastructure and its people. The people of HK, just like the people of China have been transformed by their history and encounters especially with Japan into an ideology of standing together for economic, political and social empowerment (Friedman, 1994). The real estate sector began to promote tourism within the region with more people initially coming for the luxury accommodation and hospitality that it now boosts.

Hong Kong’s dollar is accepted and issued by three international banks at a time when the versatility of national currency acts either as strength of weakness of global trade. Its currency is now given as much recognition and that rivals the US dollar (Jao, 2001). Monetary authorities and regulators of Hong Kong have risen to international standards of performance. The fact that HK is well in charge of its monetary regulation aside from China has provided independence of action and contribution to fully suit the market and its growth objectives while equally supporting the investors and their interests. Under the regulation of these entities, HK has become one of the leading global partners that have smoothly adopted the latest electronic trading system. Furthermore, the markets have seen an automation of its service and the development of world class professionalism in the Hong Kong financial service distribution network. This has brought to life a system of technological tourism that takes the shape of work and tourism in intricate combination.

As financial market education adopts technological training, the Hong Kong professional is emerging as an employee who has not only theoretical but high practical experience in new money market technologies (Jao, 2001). Even more interestingly, this growing professionals exhibit high level innovation and learning capacities that they now travel to other countries in packages that include touring and teaching the skills they posses in other markets. This then aligns with the Hong Kong structure that has evolved as a service based sector. In truth, a wave of tech tourism has emerged where Hong Kong professionals are getting value in tourism owing to their services and capabilities. Asian markets and European markets have been some of the leading primary level destinations.

In the same line, secondary level destinations have also emerged in the African market. Over the last two decades, it has become apparent that most of sub-Saharan Africa has continued to align itself to the East and specifically to China and Hong Kong. In investment collaborations to develop the infrastructural capacity of this African region, China has partnered with almost all African governments in different capacities and projects (Meyer, 2000). In the very least, the exportation of infrastructural goods and services to Africa has opened the region up to Hong Kong tourism. In a simple process, China and Hong Kong have become very aware of native Africa owing to these interactions. Countries such as Kenya, Tanzania and Nigeria have established close developmental ties with Hong Kong and China that extend for up to 100 years (Meyer, 2000). Hong Kongers who are initially exposed to this region through work and consultancy on these projects have established an understanding of continuity and the tourism involving Hong Kong people to this region, guided by an accepted permanence of relations and hospitality.

The economic development of HK has also diversified the education and health sectors fully. Specifically, the education has adopted a global and technology innovation approach as a major strategy. The result is that these people have become more aware of black Africa a subject and location that has been highly illusive to the Asian people. Chinese and Hong Kongers are indeed among the leading Asian countries that have a fair awareness of black Africans and contribute to the demystification of the African stereotype in Asia (Friedman, 1994). Even though interactions between Asians and Africans remain minimal, Hong Kong’s penetration into the region has led to a massive flow of its tourist to the continent not only for work tourism but even for exploration tourism.

In these growing tourism partnerships, this has been an observation of social and cultural similarity between the African and Hong Kong or Asia. Ideally, these two are high context cultures that value intercultural connection and communication in their social structures. While the economic disadvantages that African economies suffer through these developments and the financial burden incurred, the working relationship has been guided by the agreement of high context culture practices that smoothen these interactions and partnerships even at the local levels. In the same way, this tourism has opened Hong Kong up to Africans who wish to there for health, education or entertainment purposes (Friedman, 1994). The financial markets of HK provide a good opportunity for partnerships with Africa following their increased understanding of developing markets. Undeniably, Hong Kong has provided reinforcement to emerging financial markets in Africa, Asia and even South America.

The manner in which HK has remained under China but successfully fostered international and regional connections that have been effective for short and long term growth is one of its key components of economic development (Luk, 1995). It is this very factor that has shaped the tourism sector and not only made HK a tourist destination but also opened up the Hong Kongers to international tourism. A significant trend is thus observed with more Hong Kong people becoming tourists not only in neighboring Asian markets, but globally. The global socialization, branding and perception of HK have mostly been of great significant to the acceptance and facilitation they receive globally. Interestingly, the growing global perception of China has offset a form of favor for Hong Kong in instances where most perceptions are held in separation of the two. However, Hong Kong remains largely controlled and obstructed by China (Pui-Tak, 2001).

China’s emergence as an economic super power has put it at a place where it is perceived a threat to western counties. The US itself has faced stiff competition from China with much of its own manufacturing being outsourced in China at the expense of its own manufacturing sector and those it employs. It is thus said, that the global fight for power is now aligned along economic dominance and with China taking the lead, most countries are put at economic and political risk. Over time, the consequence is the rise of its military and political power and a threat of completely overturning the current global political hierarchy (Meyer, 2000). With the US redirecting much of its weaponry to China, and the Asian region forming partnerships in the goal of weakening China’s strength in the region, Hong Kong is viewed as separate from China and its agendas even when it largely is not. This perception has been one of the factors that have supported the redirection of investments and companies to Hong Kong as opposed to China. As Hong Kong continues to separate itself from China economically and socially, it is likely that political separation may be achieved (Pui-Tak, 2001). This stability and independence has put a high projection for the future growth of HK. Since the economic growth is in fact one of the territory’s prime focus, the tourism sector is set to expand for both international tourist and for Hong Kong tourists.

The growth and recognition of the luxury industry as demonstrated in its real estate and clothing industry has also shaped the Hong Kong people as luxury consumers. Vacations and holidays as well as luxury spending is often considered a mandatory and well deserving reward for the busy and high technology work environments they operate in. In deed Hong Kong has one of the largest smart phone users with surveys showing that these people were extremely linked to their smart phones (Sing, 2009). These people thus enjoy luxury travelling in Europe or parts of Asia that combine smart technology living and nature. Notably, these tourists truly valued their Smartphone’s and are known to have the same inclination to these gadgets even when on vacation. Luxurious activities such as water springs, food and wine sampling are some of the top activities that they love.

Hong Kong’s long exposure to technology has also boosted the smart phone culture of its people. It is agreed and supported by general surveys that Hong Kongers, especially the younger population value their social media presence and including their travel destinations or activities over the actual vacation. With close to a third of its millennia’s admitting to their social media demonstration as a strong factor for vacationing, this social media and Smartphone culture is indeed a quantitative influencer boosted by economic and technological development (Sing, 2009). Some of the luxurious and popular summer holiday destinations for Hong Kongers are Singapore, Paris, Thailand and Taiwan. Tourism partnerships with these markets have also pushed these destinations to implement further technical methods of marketing and inclusion that incorporates these characteristics and draws in more of these tourists.

Hong Kong’s online presence has also brought more awareness on even more exotic travel destinations. Touring agencies have collapsed or evolved into online services that plan and organize travel packages. The people of HK who are extremely linked to social media and are equally extremely but or evolved in their work turned out to be targets of these agencies. With the tracking down of exotic locations made easier, the people are willing and financially capable of hiring thee agencies for the convenience they provide (Sing, 2009). The Hong Kong attitude is thus one of acceptance of services that utilize online strength and technology to provide more dynamic services.

The success and shift to Hong Kongers as tourists has largely and primarily been influenced by its own tourism industry. The authorities have over the last two decades invested heavily in marketing Hong Kong as a global destination.  However, while the industry did achieve a reasonable ground with this investment, the industry remained slow in its expansion. Even so, the increase in tourist population injected money flows into the local economies with small traders developing businesses and services to support the improving tourist industry within (Lok, 1995). With these population being mostly of western origin, Hong Kong people developed a liking to their counties as well.

Pop culture has also played a crucial role especially among the youth. Pop culture as a widely accepted culture and identity and originally developed in the US, has offset interest in US markets. In a simple form, pop culture instruments such as music and film has penetrated the Hong Kong markets as it has the Asian region (Sing, 2009). This penetration is in turn supported by the social media and smart phone culture as well as the economic ability to get these gadgets and accessible internet. With one of the most well distributed internet connection networks, Hong Kong has plugged into pop culture and equally led to the development of its own mash up culture. It is not uncommon to hear of the youth moving to the US or other European countries in favor of pop culture. Concerts are perhaps one of the biggest demonstrations of Hong Kong travelers for such events. The robust entertainment sector enhanced online has also opened the way for international individuals who wish to build their careers in the entertainment sectors.

Conclusion

The tourism sector in Hong Kong is a clear example of the changing face of global tourism. With recent reforms meant to improve Hong Kong’s tourism brand as an independent Asian destination is bound to have an effect in the opposite direction as well with more of itslocals also travelling to newer regions. It is inevitable that technology will be fully integrated to tourism with questions and speculations on augmented reality in deed being a possible future. With the technology that Hong Kong continues to develop and the strengthening economic development, they might just be the forces behind augmented reality tourism.

References

Callick, R. (1998). Comrades and Capitalists:Hong Kong since the Hand Over. Sydney: University of New South Wales Press.

Friedman, E. (1994). The Politics of Democratization: Generalizing East Asian Experiences. Boulder: Westview Press.

Jao, Y. (2001). The Asian Financial Crisis and the Ordeal of Hong Kong. Westport: Quorum Books.

Luk, F. (1995). HongKong’s Economic and Financial Future. Washington: Center for Strategiuc an International Studies.

Meyer, D. (2000). Hong Kong as a Global Metropolis. Cambridge: Cambridge University Press.

Pui-Tak, L. (2001). Hong Kong eintegrating with China Political, Cultural and Social Dimensions. Hong Kong: Hong Kong University Press.

Sing, M. (2009). Politics and Governbment in Hong Kong: Crisis Under Chinese Sovereignty. London: Routledge.

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