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Axing of two Hong Kong ministers driven by need for better tourism strategy, but challenges remain

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SINGAPORE: The surprise firing of two Hong Kong ministers on Thursday (Dec 5) was a “strategic” and “administrative” decision long in the making, sources and experts told CNA.

The move could ultimately help the city bolster its lucrative tourism sector’s recovery, though challenges remain, they add.

Hong Kong, once a leading tourism hub, has been trying to lure visitors back after gradually reopening its borders in 2022.

Chief Executive John Lee may not have addressed specific mistakes that might have led to the dismissals of Mr Kevin Yeung Yun-hung and Mr Lam Chi-ting but it is timely to note several missteps and controversies that had been allowed to happen under their watch, sources and industry watchers told CNA.

A long-time bureaucrat who joined Hong Kong’s civil service back in 1992, Mr Yeung Yun-hung’s two-and-a-half-year tenure was marred by controversies, notably earlier this year when Argentine football superstar Lionel Messi failed to appear in a much-anticipated and advertised match between Inter Miami and a city select team. 

Lionel Messi left fans outraged after he remained on the bench during a friendly football match between Inter Miami and a Hong Kong team on February 4, 2024. (Photo: Reuters/Lam Yik)

The Messi aftermath played out in Hong Kong for days, sparking a public uproar and raising questions about the government’s ability to handle major sporting events. 

Experts said the mishap served to highlight Mr Yeung’s “incompetence” in the eyes of Mr Lee and was likely to have played a part in his dismissal.

He had also been criticised for delays in submitting a major development blueprint for Hong Kong’s creative industries, a fumbling that was singled out by Mr Lee during a keynote policy address in October. 

As Secretary for Transport and Logistics, Mr Lam, also a trained civil engineer, had been criticised harshly for poorly overseeing a HK$141.5 billion (US$18.2 billion) third-runway project at Hong Kong International Airport.

“Lam doesn’t understand transport and Yeung has been incapable since day one,” said an insider from the tourism sector, speaking to CNA on the condition of anonymity. 

Associate Professor Alfred Wu from Singapore’s Lee Kuan Yew School of Public Policy said Mr Lee openly criticised Mr Yeung’s delays in submitting the creative industries blueprint, which was a “very clear signal” of discontent.

But at the same time, Assoc Prof Wu also cautioned against reading too much into the potentially political nature of the recent dismissals, highlighting the “increasingly opaque” nature of Hong Kong’s political landscape. 

“Sometimes it’s very difficult (to read),” Assoc Prof Wu said, also suggesting that political trajectories in Hong Kong were known to shift. 

Dismissing and replacing cabinet members is not a new phenomenon in Hong Kong, he added. 

“Replacement is not a strange thing or something that suddenly happens,” Assoc Prof Wu said, also noting that former Chief Executive Carrie Lam “did the same thing” and that these were changes that could be expected to “occur in the midterm”. 

During Ms Lam’s tenure, six ministers were either removed or resigned in a major reshuffle with Ms Lam describing herself as the “chief executive who replaced the most officials”. 

The Political Appointments System, introduced by former Chief Executive Tung Chee-hwa in 2002, marked a shift toward greater political accountability, as appointees were expected to shoulder responsibility for policy outcomes.

Since its inception, 14 ministers, have resigned or been dismissed.

Mr Yeung and Mr Lam are the first sackings since Mr Lee was appointed in 2022.

Assoc Prof Wu believes that their dismissals were more of a strategic and “administrative” decision.

“Fundamentally, Hong Kong is not a city-state where one person makes the final decision. There are quite a lot of actors,” he said, adding that he thought Mr Lee was being “smart in how he navigated this”. 

PRIORITISING TOURISM

Hong Kong’s once-lucrative tourism sector has struggled to recover from losing visitors due to fallback from pro-democracy protests and later, the COVID-19 pandemic. 

Visitor numbers reached 34 million last year, only 52 per cent of its total in 2018. 

However, the city did recently manage to reclaim its spot as Asia’s top financial centre and climbed to fifth in the Global Financial Centres Index. 

It also reached another significant milestone in its tourism recovery: Welcoming one million Filipino visitors for 2024. 

“Tourism models have changed post-pandemic,” Mr Lam Chi-ting, Vice Chairman of the Hong Kong Federation of Trade Unions’ travel committee, told CNA. “Attracting visitors now requires new strategies, creating immense stress for those in charge.” 

Hong Kong is set to host over 60 MICE events from September to the end of 2024. (Photo: CNA/Dan Tsang)

A telling sign of this was also made by Mr Lee during his press conference on Dec 5, in which he highlighted Hong Kong’s evolving position on the global stage which necessitated strong leadership. 

“I want to recover the time. I want to chase back the results and time and I see the strengths of the two newly appointed secretaries,” Mr Lee said of newly appointed cabinet faces, Ms Rosanna Law Shuk-pui, former permanent secretary for housing and Ms Mable Chan, who served as the permanent secretary for transport and logistics.

“They will be assisting me more to realise my goal of ensuring results and also doing as much work as possible in the coming years,” Mr Lee said. 

“Two and a half years is a long time and I do think that we can make the best use of this period to create the best result … for the people of Hong Kong so we can all reap the benefits of our economic development and also other policy measures.” 

The 34th Hong Kong Book Fair, held in July, attracted 990,000 visitors and boosted per capita spending by 4.6 per cent. (Photo: CNA/Melody Chan)

CHALLENGES REMAIN 

But while the reshuffle might have been very likely driven by the need for Hong Kong’s government to cultivate a more effective tourism strategy, challenges like interdepartmental coordination still remain unresolved.  

Despite the optimism of some, experts remain sceptical about whether the reshuffle could really address the root issues in holding back Hong Kong tourist arrival figures and ultimately, economic recovery.

“Coordination is the root problem in Hong Kong’s government,” said the industry insider.

“Policies often clash, such as safety regulations leading to the demolition of tourist-attracting neon signage. This bureaucratic rigidity hampers progress.”

Newly appointed Ms Law, often praised for her pragmatic approach, has over three decades of government service and takes charge amid renewed efforts to enhance the image of Hong Kong’s reputation as a tourist destination.

“She understands the industry and is straightforward, not one for vague statements,” Mr Lam said, adding that her experience in the Tourism Bureau would prove valuable.

But industry experts emphasised the need for Hong Kong’s new leaders to look beyond visitor numbers.

As efforts like a multiple-entry Individual Visit Scheme for Shenzhen permanent residents are launched, the question remains whether Mr Lee’s revamped line-up can successfully harmonise efforts across departments to create a seamless experience for visitors.

The tourism insider who declined to be named highlighted the potential for Hong Kong’s tourism to thrive if data could be analysed separately from mainland visitors.

Visitors from the Chinese mainland have been the driving force behind Hong Kong’s tourist arrivals, accounting for nearly 80 per cent of yearly visitor numbers since the Individual Visit Scheme launched in 2003, according to statistics by the Hong Kong Tourism Board.

“There should be good KPIs to measure performance, such as the impact of mega events or the number of overseas visitors – not mainland visitors, as they belong to the same country,” said the insider.

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