Hong Kong to benefit from 24-hour border checkpoint clearance

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 ◆ Hong Kong to benefit from 24-hour border checkpoint clearance

The One Country, Two Systems Research Institute, the think tank of the Hong Kong Special Administrative Region (SAR) government, Friday proposed a phased introduction of 24-hour clearance at all cross-border checkpoints, to meet the challenge of a new cross-border socio-economic relationship.

The institute made the proposal in a 153-page report to Tung Chee Hwa, chief executive of the Hong Kong Special Administrative Region (SAR).

Entitled "Modes of Cross-border Immigration Control, Review on Current Clearance Procedure and Related Policy Recommendations," the report was immediately backed by various local communities, which have called for the implementation of 24-hour cross-border clearance in earnest to enable Hong Kong to fully benefit from the mainland's accession to the World Trade Organization (WTO).

Some also said a brisk and crisp decision was essential in clearing the pall of uncertainty in the Hong Kong's business communities over a possible fall in the level of aggregate demand in Hong Kong.

The call came exactly a week after two of Hong Kong's border checkpoints had their opening hours extended to provide smoother vehicle and passenger flows.

With effect from December 1, the checkpoint at Lowu has lengthened its opening hours by a half hour to midnight, while the one at Lok Ma Chau has extended its from the original 7:00 am to 10:00 pm to 6:30 am to 12:00 at midnight, providing the Hong Kong business community and the public in general with the first taste of a more flexible and convenient commuting lifestyle between Hong Kong and Shenzhen.

Shiu Sin-por, executive director of the Hong Kong-based One Country, Two Systems Research Institute, said that the implementation of 24-hour clearance was needed in the face of a new socio-economic relationship between the mainland and Hong Kong.

"Ultimately, for Hong Kong to aspire to become a logistic hub we are looking for the free flows of goods to and fro," he said. " And when you want to achieve this, you must remove such time restrictions - time is an important factor when it comes to logistics."

When asked if, given 24-hour cross-border clearance, Hong Kong' s level of consumption as well as its property prices would be driven down because more Hong Kong people prefer traveling to the mainland for residing there or entertainment, Shiu said such arguments are unfounded.

Fears over a property market slump in Hong Kong due to Hong Kong residents moving across the border were also unsubstantiated and largely speculated, Shiu added.

Wong Leung-sing, a senior manager specializing in market research intelligence of Centaline Property Agency, said the demand for property in Hong Kong should not fall even when 24-hour clearance is implemented because Hong Kong people who have jobs in Hong Kong can hardly afford to travel for at least one and a half hours from the mainland to Hong Kong every morning.

He noted the implementation should only increase Hong Kong people's consumption on the mainland.

According to Wong, currently a flat with one sitting room and two bedrooms with a swimming pool and clubhouse in the Northern District in the New Territories in Hong Kong costs between 700,000 HK dollars (89,743 US dollars) to HK$800,000 (US$102,564).

A cheaper flat in a residential and commercial mixed purpose building in the same district costs HK$300,000 (US$38,461) to HK$500,000 (US$64,102). For both kinds, one could get a flat in Shenzhen for only HK$100,000 (US$12,820) less.

"Now given the narrow differences in pricing, why would one risk running late for work by living across the border?" he said.

The sooner the Hong Kong SAR government makes a decision to implement 24-hour clearance, the sooner the air of uncertainty in the property market is cleared, he stressed.

"Now that the government has delayed the implementation due to public concern over its economic ramifications. But it is really the delay that causes people's fear to linger.

Once the government makes and announces the decision, the public will have a clear sense of direction, and the fear should dissipate," he said.

But even if Hong Kong were to suffer from any drop in the level of consumption, the drop should be offset by an increasing number of tourists coming in.

Sun Jiangang, director and general manager of China Travel Service (Hong Kong and Macao Tour) Management Hong Kong said with the number of travel agencies offering Hong Kong tours mushrooming from the present four to 67 when the mainland joins in the WTO, tour prices will fall and more tourists can afford their holidays in Hong Kong.

Sun predicted that China Travel Service, which offers five-day tour packages for HK$15,000 (US$1,923), will have to cut prices by 20 percent to 30 percent to remain competitive, and less expensive tours in future should bolster up the number of tourists coming to Hong Kong.

The recent extension of opening hours at the Lok Ma Chau checkpoint was immediately praised by truck drivers working in the transportation industry.

Chiu Chi-keung, chairman of the Container Employees' General Union in Hong Kong said the arrangement has offered greater flexibility to truck drivers who now can enjoy a less tight schedule.

"It means we can cross the border earlier when necessary, and can come back later when we feel like staying in the mainland longer," he said.(xinhua)