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LogicLattice

Expats Are Returning to Hong Kong — Here is Why



Writer - Nicholas

Photography - Nicholas

Published January 30, 2025


Once one of the most popular tourist destinations in the world, Hong Kong experienced a dramatic decline in popularity in 2019. It was largely attributed to the onset of the COVID-19 pandemic, leading to a mass evacuation of tourists and residents. As many as 116,000 individuals left the city in just two years.


This continued for almost five years, until Hong Kong finally began to see expats returning in 2024. What were the reasons for Hongkongers leaving in the first place, and what’s bringing them back now?



Strict COVID-19 Lockdowns That Came at a Cost

In 2019, China was struck by COVID-19, which rapidly escalated into a global crisis. In just a few months, neighboring territories including Hong Kong and Singapore also started to report cases.


China also started to witness an intense backlash from the rest of the world for becoming the epicentre of this pandemic. The Chinese government came up tried to limit the spread of the virus with strict lockdown policies nationwide.


Drawing from its experience in combating the SARS outbreak back in 2002, Hong Kong also implemented stringent lockdown policies to limit the spread of COVID-19. However, these strict measures ended up becoming a major factor in residents leaving the city. A total of 93,000 residents left Hong Kong in 2019, with another 23,000 the following year, which included a large proportion of white-collar talent (Kuan 1).


Though tourists had already fled at the start of the pandemic, what made the citizens leave was not just the growing death toll but also the strict lockdown policies. Many of them had already lost their jobs. According to CNBC, several expatriates also voiced their concerns about Hong Kong's policy mandating the separation of COVID-19-positive children from their parents in 2022.


The rising instability from this rapid migration and lockdown measures caused Hong Kong's economy to shrink by 1.2% in 2019. According to the HKTDC (Hong et al.), Hong Kong's GDP saw a negative growth rate several times in the next three years (Yeung 3).


This further led Hong Kong's white-collar talent to flee the city, as they decided to look for safer and more economically active countries like Britain, Canada, and Singapore.


Then Appear The Hong Kong-China 'Extradition' Plans

In February 2019, the Hong Kong government proposed a controversial bill allowing extraditions to mainland China. Those in power explained the law as a means to plug the loopholes so that criminals could not find the city a safe haven for committing crimes.


However, the public viewed it as Beijing's involvement in the special administrative region's independent judicial system and came to the streets to record their protest (Hughes 5). The protests lasted for months, even though the government had already decided to withdraw the bill. This rising unrest led many residents to migrate to countries such as the UK, Australia, and Canada.



Finally, The Rising Political Protests

After the city's return to China in 1997, life in Hong Kong was considered much different and better than that in mainland China, as the city enjoyed a high degree of autonomy in terms of freedom of speech, assembly, and press.


However, things slowly started to change as the residents reported meddling of the Chinese communist government in Hong Kong's democratic lifestyle. The freedom of speech, press, and academia started witnessing a decline, as the BBC reports. This came as China first expelled five US journalists from the country and later prohibited them from working in seemingly self-governing Hong Kong.


Speaking of self-governance, another primary reason that pushed many natives to leave the city was the rising pro-democracy protests in Hong Kong. These political protests started back in June 2019 and continued until 2020, during which the protestors faced police brutality as well as a deaf ear from those in power.


To cope with this, the Chinese government proposed to roll out a new national security law, which, according to critics, was nothing but a means to silence the protestors. Many also saw it as a tool for the government to crack down on politically charged rights activists. Others accused it of Beijing's move to undermine Hong Kong's autonomy and limit its independent law-making processes.


According to a survey conducted at the University of Hong Kong, most of the respondents would call themselves Hong Kongers, while only 11% identified themselves as Chinese.

All this and the rising clashes between the activists and police made many Hong Kongers head towards pro-democracy nation-states to safeguard their freedom and human rights in the years 2019-2023.


The UK was a major receiver of these expats, as it expanded its national overseas scheme just around the time of these riots, allowing many Hong Kongers to run for a potential British citizenship.



But Things Changed in 2024

After witnessing mass migration, rising political riots, and economic turmoil in the form of a prolonged recession, Hong Kong has finally started to regain its momentum in 2024. Expats are steadily returning to their homeland, while many foreign tourists are again looking towards Hong Kong as a worthwhile holiday spot.


This shows that Hong Kong's brain drain has finally come to an end in 2024. But what made expats reconsider their choice, and what is pulling the tourists back?


The Bustling Economic Activity & Improved Lifestyle

As Hong Kong finally lifted the lockdown restrictions, the hustle and bustle in the streets and the rise of economic activity show that Hong Kong is finally getting back on its feet. People’s lifestyles have also started to improve as companies are re-opening without social distancing measures, creating new job opportunities for both residents and expatriates.


Millennial expats view it as an opportunity to finally make a comeback to their homeland. Having grown up in Hong Kong but receiving their education abroad, these millennials return with diverse cultural and academic backgrounds. 



Employment Opportunities at Their Peak

Another major contributor to the return of many expats is the rise in better employment opportunities in Hong Kong, as the city rejoins the top five places with the highest salaries and benefits packages for expats.


The city is also seeing a rise in new businesses, owing to the entrepreneurial spirit of the Hongkongers. The HK government has also taken several measures to boost employment and entrepreneurship opportunities for the expats.


This includes the introduction of the Top Talent Pass Scheme (TTPS) for international students and qualified professionals, the General Employment Policy (GEP) for non-mainland professionals and entrepreneurs, and many other immigration schemes for mainland residents and expats (Hannah 1).


As a trading and financial hub for China, Hong Kong is now seeing a higher demand for professionals than ever. According to Happy Hongkonger, the city is a worthwhile spot to find better job opportunities, thanks to its competitive salary packages, easy commutes, and a business-friendly environment for employees and entrepreneurs alike (Hannah 2).


A Rich Culture, Now More Than Ever

Hong Kong is known as a merging center for Eastern and Western cultures. Rich cultural events and festivals occur throughout the year, and there's always something to celebrate. So, for those expats who never want to stay bored, Hong Kong is the place to head back to, especially after the government has lifted quarantine restrictions.


With tourists from all around the world choosing to reside in Hong Kong, residents also enjoy a variety of food options at every corner. So, the rise in the international community, especially after COVID-19, leaves a variety of food options to serve the taste buds of expats, residents, and foreigners alike (Hannah 3).


Conclusion

Hong Kong has indeed suffered a lot, be it the decline of its economy, the loss of young talent in the form of mass migration, or the significant number of deaths during the pandemic. However, the city has finally started to show signs of recovery with the return of expats and a clear improvement in economic activity. This indicates that Hong Kong is on its way to reclaiming its position as the vibrant economic hub of Asia. 


References:

Kuan, J. (2023) Why did so many hongkongers leave Hong Kong?, Quora. Available at: https://www.quora.com/Why-did-so-many-Hongkongers-leave-Hong-Kong (Accessed: 05 May 2024). https://www.cnbc.com/2022/05/27/people-are-leaving-hong-kong-and-here-is-where-they-are-going.html


Yeung, C. (2024) Economic and Trade Information on Hong Kong, HKTDC research. Available at: https://research.hktdc.com/en/article/mziwnjkznty5 (Accessed: 05 May 2024).


Hughes, Helier Cheung & Roland. "Why Are There Protests in Hong Kong? All the Context You Need." BBC News, BBC, 21 May 2020, www.bbc.com/news/world-asia-china-48607723.


"Introduction of Admission Schemes for Talent, Professionals and Entrepreneurs." Introduction of Admission Schemes for Talent, Professionals and Entrepreneurs | Immigration Department, www.immd.gov.hk/eng/useful_information/admission-schemes-talents-professionals-entrepreneurs.html. (Accessed: 5 May 2024).


"Hong Kong Rejoins World's Top 5 Places with Highest Expat Pay and Benefits." South China Morning Post, 26 July 2023, www.scmp.com/news/hong-kong/hong-kong-economy/article/3228957/strong-hong-kong-dollar-helps-city-rejoin-worlds-top-5-places-highest-expatriate-pay-and-benefits.



Li, Jeff. "Hong Kong-China Extradition Plans Explained." BBC News, BBC, 13 Dec. 2019, www.bbc.com/news/world-asia-china-47810723.

 
 
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