Mainland Chinas Travel Liberalisation and Hong Kongs SMEs in Late 2003 Harvard Case Solution & Analysis

From March to May 2003, the tourism industry in Hong Kong have been a serious decline during the SARS outbreak in the territory, resulting in 1,755 cases in Hong Kong until July. There was virtually no foreign tourism between 2 April and 23 May, during which the World Health Organization reported the public consider postponing all but essential travel to Hong Kong. Then, in a dramatic turn, the industry received a significant boost at the end of July, when the residents of four neighboring cities of mainland China was permitted to apply to visit Hong Kong on an individual basis as part of the mainland and Hong Kong Closer Economic Partnership Arrangement. Previously, mainland Chinese tourists to visit Hong Kong only to tour groups. By September of tourists from big cities Beijing, Shanghai, Guangzhou and Shenzhen can also visit Hong Kong on an individual basis. Mainland tourists are literally flooding as a result of raising a total arrival numbers to a level that even surpassed pre-SARS statistics. Large relaxation of travel restrictions expected in the first half of 2004. As SMEs in Hong Kong, badly affected by the economic woes in recent years, which were limited in the attack of SARS, benefit from the new opportunities offered by the liberalization of the mainland travel? "Hide
by Michael Enright, Vincent Mak Source: University of Hong Kong, 15 pages. Publication Date: June 29, 2003. Prod. #: HKU307-PDF-ENG

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