Hong Kong’s stringent travel restrictions are now the biggest challenge for American businesses and expatriates in the city, with 44 percent of respondents in a new survey saying they’re more likely to leave.

The American Chamber of Commerce in Hong Kong said 60 percent of businesses and individuals surveyed in its 2022 sentiment study ranked international travel restrictions as their top concern, overtaking other hot-button issues like U.S.-China relations and political uncertainty.

“Hong Kong still holds business opportunities but an array of issues, especially draconian travel restrictions and worsening US-China relations, weigh on sentiment,” AmCham said in its report.

In last year’s report, 65.4 percent of respondents cited U.S.-China relations as the biggest concern. That dropped to 44 percent in the latest survey.

The survey -- conducted in September before Hong Kong’s omicron outbreak prompted even tighter travel and quarantine curbs -- is evidence the city’s dogged adherence to Covid Zero is denting its appeal as a global financial hub. The travel rules, which include flight bans and forcing almost all arrivals into 21 days of isolation, have contributed to an exodus of expatriates.

Many of those surveyed said the government seemed unconcerned about Hong Kong’s status as an international financial center, according to AmCham President Tara Joseph. “That’s something new and hopefully the government will respond to this,” she said Wednesday on Bloomberg TV. “We spoke to them about it yesterday, but there’s just a sense that the government doesn’t care.”

The latest virus controls are also hurting the outlook for an economy that only just rebounded last year after two years of contraction. While there are still many business opportunities in Hong Kong, travel restrictions are “increasingly out of step with international practice” and are weighing on sentiment, AmCham said in a statement Wednesday.

The strict quarantine rules for travelers make it difficult for head offices to operate, with about 44 percent of respondents saying business was affected by significant disruption. More than 30 percent of those surveyed said they’d had to delay new investments, while 30 percent struggled to fill senior executive roles.

The chamber said in October that lobbying the government about reopening its borders has been like “talking to a wall.” The survey reflected that, too, with more than half of respondents saying they feel the government is unconcerned or dismissive about business concerns.

AmCham surveyed 151 corporate representatives and 111 individual members. Other findings included:

• 44 percent of respondents said they are more likely to leave Hong Kong amid travel and social restrictions, 26 percent of companies are more likely to depart

• More than 8 in 10 businesses have been impacted by Hong Kong’s national security law, such as lower staff morale and losing employees who have emigrated

• Among respondents who have Hong Kong as a headquarter, 48 percent of respondents do not plan to move the office, 47 percent was unsure, and 5 percent planned to move headquarters

• Singapore is overwhelmingly expected to be a major beneficiary if talent leaves, with 80 percent of respondents selecting the city-state as the greatest competitive threat to Hong Kong

(Bloomberg)

HK AmCham said in October that lobbying the Hong Kong government about reopening its borders has been like “talking to a wall.” (Reuters)

Hong Kong's draconian Covid curbs top concern for AmCham