The Impacts of China's new free-trade zones on Hong Kong tourism

In the face of an increasingly integrated global economy, the Chinese government has progressively upgraded the country's so-called free-trade zones (FTZs) to attract greater foreign investment. While the relationship between international trade and tourism development is widely acknowledged, the impacts of the former on the latter have rarely been quantified. This Regional Spotlight discusses the impacts of the Shanghai FTZ on tourism in Hong Kong. The micro-level impacts on tourism are considered in the macro-context of FTZ developments. The authors suggest that Hong Kong should seek closer integration within Chinese developments, diversify its current tourism products and exploit its tourism-related expertize in areas that support the economic development of FTZs.