‘Happy Hong Kong’ campaign, spending vouchers set to reinforce city’s economic recovery, finance chief Paul Chan says

The “Happy Hong Kong” campaign and spending vouchers earlier handed out to residents are set to consolidate the city’s economic recovery in the second quarter this year with an expected boom in domestic consumption, the finance chief has said.

Financial Secretary Paul Chan Mo-po on Sunday said the government was taking a “moderately liberal” fiscal stance this year, after local retail sales increased for three months in a row, with the total value reaching HK$33 billion (US$4.2 billion) in February.

He expressed optimism over the economy, citing the citywide campaign launched on Friday and the release of the consumption vouchers earlier this month.

‘Happy Hong Kong’ kicks off with thousands heading to gourmet food fair

“[The two programmes] can help consolidate the economic recovery of the second quarter as well as the positive expectations of the market,” Chan wrote in his blog on Sunday.

“Export performances in Hong Kong, as a fully open small-sized economy, are largely dominated by the external environment. But local consumption is an area that we can easily control when we are relatively more proactive.”

Since Hong Kong fully reopened the border in early February, the number of incoming visitors had been steadily rising, he said, and this along with improved retail sales would offset a weak export performance and underpin the economic improvement in the first quarter.

The government is to release advance estimates on gross domestic product (GDP) for the first quarter on Tuesday, and retail sales statistics for March on Thursday.

“We will stay vigilant and positive to boost market confidence and residents’ hopes for an economic recovery through various types of measures within our capabilities,” he said.

How to make the most of ‘Happy Hong Kong’: from HK$30 films to gourmet bites

Earlier in April, the government launched the latest round of the consumption voucher scheme to help boost domestic spending, handing out the first instalment of HK$3,000 to eligible residents. The second batch of HK$2,000 is expected to be available in July.

Chan has estimated this year’s voucher scheme, costing the government about HK$33 billion, could boost GDP by 0.6 per cent.

The “Happy Hong Kong” campaign includes a series of activities in the coming 10 months to boost post-Covid morale in the community and help to stimulate local consumption and the economy.

Among the highlights are a series of Gourmet Marketplaces organised by the Home Affairs Department, showcasing local, Chinese and international delicacies. The first of the series was held over the weekend at the Hong Kong Convention and Exhibition Centre in Wan Chai.

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Chan officiated at the event’s opening on Saturday and visited booths, stopping by one of them to help out with preparing egg waffles and Hong Kong-style milk tea.

The next two Gourmet Marketplaces are expected to be held in Sha Tin over the coming weekend and in Kwun Tong in June.

On Saturday, 61 commercial theatres in Hong Kong marked “Cinema Day 2023”. Tickets were offered to more than 200,000 residents at a flat price of HK$30.