How's this: Hong Kong recognized on world stage as an international city

Mark Pinkstone/Former Chief Information Officer of HK government

The words of China’s Foreign Minister, Wang Yi were loud and clear. The results of Hong Kong becoming a Special Administrative Region of China came about after successful negotiations between two sovereign states.

During the signing ceremony for the Convention on the Establishment of the International Organization for Mediation (IOMed) to be headquartered in Hong Kong, Wang cited Hong Kong as a success story of the peaceful settlement for international disputes.

"The city enjoys exceptional advantages in international mediation," Wang said, citing for example, its affinity to the motherland and connection to the world, its enabling business environment, its highly developed legal system, and its strength in both common law and civil law.

And in the words of Hong Kong’s Chief Executive John Lee Ka-chiu, the IOMed will become the world's first intergovernmental international legal organisation dedicated to resolving international disputes through mediation.

“It also reflects our shared confidence in mediation as a peaceful means to maintain international peace and security, as stipulated in the Charter of the United Nations,” he said

Wang said the new organisation, as a "rising star", will grow together with Hong Kong as the Pearl of the Orient.

Indeed, Hong Kong is well positioned to be the headquarters of such an august body that parallels only with the United Nations, which had representatives attending the signing ceremony.

Also attending the ceremony were representatives from 60 countries and some 20 related organisations.

Moreover, the choice of Hong Kong as the headquarters of IOMed was endorsed from various world leaders attending the signing ceremony.

Minister for Foreign Affairs in Thailand, Surakiart Sathirathai said Hong Kong has the reputation, a very positive one, with a world-renowned legal infrastructure and judicial system. “Hong Kong has an international reputation for being the centre for various dispute resolutions and Hong Kong has an excellent personality with international reputation. I think Hong Kong, of course, is well positioned to host this headquarters of IOMed,” he said.

His words were echoed by the Deputy Prime Minister and Foreign Minister of Pakistan, Mohammad Ishaq Dar who said that the signing ceremony not only marked the beginning of a new era in international mediation and diplomacy, but also the birth of an important global institution to support the principles of multilateralism and mediation. “I must also commend the choice of Hong Kong as headquarters of the newly established organization as a ‘super connector’ and ‘super value-adder’ where East meets West. This dynamic city is well poised for this transformational journey,” he said.

Despite what the US administration and its western followers continually sprout poisonous rhetoric to decry Hong Kong, the city still reigns supreme as an international entity due to its rule of law and legal system as well as its infallible ability to get things done under the most trying circumstances. They are simply jealous of Hong Kong’s ability to achieve success where they fail to make any movements forward.

Hong Kong’s location in the centre of Asia and as the gateway to China makes it accessible to all major markets in the region. It is also home to some 1,400 foreign companies that have established their regional headquarters in Hong Kong as well as some 10,000 foreign companies have set up shop in Hong Kong. Its financial sector is second to none in the region.

Of course Hong Kong already offers expertise in the fields of mediation with the Hong Kong Mediation Centre (HKMC), established in 1999 as the first professional mediation organisation recognised as a charitable institution in Hong Kong. It has more than 1,000 members from various professional sectors and plays a leading role in the mediation industry. So, for more than 20 years, the centre has strived to promote the development of mediation through its diverse services, aiming to create a harmonious community. Apart from professional mediation services provision, its scope of services extends to areas such as professional training, professionalisation, public education and external collaboration.

According to this year's International Arbitration Survey, Hong Kong is the most preferred seat of arbitration in the Asia-Pacific region and shares second place globally with Singapore. Hong Kong’s economy also came first in "business legislation" and "international trade" in the World Competitiveness Yearbook. And in the latest Business Ready Report published by the World Bank Group, Hong Kong ranks eighth in "dispute resolution" among the 50 economies covered.

Mark Pinkstone

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

Hong Kong is facing a dilemma as more locals are spending their dollars outside of the city than what the visitors are bringing in.

Relaxed visa/permit restrictions for locals and foreign residents alike is making it easier for travel to the mainland while inbound traffic crossing the boundary is low budget and spending less on accommodation and food.

Tourism is an important pillar for Hong Kong’s economy. In pre-COVID times, tourism accounted for about four per cent of the territory’s Gross Domestic Product (GDP) and provided for about six per cent of total employment.

In Hong Kong’s heydays, the city saw about 65 million tourists in 2018, of which 51 million came from the mainland. It was boom time for retailers and restaurants. Long queues of mainland shoppers would line the streets along Canton Road and elsewhere waiting to buy luxury items from Gucci, Prada, Tiffany’s and other high-end stores which set up shop in Hong Kong to tap this lucrative market.

Today many restaurants and retail outlets are closing down, especially in the boundary towns of Sheung Shui and Yuen Long. The market is no longer there, and high rental costs make it almost impossible to survive.

During the 2025/2026 festive season, Hong Kong saw a 25.6 per cent rise in inbound trips on New Year’s Day 2026 (664,338 trips), but this was still countered by a massive 515,954 outbound exits on the same day.

Winston Yeung, chair of the Hong Kong Federation of Restaurants & Related Trades, told local media that business was sluggish during the Christmas holiday, with some restaurant owners calling it “the slowest business at Christmas over the past 10 years.”

Unfortunately, the local market is not propping up the tourism outlets. Instead, the locals are traveling in large numbers to Shenzhen and Macau and other parts of China for day trips or extended holidays, thereby providing a leakage in the local economy.

While Hong Kong received more than an estimated 45 million visitors last year, more than about 100 million departures were recorded by the Immigration Department of locals leaving Hong Kong by plane, train or bus mainly to the mainland (75 per cent), and to other major Asian destinations.

Hong Kong has 320 hotels offering 92,907 rooms, according to the Hong Kong Tourism Board. Despite mainlanders’ choice of more budget accommodation, occupancy rates for the hotel industry remained high at 88 per cent last year. The major hotels are not affected by the change in mainlanders’ preferences as they rely more on the affluent international tourist, visiting Hong Kong for business, conventions or holidays.

Property developer, Caldwell Banker Richard Ellis (CBRE) says Hong Kong’s hospitality market currently presents various investment-ready assets including rare investment opportunities for upper upscale and luxury hotels. These high-end properties are particularly attractive due to their resilience, as they are less reliant on Chinese group travelers and enjoy sustained spending power among affluent individual travelers and international visitors. This makes them attractive for investors seeking stable returns in a dynamic market.

To encourage locals to spend more at home and at the same time provide a bonus for tourists, Hong Kong has organised a series of mega events, many held in the new sports stadium on the site of the old Kai Tak airport in Kowloon. Traditional events in 2026 will include the French May Arts festival in March, Hong Kong Book Fair in July, Hong Kong performing Arts Expo in October, the World Snooker Grand Prix in February, and, of course, the international dragon boat races in June.

Blockbusters will include BlackPink World tour in January, the Hong Kong marathon, which draws in runners and their supports from around the world, and the Hong Kong Tennis Open also in January.

That is good for the inbound and outbound tourists alike. But more needs to be done to tip the tourism scales to a surplus for Hong Kong’s economy to grow at a faster pace. As the saying goes charity starts at home, so it is up to us as local residents who have reaped the benefits of the city to spend more in local restaurants and retail outlets than spend it elsewhere. Support local enterprises. After all, the restaurants in Hong Kong are ranked among the best in the world and are tax free as against a value-added tax applied to restaurants and shops in the mainland.