The extravagant, decadent expatriate lifestyles in Hong Kong – which caused rumour to run riot and created the mystique and glamour surrounding one of the last remaining jewels in the British crown in the late 1980s and early 1990s – have waned substantially. There used to be a skilled expatriate milliner who ran a very profitable business making stunning one-off ladies’ hats purely for social events and parties. Then there was a wonderful bar called The Yellow Frog, which was owned by a Frenchman who drove around in a yellow Rolls-Royce. Neither has survived.
The high rollers (most of whom are wealthy Chinese these days) will undoubtedly always remain, but the pre-1997 excesses are much less evident now. ‘Get real’ is not a phrase that entered the lexicon of Hong Kong English, but it may be finally coming into fashion. The fall-out from the Asian financial crisis in the late 1990s, massive property depreciation, flagging share markets, deflation, bankruptcies and then SARS in 2003 left pundits wondering if Hong Kong was heading for mediocrity. The past three years have demonstrated the city is not yet ready to surrender its position as the pre-eminent place to do business in Asia.
Challenges And Opportunities For Hong Kong
China’s entry into the World Trade Organization (WTO) has demanded some serious thinking on how Hong Kong can maintain its successful role in the region as a free trade
entrepôt and create value-added services in its traditional strongholds of logistics and finance. Given that a) direct trade is increasingly permitted between Taiwan and China, reducing the through-flow of business in Hong Kong, and b) Shanghai wants to take over as China’s shipping, trade and financial centre, Hong Kong needs to redefine its relationship with China and establish its usefulness and competitiveness in the region. The greatest fear is that Hong Kong will become ‘just another Chinese city’.
Hong Kong is praised for its economic freedoms, entrepreneurship, openness, financial solvency, rule of law and anti-corruption regime, and it is still the safest place in China to keep your money. However, many Hong Kong companies – as
is the case with companies worldwide seeking a cheap labour market – have already moved their manufacturing and assembling plants to the mainland, and are increasingly shifting back office operations there to take advantage of a well-educated workforce. It’s a challenging time for Hong Kong, but it is a time of opportunity, too, as the government looks to private enterprise and entrepreneurship to take the initiative.
Expatriate Lifestyles
Foreign talent and expertise are still in demand by Western companies with regional offices in Hong Kong, even as more mainland Chinese professionals are being lured to the territory with lucrative jobs. The salary, accommodation and perks will obviously vary according to individual companies, the most favourable terms being negotiated in home countries rather than in Hong Kong itself.
Middle managers, or foreigners employed locally, are increasingly being offered ‘local’ contracts that may, however, still include relocation allowances, flights and other benefits not offered to Cantonese staff. Obviously income determines the kind of lifestyle you can enjoy in Hong Kong to a large extent. Factors that make it easier for people to increase their net worth include:
- the low income tax – 16% for 2006–2007;
- high salaries, especially when compared to how similar jobs are paid in Europe, Australia and New Zealand; and
- a buoyant job market for those fluent in English and Cantonese or Putonghua.
Hong Kong continues to be an alluring Asian location for expats and most are upbeat about their experience of living and working here. People like the city’s vibrant cultural mix, excellent food, outstanding natural and constructed beauty, the international lifestyle, and the many opportunities on offer to broaden your horizons – professionally, culturally and socially – in a climate of personal safety. Asians and Westerners alike appreciate the easy access to a global marketplace and the ease of sustaining a Western or Asian lifestyle:
- supermarkets stocking most Western and Asian foods;
- clubs and support groups for expat spouses;
- international schools;
- excellent restaurants and atmospheric bars; and
- a wide variety of entertainment and leisure options, catering to all tastes.
The international part of Hong Kong is very small: Tsim Sha Tsui (TST), Central, Mid-Levels, Soho and Wanchai contain the main shops, cinemas, dining venues and bars patronized by expatriates. This means that it is not unusual to run into friends whilst out shopping or eating. In this respect, it retains a community feel, despite having many of the trappings of a much larger city.