HK to lose initially but could gain in long run: Experts

HONG KONG: Direct links between the mainland and Taiwan may cut into Hong Kong's earnings for now but the city could benefit from a cross-Straits business boom in the long run, economists said yesterday.

Planes and ships flying across the Straits earlier had to pass through a third place, typically Hong Kong or Macao special administrative regions (SARs). But direct shipping and air links will prompt many passengers and ship owners to change the old routes.

The change could make Hong Kong lose about HK$10 million, or 3.4 percent of its external trade, said Billy Wong, senior economist with the Hong Kong Trade Development Council (HKTDC). "Short-term loss is inevitable ... But we don't think the loss will be drastic (even) in the short term."