From Shanghai, lessons of social integration for Hong Kong

Hong Kong is still ranked the most competitive among the 294 Chinese cities surveyed for the latest Chinese Academy of Social Sciences "blue paper", doing well in most of the indicators, including in business, harmony, ecology, sustainability and culture. However, Zhuhai has overtaken us as the most liveable city, due to the high cost of housing and limited living space in Hong Kong. We also lag behind Beijing, Shanghai and Nanjing as a knowledge- and information-based economy.

This sends a timely warning to Hong Kong, especially if we consider its aspiration to be a "world city" like London, Paris, New York and Tokyo. Hongkongers will certainly not be satisfied with being seen as just one of many cities in China.

There's no doubt that Hong Kong faces acute challenges, including limited living space, an overcrowded environment and disharmony among locals, visitors and migrants from the mainland.

Hong Kong's population is ageing fast; by 2030, it is expected that 25 per cent of the population will be 65 or above. We need more young people to rejuvenate our population and maintain our socio-economic development.

Despite a very low fertility rate of about one child per woman, Hong Kong's population is supported by 150 mainlanders entering the city each day through the one-way permit scheme. Allowing them in not only facilitates family reunions, it has also provided a steady source of manpower for some sectors suffering shortages, especially in catering, security and elderly care.

At the same time, we face difficulties in meeting the demands of the 50 million visitors a year, a number which has already exceeded Hong Kong's capacity to cope. The local leisure and shopping scene has been undergoing continuous change in reaction to the needs of mainland visitors. More pharmacies, watch and jewellery shops have sprung up, dominating the landscape. Business rentals have been driven up and subsequently the prices of most things have gone up, too.

The general public (save landlords) have not benefited from the growth in visitor numbers. The contribution of tourism to the economy - and the local community - has been grossly exaggerated. Even though it might account for the estimated 3-4 per cent of growth in gross domestic product, the benefits don't outweigh the costs to the whole community. In other words, the books simply don't balance. For the majority, quality of life has not improved; for many it is declining. Yet it's not the fault of the visitors. Indeed, sometimes they are the victims of irresponsible local practices, too. The recent dispute over a mainland child urinating in a Mong Kok street is a reflection of the conflicting sentiment in the community about the effects of the large numbers of mainland visitors.