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We had exhibited at the HKTDC Hong Kong International Jewelry Show 2023, held at the Hong Kong Convention and Exhibition Center for 5 days from March 1st to 5th, 2023． Travel restrictions related to the new coronavirus were lifted in many countries in February, and the world has finally begun to open up．
It seems that the Corona disaster has become the new normal and the sense of anticipation became high． In Hong Kong, after Feb． 6th, vaccination of travelers entering the country and travel restrictions that had been in place for about three years due to the new corona were abolished, And the situation has almost returned to what it was before the corona disaster, shifting from zero corona to new normal in at once． Except for the obligation to wear masks outdoors and on public transportation, the restrictions on admission to various facilities based on the number of vaccinations have been removed, which has had a positive impact on the Hong Kong economy．
Hong Kong was once the world’s number one tourist destination, but visitor numbers have plummeted due to the chaos caused by demonstrations and the new coronavirus control measures involving mandatory quarantines． For 10 consecutive years until 2019, Hong Kong was the most visited city in the world by foreigners, but by 2022, the number of visitors had dropped to about 600,000, about 99％ decrease compared to 2019, before the Corona Disaster． As severe measures against COVID-19 continued, Hong Kong’s presence as a tourist city has faded rapidly, dropping from the world’s No． 1 tourist city ranking by 2018 to No． 36 in the world by 2022．
Sensing this crisis, the Hong Kong government launched Hello Hong Kong in February, a major tourism campaign totaling US$2 billion (approx． 34 billion yen) targeting all travelers, including those from mainland China．Although Hong Kong is aiming to become a major tourist destination again, the corona crisis has prompted luxury brand’s store to invest in mainland China, and the price gap between Hong Kong and mainland China is shrinking, making it less attractive to shop in Hong Kong than before．
Consumer values are changing due to the corona crisis, and travelers are shifting from simply shopping to seeking local experiences． As integration with China progresses in all aspects, including politics and society, Hong Kong’s unique atmosphere of freedom is being lost, and people are increasingly moving away from Hong Kong． Already, a growing number of foreign-affiliated companies are moving their Asian bases from Hong Kong to Singapore and other locations． Singapore, as well as Thailand, the Philippines, and Indonesia, are also focusing on tourism to attract more foreign visit Hong Kong’s future rivals may be Southeast Asian countries．
We visited Hong Kong for the first time in three years, and the city did not seem as vibrant as it used to be． Many of the stores and restaurants that we used to go are now closed, and I felt a little sad． However, the number of travelers is gradually increasing due to the lifting of the travel restrictions, and I have heard many voices of expectations for the future． I think there are signs of Hong Kong’s revival in the future． Although Japan is still behind the schedule, it is planning to reduce the handling of the novel coronavirus to Class 5 in May, and I hope that the traffic with Hong Kong will increase and that the restoration of diplomatic relations will bring both countries back to their pre-pandemic status．
Currently, the world is becoming increasingly fragmented and economies globalized, while geopolitical divisions are also progressing． Unlike in the past, much trade is taking place even during the war, as countries believe they have too much to lose if economic ties are severed． Since each country has different circumstances and different ways of thinking, multipolarization is progressing more than before．
However, other than economic orientation, each country is turning to inward-looking, and the world is facing global turmoil due to the new corona, Russia’s invasion of Ukraine which we thought would never happen, the deepening US-China conflict． These aspects are dividing the world and driving up prices of food, energy, and other commodities． Compared to the 1970s, when globalization in its modern form began, the world’s population has doubled to 8 billion, and if global fragmentation continues, there will be a shortage of goods, which will likely lead to a double whammy of slower global economic growth and higher inflation．
The recent opening of the country to the world will bring about a resurgence of globalization in which civilians travel around the world, taking in major continents and establishing relationships with each other． Even though this jewelry show was held under these circumstances, it turned out to be a lively show with a surprising number of visitors． For the first time in three years, many companies from overseas exhibited at the exhibition, and many people came to see the current situation, so it took several hours to enter the show．
The Japan pavilion, in particular, was so crowded with visitors that they could barely walk through the aisle． There were many buyers from mainland China, and they tried to stock up items avariciously for the first time in a long time． There were many existing buyers who had not come to this time, but considering the current situation, we expect the jewelry show to be even more lively in the future． Along with inflation and shortages of goods in all countries, when I looked at this jewelry show trends, the products were being sold at higher prices than before, and I believe that the prices are likely to rise in the future．
Currently, the sales of jewelry in Japan are sluggish, and it is likely that there will be an increasing gap in market prices between Japan and the rest of the world． Many goods are traded overseas at prices higher than Japanese retail prices, and as a result, there is a possibility that nice goods will disappear from Japan to overseas． This jewelry show had such a strong impact that it has given us hope for the revival and future development of the jewelry show in Hong Kong．
However, Hong Kong has decided to implement restrictions on commercial transactions on April 1st． In order to prevent money laundering and terrorist financing, all cash transactions of non-Hong Kong precious metals and stones dealers are required to submit a cash transaction report to Hong Kong Customs and Excise Department in respect of any cash transaction of at least HKD120,000． Considering the business transactions in our industry, it seems that the obligation to declare will occur in many situations．
It applies to companies that are not Hong Kong companies, do not have an office in Hong Kong, or do not operate in Hong Kong more than 60 days a year, and if they are found guilty of violating the penalty, they will be sentenced to HKD50,000 and imprisonment for 3 months, which is also relevant to many Japanese companies that have experienced a boom this time． Until now, there were no restrictions in Hong Kong as a free port, and cash transactions were freely conducted, but in the future, it will become more difficult to take cash out of Hong Kong, and it is likely to affect business negotiations．
HKTDC Hong Kong Jewelry Show was a great success this time, and the other jewelry shows will be held at June and September． In this atmosphere, the next show is likely to be very lively, but it seems that the future trend has become difficult to predict due to the implementation of regulations on commercial transactions． Hong Kong, which is making a revival, will be attracting a lot of attention this year． I would like to express my heartfelt gratitude to the many people who came to visit us this time． Thank you． See you again at the next jewelry show in Hong Kong．
