Hong Kong has sailed closer to its goal of becoming one of the world’s most compelling yachting hubs after a breakthrough decision by mainland China to exempt leisure vessels from the city from customs guarantees and to allow temporary nationality registrations. The policy change for yachts registered in Hong Kong and nearby Macau sets the stage for unprecedented integration of Greater Bay Area waters and removes a major financial anchor holding back the sector. Hong Kong must now get all hands on deck to overhaul infrastructure and remove administrative bottlenecks.

The bay area is an ambitious scheme launched by Beijing in 2019 to integrate nine mainland cities with Hong Kong and Macau into an economic powerhouse. Previously vessels hoping to berth at mainland ports in the area needed customs guarantees and registrations.

Now, local yachts will be exempted from the expensive and time-consuming guarantees, and “temporary” ship nationality registrations will be issued. Authorities are also negotiating southbound travel for mainland yachts, setting the stage for a two-way yacht tourism market and international vessels being able to use the city as a regional hub.

There is enormous potential to be tapped in a global market projected to be worth US$45 billion by 2032. Some groups have already voiced interest in organising trips to golf courses on the mainland. Ultimately, wealthy visitors could be spending on everything from tourism, hospitality and retail to maintenance and marine services. But industry leaders say Hong Kong has work to do, including improving immigration procedures, upgrading mooring facilities and curating niche tourism itineraries. The Hong Kong Yachting Association has suggested taking a cue from mainland ports that provide immigration services for travellers on yachts to address privacy concerns.

Authorities are already exploring ways to allow advance submission of crew and passenger data for immigration pre-clearance. Transport officials plan to allow vessels to anchor at designated waters without reserving berths at private clubs or piers. Industry experts have called for better support facilities, such as electricity and dinghy services at some sites. The tourism sector was encouraged to develop experiences like seafood meals, guided hiking tours or island visits. Developing such offerings may seem like uncharted waters for a city accustomed to providing more traditional hospitality. However, it is time to seize opportunities from central government policy changes that will put wind in the sails of yacht tourism and position Hong Kong as a premium regional hub.