Official says Hong Kong must navigate 'delicate equilibrium' when easing border restrictions.

• A government official has announced that Hong Kong plans to ease some travel restrictions for international visitors starting next month.
• The Chinese territory plans to lift a travel ban on flights from nine countries, including the U.S., U.K., and Australia.
• Hong Kong has adhered to a "dynamic zero" coronavirus policy, similar to mainland China, in an attempt to eradicate all outbreaks through stringent restrictions and quarantine measures.

The government official stated that Hong Kong must navigate a challenging equilibrium as it prepares to ease some travel restrictions for international tourists starting next month.

The Chinese territory plans to lift a travel ban on flights from nine countries, including the U.S., U.K. and Australia, and allow travelers to quarantine in a hotel for seven days instead of 14 days. The changes will be implemented on April 1.

Bernard Chan, convenor of the Executive Council, stated on CNBC's "Squawk Box Asia" on Monday that it is crucial to cater to the needs of international businessmen, but at the same time, Hong Kong's large population requires the relaxation of border restrictions to the mainland of China for family reunions and businesses.

He stated that it is a challenging task to balance measures, particularly with China still experiencing Covid outbreaks in certain areas.

The executive council in Hong Kong serves as a cabinet-like body, offering advice to the city's chief executive.

Since early 2020, China has been grappling with its worst Covid outbreak, which local authorities attribute to the new omicron BA.2 variant. As a result, Shanghai, the country's largest city, implemented a two-stage lockdown on Monday.

Hong Kong has adhered to a "dynamic zero" coronavirus policy, similar to mainland China, in an attempt to eradicate all outbreaks through stringent restrictions and quarantine measures.

On Monday, the city recorded 7,685 new Covid infections and 168 deaths, indicating that the latest wave of omicron infections is gradually subsiding, according to official data.

Government data shows that the average number of daily reported cases decreased from 8,704.4 to 4,217.4 between March 22 and 28.

Hong Kong is lagging behind its regional peers, particularly its rival financial hub Singapore, which announced last Thursday that it will lift almost all border restrictions for vaccinated travelers starting next month.

"While the rest of the world is reopening, we must find a solution," said Chan. "Effective April 1, the hotel quarantine time will be reduced from 14 days to 7 days. Although it's not enough, it's a significant improvement," he added.

Covid impacts business hub status

The European Chamber of Commerce in Hong Kong's recent report stated that Hong Kong's zero- Covid strategy has resulted in a significant cost for its business community.

In the next 12 months, 49% of the surveyed companies are considering relocating their offices either partially or fully.

The report stated that 2 out of 3 companies in Hong Kong have been hindered by existing restrictions in their corporate strategy or hiring plans.

Despite the difficulties Hong Kong is currently facing, Chan expressed confidence that the city will once again become a leading global business hub after the pandemic subsides.

I believe that Covid will eventually end, but it's uncertain when it will happen.