These charts reveal Hong Kong's performance while maintaining its zero-Covid approach.

• The fifth wave of Covid-19 cases in Hong Kong is being driven by the omicron variant, despite the city's zero-Covid approach.
• The government may ease restrictions when 90% of the population is vaccinated, but vaccination rates remain low, particularly among the elderly.
• The number of visas issued for foreign professionals in Hong Kong has decreased, resulting in a decline in air passenger traffic to the city.

The zero-Covid approach of Hong Kong is being tested by a surge in coronavirus cases.

The fifth wave of infections in Hong Kong is being attributed to the omicron variant and its rapid transmission rate. Since the beginning of this month, daily new cases have increased by almost 60 times, with Hong Kong reporting just over 100 cases per day.

On Wednesday, daily infections reached a record high of 8,674 cases.

In 2020 and 2021, the total number of confirmed cases in Hong Kong was less than what was reported in the fifth wave, according to authorities.

Last week, Chief Executive Carrie Lam stated that the fifth wave of the epidemic has severely impacted Hong Kong and exceeded the city's ability to manage.

Despite Lam's assertion, there are no plans for a "widespread city lockdown."

She stated that Hong Kong must find its own solution to the epidemic and that its measures to control the spread of the disease are still valid.

The Hong Kong government will maintain its "dynamic zero" strategy until the vaccination rate reaches 90%, which involves measures such as mass community testing, sewage surveillance, contact tracing, and border controls to prevent imported cases.

Elderly vaccination rates

Despite efforts, Hong Kong's goal of achieving 90% vaccination rates, particularly among the elderly, remains out of reach due to low vaccination rates.

According to government data, as of Feb. 22, 59.84% of Hong Kong's elderly population aged 60 and above had received two doses of a Covid-19 vaccine, while the percentage for those aged 70 and above was 45.46%.

Lam has stated that the city must improve its efforts to vaccinate the elderly in order to achieve the overall 90% vaccination rate target.

She stated that we will persist in following our current strategy of controlling the spread of the virus, which involves keeping it under control, until certain events transpire.

Starting from February 24, entry to most public spaces in Hong Kong will require a vaccine pass, which may motivate more individuals to get vaccinated.

Businesses cope with Covid restrictions

Hong Kong, like mainland China, is one of the few places still adopting a zero-Covid strategy. The city continues to enforce strict measures in an effort to achieve quarantine-free travel with China.

The recent business sentiment survey conducted by the American Chamber of Commerce in Hong Kong indicates that the measures have hampered operations and complicated travel plans.

The Hong Kong economy may be affected by the evolving Covid-19 restrictions, including travel, public gathering, and social distancing restrictions, which are impacting the ability to attract and retain staff, according to HSBC's annual report.

The number of work visas issued under the General Employment Policy scheme has decreased by 66% from 41,000 in 2019 to 13,800 in 2021, according to data from the city's immigration department.

The decline is likely only partly due to Covid restrictions, said Lloyd Chan, senior economist at research firm Oxford Economics.

Besides travel restrictions and US-China tensions, we believe that worries about the national security law and alterations to Hong Kong's political system, including the revamp of its electoral system, have diminished Hong Kong's allure to foreign corporations and investors as a global center.

As indicated by anecdotal evidence, it seems that companies are facing challenges in attracting foreign workers, the speaker stated.

Despite pandemic-related challenges, Hong Kong remains a major regional base for businesses, according to InvestHK, Hong Kong's government agency for foreign direct investment.

"Our biggest competitive advantage lies in Hong Kong's unparalleled access to Mainland China markets, which continues to offer overseas businesses unique opportunities," InvestHK stated in a written response to CNBC.

Hong Kong's banking sector remains "as robust as ever" following the implementation of the National Security Law, with total deposits increasing by almost 8% year-over-year to over $15 trillion Hong Kong dollars ($1.92 trillion) at the end of June 2021, the agency stated.

The spokesman from Hong Kong's information services department stated to CNBC that the national security law has "reverted the chaotic situation, restored stability, and increased confidence in Hong Kong, thereby allowing the city to return to the path of development."

The changes to the electoral system guaranteed that members of the legislative council acted in the best interests of Hong Kong's long-term development and stability.

Air passenger traffic plummets

The city's air passenger traffic plummeted by approximately 85% in 2021, and Hong Kong has promptly intensified its border controls whenever COVID-19 cases surge.

The government has extended a ban on incoming flights from nine countries, including the United States, United Kingdom, India, and Australia until April 20, in an effort to prevent imported COVID-19 cases from overwhelming the city's healthcare system during the crucial stage of controlling the local epidemic.

In order to reopen borders with China, Hong Kong must adopt Beijing's zero-Covid approach, according to Chan.

As a result of stringent international border restrictions, inbound tourism in Hong Kong will be depressed, hindering its economic recovery and weighing on its attractiveness as a global financial hub, according to a report written on Feb. 9.

Despite being a global city, Hong Kong's cumulative caseload is relatively low, with just over 75,000 cases as of Feb. 22, according to government data.