Creating business in the air

Hong Kong is striving to get the low-altitude economy off the ground by building its technology prowess and capitalizing on the city’s position in the Greater Bay Area. Liu Yifan reports from Hong Kong.

A captivating show featuring about 1,000 drones fascinated spectators on May 25 on both sides of Hong Kong's Victoria Harbour as the unmanned aerial vehicles flew above the water, creating motifs and characters of the earless robotic cat Doraemon and his friends.

It was the world's first drone show for the popular manga character, set against the spectacular nighttime of the "fragrant harbor".

If the extravaganza is anything to go by, Hong Kong will be creating profits in the sky by boosting tourism and following the motherland's lead in lifting the nascent low-altitude economy to new heights. It's an integrated form of economy manifesting in the development of related fields concerning flying activities by manned and unmanned civil aircraft, generally, within an air space of below 1,000 meters in altitude and extending to not more than 3,000 meters.

"Low-altitude activities are now widely practiced in many fields in Hong Kong and are being integrated with various socio-economic activities," Secretary for Transport and Logistics Lam Sai-hung told the Legislative Council earlier this year.

Government departments and private organizations in the special administrative region have been using small unmanned aircraft (SUA) in a growing range of areas, including the development of three-dimensional digital maps, search and rescue operations, aerial filming, drone shows, land surveys and utility inspections.

As the first step in regulating such activities with a risk-based approach, the Small Unmanned Aircraft Order came into effect in June 2022. As of February, the Civil Aviation Department had issued permits to nearly 100 companies or organizations to operate SUA, most of which involve surveying and aerial photography.

For the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the outline development plan calls for further reforms in managing low-altitude airspace, and expediting the development of general aviation, as well as the steady promotion of cross-boundary helicopter services.

"Subject to compliance with the relevant immigration and customs clearance and quarantine arrangements, the HKSAR government will continue to proactively explore avenues for developing cross-boundary commercial helicopter services with the mainland to strengthen air traffic connectivity within the GBA," Lam said.

Lawmaker Tan Yueheng says the low-altitude economy is not just about a new industry track for national development and Hong Kong's drive to be an innovation and technology center. It's also a test for the SAR government in growing industries, policy responsiveness, and decision-making capabilities.

"The low-altitude economy is a new frontier for global industrial development. As an international city set to build up its technology sector, Hong Kong must keep abreast of trends and dynamics in industries domestically and internationally, and not miss out on new opportunities," he says.

Global investment bank Morgan Stanley estimates that the global market for the advanced air mobility business could reach $1 trillion by 2040 and skyrocket to $9 trillion by 2050.

According to the Guangdong authorities, the province's low-altitude economy is forecast to exceed 300 billion yuan ($41.4 billion) by 2026.