By Sara Cheng

HONG KONG, (Reuters) – Hong Kong’s zero COVID policy has driven foreign talent away from the financial center and put off newcomers. Some firms even offer higher pay packages than in the extravagant days prior to the collapse at Lehman Brothers.

The new Omicron variant is causing anxiety all over the globe, prompting some countries to increase travel restrictions. However, Hong Kong, mainland China, and other places remain committed to zero tolerance for coronavirus infections.

Hong Kong was once a city that attracted global talent. However, many professionals are now trying to escape the draconian quarantine rules.

Many international business lobby organizations have warned the city that it could lose investment and talent due to restrictions on travel. These can include up to three weeks of mandatory quarantine. Relocation firms and recruiters now believe that there is a talent outflow.

Lars Kuepper is the managing director at ReloSmart. He said that his company saw an increase of fivefold in inquiries for international shipments since the outbreak and a drop in traffic by 14 percent the opposite.

Kuepper claimed that “the major factor” was clearly the pandemic as well as the impact of Hong Kong’s restrictions.

The restrictions were imposed by the government to safeguard the population from the virus. They also partially open the border to mainland China. Hong Kong is dependent on this country for its economic growth. China also seems to be largely isolating from the rest.

A spokesperson for the government said zero infected was based upon the “overall interest” of Hong Kong and most people were looking forward to the reopening of their mainland borders.

He stated in an email that Hong Kong is still a city of competitiveness and remains a key regional hub for multinational companies, despite the current pandemic.

“OUTFLOW OF TEACHER”

Non-residents cannot enter Hong Kong at the moment. Residents returning to Hong Kong must undergo hotel quarantine for two to three week.

For anyone who is cured, patient discharge regulations require that they spend an additional two weeks at a hospital. If this happens, people may be required to stay in isolation for more than one month.

These are such unattractive prospects that Regal World Transportation System Ltd., another company for relocation, stated that some of its clients reached out from out-of-state to have their possessions moved out of the city. The clients refused to go back to Hong Kong, despite having traveled initially for their family.

According to Francis Cheung, general manager of the company, there has been a 30-40% increase in jobs for people who want to be relocated from Hong Kong over the past 1 1/2 years.

The entire process took place via WhatsApp or email. He added that they did not appear in person.

Relocators find the restrictions a great boon, but recruiters are having major problems.

Ambition, an employment agency, said it has seen an increase of 70% in orders from Hong Kong-based companies over the past 12 months, but a decrease in volume hiring. This reflects the challenges in convincing people to come to Hong Kong.

Ambition’s Asia regional manager Chris Aukland said that there is an “outflow of talent” at the moment. He also stated that he expects it to continue, “unless there are any changes to travel restrictions and quarantine restrictions.”

Phaidon International, which is a recruitment firm specializing in financial services, experienced a 40%-50% increase in mandates but a 10% decline in international recruiters.

Jamie Thorpe is Phaidon’s Hong Kong head. He says that some firms are desperate to hire and have offered buyouts, guaranteed bonus, large living allowances, and job titles with higher salaries.

“We haven’t seen these packages for a number of years. Thorpe stated that the last time these packages were seen was before 2008 crisis.