Mr David Lam Chi-man, Under Secretary for Development, and his team from the Development Bureau briefed representatives of the hotel and tourism industries on the proposed “Northern Metropolis Urban-Rural Integration Fund” Pilot Scheme.

The Government proposed in the 2026-27 Budget to allocate HK$200 million to launch the Pilot Scheme, with the objective of further promoting urban-rural integration in the Northern Metropolis and supporting rural tourism-related projects. The scheme aims to make better use of the cultural, historical and natural resources of traditional villages, while promoting sustainable development, community participation and economic vitality in rural areas.

The proposed measures include:

• Revitalising signature rural buildings and establishing village heritage trails;
• Reserving space for open areas, specialty markets and traditional festive activities;
• Improving sewerage, drainage and other rural infrastructure in nearby villages;
• Allowing, in pilot areas, the conversion of whole blocks of New Territories Exempted Houses into restaurants, retail shops or guesthouses;
• Leveraging farmland for farming activities combined with leisure, tourism, natural scenery and agricultural product sales; and
• Establishing the Northern Metropolis Urban-rural Integration Fund to provide financial support for eligible projects.

According to the Development Bureau’s briefing, the proposed Pilot Scheme will cover rural areas adjacent to new development areas in the Northern Metropolis, including over 200 existing villages not currently covered by the Countryside Conservation Funding Scheme.

Eligible applicants are expected to include charitable institutions or trusts of a public nature, companies limited by guarantee with non-profit-making objectives, and non-profit-making societies or organisations registered or established under relevant laws. Rural committees meeting the relevant eligibility criteria may also apply.

Two broad categories of funded projects are proposed:

1. Projects involving restoration or conversion of private land and/or buildings
   These may include village houses, ancestral halls, private schools or other rural buildings, to be used for projects with cultural, historical or tourism value and financial sustainability. Revenue-generating elements such as restaurants, guesthouses, bookshops or retail shops may be included. The proposed subsidy cap is HK$10 million, with a requirement for continuous operation for at least three years.
2. Projects not involving restoration or conversion of private land/buildings, or one-off/non-recurring activities
   Examples include village branding, environmental beautification, rural cultural research and compilation, village festivals, weekend markets, and the design and development of guided tour experiences. The proposed subsidy cap is HK$2 million.

The Development Bureau also shared that an assessment committee will be established to review applications. Key assessment considerations will include whether the project can promote rural tourism and support the Government’s urban-rural integration objectives, its technical feasibility, implementation timetable, synergy with other related measures, stakeholder support, the applicant’s experience and capability, and the project’s impact on the surrounding area, including visitor capacity.

The Government plans to seek funding approval from the Legislative Council Finance Committee in the fourth quarter of 2026. Subject to approval, the Pilot Scheme is expected to be rolled out within 2026, alongside the publication of the Guidelines on Urban-rural Integration in the Northern Metropolis. Applications are expected to be opened in batches, and briefing sessions and application guidelines will be provided in due course.

At the briefing, industry representatives expressed support for the Pilot Scheme and exchanged views on its practical implementation. Members raised suggestions regarding project sustainability, professional operation, industry participation, capacity management, product development, and the need to create high-quality and sustainable rural tourism experiences.

The Federation believes that the Pilot Scheme presents an important opportunity to inject new vitality into Hong Kong’s rural communities, promote village culture and heritage, broaden the city’s tourism offerings, and foster closer integration between urban and rural development.

We would like to express our sincere appreciation to the Development Bureau, Mr David Lam and his team for the detailed briefing and constructive exchange. We also extend our heartfelt thanks to Legislative Council Members Mr Perry Yiu and Ms Vivian Kong and their offices for their valuable support, coordination and facilitation, which enabled the industry to engage directly with the Government on this important initiative.

Members are welcome to continue engaging with us and sharing views on potential opportunities under the Pilot Scheme.