Since the beginning of 2022, the Hong Kong government has been planning to revitalize the economy by offering numerous initiatives to boost the development of different industries in Hong Kong. As the city is gradually opening the border and welcoming foreigners to invest in it, senior management in Hong Kong believes that they will have to cope with several HR challenges in the future as the existing workforce cannot cope with the surging operational demands. Assume that you are an HR consultant of HKIHRM who is being asked by the government to collect data and submit a report exploring the following issues:

1. Identify and explain ONE environmental change (i.e., political, economic, socio-cultural, technological, or global) faced by the airline industry in Hong Kong.

2. Based on the environmental changes identified in (1), discuss the impact on any ONE HR functional practice (i.e., staffing, training and development, performance management, compensation and benefits, and employee relations) in the airline industry.