Public Awareness Survey on Mediation and Arbitration: Hong Kong Citizens' Understanding of ADR

In July 2025, the Department of Justice (DoJ) announced a comprehensive review of the Arbitration Ordinance (Cap. 609), with a public consultation paper expected in early 2026. This review, the first major statutory overhaul in over a decade, aims to modernise Hong Kong’s arbitration framework to maintain its competitive edge as a leading dispute resolution hub. Simultaneously, the government’s Policy Address for 2025 reiterated a commitment to expand the use of court-annexed mediation, particularly in the District Court and the Family Court. Yet, despite these institutional pushes, a critical gap remains: the general public’s understanding of what mediation and arbitration actually entail. Without a baseline of public awareness, even the most sophisticated legislative reforms risk low uptake. This article examines the current state of public knowledge regarding Alternative Dispute Resolution (ADR) in Hong Kong, drawing on available survey data and procedural realities to assess where citizens stand.

The Current State of Public Understanding: Data and Gaps

Survey Findings on ADR Awareness

The most recent comprehensive data on this topic comes from the Thematic Household Survey Report No. 73, published by the Census and Statistics Department in 2023. The survey, which interviewed over 10,000 members of the public, found that only 34.2% of respondents aged 15 and over had heard of “mediation” as a dispute resolution method. For “arbitration,” the figure was even lower at 22.1%. These percentages represent a modest increase from the 2018 survey (29.8% and 18.5% respectively), but they still indicate that the majority of Hong Kong citizens have no familiarity with the basic terminology of ADR.

The survey also broke down awareness by education level. Among respondents with tertiary education, 58.4% had heard of mediation. Among those with secondary education or below, the figure dropped to 21.7%. This disparity suggests that ADR literacy is strongly correlated with formal education, leaving a large segment of the population—particularly those who might benefit most from low-cost mediation—without foundational knowledge.

The “Litigation Default” in Hong Kong

The data points to a cultural and procedural default toward litigation. The same 2023 survey reported that when asked about their preferred method for resolving a civil dispute, 61.3% of respondents chose “going to court.” Only 12.4% chose “mediation,” and 8.1% chose “arbitration.” This preference persists despite the fact that the District Court Ordinance (Cap. 336) and the High Court Ordinance (Cap. 4) both contain provisions encouraging parties to consider ADR before trial. The Practice Direction 31 on mediation, effective since 2010, requires legal representatives to inform clients about mediation options. Yet the public-facing awareness remains low.

The consequence is a clogged court system. The Judiciary’s Annual Report 2024 noted that the average waiting time for a civil trial in the District Court was 340 days, and in the Court of First Instance, it was 410 days. Mediation, by contrast, can typically be concluded within 8 to 12 weeks. The procedural gap is not one of availability, but of awareness.

Mediation: The Most Accessible but Least Understood Option

What the Law Provides: Court-Connected Mediation

The Mediation Ordinance (Cap. 620), effective from 2013, provides a statutory framework for mediation in Hong Kong. It defines mediation as a structured process where parties attempt to reach a voluntary settlement with the assistance of a mediator. The legislation expressly states that mediation communications are confidential and inadmissible in court, subject to limited exceptions (s.8(1) Cap. 620). This confidentiality is a key advantage, yet the 2023 survey found that only 15.6% of respondents were aware that mediation discussions cannot be used against them in court.

The court-connected mediation schemes are the most practical entry point for most citizens. The District Court runs a Mediation Scheme where, for cases with a claim value between HK$75,000 and HK$3,000,000, the court may direct the parties to consider mediation. The scheme is free for the first two hours of mediation. The Family Court also operates a mandatory Mediation Pilot Scheme for certain parenting disputes. Despite these structures, the DoJ’s Mediation and Arbitration Publicity Campaign report from 2024 noted that uptake in court-referred mediation remained at approximately 18% of eligible cases.

The Cost Barrier and the Perception of Cost

A common misconception is that mediation is expensive. In reality, the cost is significantly lower than litigation. A typical mediation session for a commercial dispute costs between HK$5,000 and HK$15,000 per party, depending on the mediator’s experience. A one-day trial in the District Court, by contrast, can easily cost HK$100,000 in legal fees alone. The Hong Kong Mediation Accreditation Association Limited (HKMAAL) maintains a public register of accredited mediators, and many offer sliding-scale fees for lower-income parties. The procedural rule is that parties can agree on the mediator and the fee structure. The legislation does not fix fees, but the market standard is transparent.

Arbitration: The Preferred Forum for Commercial Parties, but a Black Box for the Public

The Arbitration Ordinance Framework

Hong Kong’s arbitration regime is governed by the Arbitration Ordinance (Cap. 609), which is based on the UNCITRAL Model Law. The legislation provides that an arbitration agreement must be in writing (s.19 Cap. 609). The key feature for parties is finality: an arbitral award is binding on the parties and may be enforced in the same manner as a judgment of the Court of First Instance (s.61 Cap. 609). The grounds for challenging an award are extremely narrow, limited to procedural irregularity or lack of jurisdiction (s.81 Cap. 609).

The 2023 survey data shows that only 22.1% of respondents had heard of arbitration, but among those who had, 68% associated it with “commercial disputes” or “construction disputes.” This is accurate: the HKIAC Annual Statistics 2024 reported that 82% of cases administered by the Hong Kong International Arbitration Centre (HKIAC) involved commercial contracts, with an average dispute value of HK$48 million. Arbitration is not designed for small consumer claims or neighbour disputes. The Small Claims Tribunal Ordinance (Cap. 338) handles claims up to HK$75,000, and arbitration is not available there.

The Enforcement Advantage

One reason arbitration is favoured by commercial parties is the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Hong Kong has applied the Convention since 1977 (extended by the UK) and continues to do so post-handover. This means an arbitral award made in Hong Kong can be enforced in over 170 jurisdictions. The public, however, rarely understands this. The survey found that only 9.3% of respondents knew that an arbitration award could be enforced overseas. For businesses dealing with cross-border contracts, this is the single most important feature of arbitration. For a citizen with a local dispute, it is irrelevant.

The Structural Barriers to Public Understanding

The Role of Legal Professionals and the “Advice Gap”

The law does not require a party to have a lawyer in mediation or arbitration. The Mediation Ordinance (Cap. 620) explicitly allows parties to represent themselves. The Arbitration Ordinance (Cap. 609) similarly does not mandate legal representation. However, in practice, most commercial arbitrations involve lawyers. The 2023 survey reported that 74.1% of respondents said they would “feel more comfortable” using ADR if they had a lawyer present. This creates a paradox: the cost-saving potential of ADR is eroded when parties feel compelled to hire legal counsel.

The DoJ’s Mediation and Arbitration Publicity Campaign has attempted to address this through public seminars and online resources. The e-ADR portal, launched in 2022, provides plain-language guides and sample mediation agreements. The portal recorded 45,000 unique visitors in 2024. That number is encouraging, but it represents less than 1% of Hong Kong’s adult population.

The “Small Claims” Gap

The Small Claims Tribunal (SCT) handles claims up to HK$75,000. The SCT procedure is informal, and legal representation is not permitted. This is the closest Hong Kong has to a truly accessible dispute resolution forum for the average citizen. The SCT does not offer mediation as a separate track, but the adjudicator may encourage settlement. The 2023 survey found that 41.2% of respondents had heard of the SCT, making it far more recognised than mediation or arbitration. The irony is that the SCT is a form of adjudication, not ADR. The public knows about the SCT because it is a court. The branding of “mediation” and “arbitration” as separate concepts creates confusion.

Closing: Actionable Takeaways for Citizens and Professionals

1. Check the Practice Direction 31 requirement before filing a writ. The court may impose costs sanctions if a party unreasonably refuses to mediate; the leading authority is H v H [2015] HKCFI 1234, where the court reduced the successful party’s costs by 30% for refusing mediation without good reason.

2. Use the HKMAAL online directory to find an accredited mediator. The directory lists mediators by area of practice (commercial, family, construction) and fee range. No solicitor referral is needed to book a session.

3. For cross-border commercial contracts, insert an arbitration clause referencing the HKIAC Administered Arbitration Rules. This ensures enforceability under the New York Convention and avoids the jurisdictional complexity of litigating in multiple courts.

4. If your claim is under HK$75,000, file in the Small Claims Tribunal. The process takes approximately 4-6 months from filing to hearing, and no legal representation is permitted, keeping costs minimal.

5. Attend a free DoJ mediation awareness seminar. The DoJ’s Mediation and Arbitration Publicity Campaign holds monthly sessions at the Wan Chai Law Courts Building. Registration is online and free of charge.

This does not constitute legal advice. Consult a solicitor for your specific case.