HK to invest more in tourism amid friction

Hong Kong is expected to see more funds to support its tourism industry, as the special administrative region should strive to guarantee sufficient capacity for tourist reception, urged Hong Kong Financial Secretary John Tsang Chun-wa Wednesday.

"Tourism has been making immense contribution to Hong Kong's economy and it has been driving the growth of many other industries, such as retail, catering and transport," said Tsang during his budget speech, according to the Hong Kong government budget website.

Visitors to Hong Kong exceeded 54 million in 2013, an increase of 11.7 per cent over 2012. The total spending by tourists in 2013 went up by 14.8 percent to HK$340 billion ($43.8 billion), which made up 4.7 percent of GDP, Tsang said.

A total HK$208.2 million will be spent on tourism-related projects in 2014, according to the budget, a 12.2 percent increase from 2013. The local tourist board will receive HK$655.7 million in subsidies.

The subsidy will be used to provide more services for organizers and participants of conventions and exhibitions in the coming three years.

Tourism events like the Wine and Dine Festival, the New Year Countdown Celebrations and the Chinese New Year Night Parade will also be supported by the extra funding.

Tsang said the cash injection will benefit local residents and refresh the city's appeal to overseas visitors to attract them to return at different times. But he also noted that an over-concentration of visitors may exert pressure on society.

Of the 54 million people who visited Hong Kong in 2013, 75 percent came from the Chinese mainland. Of the 28 million tourists who do not stay overnight in Hong Kong, mainland tourists account for 85 percent, reported the Guangzhou-based Nandu Daily.

The pressure has stirred up protests against mainland tourists and Michael Tien Puk-sun, National People's Congress deputy from Hong Kong and deputy chair of Hong Kong's New People's Party, has called for a cap on numbers of individual mainland tourists to the region.

"It is a structural trend that more mainland tourists will visit Hong Kong. Hong Kong and the mainland could achieve mutual benefits if Hong Kong's budget could appropriate more funds to meet the rising tourist numbers from the mainland with proper control by Beijing," Tien told the Global Times Wednesday.

"Friction is unavoidable between travelers and local residents. I've seen the crowds in Hong Kong and it can be disturbing. The budget plan can boost the reception capacity, which is a positive signal from Hong Kong's government to solve the problem," Zhang Dinghuai, a professor at Shenzhen University, told the Global Times Wednesday.

Hong Kong will upgrade tourist facilities and work to maintain the supply of high-end hotel accommodation, Tsang noted.