Chief Executive Donald Tsang yesterday asked the central government to relax restrictions further so that more individual visitors can come to Hong Kong and boost the SAR's tourism sector.

During his meeting with National Tourism Administration Chairman Shao Qiwei yesterday, Tsang pointed out the challenges facing Hong Kong's tourism industry.

"The number of foreign visitors to Hong Kong has dropped due to the financial tsunami," Tsang told Shao. He also noted that the new cross-Straits direct links agreement had also led to a drop in the number of Taiwan visitors to the city.

He expressed the hope that further relaxation of related rules on individual visits by mainland residents would make up for part of the loss in overall tourist arrivals in the SAR.

The latest figures released by the Hong Kong Tourism Board showed that the number of visitors dropped by 1.4 percent in October compared with last year, the visitor arrivals from Europe, Africa and the Middle East and the US recorded a double-digit decrease.

The relaxation of restrictions on individual visits to Hong Kong by mainland tourists was implemented in July 2003, after the city was badly hit by the outbreak of SARS. Residents from four cities in Guangdong were allowed to visit Hong Kong and the same treatment was gradually extended to more cities, including Shanghai and Beijing.

Shao told reporters after the meeting that central government departments concerned will study the issue. "We encourage mainland residents to visit Hong Kong," he said.

Tsang also met with Minister of Commerce Chen Deming yesterday and relayed his concerns about the hardships of Hong Kong enterprises in the Pearl Rive Delta region. He also expressed his gratitude for the continued support by the department, particularly in facilitating the closer economic partnership arrangement (CEPA).

The chief executive then had talks with People's Bank of China Governor Zhou Xiaochuan.

Zhou said financial businesses will benefit from cooperation between the mainland and Hong Kong.

Earlier this week, Zhou said in Hong Kong that Hong Kong has a role to help renminbi's entry into the international financial system and the city is well equipped to do various renminbi businesses.

(HK Edition 12/19/2008 page2)