Chief Executive Donald Tsang on Friday said that the central government has approved a raft of measures to boost the SAR's tourism sector.

Tsang said that non-Guangdong citizens now living in Shenzhen can apply for tourist permit to Hong Kong in Shenzhen.

Shenzhen residents now can apply for a one-year travel permit with multiple entries to Hong Kong.

Tsang said there are 8.6 million people living in Shenzhen. Among them, 2.2 million are permanent residents.

Authorities will also explore adding more cities to the Individual Visit Scheme (IVS), allowing mainland travelers to visit Hong Kong on an individual basis. Currently as many as 49 cities participate in the scheme.

"Commerce and trade between Hong Kong and Shenzhen will be more convenient if the IVS is expanded," Tsang said.

Commerce and Economic Development Bureau welcomed the new measures, saying they can open up a new source for the market.

The multiple-entry permit offers a more convenient traveling mode for those who are familiar with Hong Kong, the spokesperson said.

The easier trade between Hong Kong and Shenzhen would help the city combat the financial crisis, the spokesperson added.

James Tien, chairman of Hong Kong Tourism Board (HKTB), said the widening of the IVS could benefit different industries to a great extent though travelers' spending power is badly hit by the financial turmoil.

Tien also said that the HKTB would strengthen promotion to Shenzhen residents. It would also discuss with the industry travel packages to lure more Shenzhen travelers.

Travel Industry Council of Hong Kong executive director Joseph Tung Yao-chung said the widened scheme could help improve the travel industry.

He said the convenience in traveling to Hong Kong must increase the number of visitors to the city.

"It is astonishing to the industry if all 2.2 million residents in Shenzhen come to Hong Kong," he said, adding this could compensate the loss of tourists coming from Europe and America.

However, Hong Kong Inbound Travel Association chairman Leung Yiu-lam thought the measures could only offer limited assistance to the industry.

"The spending power of the Shenzhen visitors is not that strong as most of them are workers," he said.

He expected the measures to boost the visitor number but it would not benefit the retail sector much, he added.

The industry has been looking for expansion of the IVS to second-tier cities on the mainland.

"These visitors come to Hong Kong through tours and they wish to visit again on their own," Leung explained.

Head of commercial and business development Wilson Shao said this was a timely arrangement to bring more mainland visitors to Hong Kong in the coming Chinese New Year.

The Hong Kong Retail Management Association said the retail sector should also devise ideas to cater for the new type of mainland customers.

(HK Edition 12/20/2008 page1)