HONG KONG: Hong Kong retailers are expected to be among the principal beneficiaries of new, relaxed regulations for Shenzhen residents wishing to visit Hong Kong.

Starting yesterday, about 2.2 million permanent residents of Shenzhen may apply for one-year multiple-entry permits to visit Hong Kong.

Previously they were restricted to double entry visas with a duration of up to one year.

Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan welcomed the new measure.

"The multiple-entry permit allows more Shenzhen residents to visit Hong Kong. With over 2 million more people coming to the city, it must help our economy and tourism including retail, food and beverage and accommodation," she told the media.

However, the benefits are expected to be unevenly distributed among industries.

Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants & Related Trades, believes the influx of mainland tourists will boost local shopping sentiment.

"Retail businesses need huge passenger flow, no matter how many days they come," he said.

In spite of the deepening financial crisis and the weaker buying power of tourists, Wong believes Shenzhen residents will help the local retail market to certain extent.

Mainlanders contribute about HK$3 billion to the restaurant trade annually. Wong expected the new arrangement to bring the revenue up 10 to 15 percent.

Other industries are rather indifferent to the measure.

Paul Law, chief financial officer of Luk Fook Holdings (International) Limited, believes the rush of Shenzhen residents will positively impact business, but he held a conservative view on whether tourists will spend vast amounts on shopping.

Vice-chairman of the Federation of Hong Kong Hotel Owners Clarence Shun Wah also found the advantage to the hotel business limited.

"These visitors don't need to live in Hong Kong as their homes are just in the neighboring city," he explained.

One-day tour may be an attraction to mainland tourists to learn about Hong Kong, but Hong Thai Travel Services didn't have high expectations because tourists are unlikely to join the same tour twice.

Travel Industry Council of Hong Kong's Executive Director Joseph Tung Yao-chung still believes the new scheme must bring huge benefit to Hong Kong.

"Industries should prepare themselves to embrace the (economic) opportunity," he said.

The Immigration Department expects to open up the passenger clearance system, e-channel, for Shenzhen residents as early as July.

Deputy Director of Immigration David Chiu Wai-kai admitted the new measure would exert pressure on immigration control points. He estimated Shenzhen residents will be able to register for the e-channel in May or June.

Deputy Mayor of Shenzhen Li Ming offered assurances the authority would not allow undesirables to enter Hong Kong.

"We must handle with care the applications of people with criminal records on the mainland. For those whom we believe would pose a threat to law and order, we will investigate prudently before approving the application," he said.

(HK Edition 04/02/2009 page1)