Tourism remains one of the major economic pillars of Hong Kong: the most popular city destination in Asia.

The tourism industry grew strongly in 2004 with a record-breaking number of 21.8 million visitors received during the year. The number of visitors has already recovered the lost ground due to Severe Acute Respiratory Syndrome (SARS) in 2003 and surpassed the record in 2002. The strong tourism performance was mainly attributable to the spectacular growth of the Mainland arrivals, especially after the implementation and continual expansion of the Individual Visit Scheme. Some 12.5 million Mainland visitors were received in 2004, of which more than 4.25 million arrived under the Individual Visit Scheme. Arrivals from other major overseas markets have also exceeded pre-SARS level and continue to grow healthily.

At the same time, the hotel occupancy rate improved to an average of 88 per cent in 2004, compared to 70 per cent in 2003.

The industry's outlook for 2005 remains positive, with favourable economic conditions in many source markets and a number of major new attractions coming on stream in the second half of the year, notably the Hong Kong Disneyland.