XN000022-1995-03-01 — Page 22

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Encouraging development of service sector

The Government is considering a number of measures to ensure that Hong Kong will have enough hotel rooms to accommodate the rising number of tourists and business travellers.

Disclosing this today (Wednesday) in his Budget Speech, the Financial Secretary, the Hon Sir Hamish Macleod, said measures recommended by consultants included the relaxation of plot ratios and the release of new sites.

He said: "We shall be consulting closely with all those concerned before deciding on the way forward, but our aim will be the positive one of ensuring that this industry can go on growing without any unnecessary constraints or handicaps.

The Government has long been involved in the promotion of tourism - one of Hong Kong's most important service industries through its financial support for the Hong Kong Tourist Association, the Financial Secretary said.

The Government had also provided a framework to encourage the development of the service sector, while its role in promoting trade in services has been relatively modest.

Sir Hamish added: "This is hardly surprising.

"When the Trade Development Council was established, our exports were dominated by trade in goods.

"However, given the growing potential for trade in services, I believe that there is now a case for a more balanced approach to overseas promotion."

Sir Hamish said the preliminary results of a consultancy study suggested there were several areas where carefully targeted promotion could help to reinforce Hong Kong's position as a world-class service centre for the Asia-Pacific region.

Over the next few months, the Government will be working with bodies such as the Coalition of Service Industries and the Trade Development Council to determine how best this should be done.

"I believe a new initiative in this area would be very worthwhile. We have very considerable expertise to sell," Sir Hamish said.

End/Wednesday, March 1, 1995