Deputy President, I thank Ir Dr LO Wai-kwok for moving this motion. In my amendment, I have added wordings pertaining to the tourism industry because since the Mainland introduced the Individual Visit Scheme (IVS) in 2003, the tourism industry in Hong Kong has entered a golden decade. Although this has benefited the economy and created numerous development opportunities for the related trades, a lot of problems affecting people's livelihood have been caused at the same time. People of  different backgrounds and political stances hold different views, and some have begun to query whether Hong Kong's tourism industry can stand to be one of the four pillar industries for the economy. This is worth our consideration.

Developing tourism brings with it a lot of advantages, which include little pollution and creating employment for people with low skills. Thus, both the developing and developed countries regard tourism as a sunrise industry. A study report by the Oxford Economics forecasted that in the next decade, tourism industry would see an annual growth rate of 5.4%, while that of the global GDP would be 2% only. Among all, the Asia Pacific region would become the strongest driving force for the growth of outbound tourism. It is estimated that by 2023, the Asia Pacific region will out-perform Europe with its consumption reaching as high as US$750 billion and accounting for 40% of the total consumption for outbound tourism worldwide.

China's outbound travel market has always been impressive. In 2005, the growth rate of China's outbound travel just stood at 1%, but with rapid GDP growth and high consumption, it has seen startling development in recent years. In 2014, the number of people departing China rose to 109 million, up from 98 million a year before. By 2017, the Mainland will overtake the United States to become the largest source of outbound tourists worldwide. In the meantime, the report also showed that the rapid growth in tourism was not limited to China. In the coming decade, the annual growth in the number of tourists for Russia, Brazil, India, Indonesia and Turkey will also reach 5%, mainly due to an increase in income and improved life quality of the people.

In face of such trends, all countries are developing tourism. Even for the United States and Japan, which in the past did not have friendly ties with China, they are also having their eye on the Mainland market for inbound tourists, and are trying to remove entry restrictions. When countries around are admiring the handsome number of tourists Hong Kong is receiving, some people here are making a big fuss on the pretext of the deeds of parallel goods traders and uncivilized behaviour of individual tourists from the Mainland. They took radical actions to storm the tourist areas, insult or even push and shove Mainland tourists. They publicized "Hong Kong independence" to incite China-Hong Kong conflicts. Facing these behaviours, the Government needs to enforce the law strictly. 

The problem now is: Given the trend in the global development of tourism, should Hong Kong continue to pursue room for development, or should we close our door and be complacent?

Looking back at the 10-odd years since the introduction of the IVS, the number of Mainland tourists to Hong Kong has been seeing a double-digit growth every year. Apart from the newly opened Disneyland and Ngong Ping 360, only a few other new facilities have been provided by the SAR Government to cope with the increase in tourists. Moreover, since the Government has not paid much attention to the opinions expressed at the districts and by the industry, a raft of problems causing disturbance to the people have cropped up in some areas which see a high concentration of tourists or parallel goods traders. Much popular discontent has erupted in some places. Coupled with those people harbouring political motives who added fuel to fire, it was just normal that some people came up with suggestions to restrict the IVS. However, so long as the SAR Government can understand public sentiment and formulate timely and targeted measures, I believe the people of Hong Kong will treat the problems caused by Mainland tourists in an objective manner. According to the information I have gathered, it is estimated that the capacity of Hong Kong to receive tourists can reach a new level.

Regarding investment in tourism-related construction projects in the mid to long run, we have launched the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link; as for new tourist attractions, we will have the Kai Tak Fantasy, the third hotel and phase two for Disneyland, the expansion of the Ocean Park; other ancillary facilities include the new Convention and Exhibition Centre at the Shatin to Central Link, the West Kowloon Cultural District, the Kai Tak Multi-purpose Sports Complex; large scale infrastructural projects in the future will see tourism elements, including areas like Lantau, Northeast New Territories, Hung Shui Kiu, the Lok Ma Chau Loop. It can be seen that together with the existing facilities, we have favourable tourism resources and transport ancillaries, and the level of convenience is even higher than those of most cities around the world. Hong Kong has all the conditions to become a world-class city for tourists. Therefore, I am confident that tourism can remain a pillar industry for Hong Kong.

To ensure a healthy and sustained development for tourism, the Government should set about drawing up a development blueprint for the future five to 10 years. Through analysing the consumption and travel features of  different kinds of tourists, and making reference to the transport, accommodation, site-seeing, shopping and catering facilities, as well as the density of residences, the Government should further assess the capacity of the various districts in receiving tourists, and formulate measures to divert tourists, in particular Mainland tourists. 

According to the information provided by the Hong Kong Tourism Board, tourists visiting Hong Kong in 2014 can be classified into three consumption models. The first model encompassed overnight visitors coming from overseas and the Mainland. They accounted for around 32 million person-trips and mainly conducted their activities in the conventional busy tourist areas. Their per capita consumption stood at around $8,000, and they made bigger and more obvious contribution to the different levels of Hong Kong's tourism industry. They are the major source of tourists which we are going after.

The second model featured day-trip visitors, estimated at 13 million person-trips. Indisputably, as residents in different parts of Guangdong get more familiar with the conditions in Hong Kong, Hong Kong has become a good place for them to visit and relax during the weekends and festival breaks. As the majority of them have visited the conventional tourist attractions and shopping areas, they will choose some unconventional attractions, such as the outlying islands and country parks, and go to various places to savour delicacies, buy local products and snacks, and take part in Hong Kong's festivities. These tourists help propel the local economy, and contribute to boosting the people flow of museums and country parks which see a low utilization rate. So long as we can step up publicity of those areas or attractions which can receive more tourists, this group of tourists will be conducive to diverting tourists from the busy areas and spurring the local economy.

The third model referred to the shopping tourists and parallel goods traders with Shenzhen residency and who came to Hong Kong on multi-entry permits. It was estimated that they made 15 million trips last year. Together with those Hong Kong residents who make their living on parallel trading, they are the main group causing serious disturbances in the New Territories at the moment. The Government has to think of ways to resolve the situation. Many people suggest that the scrapping of the multi-entry permit system can serve the purpose, but I consider it will only have limited effect, as the parallel goods syndicate can switch to using Hong Kong people to bring the goods. I heard that a shopping centre at the Lok Ma Chau border would open at the end of the year, and it could receive up to 10 million people every year. Although this may not help divert the parallel goods traders, it can definitely divert those tourists who are here to buy other goods. If the Government continues to look for land in the vicinity of the border crossings at Lo Wu, Shenzhen Bay, the artificial island for the Hong Kong-Zhuhai-Macao Bridge, and Liantang for constructing shopping centres of scale at the border to divert shopping tourists, it will surely help ease the grudges of the New Territories residents. 

Deputy President, I hope that the Government can learn from past successes or failures, and formulate long-term development planning for tourism based on the future development trend of tourists who come to visit Hong Kong. Then, the overall reception capability of Hong Kong can be enhanced, and the possibility of tourism losing out to remain as one of Hong Kong's pillar industries can be avoided. I hope the Government will make efforts in this regard.

Deputy President, I so submit.