The Tourism Board executive director's performance pay amount is determined according to four performance indicators which are objective and quantifiable, Secretary for Economic Development & Labour Stephen Ip says.

He told lawmakers today the board sets the indicators - visitor arrivals, tourism spending, length of stay and satisfaction level - every year in its annual business plan as performance targets. They are also important considerations for assessing the performance of its senior executives to determine whether performance pay is granted.

In former executive director Clara Chong's case, as the board's overall performance in 2005-06 achieved its targets and her job performance and management ability were also satisfactory, she was awarded her performance pay in full, which amounted to $589,000.

In proportion

In 2006-07, the board fully achieved two performance indicators - tourism spending and satisfaction level. Visitor arrivals and length of stay targets were not met, however, so the board's remuneration review committee decided to award her only about 60% of her performance pay, in proportion to the achievement level.

"Implementation of the HKTB's annual business plan is subject to many local and external factors, such as the economic situation of source markets, policy changes, political environment, and emergency situations associated with safety and health concerns, and so on. These factors would have positive or negative impact on the overall tourism performance of Hong Kong," Mr Ip said.

"However, the impact of each and every factor on the tourism performance of Hong Kong could hardly be assessed in a scientific manner. Most importantly, the HKTB must flexibly adjust its marketing and promotion strategy in response to these external factors so as to promote the growth of Hong Kong's tourism industry."

Attractive pay

Secretary for Home Affairs Dr Patrick Ho pointed out statutory bodies' staff remunerations and their adjustments should be able to attract and retain staff with the appropriate calibre, experience and expertise, having regard to the relevant posts' level of responsibilities and the specific nature of the concerned organisations' operation.

He said under the Government guidelines promulgated in March 2003, statutory bodies which receive more than half of their operating income from Government, except those fulfilling prescribed exemption criteria, should regularly review the number, ranking and remuneration packages of staff at the top three tiers and submit the review reports to their responsible bureau.

Public corporations and similar major statutory bodies have their own governing boards and are required under the relevant laws to operate independently and effectively.