A record high of nearly 400,000 arrivals was seen in the first week of October, showing Hong Kong's tourism industry is recovering well.

Secretary for Economic Development & Labour Stephen Ip said arrivals were up 6% over the same period last year.

Speaking at the HK Luncheon for World Tourism Organisation delegates in Beijing today, Mr Ip said there are a few key developments that have helped the revival.

The most important is that residents of eight cities in Guangdong, as well as Shanghai and Beijing, are now able to visit Hong Kong without having to join tour groups.

Mainlanders apply under individual visit scheme

Since the introduction of the new Individual Visit Scheme in July, over 460,000 Mainlanders have applied for individual travel permits and over 200,000 of them have visited so far.

The scheme will be extended to the whole of Guangdong next May.

Mr Ip said the impact of SARS is fading and we are on the road to recovery.