Source: CCTV.com

01-18-2007 11:36

Hong Kong retailers and tourism industry are welcoming the yuan's appreciation with open arms. Let's take a look at how the yuan's appreciation is helping Chinese mainland tourists, visiting Hong Kong.

The rate adjustment is of course good news for mainland outbound tourists, because renmibi appreciation leads to lower travel costs. The prices for package tours from the Chinese mainland to Hong Kong have been dropping, as the RMB keeps hitting new highs.

Manager of GZL international travel service Wen Xiang said "We keep having to adjust our Hong Kong package tour prices because of currency fluctuations. For example, When Disneyland opened a little more than a year ago, the ticket cost was 370 yuan per person. Now, it's dropped to 350 yuan per person."

Experts say the tourism boost will stimulate the Hong Kong's retail market. Hong Kong's shopkeepers, hotels and other tourism-related businesses believe they will benefit from the renminbi appreciation. They say more mainland travellers will come to Hong Kong to spend money, because it's cheaper than before.

A stronger renminbi is also creating demand for the Chinese currency in Hong Kong. Before, mainland travellers needed to first convert their hard earned renminbi into Hong Kong dollars before they could start spending. But now, more and more businesses in Hong Kong are willing to accept renminbi.

Editor:Du Xiaodan