Hong Kong, Apr 23: Hong Kong chief executive Tung Chee-Hwa today announced an USD 1.5 billion economic package to soften the impact of the deadly SARS outbreak, which has devastated the travel and retail industries. The package worth 11.8 billion Hong Kong dollars (1.5 billion US) includes reductions in fees and rates for the worst affected industries and for residents.
Severe Acute Respiratory Syndrome (SARS) has killed 99 people in Hong Kong and the local economy has taken a heavy hit. Cathay Pacific Airways has cut the number of its flights almost in half, hotels and restaurants are nearly empty and retailers claim their sales have fallen by over 50 per cent. "Much careful consideration has been given to the measures which we believe will help to relieve the short term impact of the effect of SARS," Tung told reporters.
License fees for businesses most affected by SARS including tourism, bus and coach operators, will be waived for a year, costing the government 280 million dollars. The three hardest hit sectors -- catering, retail and entertainment -- will be eligible for a 3.5 billion dollar loan scheme in which the government will act as guarantor.
Bureau Report