Now that the renminbi (RMB) has overtaken the HK dollar in foreign exchange value, more mainland tourists are expected to travel in Hong Kong this Spring Festival.

With only one month left before the lunar new year begins on February 18, the effect of the rate change has begun to show in Beijing and other big cities.

"Every day we have a group of independent (meaning air and hotel only) travelers leaving for Hong Kong now," Xiao Hong, manager of the Hong Kong and Macao department of China Travel Service (HK) Ltd told China Daily.

In the past, the travel service were allowed to organize only four groups to Hong Kong each week, with each group having at least 20 people.

"The prices of tour products to Hong Kong have not dropped, but the number of tourists signing up for Hong Kong independent packages has increased by at least 30 percent with our travel agency," Xiao said.

The reason for the increase is simple: shopping. "Since the RMB's value has overtaken the Hong Kong dollar now, they find shopping in Hong Kong more attractive," she said.

For Hong Kong's tourism and retail sectors, it's all good news.

Statistics from the Hong Kong Tourism Board showed that the number of mainland tourists visiting Hong Kong in November dropped by 2.5 percent in 2006 compared with 2005.

But as the RMB keeps gaining value, the enthusiasm of mainland tourists for Hong Kong seems to be growing again.

Some of the tourists will come from five provincial capitals: Wuhan (Hubei), Shijiazhuang (Hebei), Zhengzhou (Henan), Changchun (Jilin) and Hefei (Anhui).

Starting from January 1, individuals in these cities may apply to local entry and exit departments for permits to visit Hong Kong and Macao without submitting documents to establish the purpose of their visits. They also do not have to travel with agency tours.

So far, individuals in 49 mainland cities have benefited from the policy since it was first tried in 2003 in eight cities in Guangdong Province.

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