The Hong Kong government claims to be doing everything in its power to kick-start its troubled tourism industry.

The airport departure tax was halved to HK$50 (US$6.50) last month, the hotel room tax was cut from five percent to three percent and the ferry terminal fee as reduced from HK$25 to HK$18.

Kevin Welch, Hong Kong Tourist Association director for Europe, said: "The Hong Kong tourism industry has reduced its prices and the government is doing its bit.

"At a time when other destinations are putting up their departure taxes to fleece tourists, Hong Kong is reducing tax."

Despite the cuts, the government has found money to increase its overseas promotions.

Mr. Welch said: "The amount of marketing and advertising money for the region has gone up by 30 percent this year.

"That is in stark contrast to many other Asian countries which are having to cut back their budgets because of the devaluation in currency."

Much of the extra money will go on a new marketing campaign entitled "We are Hong Kong, City of Life".

The campaign will focus on Hong Kong's position as a unique city, representing East and West and old and new.

The old slogan, "Wonders Never Cease", was used during the period of the hand-over to China to emphasize that Hong Kong would not change under its new rulers.