The Chinese mainland and Hong Kong SAR have signed a Close Economic Partnership Agreement (CEPA) Complementary Agreement III in an effort to expand the current CEPA arrangement.

According to the new agreement, travel agencies from Hong Kong will be allowed to open offices in Guangdong to organize travel groups to Hong Kong and Macao for mainland Chinese residents.

Shao Weiqi, director general of the China National Tourism Administration (CNTA), has told local media that since the start of individual Hong Kong and Macao trips for mainland citizens on July 1, 2004, there have been more than 13 million mainland citizens traveling in Hong Kong and more than 10 million to Macao by the end of May 2006.

Shao says that the individual trips have greatly promoted the development of Hong Kong and Macao's tourism industries.

Selina Chow, chairwoman of the Hong Kong Tourism Board, said that under the framework of CEPA, Hong Kong travel agencies can organize Guangdong travel groups to Hong Kong and Macao. This provides mutual benefits for both sides and will bring more positive competition in the travel industry.