Hong Kong's economy will bounce back by the end of the year, Financial Secretary Antony Leung says.

Speaking after the opening ceremony of the international jewellery fair at the Convention & Exhibition Centre today, Mr Leung said the Government is working with various agencies, including the Trade Development Council and the HK Tourism Board, to promote tourism and business in Hong Kong.

Loud and clear: Financial Secretary Antony Leung and popstar Jacky Cheung open the international jewellery fair at the Convention & Exhibition Centre.  Mr Leung said the fair shows Hong Kong is a safe city to visit and do business in.

Some airlines have already reported a steady increase in passengers. Coupled with the increase in local consumption and a very steady increase in exports, he said the economy will revive.

"We hope that by the end of the year we will see most economic activity going back to levels we have seen before SARS."

He said the Closer Economic Partnership Arrangement between the Mainland and Hong Kong will further strengthen our economic revival. Under the agreement, a whole range of Hong Kong products, including jewellery and watches, will be granted zero-tariff treatment according to a time schedule.

"Taking this arrangement as a whole, it will certainly bring substantial business opportunities for various sectors in our community and help the economy recover as soon as possible." 

He said Hong Kong entrepreneurs will be among the first to seize the opportunities brought about by the arrangement.

The Hong Kong Jewellery & Watch Fair and the Asia Fashion Jewellery & Accessories Fair are the first major international trade shows held in Hong Kong since the SARS epidemic was contained.

"Staging these fairs at this time speaks loud and clear that Hong Kong is a safe city to visit and to do business with," Mr Leung said.