Zeman says Hong Kong dollar peg hurting economy
The chairman of Lan Kwai Fong Group, Allan Zeman, says the Hong Kong dollar's linked exchange rate to the strong US dollar is why many people are heading out of the SAR in their spare time.  Speaking on RTHK's Hong Kong Today programme, he said this was a problem as the strong Hong Kong dollar didn't reflect economic conditions here but rather those in the US.  "Another major problem we have is the peg that we have. Hong Kong is going through a downturn, economic downturn," he said. "And what is happening is people are going to Shenzhen, to Guangzhou, to Japan, Korea, Thailand because they get more bang for their buck." "So that's causing a problem. There's a disconnect between the US economy and the Hong Kong economy because of our peg for 40 years and that is causing a lot of problems, making Hong Kong a very expensive city."  Official figures show that during the Easter and Ching Ming break, the number of people leaving the city far outstripped arrivals. Zeman also said geopolitical concerns were frightening off potential tourists. "There is a geopolitical problem where many, many people are worried about coming to Hong Kong because there's this rumour outside that Hong Kong is unsafe," he said. "Just had a friend who came on a cruise and the ship landed in Ocean Terminal. People did not, Americans did not, want to get off the boat because they said Hong Kong is not a safe place." Hong Kong started using a currency board system, known locally as the peg, in 1983. It aims to keep the Hong Kong dollar's exchange rate to the US dollar at a rate of about HK$7.8 to US$1.