The Federation of Hong Kong Hotel Owners is considering legal action against a watchdog group that alleged its members were asked to refuse accommodation to trade globalization protesters.

The overseas demonstrators are due to come to Hong Kong in December for the World Trade Organization (WTO) conference.

Michael Li, the federation's executive director, yesterday branded as unfounded the accusation by Hong Kong People's Alliance on WTO.

"This is totally ridiculous. As the federation's executive director, I'm responsible for all the federation's policies. I've heard nothing of that sort. What evidence have they got?" Li told China Daily in a telephone interview.

He said the federation had referred the accusation to its lawyers for advice on likely legal action.

Li said the federation was working with the government administration closely to co-ordinate hotel accommodation that might still be available for booking during the conference period.

However, alliance convener Elizabeth Tang was reported as saying some hotels had rejected their reservations of rooms during the conference period. She said some 300 people -- mainly South Koreans -- had so far failed to secure accommodation.

Tang cited three cases -- two hotels and one travel agency -- and blamed the federation and Hong Kong Tourism Board (HKTB) for trying to block the protesters by asking members not to accept their bookings. One of the hotels is said to be in Tsim Sha Tsui and another in central Kowloon.

She argued the practice would tarnish Hong Kong's world image and cast a shadow over the WTO conference.

The WTO's Sixth Ministerial Conference (MC6) will be held in the SAR from December 13 to 18. About 11,000 people -- 6,000 delegates, 3,000 reporters and 2,000 representatives from non-government organizations (NGOs) -- will attend the event.

A further 10,000 people from overseas and Hong Kong are expected to turn up to stage protests outside the venue, the Hong Kong Convention and Exhibition Centre, to oppose trade globalization and poverty.

Li said the federation had been monitoring room supply closely. While hotels in Central, Admiralty, Wan Chai and Causeway Bay already had their rooms fully booked for the WTO week, rooms were still available in other districts.

In Admiralty, for example, European Union delegates will occupy Conrad International Hong Kong. Hotels near the Hong Kong Convention and Exhibition Centre -- where MC6 will take place -- are also reserved by delegates mainly from developed countries.

Li said that in other districts -- such as Tsim Sha Tsui, North Point, Tsuen Wan and eastern Kowloon -- rooms are still available.

He refused to comment on specific room rates during the period, but agreed they would be "better" than other periods. As of August this year, the average room rate is about 10 per cent higher than the same period last year.

"We, as a business federation, would encourage our members to admit as many guests as possible as long as the guests comply with the local laws. It's not our concern where they come from. We don't discriminate against any countries, any religions," he said.

"We're taking the accusation seriously for it has grave international implications for Hong Kong's hotels. It damages our image in the world. It's necessary for us to put the record straight," he added.

Clara Chong, executive director of HKTB, also strongly denied the accusation, saying the board had never issued any directive to the tourism industry to refuse hotel bookings by NGOs or other organizations.

"We, the HKTB, will not prevent any guests from visiting Hong Kong. We're currently seeking to contact the alliance to find out how they've come across the information. We are trying to understand it," he said.

HKTB later reiterated in a press statement that they would continue to work closely with the government and the travel industry to ensure that MC6 would be conducted smoothly and successfully in Hong Kong.

According to Hong Kong trade officials, the SAR has a lot of stake in the success of the conference. It's an important event as trade ministers from WTO member-economies will strive to finalize the blueprint of world free trade pact for further discussion by their respective leaders at the WTO summit next year.

The government has estimated that tariffs of up to HK$7.66 billion could be saved for Hong Kong's major domestic exports if duty for Hong Kong's exports is removed as a result of the global trade pact.

This round of talks in Hong Kong is a continuation of the Doha round, aimed at reducing trade barriers in a number of areas with agriculture being a key focus. But progress in four other areas -- namely non-agriculture market access, services, rules and development -- are equally important for agreement has to be reached in all five categories to secure the pact.

(China Daily HK Edition August 26, 2005)