Malaysia Airports Holdings Bhd is cautiously optimistic that that passenger arrivals at Kuala Lumpur International Airport (KLIA) in 2003 will surpass last year's 33.7 million after government efforts to boost the industry, a report said today.

"Considering the government has put a lot of effort into tourism, we expect to see some positive results," MAHB chairman Aris Othman was quoted as saying by The Star .

In early June, MAHB had said it did not expect arrivals this year to surpass last year's figure.

Severe Acute Respiratory Syndrome (Sars) dealt a heavy blow to the tourism industry earlier this year as many worldwide put travel plans on hold for fear of the disease.

Aris said arrivals at KLIA had recently returned to the pre-Sars level of 1.4 million a month.

Meanwhile, Hong Kong flagcarrier Cathay Pacific launched a third daily flight between Hong Kong and KLIA late Wednesday.

With the additional daily flight, the total number between Malaysia and Hong Kong will be increased to 42 per week, MAHB said in a statement. - AFP