It is understood that the money will be divided among oganisations such as the Hong Kong Tourism Board (HKTB), the Trade Development Council and InvestHong Kong and that marketing activities will commence once the atypical pneumonia outbreak is brought under control.
HKTB chairperson Selina Chow said: "What we need now is a stunning and effective publicity strategy that draws the attention of global consumers and the media and rebuilds their confidence."
HKTB public relations department assistant manager, Simon Clennell, said: "We are working very hard at the moment in trying to put together a broad strategy and put some flesh on it with the help of our worldwide offices."
The HKTB pulled the plug on funding for its current City of Life - Hong Kong is it! campaign in March, saying advertising was "not an effective use of money" after the outbreak.
Hong Kong has seen visitor arrivals fall by more than 30 per cent as airlines cancel flights and WHO issuing a travel advisory on Hong Kong.
According to Clennell, the war in the Middle East had impacted on some markets but it was the pneumonia outbreak that had prompted the need for a new look at the campaign. "Given that a lot of our business is inter-regional we didn't see (the war) as a big concern," he said.