HONG KONG, March 2 (Reuters) - The international reputation of Hong Kong as a financial hub has been "very damaged", prominent businessman and government adviser Allan Zeman said on Wednesday, as authorities' confusing messages over their coronavirus strategy spread alarm.

The unusually critical comments by a pro-Beijing businessman come amid fears of a citywide lockdown and uncertainty regarding plans to test 7.4 million residents for the virus, which sparked an exodus of people last month.

"Many people have lost faith" with the city's draconian COVID-19 policies which have created "hardship for many many people", the Canadian-born property developer and longtime resident told Reuters.

"Right now, there is a lot of uncertainty. The government needs to speak with one voice," Zeman said. "Citizens are very confused, different government officials have come out with different messages and so there is panic."

On Wednesday, the government said it was still planning and "refining" a compulsory mass testing scheme, details of which will be announced after they are confirmed.

Leader Carrie Lam had previously said a citywide lockdown and compulsory testing were not being considered.

But on Monday, Health Secretary Sophia Chan said a lockdown had not been ruled out in remarks that fuelled rumours and triggered a rush for groceries, medicines and banking services.

Many in the former British colony fear being forced to isolate and separated from family members who test positive, which prompted the exodus, led by expatriates, in February.

Zeman, who advises Lam on measures for innovation and strategic development, said he was worried that Chinese-ruled Hong Kong's role as an international city with its "one country, two systems" formula could disappear.

"China doesn’t need another Chinese city of 7 million people because they have 1.4 billion people. They need Hong Kong as 'one country two systems'. International people, that is what makes Hong Kong."

A letter from Zeman to Lam seeking greater clarity for people and businesses circulated on social media this week. Zeman verified the letter to Reuters but said it was private.

Lam said she "totally understood" Zeman's concern, according to broadcaster TVB, adding that the government would do its best to deliver accurate information and allay worries.

Zeman, who is chairman of Lan Kwai Fong Group, a property owner and developer in Hong Kong's popular nightlife area, said the city could draw people back on returning to a semblance of normal, thanks to its key role and connection to China.

"I am still very confident in Hong Kong, but we have to really do a lot of public relations work to attract back a lot of people."

(Additional reporting by Donny Kwok; Editing by Clarence Fernandez)