Hong Kong Hotel Industry Calls For Temporary Tax Cuts

by Mary Swire, Tax-News.com, Hong Kong

22 October 2001

Hong Kong's hotel industry is urging the government to act swiftly to cushion the blow of the sharp downturn in business since the September 11 terrorist attacks in America. Already it is expected that hotel occupancy this year will be at least 10 per cent down on last year's 73 per cent.

Amongst a series of proposals presented to Tourism Commissioner Rebecca Lai Ko Wing-Yee is a request to scrap the 3 per cent hotel accommodation tax for just one year. Federation of Hotel Owners executive director Michael Li Hon-shing suggested that the money should go towards staff training and promotional operations.

Mr Li also said that the government should look into the possibilities of building more night entertainment venues and legalising casinos which would encourage business travellers in particular to stay longer in the territory. 'It will be a great help to boost spending if they can stay one more night or even half a day,' he said.

Other proposals include cutting back the airport departure tax from HK$80 to HK$50, or even scrapping it altogether and the creation of an official committee of 'tourism ambassadors' in addition to more tourist information counters around Hong Kong.

Hong Kong Tourism Board executive director Simon Clennell said: 'Getting people to come to Hong Kong in the first place is important, but once people get here it is well worth it to make sure they enjoy their stay.'

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