Arrivals duty-free plan could net $80m a year

PUBLISHED : Thursday, 27 May, 1999, 12:00am
UPDATED : Thursday, 27 May, 1999, 12:00am

Visitors will be able to buy duty-free goods on arrival under a plan which could help bring in $80 million a year.

The government proposal aims to help duty-free shops at Lowu and Chek Lap Kok airport survive the recession.

In a paper to be tabled at the Legco financial affairs panel, the Finance Bureau says the move could induce travellers who might otherwise buy goods outside Hong Kong to spend here.

The bureau said about one-third of arriving visitors carried duty-free goods, worth a total of about $1.2 billion a year.

It was estimated that opening the shops to arrivals would earn the SAR $80 million a year.

The Kowloon Canton Railway Corporation and Airport Authority lobbied for allowing arrivals' duty-free shopping after the economic downturn forced a drop in sales of duty-free items.

The bureau says it will liaise with shop operators to avoid interrupting passenger flow at border checkpoints during peak hours.