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Hong Kong Budget 2016-2017
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General view of Chinese Restaurant at Stanley St., Central. 10DEC14

Budget measures aim to kick-start Hong Kong’s ailing tourism industry

Short-term measures costing HK$140 million included waiving of licence fees for a year for 1,800 travel agents, 2,000 hotels and guesthouses, as well as 27,000 restaurants and operators

Financial Secretary John Tsang Chun-wah rolled out a slew of short to medium-term measures worth HK$380 million in this year’s Budget aimed at breathing life back into the tourism industry amid the economic downturn.

The money allocated to the initiatives, which saw a shift in focus from retail promotions to utilising the city’s gourmet culture and historical heritage, reflects the Government’s efforts to restore Hong Kong’s reputation as a tourist destination at double the amount in last year’s Budget.

The Budget was largely welcomed by tourism bodies and participants, but some industry insiders pointed out that long-term measures were missing despite the increased funds.

Short-term measures costing HK$140 million included waiving of licence fees for a year for 1,800 travel agents, 2,000 hotels and guesthouses, as well as 27,000 restaurants and operators.

A total of HK$240 million will be allocated to support five medium-term measures, including extending the scale of major events to be held this year, exploring new visitor sources, publicity and marketing, enriching the content of attractions and subsidising small to medium-sized travel agents.

The Hong Kong Tourism Board will be given about HK$100 million to shoot a new video and advertise in overseas countries, in a bid to rejuvenate Hong Kong’s tourism image which had been affected by a series of protests and conflicts since last year, according to a source close to the matter.

Despite more funds allocated, the source said money used for the “promotion of shopping and spending” will be reduced to HK$20 from HK$30 million. Last year, HK$80 million was allocated to a series of activities including organising shopping festivals offering coupons.

By contrast, more resources will be used to showcase the city’s gourmet culture and historical heritage.

The two-year pilot food truck project will see its spaces increase from 12 to 16, with coastal area of Kowloon East and Wong Tai Sin temple joining the scheme.

Peter Lam Kin-ngok, chairman of Hong Kong Tourism Board welcomed the extra funding of more than HK$200 million, saying it will use the money to elevate marketing initiatives.

The Retail Management Association also supported the measures but hoped that government could improve the city’s capacity to receive tourists.


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