Hong Kong’s loss-making hotels seek complete rates exemption as coronavirus crushes tourism industry

Name: Hong Kong battles third wave of coronavirus infections
Uploaded: 2020-07-28T23:30:08.000Z
Duration: 3 min 10 s
Description: Hong Kong battles third wave of coronavirus infections

The hotel owners’ association wants the Rating and Valuation Department to waive the rates for next three quarters up to March

Hotel owners will send a letter to Chief Executive Carrie Lam explaining the situation and also hope to meet her in person

Reading Time:2 minutes

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A hotel staff in surgical mask at The Peninsula Hong Kong hotel in Tsim Sha Tsui. Hong Kong’s hotel industry has been hit hard by the coronavirus pandemic, with tourist arrivals to the city falling to zero. Photo: Nora Tam

Lam Ka-sing

Published: 7:30am, 29 Jul 2020Updated: 7:30am, 29 Jul 2020

Hong Kong’s beleaguered hotel owners are pressing the government to waive rates for the next three quarters up to March, pointing out that they are running at a loss because of the coronavirus outbreak that has seen tourist numbers to the city plummet nearly 100 per cent.

The Federation of Hong Kong Hotel Owners, which represents over 200 hotels, accounting for some 90 per cent of all hotels rooms in the city, wants the Rating and Valuation Department to waive the rates. This amounts to around 5 per cent of net profit in good times, according to market insiders. The federation contends that the department had assessed hotels’ projected earnings for the financial year starting April 2020 on October 1, 2019, much before the coronavirus outbreak had even started.

“If there is no profit but loss, there should be no rates payment” for hotels, said Michael Li, executive director of the federation.

The Rating and Valuation Department is now reviewing proposals for changes from any party who think the properties had been valued above its proper rateable values, the department told the Post. It added that it would give a concession of up to HK$5,000 per quarter from April to September 2020 and HK$1,500 per quarter for October 2020 to March 2021.

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Hong Kong battles third wave of coronavirus infections

Li said that federation will send a letter to Chief Executive Carrie Lam Cheng Yuet-ngor early next week to explain the situation and would also like to meet her as soon as possible.

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