Hong Kong hotel tax: proposed levy sparks concerns from hospitality sector but tourists unfazed

Finance chief Paul Chan says 3 per cent hotel tax will return on January 1, 2025, 17 years after the government waived it in 2008

Most visitors say levy will not deter them from flying to Hong Kong, but others in sector are concerned it is coming too soon after city reopens from Covid

4-MIN READ4-MIN

Tourists pose for photos at Victoria Harbour in Tsim Sha Tsui. Hong Kong will charge a three per cent hotel tax on January 1, 2025. Photo: Xiaomei Chen

Published: 9:00am, 10 Mar 2024

Taiwanese visitor Tina Chen spent four days in Hong Kong in early March with her husband and two children, where they visited tourist attractions, savoured the city’s milk tea and desserts, and went shopping.

They spent about HK$1,500 (US$192) a night on their Tsim Sha Tsui hotel which Chen said was “not cheap”, though she was pleased with its size and family-friendly offerings.

The 40-year-old, who works in electronics, said the family would not be put off from visiting Hong Kong again despite a new 3 per cent hotel tax starting next year.

“Frankly, prices in Hong Kong are higher than in other places. We’re spending quite a bit anyway, so it does not make that much difference if there’s a little extra charge,” Chen said. “It would be a different story if it was 10 per cent.”

Hong Kong plans to allocate HK$1 billion to improve tourism infrastructure and services to attract more high‑spending visitors. Photo: Jelly Tse

Financial Secretary Paul Chan Mo-po announced in his budget address last month that the 3 per cent hotel tax would return from January 1 next year, 17 years after the government waived it in 2008.

Chan said the measure would bring in HK$1.1 billion annually for the government. He also pledged to allocate HK$1 billion to improve tourism infrastructure and services to attract more high‑spending overnight visitors.