Hong Kong will resume collecting a 3% hotel room tax starting from January 1st next year. Xu Zhengyu: It will not affect tourists' willingness to consume

Zhitong
2024.10.23 22:15
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The Hong Kong "Budget" this year proposed to resume the collection of a 3% hotel room tax starting from January 1st next year. The Hong Kong Legislative Council today (23rd) passed the "Hotel Room Tax Ordinance" resolution. Hong Kong Financial Secretary and Treasury Secretary Paul Chan Mo-po said that this is part of the government's comprehensive financial integration plan, with the aim of restoring fiscal balance over the next few years and allowing sufficient time for the hotel and guesthouse industry to prepare. It is estimated that about 320 hotels and 180 guesthouses in Hong Kong will be required to pay the hotel room tax, involving approximately 92,000 rooms. This is expected to bring an additional HKD 1.1 billion in revenue to the government each year, providing a stable source of income for the government without affecting the general public. Referring to data from the Hong Kong Tourism Board, he mentioned that the 3% hotel room tax accounts for only a small portion of the total spending by overnight visitors in Hong Kong, and will not affect their overall spending intentions or hinder their choice of Hong Kong as a tourist destination. Many countries or cities also levy hotel room taxes or value-added taxes on hotel accommodation. Paul Chan Mo-po pointed out that the hotel room tax will not apply to three situations, including rooms with a daily rent of less than HKD 15; accommodation provided by non-profit organizations; or hotels with fewer than 10 rooms usually available for guests

According to the information from the Wise Finance APP, this year's Hong Kong "Budget" proposes to resume the collection of a 3% hotel room tax starting from January 1st next year. The Hong Kong Legislative Council today (23rd) passed the "Hotel Room Tax Ordinance" resolution. Hong Kong Financial Secretary and Treasury Secretary Paul Chan Mo-po stated that this is part of the government's comprehensive financial integration plan, aiming to restore fiscal balance over the next few years and provide sufficient time for the hotel and guesthouse industry to prepare. It is estimated that about 320 hotels and 180 guesthouses in Hong Kong will be required to pay the hotel room tax, involving approximately 92,000 rooms. This is expected to bring an additional HKD 1.1 billion in revenue to the government annually, providing a stable source of income for the government without affecting the general public.

He mentioned that based on data from the Hong Kong Tourism Board, the 3% hotel room tax only accounts for a small portion of the total expenditure of overnight tourists in Hong Kong, which will not affect their overall consumption intentions or hinder their choice of Hong Kong as a tourist destination. Many countries or cities also levy hotel room taxes or value-added taxes on hotel accommodation.

Paul Chan Mo-po pointed out that the hotel room tax will not apply to three situations, including rooms with a daily rent of less than HKD 15; accommodation provided by non-profit organizations; or hotels with fewer than 10 rooms usually available for guests

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