Revitalized hotel tax in Hong Kong generates HK$189 million in the first fiscal quarter
In the heart of Asia, Hong Kong's hotel industry is grappling with a number of challenges, as the government aims to generate HK$1.1 billion annually from the hotel tax. However, the current economic downturn is proving to be a significant hurdle, according to Caspar Tsui Ying-wai, executive director of the Federation of Hong Kong Hotel Owners.
The hotel tax, reintroduced on January 1, 2023, after a 15-year hiatus, applies to all guests in Hong Kong. The tax's return was announced last year, but the industry's struggles are affecting its ability to meet the government's ambitious target.
Mainland Chinese tourists are favouring cheaper travel options, which is affecting the hotel industry's revenue. This trend is prompted by the economic downturn, causing concern among industry veterans who are calling for more government support.
To boost occupancy rates, the hotel industry is further reducing its prices. This move is a response to the challenges posed by the economic downturn and the preferences of mainland Chinese tourists. However, payments for the second quarter of 2023 were not yet due, as of June, making it difficult to assess the industry's progress towards the annual income target.
Despite the efforts, the hotel industry's struggles are reflected in the first quarter's tax figures. The Inland Revenue Department has received HK$189 million in hotel tax for the first quarter of 2023. While this is a start, it falls short of the annual target.
It's important to note that the search results do not contain direct or specific information regarding Hong Kong's achievement of a HK$1.1 billion hotel tax income target for the first half of 2021. The available financial data primarily relate to property revenue and hotel operations from 2024 and 2025, without mentioning the 2021 hotel tax income or its target.
For precise verification, Hong Kong government fiscal or taxation authority reports from 2021 would need to be consulted directly. Nonetheless, the current situation underscores the challenges faced by the hotel industry and the need for continued support and understanding from both the government and the public.
[1] Hotel Revenue Figures for Hang Lung Properties in 2024 and 2025 [2] Hotel Revenue Figures for Other Hong Kong Hotels in 2024 and 2025
[1] In the wake of the economic downturn and changing travel preferences, the finance department of Hang Lung Properties is anticipating a shift in lifestyle expenditure from their business clients towards more affordable options, which could impact their overall revenue in 2024 and 2025.
[2] As the hotel industry in Hong Kong struggles to meet the government's HK$1.1 billion annual target, various businesses within the industry, such as luxury hotel chains, are also bracing for reduced business travel due to the economic downturn and subsequent changes in travel behavior, potentially affecting their revenue in 2024 and 2025.
