Visitors heading to Hong Kong from New Year’s Day onwards will have to pay more for hotel accommodation and air travel under revised tax and fee arrangements to help boost public coffers.
Authorities on Wednesday reintroduced a 3 per cent Hotel Accommodation Tax that had been waived since 2008, while all travellers using the airport will have to pay higher flight fares due to an increase in security fees.
The Post takes a look at the new arrangements and how much people can expect to pay.
1. What is the hotel tax?
From January 1, all patrons must pay a 3 per cent hotel accommodation tax (HAT).
Financial Secretary Paul Chan Mo-po announced the policy as part of last year’s budget address, with the move expected to bring in HK$1.1 billion (US$141.6 million) in government revenue at a time of ballooning deficits. The fee was originally waived in 2008.
In a defence of the decision, the minister noted neighbouring countries charged visitors a similar tax and said the proposed rate would only amount to 1 per cent of a regular visitor’s total spending.
According to the Hong Kong Tourism Board, Singapore charges a total of 19 per cent tax on hotel room rates, comprising a 9 per cent goods and services levy and a 10 per cent mandatory service charge.
Thailand has a 17 per cent tax on room rates that includes value-added tax (VAT) and a service charge, while South Korea has a 10 per cent levy on hotel room rates.