Hong Kong Business

April 2003

Travellers Undeterred by Tariff Increase - p. 11

Tourism Chief says Tax Rise Will Have Limited Impact

Although the government has slapped a $40 increase on the airport departure tax, the Hong Kong Tourism Board (HKTB) does not feel that this will stop visitors from visiting the territory.

"The confirmation of tourism-related projects by the HKSAR and central governments, together with further streamlining of visa application procedures for individual Guangdong travellers, will help attract even more visitors from the Mainland," said HKTB chairman Selina Chow. "I am sure this will create additional opportunities for us to promote business in the mainland, which has become Hong Kong's biggest source market.

An HKTB statement expressed the association's support for Financial Secretary Antony Leung's proposals. It noted that the introduction of a boundary facilities improvement tax would also have limited impact on the tourism industry, so long as the levy was set at a rate acceptable to visitors and that the procedure for tax collection was simple.

The association did express reservations about the possible implementation of a goods and services tax though, pointing out that the retail sector has reservations as to how this would impact on visitor spending. -- Edward Chung