Editorial | Duty of authorities to help support Hong Kong tourism
- Mainland China tax on items bought in city puts people off from visiting and should be amended
Growing the tourism pie is a common recovery strategy for many Covid-battered economies. Hong Kong and mainland China are in the same boat in this respect as both reopened late in an increasingly competitive global environment.
In addition to enhancing attractions and experiences for visitors, the authorities should also strive to remove hurdles and disincentives.
It is good to hear that Beijing is prepared to raise the HK$5,000 (US$639) duty-free allowance for mainland citizens. A series of preferential policies may also be introduced to support Hong Kong tourism, as long as the city can show it has the capacity to handle an expected surge in visitors under an expanding solo travel scheme.
Unlike Hong Kong travellers whose overseas shopping is generally not taxed upon return, mainland tourists are subject to customs duty back home for goods exceeding 5,000 yuan (HK$5,430 or US$695). This is in stark contrast to the annual 100,000 yuan allowance for purchases on the island province of Hainan, the country’s new shoppers’ paradise.
It does not take a travel expert to tell where tourists will go for tax-free shopping. Hainan authorities announced that the island recorded duty-free sales of 7.4 billion yuan generated by 938,000 trips by shoppers during the Lunar New Year period.
