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Oscar Liu

Hong Kong’s bar sector has urged authorities to scrap the liquor tax, postpone a ban on flavoured cigarettes and extend the operating hours of MTR train services to revitalise the industry amid a growing trend of residents travelling to mainland China to spend.
The Hong Kong Bar and Club Association made the call on Wednesday, with chairman Chin Chun-wing saying all operators in a new poll supported scrapping the liquor tax.
More than 90 per cent backed a postponement of the complete ban on flavoured cigarettes and shisha, while four-fifths sought an extension of MTR service hours.
The association polled 400 operators in the survey.
“The government has been vigorously promoting mega events in recent years and they bring about a certain amount of footfall to the bar industry,” Chin said.
“But residents travelling across the border to spend their money and the emigration of middle- to high-income individuals are putting the industry in a challenging position.”
Total bar receipts in the first half of the year reached HK$611 million (US$78.6 million), a 13.6 per cent drop from HK$694 million in the same period last year.
The latest figure also represents a more than 38 per cent reduction from the pre-pandemic levels of HK$848 million logged in the first half of 2019.

Liquor with an alcoholic strength exceeding 30 per cent is taxed at a rate of 100 per cent.
“Assuming a bottle of liquor costs HK$100, the distributor will pass another HK$100 tax cost on to us [bar owners]. Only a complete revocation of the tax can reduce our costs,” Chin said. “And we want the government to postpone the ban on flavoured cigarettes.”
Authorities in June announced 10 new measures to be implemented by the end of next year to further decrease the city’s smoking rate, including a complete ban on flavoured tobacco products and possession of alternative tobacco products such as e-cigarettes and heated tobacco products including vape pens.
Chin explained that one-tenth of all bars in Hong Kong had outdoor spaces that accounted for half of their total business and where customers typically used flavoured cigarettes and shisha.
He said these bars could see a significant portion of their business vanish if the ban was imposed.
Chin said he hoped extended train hours could help patrons stay later.
“We estimate that if customers stay an extra hour, business can increase by 10 per cent, so we hope for a two-hour service extension of the MTR on weekdays, as residents tend to go to Shenzhen on weekends,” he said.
“We hope this will help us attract more business on weekdays.”
According to the latest data from the Immigration Department, Hongkongers made 1.78 million trips elsewhere this year during the National Day holiday from October 1 to 7, slightly lower than the 1.83 million trips recorded in 2023.
The association also said it aimed to enhance the night economy by organising prize draws, continuing to host the Bar Culture Festival, promoting unique establishments and introducing more entertaining events to attract additional patrons and tourists.


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Total bar receipts in the first half of the year reached HK$611 million, a 13.6 per cent drop from HK$694 million in the same period last year. Photo: Nora Tam

Hong Kong Bar and Club Association chairman Chin Chun-wing (centre) says extended train hours could help patrons stay later. Photo: Nora Tam

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Hong Kong Bar and Club Association urges measures to help revitalise industry amid growing trend of cross-border spending


Hong Kong Bar and Club Association urges measures to help revitalise industry amid growing trend of cross-border spending.


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