Hong Kong hoteliers brace for ‘worrying’ trends as lodging tax, US trade war dent tourism

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Hong Kong’s hotel industry is likely to face more headwinds next year. A new lodging tax and heightened geopolitical tensions are among “worrying” issues that could further erode the city’s appeal as a tourist destination, analysts said.

The government will impose a 3 per cent tax on hotel guests from January 1, while president-elect Donald Trump will occupy the White House next month to usher in another rocky period for US-China trade and tourism.

The city’s reliance on Chinese tourists have yielded poorer results in recent years as the mainland economy struggled to generate growth after the end of the Covid-19 pandemic. They spent less and stayed for shorter days while the nation’s currency weakened, government data showed.

A 3 per cent tax on hotel guests on January 1 and looming troubles from the Trump presidency could undermine the city’s tourism sector.

Source: SCMP

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