An increase to the duty-free allowance for people entering mainland China from Hong Kong is expected to generate at least HK$2.7 billion for the city’s economy, the government has said.
“I am very grateful for the care of the central government and the introduction of various measures to promote Hong Kong’s economy,” the city’s leader John Lee said in a statement released on Friday morning, saying the higher duty-free limit showed Beijing’s support for Hong Kong.
“The new measure will enhance the shopping experience for mainland resident visitors in Hong Kong and allow them greater flexibility when shopping, which is beneficial for Hong Kong in attracting more visitors and boosting the development of diversified tourism,” Lee added.
The Chinese Ministry of Commerce announced on Friday morning that the duty-free allowance per person entering mainland China through Hong Kong and Macau would rise from RMB5,000 (HK$4,650) to RMB12,000 (HK$11,160) on July 1.
Meanwhile, the duty-free quota for any purchase at entry port duty-free stores will be retained, which is RMB3,000 (HK$2,790) per person.
The new policy brought the total duty-free allowance to RMB15,000 (HK$13,950).
“Under the new arrangements, it is roughly estimated that this will bring an additional HK$8.8 billion to HK$17.6 billion in shopping expenditure to Hong Kong, generating value-added of about HK$2.7 billion to HK$5.4 billion to the Hong Kong economy,” the government has said.
Ealier in March, pro-Beijing politicians, including four Hong Kong Deputies to the National People’s Congress, said in the state-backed newspaper Wen Wei Po that the duty-free limit for mainland Chinese tourists should be raised to RMB30,000 (HK$27,900) to boost the Hong Kong economy.
Spending discounts for overnight visitors
The Hong Kong Tourism Board (HKTB) expressed its gratitude to Beijing on Friday in a statement, and announced it would roll out 500,000 “Summer Triple Rewards” for overnight visitors.
Distributed from July 11 to September 15, each set of rewards includes three coupons with spending discounts on transport, sightseeing, retail and dining, totalling up to HK$500 spending discounts.
Hong Kong has tourism resume since it reopened its borders early last year after Covid-19 curbs were lifted. Arrivals figures for mainland Chinese tourists have recovered faster than visitors from further afield.
According to government figures, by the end of May, the total number of visitor arrivals had reached 18 million this year. Among them, 13.8 million were mainland Chinese.
On average, mainland Chinese visitors spent 3.1 nights in Hong Kong in the first quarter of the year, with an average per capita spending of HK$5, 400.
According to a survey by HKTB, more mainland Chinese visitors stayed overnight in Hong Kong in 2023 compared to 2018, with the average length of stay slightly increased. However, spending per person dropped from HK$7,000 to HK$6,500.
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