194
12.30
Date:
28.11.86
Time:
8.30
Reporter:
PMS
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MR HO:
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Now you
did mention one of the reasons is
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that there are more tourists and we understand that a certain percentage have been applied and that percentage levied on the incoming of tourists itself. When the number increased, when the rate from 2% increased to 5% recently, then certainly they have received a lot of revenue from much higher revenue from the levy side. Certainly Government subvention should be decreased instead of increased all the time, provided that the control of expenditure is on the right trend. Supposing the expenditure has been controlled rightly with the increase in tourism, with the increase in percentage of levying, then Government subvention should be less, would it?
SES:
Yes, that is correct.
As I said, we have 14 planned to review the nature of the subvention, once the arrangements introduced in 1981-82 for the phasing out of the contribution from general revenue was completed. If you like, I suppose you could say that we have been caught out by the dramatic increase in the number of tourists and also by the increase in tourist rates, in accommodation charges. And clearly we would be reviewing the appropriate percentage increases with the Association next year. I should also add, of course, that there have been a considerable number of new hotels opened during
this period since '81-82.
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CHAIRMAN:
Mr Cheong.
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MR CHEONG:
Mr Secretary, were there any subvention 27 being paid by the general coffers to the Tourist Association ever
28 since 1982?
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SES:
Yes, on a declining basis. In 1981-82 the contribution from general review was HK$21 million. It is being 32 phased out now. The last payment was in '85-86 at HK$5.6 million.
There is now no contribution from '86-87 onwards from general revenue
and of course the fixed grant was phased out by 1980-81.
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MR CHEONG:
And the 5% hotel accommodation tax is totally