WEDNESDAY, MARCH 23, 1983
12
CONCERN EXPRESSED ABOUT HOTEL AND DEPARTURE TAX PROPOSALS
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THE HONG KONG TOURIST ASSOCIATION HAS CALLED ON THE GOVERNMENT TO DEFER THE EFFECTIVE DATE OF THE PROPOSED INCREASES IN HOTEL AND DEPARTURE TAXES, THE HON. PETER C. WONG TOLD THE LEGISLATIVE COUNCIL.
HE SAID THAT HE HAD RECEIVED REPRESENTATIONS FROM THE ASSOCIATION STATING THAT THE PROPOSALS WOULD HAVE ADVERSE EFFECTS ON THE TOURIST INDUSTRY.
THE ASSOCIATION ALSO SAID THAT, TOURISM HAD IN THE PAST 12 MONTHS CONTRIBUTED $9 BILLION TO HK'S ECONOMY, WHICH WAS ROUGHLY 25 PER CENT OF THAT CONTRIBUTED BY THE CLOTHING AND TEXTILES INDUSTRY.
+WHILE IT DOES NOT OBJECT TO THE TAXES PER SE, IT HAS EXPRESSED CERTAIN RESERVATIONS,+ MR WONG SAID.
REGARDING THE $100 DEPARTURE TAX, IT WAS ARGUED THAT MANY TOUR OPERATORS AND TRAVEL AGENTS HAD CONTRACTUAL COMMITMENTS BASED ON THE EXISTING SERVICE CHARGE OF $20 AND THEY WOULD HAVE TO ACCEPT A LARGE PART OF THE BURDEN OF THE NEW TAX IN THE INITIAL PERIOD, HE SAID.
+THE HONG KONG TOURIST ASSOCIATION THEREFORE SUGGESTS THAT IN THESE CIRCUMSTANCES, IT WOULD BE REASONABLE TO DEFER THE EFFECTIVE DATE OF THE NEW TAX TO OCTOBER 1, 1983.+
AS FOR THE HOTEL TAX, THE HKTA SUGGESTED THAT THE PROPOSED INCREASE OF ONE PER CENT SHOULD BE INTRODUCED NOT EARLIER THAN OCTOBER 1, 1983, PREFERABLY ON APRIL 1, 1984.
+THE REASON ADVANCED IS THAT THE MAJORITY OF HOTELS IN HONG KONG HAVE CONTRACTUAL AGREEMENTS, IN SOME CASES PROBABLY TWELVE MONTHS IN ADVANCE, WHICH INCLUDE THE HOTEL TAX AT A FIXED SUM,+ HE SAID.
+ANY INCREASE WOULD THEREFORE HAVE TO BE ABSORBED BY THE HOTELS DURING THE PERIOD COVERED BY THE AGREEMENTS.+
MR WONG ALSO SAID THAT THE HKTA WAS JUSTIFIABLY CONCERNED ABOUT THE GOVERNMENT'S INTENTION TO ELIMINATE ITS CONTRIBUTION TO THE ASSOCIATION FROM GENERAL REVENUE OVER A PERIOD OF FOUR YEARS.
THE REDUCTION IN FUNDS WOULD NECESSARILY ENTAIL REDUCTION IN ACTIVITIES, HE ADDED.
/TURNING TO