XN000022-1983-04-14 — Page 10

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THURSDAY, APRIL 14, 1983

HIS PROPOSALS WOULD YIELD ABOUT $245 MILLION IN THE NEXT FINANCIAL YEAR AND APPRECIABLY MORE THEREAFTER, HE SAID.

WHILE HE ACKNOWLEDGED THE VALUE OF TOURISM AS AN EXPORT INDUSTRY UNCONSTRAINED BY PROTECTIONISM AND AS A USEFUL EMPLOYER OF LABOUR, HE FELT IT UNWISE OF THE INTERESTS INVOLVED TO OVERSTATE THEIR CASE, HE SAID.

MR BREMRIDGE SAID TOURISM EARNED ABOUT $9 BILLION LAST YEAR, BUT THESE WERE GROSS EARNINGS WHICH DID NOT MEASURE THE INDUSTRY'S CONTRIBUTION TO THE GDP.

+THE BEST ESTIMATE WE HAVE OF THE LATTER IS ABOUT FOUR PER CENT AS COMPARED, FOR EXAMPLE, WITH 25 PER CENT AND 26 PER CENT RESPECTIVELY FOR THE MANUFACTURING AND THE FINANCIAL AND ALLIED SERVICES SECTORS, HE SAID.

THUS TOURISM'S CONTRIBUTION WAS ABOUT ONE-SIXTH OF THAT OF EACH OF THE TWO MAJOR SECTORS, MR BREMRIDGE SAID.

TOURISM WAS VALUABLE, BUT WAS BY NO MEANS THE MOST IMPORTANT EXPORT INDUSTRY. IT IS NOW SENSIBLE TO CUT IT LOOSE FROM DIRECT ASSISTANCE BY ALL TAXPAYERS,+ HE EXPLAINED.

MR BREMRIDGE SAID HE WAS UNMOVED BY THE COMPLAINTS ABOUT

A 25 PER CENT INCREASE IN HOTEL TAX.

+IT IS COLLECTED BY HOTELS ON THEIR BILLS AND WILL GO ENTIRELY TO SUPPORT THE HKTA, WHOSE MARKETING EFFORTS CLEARLY SUPPLEMENT IF NOT SUPPLANT THOSE THAT THE HOTELS SHOULD BE MAKING. IT SEEMS MODERATE ENOUGH TO ME,+ HE SAID.

HE COMPARED THE PROPOSED TAX TO THOSE PRACTISED ELSEWHERE IN THE WORLD MACAU, FIVE PER CENT: LOS ANGELES, 7.5 PER CENT; VANCOUVER AND NEW YORK, EIGHT PER CENT, SOUTH KOREA, JAPAN, THE PHILIPPINES, JAKARTA AND MALAYSIA, 10 PER CENT: BALI, 11 PER CENT; THE UNITED KINGDOM, 15 PER CENT AND BANGKOK, 16.5 PER CENT.

+WE MUST NOT ALSO FORGET VAT OR SALES OR SPECIFIC TAXES ON THE MORE EXPENSIVE RESTAURANT MEALS, WHICH ARE APPLIED IN MANY PLACES. SUCH A SPECIFIC TAX IS INCIDENTALLY ONE OF THE MANY IDEAS THAT I CONSIDERED AND DISMISSED FOR HONG KONG - AT LEAST FOR THE TIME BEING, HE ADDED.

ON COMPLAINTS ABOUT FORWARD BOOKING, HE SAID HE WAS SURPRISED THAT ALL CONTRACT NOTES DID NOT INCLUDE AN EXCLUSION CLAUSE TO COVER THE POSSIBILITY OF INCREASED GOVERNMENT TAXES.

+HIGHER SALARIES OR PROFITS TAXES OR TAXES ON RESTAURANT MEALS WOULD ALL HIT THE HOTEL INDUSTRY FAR HARDER. AND ANYWAY IF TAXES WERE REDUCED WHO WOULD BENEFIT: THE HOTEL OR THE GUEST?+ HE ASKED.

MR BREMRIDGE

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