Hong Kong plans liquor tax cut as it looks to revive tourism industry

Hong Kong is expected to cut taxes on alcohol in an attempt to revive its flagging tourism industry.

The city has a 100% duty on strong liquor, among the world’s highest, and its reputation as a nightlife and dining destination is under threat as bar sales have fallen after years of political unrest and COVID-era restrictions.

Hong Kong also faces competition from other big east Asian cities, notably in Japan, where the weak yen is attracting visitors, Bloomberg reported, while mainland China’s economic slowdown is reducing domestic tourism.

Hong Kong removed non-spirits duties in 2008, and has since seen significant growth in the wine trade: It hopes the planned move could similarly make it a hub for spirits.