The Hong Kong Airport Authority welcomes the next day's exemption from airport departure tax and will discuss extending the exemption to passengers in the Greater Bay Area

The Zhitong Finance App learned that the Hong Kong Airport Authority welcomes the HKSAR Government's proposal to relax the relevant time limit for exemption from departure tax for transit passengers, so that passengers leaving Hong Kong the day after arrival can enjoy an exemption. This will encourage more transit passengers to visit Hong Kong's attractions and enjoy Hong Kong's retail and catering services, and promote the development of Hong Kong's tourism industry.

The Airport Authority also appreciates that the Government will continue to work with the Authority to explore different solutions, including expanding the departure tax exemption arrangement for air passengers to attract more passengers to use Hong Kong International Airport. The focus is on travelers from the Greater Bay Area. They may arrive in Hong Kong by means of transportation other than air and board and leave Hong Kong International Airport. This will help Hong Kong International Airport enhance its competitiveness and further strengthen its position as an international aviation hub. The Airport Authority will work closely with the Government to study possible solutions and related implementation mechanisms.

The government earlier proposed increasing the departure tax for airport air passengers from HK$120 to HK$200, which will take effect on October 1, and can increase revenue by HK$1.6 billion a year. However, the tourism industry is concerned about the obstacles to the recovery of aviation business and hopes that the authorities will think twice. The Permanent Secretary for Financial Services and the Treasury, Lai Chi-wah, said at a meeting of the Committee reviewing the Bill a few days ago that considering the impact of the increase in the airport departure tax on Hong Kong's status as an aviation hub and passengers' intention to transit in Hong Kong, it is proposed to add exemptions. Passengers arriving in Hong Kong for connecting flights and leaving Hong Kong the next day can be exempted, thus encouraging transit passengers to stay in Hong Kong and spend their time in Hong Kong. He estimates that the number of passengers will benefit 8 billion, indicating that the airport departure tax levied by the government will be reduced by more than HK$100 million each year, describing the overall fee measures as a 10% discount.