Fee cuts to offset ‘Occupy’ impact on tourism, restaurants 26,000

T he Hong Kong government has proposed to offer help to the establishments in the tourism and catering sectors to recover part of their losses in the illegal protests last year by waiving a slew of fees and charges.

In his Budge t speech at the L egislative Council on Wednesday, Financial Secretary John Tsang proposed to waive the annual licensing fees of HK$2,910 for about 1,800 travel agents and the HK$462.5 for each of their branches. In addition, 2,000 hotels and guesthouses are exempted from paying license renewal fees for 2015 ranging from HK$1,325 to HK$18,250 each.

About 26,000 restaurants, fresh food sellers and hawkers across the city will also be paying only half of their license or permit fees next year.

Similar benefits would also be extended to operators of public transport and delivery service, including taxis, public light buses, franchised and non-franchised buses, goods vehicles, trailers and special purpose vehicles. They would not be charged the cost, ranging from HK$530 to HK$930, for the obligatory annual vehicle examination required for license renewals in the coming fiscal year, starting in April.

Tsang said in the speech that the young generation’s “hunger” for spiritual contentment is “what a mature society should manifest”. But he also maintained that conflicts should be resolved through rational dialogues rather than emotional confrontations.

T he “political bickering ” has been detrimental to Hong Kong’s reputation as a stable, safe and efficient city, Tsang explained, and may even have dampened investors’ confidence. The relief measures introduced in the Budget should help offset at least part of the impact of the illegal protests on economic confidence, he said.

Talking to the press after the speech, Tsang noted that restaurants and food sellers hotel occupancy, retail sales and inbound tourists from outside the mainland had slipped in the last quarter of 2014,conceding that it was hard to ascertain the exact damage directly attributable to the protests.

A government source agreed that not all license holders were equally hit by the unrest. But he said that the entire industry had suffered and it would be technically difficult to tell who took the hardest blow.

The basket of fee waivers cost a total of about HK$300 million, in which reductions for travel agencies and commercial vehicles are subject to approval by the legislature. The stimulus package also includes a HK$106 million plan to promote Hong Kong’s image overseas.

The Tourism Board is planning to launch intensive marketing campaigns in Southeast Asia, Taiwan, Japan and South Korea ahead of the peak seasons in summer and autumn. The Information Service Department said it would step up the city ’s branding campaign in various overseas markets.

Tr av e l In d u s t r y C o u n c i l Exec utive Direc tor Joseph Tu n g Ya o - c h u n g s a i d t h e sector was more enthusiastic about the overseas promotion efforts than the fee reductions. Tsang’s proposal to revise Hong Kong’s regulatory framework to bring in food trucks also earned Tung’s praise.

Sources said food trucks may need the same permits that are currently issued to ice cream vans or food producers. The financial secretary said at the press conference that while food trucks in the United States usually sell hot dogs and tacos, those in Hong Kong could serve local favorites such as fish balls.