Beijing raises duty-free limit for mainland tourists in Hong Kong to HK$16,100

The Hong Kong government estimated the measure would increase tourist spending in the city by at least HK$8.8 billion, or even up to HK$17.6 billion, a year. The increased consumption would add between HK$2.7 billion and HK$5.4 billion to the economy.

According to a statement from the Ministry of Commerce on Friday, the central government and authorities in Macau and Hong Kong have agreed to increase the limit for mainland tourists visiting the two cities.

A separate joint statement from several central government departments said that mainland residents aged 18 or over could have their duty-free allowance raised to 12,000 yuan, or HK$12,900.

The limit could be further increased to 15,000 yuan, or HK$16,100, if they shopped at duty-free stores at border crossings.

Currently, visitors from across the border must pay a tax of 13 to 50 per cent to the mainland government for purchases made in Hong Kong above a threshold of 5,000 yuan per trip, or HK$5,400, a measure introduced in 1996.

Six crossings will be covered by the initial roll-out of the new limit: Lo Wu, Futian, Shenzhen Bay, the West Kowloon high speed rail terminus, the Hong Kong-Zhuhai-Macau Bridge and Gongbei. Full implementation will begin on August 1.

Chief Executive John Lee Ka-chiu said the latest measure by the central government highlighted its support for the city’s economic development. He expressed his gratitude to Beijing.

“The new measure can elevate the shopping experience of mainland resident tourists in Hong Kong, allowing them to have greater freedom when shopping, which is beneficial for Hong Kong in attracting tourists and pushing for a more varied development of tourism,” Lee said in a statement after the announcement.

“On the other hand, this measure will also improve the business of Hong Kong’s retail industry, which will further drive the momentum of the local economy.”

The Post earlier reported Beijing’s intention to raise the allowance level, but the amount would be “far below” the 30,000 yuan proposed by industry representatives in the city.

Tourism and retail industry representatives have been urging mainland authorities to increase the threshold since the reopening of borders after the pandemic, as big-spending visitors were found to be opting for more cultural experiences rather than just shopping.

The city’s currency was also expensive for such visitors because of its peg to the US dollar.