LCQ14: Operating situation of hotel industry

On 18 Mar 2026, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, furnished a written response to Legislative Council inquiries concerning the hotel industry's operational status and the reinstatement of the Hotel Accommodation Tax ("HAT"). Pursuant to the fiscal consolidation programme, the Government resumed HAT collection effective 1 January 2025, levied at a rate of 3 per cent of the accommodation charge.

Revenue Performance and Market Trends

HAT revenue for the third and fourth quarters of 2025 totaled approximately $180 million and $240 million, respectively. The Government deems the collection process smooth and aligned with policy objectives, noting no intention to adjust the rate as it constitutes a minor fraction of overnight visitors' total expenditure. Concurrently, Hong Kong Tourism Board ("HKTB") statistics indicate that 2025 saw average hotel occupancy and overnight visitor numbers rise by approximately 2 per cent and 6 per cent, respectively, compared to 2024.

Accommodation Supply Statistics

Monthly data regarding registered hotels and guesthouses from July 2025 to February 2026 reflects the following counts (Subject/Not Subject; Hotel/Guesthouse; Rooms): July 2025 (Subject: Hotel 302(86,420), Guesthouse 138(3,253); Not Subject: Hotel 34(6,482), Guesthouse 1,323(9,573); Total: Hotel 336(92,902), Guesthouse 1,461(12,826)); August 2025 (Subject: Hotel 302(85,735), Guesthouse 139(3,259); Not Subject: Hotel 36(7,345), Guesthouse 1,316(9,537); Total: Hotel 338(93,080), Guesthouse 1,455(12,796)); September 2025 (Subject: Hotel 303(86,243), Guesthouse 137(3,504); Not Subject: Hotel 37(7,435), Guesthouse 1,315(9,535); Total: Hotel 340(93,678), Guesthouse 1,452(13,039)); October 2025 (Subject: Hotel 304(86,284), Guesthouse 135(3,515); Not Subject: Hotel 36(7,387), Guesthouse 1,316(9,551); Total: Hotel 340(93,671), Guesthouse 1,451(13,066)); November 2025 (Subject: Hotel 305(86,345), Guesthouse 135(3,515); Not Subject: Hotel 36(7,387), Guesthouse 1,315(9,546); Total: Hotel 341(93,732), Guesthouse 1,450(13,061)); December 2025 (Subject: Hotel 303(86,093), Guesthouse 134(3,498); Not Subject: Hotel 38(7,639), Guesthouse 1,314(9,544); Total: Hotel 341(93,732), Guesthouse 1,448(13,042)); January 2026 (Subject: Hotel 303(86,097), Guesthouse 137(4,245); Not Subject: Hotel 38(7,639), Guesthouse 1,314(9,592); Total: Hotel 341(93,736), Guesthouse 1,451(13,837)); February 2026 (Subject: Hotel 303(86,201), Guesthouse 136(4,220); Not Subject: Hotel 32(7,135), Guesthouse 1,283(9,217); Total: Hotel 335(93,336), Guesthouse 1,419(13,437)).

Development Pipeline and Fiscal Allocation

Over the past two years, the Building Authority approved four projects (703 rooms) in 2024 and four projects (1,187 rooms) in 2025, with one project (513 rooms) commencing works in 2025. As of September 2025, 23 ongoing construction projects are projected to yield 4,456 future hotel rooms. The Government does not track statistics on applications for change of use regarding hotels or guesthouses. HAT revenue contributes to general government funds, and the 2026-27 Budget has earmarked $1,660 million for the HKTB to facilitate external promotion of Hong Kong's tourism industry.

long-term accommodation

Excluding rooms occupied by the same guest(s) in the same hotel/guesthouse for not less than 28 consecutive nights, which are regarded as long-term accommodation.

Exemptions

Hotels or guesthouses exempted from paying HAT under the Ordinance include: (a) the rate of the accommodation charge is less than $15 per day; (b) the accommodation is provided by societies not established or conducted for profit; or (c) the hotel or guesthouse contains less than 10 rooms normally available for lodging guests.