Hong Kong hoteliers brace for ‘worrying’ trends as lodging tax, US trade war dent tourism

Hong Kong’s hotel industry is likely to face more headwinds next year. A new lodging tax and heightened geopolitical tensions are among “worrying” issues that could further erode the city’s appeal as a tourist destination, analysts said.

The government will impose a 3 per cent tax on hotel guests from January 1, while president-elect Donald Trump will occupy the White House next month to usher in another rocky period for US-China trade and tourism.

The city’s reliance on Chinese tourists have yielded poorer results in recent years as the mainland economy struggled to generate growth after the end of the Covid-19 pandemic. They spent less and stayed for shorter days while the nation’s currency weakened, government data showed.

“External factors are definitely worrying, such as the weakening Chinese currency, the strong Hong Kong dollar, the Trump trade wars and tariff [threats],” said William Cheng, chairman of the Shun Ho Group. “Operating costs are equally worrying and will make the hotel industry suffer.”

The Shun Ho group operates seven hotels in Hong Kong with 3,000 rooms across the city, including the Best Western in Causeway Bay and the Ramada Hong Kong Harbour View in Sai Ying Pun.