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Bloomberg | | Posted by Zarafshan Shiraz
Chinese tourists will be allowed to shop duty-free for up to 15,000 yuan ($2,064) in Hong Kong and Macau from next week, nearly double the current limit, as authorities strive to help cities struggling to fully recover from the impact of Covid.
The limit will be raised to 12,000 yuan from the current 5,000 yuan, while the existing tax exemption on purchases up to 3,000 yuan worth at duty-free shops across the border will continue, according to a statement issued by the finance ministries of Hong Kong, Macau and China on Friday.
The new measure is expected to cost Hong Kong up to HK$17.6 billion ($2.25 billion) each year, injecting HK$5.4 billion into its economy, the government said in a statement. The change will take effect on July 1, when Hong Kong marks the 27th anniversary of the city’s handover from Britain to Beijing.
Hong Kong and Macau have seen a slowdown in the post-pandemic recovery of their retail and tourism industries – a pillar for both cities’ economies – amid a slowdown in spending by Chinese visitors. Hong Kong in particular has seen fewer tourists than 2019 levels. This has added pressure on the financial hub, which is also suffering from an exodus of expatriates and local professionals worried about political turmoil and Covid closures.
Meanwhile, Macau, the world’s biggest gambling market, is shifting its focus to the mass tourist market following Beijing’s crackdown on high-rollers. The city has told its six casino operators to invest more in non-gambling activities.
Sa Sa International Holdings Ltd., Hong Kong’s biggest cosmetics retailer chain, rose 3.7% on Friday. Shares of Chow Tai Fook Jewellery Group Ltd. also jumped.
This story has been published from a wire agency feed, no changes have been made to the text. Only the headline has been changed.
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