Hong Kong cuts liquor tax in an effort to reignite its nightlife industry

abcnews.go.com:

Hong Kong’s leader has announced a cut in liquor taxes as the Asian financial hub hopes to revive its reputation as a travel destination with a vibrant nightlife and dining scene

HONG KONG — Hong Kong’s leader announced a cut in liquor taxes on Wednesday, in a bid to revive the Asian financial hub's reputation as a travel destination with a vibrant nightlife and dining scene.

After fulfilling Beijing’s long-standing imperative to enact a homegrown national security law, which has furthered concerns about the curtailing of civil liberties in the city, Chief Executive John Lee now faces challenges with economic competitiveness against regional rivals like Singapore, Japan and mainland Chinese metropolises.

Changes in residents’ lifestyles and a wave of middle-class emigration during the COVID-19 pandemic have dampened local spending. Many residents now prefer to spend their weekends in mainland China, attracted by its lower prices and a wider variety of entertainment options. Meanwhile, visitors from the mainland are spending less in the city than before.

Vacant shops are commonly seen in the city's most popular shopping districts, and revenue at the city’s bars was down about 28% in the first half of 2024 from the same period in 2019, preliminary official data showed.

In his annual policy address, Lee said the duty rate for spirits with an import price of more than 200 Hong Kong dollars (about $26) would be slashed from 100% to 10% for the portion above that price starting Wednesday. He said he hoped it would foster the logistics, storage, tourism and high-end dining industries.

The government previously told lawmakers that after wine duties were abolished in 2008, imports jumped 80% in a year and the city welcomed