Starting January 1, 2025, Hong Kong has reintroduced its Hotel Accommodation Tax (HAT) after a 17-year hiatus and increased the Passenger Security Charge for flights. The changes aim to bolster government revenue and enhance the city’s tourism and airport infrastructure.
A 3 per cent tax will be added to all hotel bookings in Hong Kong. For example, a five-star hotel averaging HKD 2,350 (INR 25,899) per night will now cost an extra HKD 70 (INR 771). Standard rooms and guesthouses, typically costing HKD 500 (INR 5,510), will see an additional HKD 15 (INR 165). However, lodgings with fewer than 10 rooms or those run as not-for-profits. Stays exceeding 28 consecutive days in the same hotel.
The Passenger Security Charge at Hong Kong Airport will increase from HKD 55 (INR 606) to HKD 65 (INR 716). The fee will rise further to HKD 72 (INR 794) in 2026 and HKD 82 (INR 906) by 2027. This fee funds airport security upgrades.
The tax and surcharge are estimated to increase trip costs by about 1 per cent. Despite the hike, Hong Kong’s tax rates remain lower than those of destinations like Singapore (19 per cent) and Thailand (17 per cent).
Authorities expect to generate HKD 1.1 billion (INR 12.12 billion) annually from the HAT. The revenue will support tourism and improve travel infrastructure, aligning with global practices while keeping Hong Kong competitive.
Booking accommodations early and exploring package deals can help offset these added expenses. Additionally, understanding the exemptions—such as long-term stays or smaller lodging options—can provide savings opportunities. Despite the changes, Hong Kong remains an attractive destination with competitive tax rates compared to other global tourism hotspots, offering world-class experiences that justify its value.
(With inputs from multiple reports)