Research & Development on the Hospitality and Tourism Industry
The FHKHO has adopted a dynamic, practical approach to the future development of the hotel industry. To protect the interests of hotel owners, the FHKHO is quick to point out and correct any misleading media reports.
The FHKHO is dedicated to helping its members keep abreast of the latest developments in the industry providing members the advice and assistance on all matters relating to government regulations. From time to time, the FHKHO has provided members with analyses and research reports of selected topics, which will help them to paint a clearer picture of their investment. Research reports indeed are an excellent channel to communicate with the government. The FHKHO's list of researches and papers are as follows:
1. "Hong Kong Hotel Market Position Paper"in 1995.
2. "Turning the tide, Catching the Wave" in 1998.
3. ※Study Report on the Interpretation of back-of-the-house area of a hotel and its implication to PNAP 111 ※Hotel Concession§ issued by Buildings Department§in 1998.
4. "Hong Kong Travel Agency Overview"in 1999.
5. "Redevelopment of Aberdeen Wholesale Fish Market and Lamma Island Study"in 1999.
6. Tourism Revival Recommendations 1999.
7. "Proposal to Establish a Hotel Classification System for Hong Kong"in 2000.
8. "Hong Kong*s Hotel Industry Challenging Year"in 2003.
9. "Hong Kong Hotel Room Rates Study"in 2003.
10. "Tour Operator Agreement for China Group"in 2004.
11. "A Quantum leap in Tourism"in 2004.
12. "Manpower Shortage at Operative Level of the Hotel Industry in Hong Kong"in 2005.
13. "Hong Kong Exhibition Industry--Opportunities & Challenges"in 2005.
14. Position Paper which was proposed to the HKSAR Government"Key Issues Facing Hotel and Tourism Development in Hong Kong"in 2012.
15. Towards a more Competitive Destination Hong Kong 每 An Industry Roadmap

Improving Business Environment
Safeguarding the interests of hotel owners is the top priority of the FHKHO. The FHKHO is committed to promoting a better business environment and the communication between the government and the industry. The followings are some examples.
  • Since 1991 the FHKHO has helped to streamline the operation of the hotel licensing scheme. For example, it made recommendations to the government to simplify the licensing procedures and cut the license fee by at least 30%-50%.
  • Since 1994 the FHKHO has also succeeded in reducing the rateable value through collective appeal. This alleviated members of the trouble of undergoing individual revaluations and consequently raised members' bargaining power with government department. The government also welcomed the industry to make a collective appeal so that its administration workload could be reduced.
  • In 1998 the FHKHO urged the government to reduce the Hotel Accommodation Tax from 5% to 3%. This indeed not only helped hotel owners save hundreds of thousands tax payment, but also enhanced the competitiveness of Hong Kong hotel industry.
  • From 1995-2000 the FHKHO worked with related trade organisations on acquiring concessions of TES (Sewage Charges).
  • Similarly, from 1998-2002 the FHKHO also joined force with other trade partners to press the government to review the unfair terms in the Copyright Ordinance. The Executive Director of the FHKHO was the convenor of the Concern Group.
  • In 2001 Hong Kong Federation of Trade Unions claimed statutory holidays and annual leave payment for hotel casual workers. Under the leadership and advice of the FHKHO, affected hotels won the case overwhelmingly in Labour Tribunal. The FHKHO also issued ※guidelines§ including keeping proper record for casual workers and observing strictly the 4.18 Rule for hotels to follow.
  • In 2004 the FHKHO was successful in urging the Administration to tighten control on unlicensed/ illegal guesthouses and bogus short-lease accommodation.
  • In 2005-2006 the FHKHO formed a working group to follow the re-zoning policy for hotel development projects by non-profit-making organizations.
  • In 2005-2006 the FHKHO submitted letters to the relevant authorities regarding streamlining the licensing process especially for hotel SPA, liquor license and restaurant license. The trade fully supports such actions.
  • In 2008-2009, FHKHO submitted letters to the relevant authorities to raise consolidated opinions from hotel trade regarding proposed ※10 Hotel Use Only Sites§ on a pilot basis in the Land Application List.
    (1) FHKHO comments to the Government
    (2) Government responses to the Federation
  • In 2008-2009, relevant authorities called out a meeting to consult FHKHO on Mandatory Implementation on Building Energy Codes (BEC). The Federation achievements and follow up status regarding the BEC proposal as follows in 2009-2010.
    (1) Hotels and guesthouses are now separated defined from commercial buildings. That means:
    - Hotels and guesthouses are excluded from Energy Audit requirement, which applied to both Pre-enactment and Post-enactment Commercial Buildings.
    - The Authority pledged the proposal will not be one of the hotel licensing requirements.
    (2) For Pre-enactment Buildings, addition or replacement of a building services installation in the retrofitting works covering a floor area less than 500 square meters under the same series of works within 12 months in a unit /common area need not comply with BEC.
    (3) The Authority will introduce the proposed legislation into the Legislative Council (LC) in 2009. The Federation strongly demanded the bills for comment and the ED prepared to sit in the Bills Committee in case of necessity.
  • In 2009-2010, concerning the impact on hotel business brought by financial crisis and swine flu, the Federation reminded Members* hotels to lodge an individual appeal on hotel ratable value 2009/10 to Rating and Valuation Department (RVD) before statutory deadline in case of necessary. The Federation also represents Members* hotels to lodge a collective appeal and the consultancy service is free of charge for hotels. The result of collective appeal will be released by RVD in November, 2009 and individual hotel can make appeal to relevant department if it is dissatisfied with the appeal result. Formal appeal procedure and stages of collective appeal can refer to the documentation attached below.
    (1) Formal Appeal Procedure
    (2) Extract of Appeal Reminder of Hotel Ratable Value 2009/10
  • In 2009-2010, the Federation initiated a joint business promotion titled ※Hong Kong 每 the Ultimate Experience§ to entice visitors to Hong Kong. It enhanced the network between airlines and hotels and the source of marketing was widened. This facilitated future cooperation between both parties.
  • In 2009-2010, the Federation expressed the industry views on the Government quarantine measures towards swine flu outbreak. The Government soon announced the completion of quarantine measures and disseminated positive message to overseas* visitors.
  • In 2009-2010, the Federation successfully safeguarded the interest of hotel owners. Hotel under the membership of the Federation, subject to the endorsement of the Federation, are eligible to register in HKTB Tourism Services Provider (TSP) partnership system and participate in any HKTB overseas trade missions.
  • In 2010-2011, With the Federation representation and persistent negotiation with The Rating and Valuation Department (the Department), most Members* hotels have an obvious reduction in Rateable Value.
  • In 2010, the Federation initiated a meeting with Tourism Commission, Transport Department, Hong Kong Police Force, ICAC and concerned hotel trade partners to brainstorm the preventive measures for possible collusion between unscrupulous taxi drivers and hotel staff.
  • In 2010, the Federation has succeeded in urging the Administration to remove the light color requirement on the internal walls and ceiling of the food room of licensed F&B premises.
  • In 2012, the Federation successfully reached an an arrangement with Drainage Services Department (DSD) and Water Supplies Department (WSD) on the concession of requirements of ※sub-meters§ if hotels have genuine difficulties in installing government ※separate water meters§. Additionally, the back adjustment of the previous Trade Effluent Surcharge (TES) bills.
  • In 2013, the Federation achieved a satisfactory outcome and reached a settlement with the Buildings Department on the amendment of Fire Safety (Commercial Premises) Ordinance Cap 502 which caused difficulties and hardship for hotels built on or pre-1987. This successful arrangement relieved heavy financial burden for hotels affected by the Fire Safety Improvement Directives.
  • In 2013-2014, with the Federation*s collective negotiation with the Rating and Valuation Department, 13 hotels had average reduction of 8%
  • In 2014-2015, with the Federation*s collective negotiation with the Rating and Valuation Department, there are reductions ranging from 5% to 15%.
  • The FHKHO has kept on making suggestions or opposing to obsolete or unfair government policies , the successful cases could not be counted.
  •