I hope this email finds you well. I am writing to inform you of an update regarding follow-up action to reflect trade's concerns over the imposition of the Hotel Accommodation Tax (HAT). The Federation, in collaboration with Hon Perry Yiu, has successfully arranged a meeting with the Financial Services and the Treasury Bureau, the Inland Revenue Department, and the Tourism Commission. This meeting is scheduled to take place on 13th March. 

The Federation understands the impact this decision may have on the recovery efforts of Hong Kong's tourism industry and the raising operational costs of hotels in the current challenging economic environment.  The imposition of Hotel Accommodation Tax coupled with existing geopolitical tensions, has the potential to further hinder the recovery of our industry.  We recognize the additional challenges posed by rising energy costs, manpower shortages, escalating expenses related to waste management, and the implementation of the Eco Bill aimed at reducing plastic usage.  These factors have collectively affected the competitiveness of our trade. 

It is disheartening to observe that the decision on the imposition of HAT has not been accompanied by a prior consultation with our trade.  This lack of transparency and communication has left the society and the hotel trade bewildered, as it appears to conflict with the objective of boosting the local economy, promoting tourism, and attracting overnight visitors to Hong Kong. The negative impact on the recovery efforts and the competitiveness of our trade cannot be overlooked. 

Rest assured that the Federation is committed to voicing these concerns for our industry's best interests. The Federation, along with other trade representatives such as the Hong Kong Hotel Association and Hotel Controllers and Accountants Association of Hong Kong, will be present to address these concerns and advocate for our industry's best interests.   

We highly encourage our members to continue sharing your views and concerns with us. Your input is invaluable as we work towards finding solutions that can mitigate the adverse effects of this tax and promote a more conducive environment for the hotel industry in Hong Kong.