Santa Tsang offers hand outs to MICE industry in HK

Hong Kong's new Financial Secretary John Tsang was able to deliver a budget on Wednesday that most of his counterparts around the world could only imagine in their dreams. Highlights included:

• Salaries tax down 1% to 15% and a rebate of 75% of tax paid last year (up to a US$3,000 limit);
• Profits tax down 1% to 16.5%;
• Rebates on properties taxes;
• The complete elimination of duties on wines and beer (no coincidence that the Hong Kong Trade Development Council has just launched its first Wine Expo here).
• ...and, as the vaudeville promoters would have said, much much more!

The exhibitions and conventions business was recognised in the budget as a "pillar industry". Tsang told Hong Kong "We will step up our efforts in overseas promotion. We aim to attract more high quality convention and exhibition projects that will bring high value-added business travellers to Hong Kong. I have earmarked an additional $150 million to carry out these activities in the next five years".

The Hong Kong government has also recognised that lack of hotel rooms is an important restraint on this industry and has earmarked 10 sites for new hotel development as well as waiving the Hotel Accommodation Tax.