Over the past year, the Federation has actively submitted comprehensive recommendations through both the Policy Address and the 2026–27 Budget consultation process. Our advocacy focused on strengthening Hong Kong’s tourism competitiveness, reinforcing the MICE and mega events economy, restoring aviation connectivity, attracting high‑value overnight visitors, enhancing tourism infrastructure, and improving the overall operating environment for the hotel sector.

We are pleased to note that many of our recommendations have been reflected in both the previous Policy Address and the 2026–27 Budget. For members’ reference, we set out below a more detailed summary of this year’s Budget announcements relevant to the hotel and tourism sector.

Summary of Key Areas

Area	Federation Recommendations	2026–27 Budget Announcements (Details for Members’ Reference)
MICE & Exhibition Development	Position Hong Kong as a premier international convention and exhibition hub; proactively attract large-scale international events; strengthen bidding strategy; focus on high-value business travellers	Government reserved HK$100 million to attract large-scale international exhibitions featuring new elements. The Budget reaffirmed Hong Kong’s positioning as an “International Convention and Exhibition Capital,” with emphasis on attracting high value-added exhibitions and conferences that drive overnight business travel and high spending. Focus is placed on reinforcing brand-building and enhancing competitiveness of the exhibition sector.
International Aviation Hub	Restore air capacity to pre‑2018 levels; expand into emerging markets; strengthen global connectivity	Passenger traffic reached 61 million, representing nearly 15% year-on-year growth. Cargo throughput exceeded 5 million tonnes, reinforcing Hong Kong’s international aviation and logistics status. The Government will expand air service agreements with the Middle East, Central Asia, Africa and South America, supporting diversification of visitor source markets and long-haul connectivity.
Tourism Promotion & High-Value Visitors	Target high-yield Mainland and overseas markets; expand GBA multi-destination itineraries; strengthen flagship campaigns	HK$1.66 billion allocated to the Hong Kong Tourism Board (HKTB). HKTB will increase promotion in Mainland cities beyond Guangdong Province, and intensify efforts in ASEAN and Middle East markets. Marketing strategy will focus on high-spending overnight visitors and diversified visitor segments.
Cruise & Multi-Destination Development	Expand cruise tourism; promote “one-trip multi-destination” cooperation	Cruise arrivals increased 26% year-on-year. The Government will continue attracting more international cruise lines to include Hong Kong in itineraries. Collaboration with airlines and Greater Bay Area cities will further promote “one-trip multi-destination” travel products to extend visitor stay and spending.
Culture, Sports & Mega Events Economy	Develop “Mega Events + Tourism” strategy; maximise Kai Tak Sports Park; attract international competitions	HK$1.2 billion injection into the Sports portion of the Arts and Sports Development Fund. Continued expansion of “M” brand mega sports events. Ongoing efforts to attract more large-scale international sports competitions and cultural events. Emphasis on event-driven tourism and economic spillover benefits.
Harbourfront & Tourism Experience Enhancement	Revitalise harbourfront and night-time economy; enhance experiential tourism	Introduction of new light and projection performances to replace “A Symphony of Lights,” to be staged throughout the year at different locations. Continued expansion of harbourfront promenades, including extension of the Kowloon waterfront to approximately 15 kilometres. These initiatives aim to strengthen visitor experience and night-time economy.
Heritage, Rural & Cultural Tourism	Invest in heritage and diversified tourism offerings	HK$1 billion additional funding injected into heritage conservation. Launch of a HK$200 million Northern Metropolis Rural-Urban Integration Fund (pilot scheme) to encourage development of rural and eco-tourism projects. Continued efforts to position Hong Kong as a global high-end art trading hub, supporting art-related tourism and cultural economy growth.

Overall Assessment

The 2026–27 Budget places strong emphasis on:

High value-added tourism and business travel
Expansion of international connectivity
Mega events and exhibition-driven economic growth
Diversification of visitor markets
Cultural, sports and experiential tourism development

These measures are broadly aligned with the Federation’s long-standing advocacy for quality growth, yield enhancement, and strengthening Hong Kong’s competitive positioning within the region.

Continuing Advocacy Priorities

While encouraged by the positive policy alignment, the Federation will continue to advocate on behalf of members in the following critical areas:

Further improvement of the overall business environment
Cost control and reduction of operating pressures
Review of rateable values and related statutory cost burdens
Manpower supply, labour import arrangements and workforce sustainability
Regulatory streamlining and compliance efficiency
Long-term competitiveness and sustainable development of the hotel sector

Official Budget Information

Members who wish to review the full 2026–27 Budget Speech, Estimates, press releases and related documents may visit the official Government website: https://www.budget.gov.hk/2026/eng/index.html

Budget Leaflets (PDF Summary Versions)
https://www.budget.gov.hk/2026/eng/pdf/Budget26-27_Eng_Leaflet.pdf

We sincerely thank members for your continuous support, valuable insights and active participation in our consultation work. Your input remains essential in strengthening the Federation’s representation and advocacy efforts.

The Federation will continue to engage closely with the Government to safeguard the interests of Hong Kong’s hotel industry and promote a more competitive and sustainable operating environment.