Duty-free limit raised for Macau and Hong Kong

To stimulate the economies of Macau and Hong Kong, the Chinese government announced Friday it will raise the duty-free shopping allowance for mainland Chinese visitors to these two special administrative regions (SAR).

Starting July 1, mainland residents returning from the two SARs will see their duty-free allowance increased to RMB15,000 per trip for purchases at border crossing duty-free stores, up from RMB5,000.

The allowance for shopping elsewhere in the city will also rise, to RMB12,000.

Chief Executive, Ho Iat Seng, praised the measure, saying it would “help drive consumption in Macau’s tourism market” and provide “new impetus” to the city’s overall economic development.

The Macao Government Tourism Office said the change is “conducive to increasing the desire of mainland visitors to visit and spend money in Macau, and injecting impetus into Macau’s tourism economy.”

This policy shift is part of broader efforts by mainland authorities to support the economies of Macau and Hong Kong.

Earlier this year, the government allowed group tours to travel between Hengqin and Macau and expanded the Individual Visit Scheme for the two regions, which are important drivers of economic growth.

The new duty-free allowance will initially be implemented at six border crossings and then extended to all except the Hengqin crossing from August 1.

However, some Hong Kong industry members were disappointed the new limit falls short of the RMB30,000 figure they had sought.

Tai Kin Ip, director of Macau’s Economic and Technological Development Bureau, said businesses must change to reap the benefits of the revised policy.

“What we should focus on now is enhancing the variety of products offered by community businesses and improving their service quality,” Tai said.

He said business associations and enterprises need to prepare for welcoming customers and expressed hope the policy can “boost their sales and bring in more business opportunities.”

By encouraging greater tourism consumption, the duty-free allowance increase provides a much-needed boost to local businesses and the broader economies of Macau and Hong Kong.

Overall, the Chinese government’s decision is seen as a positive step in supporting the economic development of these two important regions.

Andy Wu, president of Macau’s Travel Industry Council, said the policy adjustment by Beijing comes as a welcome measure ahead of summer vacation season. Raising the tax-exempt limit on goods carried by cross-boundary visitors will likely increase tourism and spending in Macau during peak travel months, benefiting small- and medium-sized businesses in the retail sector.

Wu noted the industry stands ready to promote the policy update and encourage tourists “to increase their spending in Macau.” The higher tax threshold, he believes, will strengthen travelers’ “desire to visit and spend” in the Special Administrative Region. Victoria Chan