Tax exemption quota increase! The shopping experience in Hong Kong has been upgraded again, with an annual increase of up to 17.6 billion yuan in consumption!

Hong Kong's tourism retail market receives another major boost! From June 2025, the central government will increase the duty-free allowance for residents entering from Hong Kong and Macao carrying personal luggage items. This policy not only directly enhances travellers' shopping experience but is also projected to generate an additional HK$8.8 billion to HK$17.6 billion in annual retail spending for Hong Kong, further invigorating the tourism retail sector!

For many travellers who enjoy shopping in Hong Kong, this increase in the duty-free allowance is a welcome relief. Previously, many visitors worried about exceeding the duty-free allowance and incurring additional taxes, inevitably limiting their spending. With the increased allowance, travellers can now shop with greater confidence for Hong Kong specialities such as cosmetics, skincare products, electronics, and jewellery, without having to meticulously calculate their spending to stay within limits. This instantly elevates the shopping experience.

This policy also provides a powerful boost to Hong Kong's local retail and tourism sectors. Already renowned as a ‘shopping paradise,’ Hong Kong's enhanced duty-free allowance will undoubtedly attract more mainland visitors specifically for shopping trips. Both large department stores in Causeway Bay and Tsim Sha Tsui, and the distinctive street-side shops in Mong Kok and Yau Ma Tei, are poised to see a dual increase in footfall and sales revenue.

Retailers have indicated they have been monitoring news of the duty-free policy adjustments for some time, having already stocked up and optimised services in anticipation of a shopping surge. Many tourism professionals concur that shopping constitutes a vital component of Hong Kong tourism. The increased duty-free allowance will elevate the city's appeal, driving synergistic effects between tourism and retail while further cementing Hong Kong's status as a shopping paradise.

Indeed, this duty-free policy upgrade complements Hong Kong's recent vigorous promotion of the ‘events economy’. While signature events like horse racing and sporting competitions draw visitors, the duty-free shopping policy enhances the experience and stimulates spending. This dual approach not only enriches travellers' itineraries but also injects sustained new momentum into Hong Kong's economy. As the policy effects gradually materialise, Hong Kong's tourism and retail market is expected to maintain its positive trajectory, ushering in even greater prosperity.