--- title: "Lo Shu-Pei: The average occupancy rate of hotel rooms last year was approximately 87%" type: "News" locale: "en" url: "https://longbridge.com/en/news/281316702.md" description: "The Director of the Culture, Sports and Tourism Bureau, Luo Shupei, stated that Hong Kong's tourism industry will perform excellently in 2025, with the number of visitors expected to approach 50 million for the whole year, an increase of 12% compared to 2024. In the first three months of this year, the number of visitors to Hong Kong was 14.31 million, a year-on-year increase of 17%. As of the end of February 2026, Hong Kong has 333 hotels offering 93,481 rooms, with an average hotel occupancy rate of about 87% in 2025. Hotel operators can claim tax exemptions to promote hotel development" datetime: "2026-04-01T06:40:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281316702.md) - [en](https://longbridge.com/en/news/281316702.md) - [zh-HK](https://longbridge.com/zh-HK/news/281316702.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/281316702.md) | [繁體中文](https://longbridge.com/zh-HK/news/281316702.md) # Lo Shu-Pei: The average occupancy rate of hotel rooms last year was approximately 87% The Director of the Culture, Sports and Tourism Bureau, Luo Shupei, responded to inquiries from legislators today (1st), stating that Hong Kong's tourism industry is expected to perform excellently in 2025, with nearly 50 million visitors throughout the year, an increase of 12% compared to 2024, among which non-Mainland visitors will increase by 15%. The momentum of the tourism industry continues to be strong this year, with 14.31 million visitors in the first three months, a year-on-year increase of 17%. It is expected that the total number of visitors to Hong Kong in 2026 will reach 53.8 million, an increase of about 8% compared to last year. Luo Shupei stated that as of the end of February 2026, there are 333 hotels in Hong Kong, providing a total of 93,481 rooms, with the number of rooms increasing year by year. The average occupancy rate of hotel rooms for the entire year of 2025 is expected to be around 87%. During the Mainland's Spring Festival Golden Week in February, hotel occupancy rates generally reached 90%. She mentioned that hotel operators constructing commercial buildings or structures for hotel use can claim an annual tax exemption, which is 4% of the capital expenditure incurred for the relevant construction project, until the capital expenditure is fully claimed. If hotel operators purchase commercial buildings or structures to operate hotels, they can claim 4% of the remaining expenditure after purchase as an annual tax exemption until the remaining expenditure is fully claimed. Unlike the tax exemption for industrial buildings or structures, there is no initial tax exemption of 20% for commercial buildings or structures. Additionally, regarding the deduction of renovation expenses for buildings, if hotel operators renovate or refurbish hotels, the capital expenditure incurred for the relevant renovation or refurbishment can also be deducted in equal amounts over five years. She also pointed out that under the current development regulations, the government has continuously implemented various measures to facilitate hotel development. For redevelopment through land lease amendments and land exchanges in commercial zones, the "actual compensation price" pilot scheme will also apply, meaning that the compensation amount will be calculated at full market value based on the "selected use" proposed by the landowner. If the preferred use is a hotel, the valuation will be based on the hotel assessment price, rather than the highest market value use assessed by the Lands Department for that commercial land (which may be another commercial use that is not a hotel). Furthermore, the pilot scheme also allows landowners to develop in phases, with the total floor area of the first phase of the project only needing to reach at least 60% of the overall permitted maximum total floor area of the entire development, thereby reducing the initial capital costs for developers and alleviating their cash flow pressure. In terms of land supply, the Development Bureau will continue to align with the policy objectives of the Culture, Sports and Tourism Bureau and will reserve land for hotel development when necessary during major urban planning developments. Luo Shupei stated that last year's average hotel occupancy rate and overnight visitor numbers increased by about 2% and 6% respectively compared to 2024, reflecting that the hotel room tax has little impact on visitors' willingness to come to Hong Kong. The estimated revenue from hotel room tax for the 2025 to 2026 fiscal year is HKD 770 million. The estimated revenue for the 2026 to 2027 fiscal year is HKD 800 million. 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