5% tourism tax exemption on Macau entertainment operators takes effect
A 5% tourism tax exemption typically levied on various tourism businesses in Macau has now taken effect as part of the government’s efforts to boost the industry.
From May 11 to December 31, 2021, all hotels, nightclubs, bars, saunas, health clubs, massage parlors and karaoke parlors will be exempt from the obligation to charge tourists the 5% tax on services, with fines to be paid to companies that continue to do so.
The exemption, which extends to companies already listed for tax incentives in Macau Draft budget for the financial year 2021, is expected to benefit more than 370 tourism service establishments, the Macao government tourism office said. The budgetary impact is estimated at approximately MOP $ 379 million.
According to MGTO, “the measure aims to revive the economy and propel Macao’s travel sector towards revitalization.”
The new measures come as Macau tourism operators start to see an improvement in the number of visitors from mainland China, with around 167,000 visitors arriving during the last five days of the Labor Day holiday, bringing the rate up to ” average occupancy of Macau hotels at 83%,
It has also been suggested that package tours from mainland China to Macau may resume soon, potentially boosting visitor numbers significantly.