Consumption vouchers set

February 24, 2021

Voiceover:
To spur the speedy recovery of the consumption market, Financial Secretary Paul Chan proposed to issue $5,000 electronic consumption vouchers to Hong Kong permanent residents and new arrivals aged 18 or above. 

In his 2021-22 Budget speech, Mr Chan said the move is expected to benefit around 7.2 million people and involves a financial commitment of about $36 billion. The Government will identify suitable stored value facilities operators to help roll out the plan.

To revive the hard-hit tourism industry, Mr Chan proposed to earmark $765 million to support the Tourism Board which will roll out promotional offers to attract visitors upon the gradual resumption of cross-boundary travel. 

A total of $934 million will be used to enhance tourism resources, of which $169 million will be used to take forward local cultural, heritage and creative tourism projects. 

To promote a digital economy, Mr Chan suggested to allocate a total of $375 million to the Trade Development Council in three years for developing virtual platforms to boost the organisation’s online activities.  

The council will also explore the use of its platforms to assist young business starters in promoting their original products. 

The Government will inject $1.5 billion into the Dedicated Fund on Branding, Upgrading & Domestic Sales, and the fund’s geographical coverage will be extended in phases from 20 to 37 economies. 

The funding ceiling for each enterprise will be increased to $6 million.

Additionally, $1 billion will be injected into the CreateSmart Initiative to drive the development of the creative industries.

(To watch the 2021-22 Budget speech with sign language interpretation, click here.)

Financial Secretary Paul Chan in his Budget speech today announced the Government will issue electronic consumption vouchers in instalments with a total value of $5,000 to Hong Kong permanent residents and new arrivals aged 18 or above.

Mr Chan said the Government should make good use of its fiscal reserves to energise the market, stimulate the economy and facilitate the speedy recovery of the consumption market and other economic segments in view of the current special situation.

The vouchers, aiming to boost local consumption, will cost about $36 billion and benefit around 7.2 million people.

He explained that the Government will identify suitable stored value facilities operators to help roll out the scheme.

To help businesses explore markets, Mr Chan said $1.5 billion will be injected into the Dedicated Fund on Branding, Upgrading & Domestic Sales. The Government will substantially extend its geographical coverage from 20 to 37 economies.

The funding cap for enterprises will be raised from $4 million to $6 million each to support them in exploring more diversified markets.

Supporting tourism

The finance chief noted that the epidemic has dealt a heavy blow to the local tourism industry.

Apart from the nearly $2.6 billion that has already been provided for the tourism industry, the Government will further earmark $934 million to enhance tourism resources, of which $169 million will be used to continue taking forward local cultural heritage and creative tourism projects.

Another $765 million will be set aside to support the Tourism Board. Upon gradual resumption of cross-boundary travel, the board will roll out promotional offers to attract visitors through the Open House Hong Kong platform.

Additionally, Mr Chan said he will allocate a total of $375 million to the Trade Development Council in three years starting from 2021-22 so that it can develop virtual platforms to enhance its capability to organise online activities and proceed with digitalisation.

The council will promote Hong Kong’s strengths in the development of the Guangdong-Hong Kong-Macao Greater Bay Area as well as in healthcare products and services.

A total of $1 billion will be injected into the CreateSmart Initiative in 2021-22 to drive the development of creative industries, he added.