Hong Kong cuts liquor tax in effort to reignite its nightlife industry

News

Hong Kong cuts liquor tax in effort to reignite its nightlife industry

2024-10-16 18:31 Last Updated At：18:40

HONG KONG (AP) — Hong Kong’s leader announced a cut in liquor taxes on Wednesday as the Asian financial hub hopes to revive its reputation as a travel destination with a vibrant nightlife and dining scene.

After fulfilling Beijing’s long-standing imperative to enact a homegrown national security law that has dramatically changed the city, Chief Executive John Lee now faces challenges with economic competitiveness against regional rivals like Singapore, Japan and mainland Chinese metropolises.

Changes in residents’ lifestyles and a wave of middle-class emigration during the COVID-19 pandemic have dampened local demand. Many residents now prefer to spend their weekends in mainland China, attracted by its lower prices and a wider variety of entertainment options. Visitors from the mainland are also spending less in the city than before.

Vacant shops are commonly seen in the city's most popular shopping districts, and revenue at the city’s bars was down about 28% in the first half of 2024 from the same period in 2019, preliminary official data showed.

In his annual policy address, Lee said the duty rate for spirts with an import price of more than 200 Hong Kong dollars (about $26) would be slashed from 100% to 10% for the portion above that price starting Wednesday. He said he hoped it would foster the logistics, storage, tourism and high-end dining industries.

The government previously told lawmakers that after wine duties were abolished in 2008, imports jumped 80% in a year and the city welcomed hundreds of new wine-related businesses.

Lee highlighted the city’s various global rankings near the end of his speech at the legislature, but said past performance does not guarantee future success.

“We must remain confident in ourselves and uphold our morale, standing firm against any efforts to downplay our success story,” he said.

Lee, a former security chief handpicked by Beijing to lead Hong Kong, pushed through the new security law in March. Critics fear the law will further curtail the civil liberties promised to the former British colony when it returned to Chinese rule in 1997.

That law follows similar national legislation Beijing imposed in 2020 to quell huge anti-government protests. Since that law took effect, many of the city's leading activists have been prosecuted, forced into self-exile or silenced. The Hong Kong government said the security laws are necessary for the city’s stability.

But in the wake of these dramatic political changes, many middle-class families and young professionals have emigrated to Britain, Canada, Taiwan and the United States.

To attract more wealthy migrants, Lee revised a scheme that awards residency to applicants who invest a minimum of 30 million Hong Kong dollars ($3.9 million) in certain types of assets. Starting Wednesday, purchases of homes valued at 50 million Hong Kong dollars ($6.4 million) or more can be counted for up to a third of the requirement, he said.

Lee also pledged to make the city into an international hub for post-secondary education by offering scholarships to overseas students, and promised moves to develop the “silver economy” and “low-altitude economy,” Beijing's buzzwords for markets like elderly care, private aviation and drones. He also announced plans to build an international gold trading market and create a new commodity trading ecosystem.

Lee also proposed to regulate the city’s subdivided flats, which one Beijing's top officials for Hong Kong affairs has called for it to abolish.

Some 110,000 households live in such homes, which are notorious for their tiny size and poor living conditions but provide a relatively affordable housing option in one of the world’s most expensive housing markets.

Lee said owners of subsidized flats must ensure each home has windows, an individual toilet and a minimum floor area of 8 square meters (86 square feet) after a grace period.

Lo Kin-hei, chairman of the Democratic Party, one of the city’s few remaining pro-democracy parties, expressed concerns about the impact of the new rules, saying it could force people living in larger but windowless homes to move to smaller flats with windows.

“Can the standards directly translate into improvements in the lives of residents who reside there? We have questions," he said.

Hours before Lee's speech, a small group of activists from the League of Social Democrats, another pro-democracy party, held a tiny demonstration outside the government headquarters. They called for universal suffrage for chief executive elections and a retirement pension scheme.

“Return to democracy, improve people’s livelihood,” they chanted.

Middle East latest: Israeli jets pummel southern Lebanon and Beirut's suburbs

2024-10-16 18:15 Last Updated At：18:21

Israeli jets struck southern Lebanon and Beirut's southern suburbs on Wednesday, killing at least 20 people including a city mayor, Lebanese officials said.

Hezbollah acting leader Sheikh Naim Kassem declared Tuesday that the Lebanese militant group will ramp up attacks on Israel in response to an Israeli airstrike Monday on an apartment building in northern Lebanon that killed at least 22 people. Israel said it struck a target belonging to Hezbollah, but the United Nations called Tuesday for an independent investigation.

Israel has escalated its campaign against Hezbollah in recent weeks, after a year of near-daily exchanges of cross-border fire.

It’s been more than a year since Hamas-led militants blew holes in Israel’s security fence and stormed in, killing some 1,200 people, mostly civilians, and abducting another 250. Israel’s offensive in Gaza has killed over 42,000 Palestinians, according to local health authorities, who do not distinguish combatants from civilians. The war has destroyed large areas of Gaza and displaced about 90% of its population of 2.3 million people.

In northern Gaza, Israel has been waging an air and ground campaign in Jabaliya for more than a week, leaving families trapped in their shelters.

United States President Joe Biden’s administration warned Israel that it must increase the amount of humanitarian aid it allows into Gaza within the next 30 days or risk losing access to American weapons funding.

Here's the latest:

JERUSALEM — Israeli authorities say they have arrested a man who was involved in an alleged Iranian plot to assassinate an Israeli scientist.

In a statement released Wednesday, the Shin Bet internal security agency said Iran paid 35-year-old Vladimir Verhovski $100,000 to kill an Israeli scientist. It did not provide evidence or name the target of the alleged plot.

Iran has accused Israel of being behind the targeted killing of scientists involved in its nuclear program.

The Shin Bet said Verhovski had acquired a gun, cartridge and bullets, and agreed to flee to Russia afterwards. It said he had also gathered information at the direction of Iran.

It’s one of several alleged plots the Shin Bet says it has foiled in recent months that involved Israelis accused of having been recruited by Iran.

Israel and Iran have waged a shadow war for years that burst to the surface after Hamas’ Oct. 7, 2023 attack triggered the war in Gaza. Israel and Iran exchanged fire directly for the first time in April, and Israel has vowed to retaliate after an Iranian ballistic missile attack earlier this month.

Iran supports armed groups across the region, including Hamas in Gaza and Hezbollah in Lebanon.

BEIRUT — Lebanon’s Health Ministry says Israeli airstrikes on the southern Lebanese city of Nabatiyeh have killed at least 5 people.

The ministry and the state-run National News Agency said the provincial capital’s municipality building was hit by one of the strikes Wednesday. Huwaida Turk, the governor of Nabatiyeh province, told The Associated Press that Mayor Ahmad Kahil was killed in Wednesday’s strikes on the provincial capital. Local media reported that the mayor of Nabatiyeh and local government staff were in the building. Rescue workers are searching for bodies under the rubble.

The NNA says there were at least seven airstrikes in Nabatiyeh and some nearby villages.

Earlier in the week, Israeli strikes over Nabatiyeh destroyed its historic century-old market district.

The Israeli military said it struck dozens of targets in and around Nabatiyeh linked to the Hezbollah militant group, including command centers and weapons storage facilities that it said were embedded in civilian areas.

BEIRUT — Israeli strikes have killed at least 15 people in the southern Lebanese town of Qana, which has long been associated with civilian deaths after Israeli strikes during previous conflicts with Hezbollah.

There was no immediate comment from the Israeli military on the strikes in Qana late Tuesday. Lebanon’s Civil Defense said 15 bodies had been recovered from the rubble of a building and that rescue efforts were still underway.

In 1996, Israeli artillery shelling on a United Nations compound housing hundreds of displaced people in Qana killed at least 100 civilians and wounded scores more, including four U.N. peacekeepers. During the 2006 war, an Israeli strike on a residential building killed nearly three dozen people, a third of them children. Israel said at the time that it struck a Hezbollah rocket launcher behind the building.

PARIS — French President Emmanuel Macron stressed “the absolute necessity of a cease-fire without further delay in Lebanon” and called for Israel to stop operations there in a phone call Tuesday with Israeli Prime Minister Benjamin Netanyahu.

Macron urged Israel “to put an end to this unjustifiable targeting," according to a statement from his office, which also said France would continue to work with troop contributors and alongside the United Nations Secretary-General to ensure the full implementation of the mission of the peacekeeping force known as UNIFIL.

Netanyahu said in a statement after the call that he was opposed to a unilateral cease-fire. He said he would not agree to any arrangement that does not provide security for residents of northern Israel and “does not stop Hezbollah from rearming and regrouping.”

TEHRAN, Iran — Iran is ready for a retaliatory attack from Israel, the Foreign Ministry said Wednesday.

In a phone call Tuesday with United Nations Secretary-General António Guterres, Iran’s Foreign Minister Abbas Araghchi said his country is fully prepared to answer to any kind of “adventure-seeking.”

“Responsibility of consequences of spreading insecurity in the region will be on the regime and the United States as main supporter,” of Israel, he added.

He urged the U.N. to use its entire capacity for stopping “crimes and invasions,” as well as providing humanitarian aid to Lebanon and Gaza.

Iran launched some 180 missiles at Israel on Oct. 1 in retaliation for the deaths of Hamas Leader Ismail Haniyeh and Hezbollah leader Hassan Nasrallah. Israel has threatened to strike back for the barrage.

Iran is the main backer of Lebanese Hezbollah and supports anti-Israeli groups in the region such as Palestinian Hamas.

BEIRUT — Israeli jets struck the southern suburbs of Beirut early Wednesday for the first time in six days, Lebanese state media reported. The casualty count was not yet clear.

The attack comes just one day after caretaker Prime Minister Najib Mikati said the United States government gave him some assurances of Israel easing its strikes in the Lebanese capital.

Israel says it is striking Hezbollah assets in the suburbs, where the militant group has a strong presence, but is also a busy residential and commercial area. The Israeli military said the Wednesday strike hit a weapons warehouse stored under a residential building.

The Israeli military posted an evacuation warning on X, formerly Twitter, saying it is targeting a building in the Haret Hreik neighborhood. An Associated Press photographer saw three airstrikes in the area, the first coming less than an hour after the notice.

Hezbollah began firing rockets into Israel on Oct. 8 in solidarity with the Palestinian militant group Hamas, following their surprise attack on southern Israel. Almost one year of low-level fighting has turned into all-out war and displaced some 1.2 million people in Lebanon.

Elsewhere, Israeli strikes late Tuesday in the southern town of Qana killed at least 15 people, according to Lebanese Civil Defense.

MANILA, Philippines — A European Union official expressed regret over the failure so far of efforts to forge a cease-fire in the Middle East, saying that fighting between Israel and the Hezbollah has made it more difficult to work for wide-ranging reforms in Lebanon and create conditions to draw international financial aid in.

EU Commissioner for Crisis Management Janez Lenarčič told The Associated Press in an interview late Tuesday in Manila that stalled reforms in Lebanon include the election of a new president, the establishment of a working government and the signing of a deal with the International Monetary Fund.

“It’s difficult to see that happening in these circumstances when Lebanon is under such a strain,” said Lenarčič, who flew to Manila to attend an Asia Pacific conference on disaster mitigation.

“That’s one of the reasons why we’re calling for a cease-fire, so as to allow Lebanon to organize itself so that it can benefit from all the funding which is out there,” he said. “I regret that we have not been heard.”

The EU was also extremely concerned over the killings of civilians in the fighting between Israel and the Hezbollah militant group. “This collateral damage is simply unacceptable,” Lenarčič said.