Hong Kong to Raise Air Passenger Departure Tax to HK$200 on October 1, With Wider Short Stay Exemptions

HK$80 increase comes as Hong Kong seeks more revenue

Hong Kong will raise its Air Passenger Departure Tax from HK$120 to HK$200 for tickets issued on or after October 1, 2025, its first adjustment in 22 years. The increase of about 67 percent is expected to bring the government an additional HK$1.6 billion each year as it works to address a large budget shortfall.

Lawmakers approved the Air Passenger Departure Tax (Amendment) Bill 2025 in May, with 77 votes in favor, two against and five abstentions. The tax applies to passengers aged 12 and older departing Hong Kong by air and is normally included in the ticket price. Airlines collect it for the government, so most travelers will not have to make a separate payment at the airport.

The increase comes while Hong Kong's aviation industry is recovering from the pandemic. Passenger numbers and flight movements have risen, but both remain below their 2019 levels. The government is also facing a deficit of roughly HK$87.2 billion for the 2024 to 2025 financial year and is seeking more revenue without introducing new broad taxes.

Financial Secretary Paul Chan presented the change as a return to charging users for services after years without fee adjustments. He described the principles guiding the government's approach:

We will uphold the user pays and affordable users pay principles while increasing revenue amid a deficit.

Officials argue that the extra HK$80 per passenger is affordable and will have a limited effect on travel demand. Some lawmakers and industry voices worry that higher trip costs could weaken Hong Kong's position against nearby airports competing for the same travelers. Wider exemptions for short visits and connecting journeys are intended to address part of that concern.

The ticket issue date determines the rate

October 1, 2025 is the key date for ticketing. Tickets issued before that date will retain the HK$120 tax even when the passenger flies after the increase takes effect. Tickets issued on or after October 1 will include the new HK$200 rate.

Airlines add the tax to the fare when they issue the ticket. The relevant date is therefore the ticket issue date, rather than simply the day a traveler leaves Hong Kong. This applies to both tickets bought with cash and award tickets booked using frequent flyer points or miles.

The charge applies to each departure from Hong Kong, rather than to an entire return journey. A passenger flying from Hong Kong to Tokyo and back on tickets issued after October 1 will pay the HK$200 tax on the Hong Kong departure segment only.

The main dates in the change are:

• 2003: The departure tax was last adjusted, leaving the rate unchanged for 22 years.
• May 2025: Lawmakers approved the amendment bill by 77 votes to two, with five abstentions.
• September 9, 2025: Preparations continue for the higher rate and the planned expansion of short stay exemptions.
• October 1, 2025: The HK$200 rate applies to newly issued tickets, and the government aims to introduce the expanded exemptions.

Who pays and who already qualifies for an exemption

Passengers aged 12 and older departing from Hong Kong International Airport generally pay the Air Passenger Departure Tax, often shortened to APDT. Children under 12 are exempt.

Existing exemptions also cover passengers in direct transit or taking a connecting flight who remain airside. Airside means the part of the airport used by passengers after the relevant airport checks, without entering the city. Travelers who arrive and depart Hong Kong by air on the same day are also exempt.

These passengers do not owe the tax. Where it has already been collected at ticketing, an eligible passenger may need a refund. Airlines already handle exemptions and refunds for some categories on the government's behalf, with an arrangement for administration fees.

Short stays are set to gain a 48 hour window

Hong Kong plans to extend the short stay exemption window to 48 hours from October 1. The expansion is intended to make brief visits and transit journeys more attractive while preserving revenue from passengers who remain liable for the tax.

Two main groups are set to benefit. The first consists of passengers who arrive and depart Hong Kong by aircraft within 48 hours. The second consists of passengers who enter Hong Kong by land or sea and then depart by air within 48 hours of arrival.

Eligible passengers in these groups will initially pay the tax as part of their ticket price and then claim it back. The 48 hour period is measured from arrival time to departure time, making the timing of both parts of the journey important.

The government is drafting the necessary legal changes with the aim of introducing the expanded exemptions by October 1. Lawmakers pressed for more flexibility for short visits and for travelers arriving from the Greater Bay Area by road or ferry before taking an onward flight from Hong Kong.

Officials have also signaled that safeguards will address attempts to misuse the exemption through quick trips across the border that are not genuine stopovers. The policy is intended to encourage short visits and connecting travel while keeping a working tax base.

How eligible passengers would claim a refund

Authorities have said a new online portal will allow eligible passengers to claim a refund after traveling. Refunds will cover passengers qualifying under the planned 48 hour rules, as well as other exempt categories where the tax was collected when the ticket was issued.

The expected process, outlined during the budget and legislative debate, has three main stages:

• Book and pay for the ticket as usual, with the APDT included in the fare.
• After travel, submit a claim through the forthcoming portal, including basic details such as the passenger's full name, ticket number, itinerary, and evidence of arrival and departure times.
• After the claim is verified, receive a refund of the HK$200 tax from the government or its agent.

Passengers should retain boarding passes and electronic receipts so they can document their journeys. Processing times can vary, and no portal launch date or fixed refund processing period has been given as of September 9.

The refund will require a claim rather than happening automatically. Travelers combining a land or sea arrival with an air departure should check that the interval between those movements falls within 48 hours and follow the official portal instructions when it opens.

What changes for cash fares and award bookings

Cash tickets issued on or after October 1 will automatically include the HK$200 tax. The amount a passenger ultimately pays for the whole ticket will also depend on airline pricing, which reflects supply, demand, competition, and other taxes and fees.

Some airlines may absorb part of the HK$80 increase through their pricing on particular routes, especially where competition is strong. Others may pass on the full increase for the Hong Kong departure. The extra charge is often small compared with the total cost of a long distance flight, but can be more noticeable on a short regional journey.

Award tickets work differently because passengers use points or miles for the flight while paying taxes and fees in cash. Frequent flyer analysis indicates that the full HK$80 increase will flow through to those cash payments.

For Singapore Airlines KrisFlyer redemptions departing Hong Kong, the taxes and fees are set to rise by HK$80 per passenger from October 1. Recent examples for the Hong Kong to Singapore route put economy and premium economy charges at about HK$355, up from HK$275, an increase of roughly 29 percent.

Business and first class charges on the same route would rise from HK$345 to about HK$425, or approximately 23 percent. The airport construction fee is higher for premium cabins, so the same HK$80 increase represents a smaller percentage of their existing taxes and fees.

Booking before October 1 avoids the higher APDT even when the flight takes place later, whether the ticket is bought with cash or redeemed with miles. Travelers planning an eligible visit lasting no more than 48 hours after October 1 can book when convenient and then seek a refund after completing their journey.

Why two lawmakers opposed the increase

Tourism sector lawmaker Perry Yiu and legislator Gary Zhang opposed the bill. They cited the lack of detailed analysis showing how the increase might affect different groups of travelers, particularly people whose decisions depend heavily on price.

Their concern centers on Hong Kong's continuing recovery in visitor and passenger numbers. An extra expense can matter more to someone comparing inexpensive regional flights than to a traveler buying a much more costly ticket. Critics warned that additional pressure on budget travelers could slow the return of visitor numbers.

Supporters argued that the revenue would be useful and that a modest adjustment after more than two decades would not deter most international travelers. The bill passed comfortably after months of budget consultation.

Acting Secretary for Financial Services and the Treasury Joseph Chan told lawmakers that the increase was expected to raise about HK$1.6 billion annually. He said the administration sought to balance its revenue needs with a limited effect on passengers.

The government's position is that an update was overdue because the tax had not changed since 2003. Officials expect little effect on total air traffic and point to the expanded exemptions as a way to encourage brief visits and make Hong Kong more attractive for transit passengers.

How the HK$200 tax compares with other markets

Departure taxes vary widely between countries, and most advanced economies impose them in some form. Comparisons discussed during Hong Kong's budget announcement put passenger taxes in the United States and Germany at roughly US$40 to US$42 on many itineraries.

Singapore's combined levies can exceed HK$300 per passenger. The United Kingdom's Air Passenger Duty can be much higher, particularly on journeys over long distances and in premium cabins. Against those examples, Hong Kong's HK$200 rate falls toward the lower middle of the range.

Each jurisdiction organizes its charges differently. A total may include airport development charges, security fees and passenger service fees, alongside a departure tax. Comparing the final amounts therefore requires looking at which charges are included and what type of journey is being booked.

Travelers rarely see a single equivalent item across all markets that allows a straightforward comparison. Governments and airlines consequently often describe the effect through the final ticket price rather than one tax component. Hong Kong officials argue that the updated rate remains modest by international standards.

The Greater Bay Area connection

Hong Kong International Airport competes with global aviation hubs and nearby airports serving the Greater Bay Area. The planned exemption for people arriving by land or sea is intended to support travelers from Guangdong and Macau who enter Hong Kong before catching a flight.

A passenger entering by road or ferry and departing by air within 48 hours would be able to seek an APDT refund under the expanded rules. The policy aims to keep connecting traffic flowing through the airport at Chek Lap Kok while encouraging visitors to spend some time in the city.

Short stopovers can bring business to hotels, restaurants and shops. Officials see wider exemptions as a way to allow that spending while reducing the tax cost of choosing Hong Kong for an onward journey.

For travelers already using Hong Kong as a connecting point, a visit lasting a day and a half would fit within the planned 48 hour limit. That creates room for a brief tour, meals or meetings before the next flight, provided the arrival and departure times meet the exemption rules.

Revenue needs meet an incomplete aviation recovery

Hong Kong International Airport handled 53.1 million passengers and 363,305 flight movements in 2024. In 2019, before the pandemic, it handled 71.5 million passengers and 419,730 movements.

The 2024 passenger total was therefore 18.4 million below the 2019 figure, or about 74 percent of that earlier level. Flight movements were 56,425 lower, reaching about 87 percent of the 2019 total. The figures show why the debate involves both public finances and the pace of aviation recovery.

The expected HK$1.6 billion in additional annual revenue is one part of the government's response to the roughly HK$87.2 billion deficit for 2024 to 2025. Other fee changes announced during the budget cycle include higher visa and application fees, which are forecast to raise hundreds of millions of dollars.

Paul Chan has said Hong Kong will retain a simple and low tax structure while taking targeted steps to strengthen its finances. The government has avoided broad new taxes and argues that users of particular public services and infrastructure should cover a larger share of costs after a long period without adjustments.

Officials describe departure taxation as a standard tool used in many countries. Their case is that the HK$80 increase, paired with broader exemptions, is unlikely to derail the recovery in flight volumes. Critics place greater weight on the extra cost for travelers comparing Hong Kong with competing airports.

Checks to make before booking or claiming

Most passengers will continue booking in the usual way because airlines collect the tax within the ticket price. The main practical questions are when the ticket is issued and whether the journey qualifies for an exemption.

Travelers can reduce surprises and prepare for a refund claim by checking the following:

• Confirm the ticket issue date. Tickets issued before October 1, 2025 retain the HK$120 rate, even for later flights.
• Keep boarding passes and electronic receipts for a planned stop of up to 48 hours before an onward flight.
• Review the taxes and fees on award bookings, which will reflect the HK$80 increase for newly issued tickets from October 1.
• Watch for the official refund portal and follow its claim instructions. Eligible refunds are not automatic.
• For journeys involving arrival by land or sea, check that the time from arrival to air departure is within 48 hours.

Passengers staying longer than the exemption window will generally face the higher tax if their tickets are issued from October 1. Those making an eligible short visit should be prepared to pay it initially and submit a claim after travel.

Key Points

• Hong Kong's Air Passenger Departure Tax rises from HK$120 to HK$200 for tickets issued on or after October 1, 2025.
• The roughly 67 percent increase is the first adjustment in 22 years and is expected to raise an additional HK$1.6 billion annually.
• Tickets issued before October 1 retain the HK$120 rate, even when passengers fly later.
• The tax generally applies to departing passengers aged 12 and older and is collected by airlines within the ticket price.
• Existing exemptions include children under 12, qualifying transit passengers who remain airside, and passengers arriving and departing by air on the same day.
• Planned exemptions extend to arrivals and departures by air within 48 hours, and land or sea arrivals followed by an air departure within 48 hours.
• A new online portal is planned for eligible refund claims after travel.
• Award bookings issued from October 1 will see the HK$80 increase in their cash taxes and fees.
• Officials expect limited effects on demand, while opponents warn about costs for travelers sensitive to price.
• The airport's 53.1 million passengers in 2024 remained below its 71.5 million passengers in 2019.