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1. Hong Kong reinstates 3% tourism tax
Hong Kong reinstated a tourism tax of 3% on Jan. 1, reviving a tax it waived in 2008, according to the South China Morning Post. Travelers using the airport will also have to pay higher prices because of an increase in security fees.
Hong Kong’s financial secretary Paul Chan Mo-po said he predicted the tax would generate approximately 1.1 billion Hong Kong dollars ($142 million). He said the new tax would represent about 1% of a typical visitor’s spending. Hong Kong officials also said the tax was a great deal lower than the same tax in regional destinations such as Singapore, South Korea and Thailand.
2. UK 2024 hotel transaction volume reached almost £6B
Hotel transaction volume in the United Kingdom this past year more than doubled the 2023 figure, according to business advisory Savills, which said acquisition sales reached £5.75 billion ($7.19 billion) in 2024, the highest level of activity since 2018.
Regional hotel deal volume totaled £3.34 billion ($4.18 billion) in 2024, representing 58% of total volumes, Savills reports. This marks a 217% year-on-year increase and is 24% above the 10-year annual average.
The advisory firm said that “the resurgence in activity was largely driven by portfolio transactions, such as Blackstone’s acquisition of Village Hotel and KKR & Co. and Baupost Group’s purchase of 33 Marriott (International) hotels, which accounted for 55% of total investment volumes.” It said that in year-on-year terms, portfolio volumes grew by 582%, which reflected “subdued levels of activity seen in 2023. Even compared to the 10-year annual average, portfolio volumes in 2024 were 61% higher, highlighting the hotel market’s continued recovery.”
In mainland Europe in 2024, the notable transactions mostly involved single-asset hotels.
3. Vehicle explosion outside Las Vegas Trump hotel kills 1
An explosion of a rented Tesla Cybertruck outside the 1,300-room Trump International Hotel Las Vegas on New Year’s Day resulted in the death of one person, the Las Vegas Sun reports. Police said the vehicle contained gasoline canisters, camp fuel canisters and large fireworks mortars.
The driver of the vehicle, who has not been publicly identified, died in the explosion. Seven people sustained minor injuries.
Clark County officials said the vehicle had been rented in Colorado, and its sheriff, Kevin McMahill, said at approximately 8:40 a.m. local time, the driver “pulled up to the last entrance doors of the hotel. … We saw that smoke started showing from the vehicle, and then a large explosion from the truck occurred.”
Authorities are investigating whether this was an act of terrorism and if there are any ties to an attack in New Orleans the day before in which a man drove through a crowd of people celebrating New Year's, killing 15.
4. Breakfast items soar in price
The usual ingredients for a solid breakfast have soared in price and have become a focal point for the battle to rein in inflation, according to the Wall Street Journal.
The newspaper reports that coffee has increased 11.3% in price since 2023 and, in the same period, orange juice has increased 18.4% and a dozen eggs have increased in price by a yolk-busting 146.6%.
The WSJ added that in the same period, the price of bacon has fallen by 0.8% and the price of wheat has fallen by 3%, although the price of that commodity had been artificially high, it said, when “prices surged after Russia's 2022 invasion of Ukraine.” The newspaper said that global weather catastrophes also contributed to higher prices.
5. Pakistan’s PHDL announces company’s winding up
Karachi-based Pakistan Hotels Developers, which started life in 1979 as Taj Mahal Hotels — no connection to India’s Taj Mahal Hotels, part of Indian Hotels Co. — has announced it has been wound up at a Dec. 31 meeting of shareholders.
The firm was listed at the Pakistan Stock Exchange, and its only asset was the 411-room Regent Plaza Hotel & Convention Center in Karachi, Pakistan’s principal business center.
The decision to wind up the company was proposed to shareholders on Oct. 28. PHDL said that its book value on its final day of business amounted to approximately 1.52 billion Pakistani rupees ($5.44 million), and after the payment of all debts, an estimated surplus of approximately PKR1.46 billion. According to CoStar, the Regent Plaza hotel had been converted earlier in April 2024 into a health care facility.