The Economic Contribution of International Spirits in Hong Kong
Commissioned by
The European Chamber of Commerce in Hong Kong
Since fully reopening its borders in 2023, the Hong Kong government has aimed to attract international tourists and stimulate consumer spending in the hospitality and retail sectors. A key element of this strategy is providing a high-quality and diverse range of food and beverage options.
Commissioned by the European Chamber of Commerce in Hong Kong, this report by Oxford Economics examines the contribution of international spirits—an important component of Hong Kong’s tourism and hospitality offerings—to the economy.
The trend of “premiumisation” is shaping the recovery of these sectors, characterised by consumers increasingly opting for more expensive, higher-quality products. This report also explores the economic opportunities that premiumisation presents for Hong Kong.
Meanwhile, the current 100% ad valorem excise tax on spirits discourages premium consumption. In this report, we review studies from institutions like the World Health Organisation, which advocate for a shift to specific excise taxes based on volume or alcohol content, instead of value. Such taxes are more effective at discouraging excessive consumption and can support premiumisation by creating a more favourable market for high value products and services. It can also reduce administrative burdens, and lead to more stable tax revenues.
Our analysis suggests that international spirits contributed HKD 1.4 billion to Hong Kong’s GDP in 2023, supporting around 5,200 jobs and generating HKD 1.3 billion in tax revenues. Reforming the tax structure could further enhance the spirits industry’s economic benefits, bolstering Hong Kong’s position as a leading spirits hub in Asia and aiding the city’s recovery from the pandemic.
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Liam Cordingley
Lead Economist, Economic Impact
Hwee Shi Yong
Graduate Assistant Economist, Economic Impact
Contact Us
Tags:
More Economic Impact Reports
The Economics of Fare Negotiation
Oxford Economics conducted a study exploring the role of in-app fare negotiation in on-demand mobility, drawing on survey evidence from riders and drivers across seven emerging markets. The research examines how fare negotiation affects price discovery, efficiency and accessibility in on-demand transport.
Find Out More
The socioeconomic impacts of Urenco USA’s National Enrichment Facility, Eunice, New Mexico
The report focuses on the socioeconomic contribution of UUSA’s National Enrichment Facility in Eunice, New Mexico in 2024. It provides an assessment of the economic contribution the facility makes to the U.S. economy, as well as to the regional economies of New Mexico and Texas.
Find Out More
The economic impact of Sizewell C
Oxford Economics’ recent analysis for Sizewell C demonstrates the substantial economic boost that the Nationally Significant Infrastructure Project will make to the UK economy.
Find Out More
Economic Impact of Heweliusz in Poland
This study, commissioned by the Motion Picture Association (MPA), examines the five-episode Polish Netflix original limited series "Heweliusz" and analyzes its total economic impact in Poland during the 2024–2025 production period. The study also considers the broader effects of the series on the Polish economy.
Find Out More
