Debt burden to fund Hong Kong’s airport expansion soars to HK$123b
The debt burden for construction of Hong Kong’s airport expansion has soared to HK$123b (US$15.7b), with no end in sight to a levy on passengers who fly out from the city. The Airport Authority said on Tuesday the total debt for the airport expansion work, expected to be completed this year, had jumped because of the impact of the coronavirus crisis. “There were significant increases due to the Covid pandemic … since the commissioning of the three-runway system will be introduced in phases, it is difficult to say when we can stop charging the related levies,” Julian Lee Pui-hang, the authority’s director of finance, told a Legislative Council panel.<br/> “We also expect it will still be a while before [passenger numbers] fully recover.” Lee was speaking after questions from Perry Yiu Pak-leung, a tourism sector lawmaker, who wanted to know when the authority would stop the special charges, introduced in 2016 to help fund the expansion of the airport. The “Airport Construction Fee” at present charges every passenger, including those transiting through Chek Lap Kok, between HK$70 and HK$180 a trip, depending on distance and seat class, and is collected as an extra fee when tickets are bought. Lee told lawmakers in 2022 that travellers were likely to continue to pay the tax until at least 2033, although he did not mention a date at Tuesday’s meeting. The airport’s HK$141.5b expansion project included a new 3.8km third runway, which came into service in 2022, a second terminal building opposite the present one, as well as another concourse.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-05-08/general/debt-burden-to-fund-hong-kong2019s-airport-expansion-soars-to-hk-123b
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Debt burden to fund Hong Kong’s airport expansion soars to HK$123b
The debt burden for construction of Hong Kong’s airport expansion has soared to HK$123b (US$15.7b), with no end in sight to a levy on passengers who fly out from the city. The Airport Authority said on Tuesday the total debt for the airport expansion work, expected to be completed this year, had jumped because of the impact of the coronavirus crisis. “There were significant increases due to the Covid pandemic … since the commissioning of the three-runway system will be introduced in phases, it is difficult to say when we can stop charging the related levies,” Julian Lee Pui-hang, the authority’s director of finance, told a Legislative Council panel.<br/> “We also expect it will still be a while before [passenger numbers] fully recover.” Lee was speaking after questions from Perry Yiu Pak-leung, a tourism sector lawmaker, who wanted to know when the authority would stop the special charges, introduced in 2016 to help fund the expansion of the airport. The “Airport Construction Fee” at present charges every passenger, including those transiting through Chek Lap Kok, between HK$70 and HK$180 a trip, depending on distance and seat class, and is collected as an extra fee when tickets are bought. Lee told lawmakers in 2022 that travellers were likely to continue to pay the tax until at least 2033, although he did not mention a date at Tuesday’s meeting. The airport’s HK$141.5b expansion project included a new 3.8km third runway, which came into service in 2022, a second terminal building opposite the present one, as well as another concourse.<br/>
