Hong Kong is set to introduce significant changes to its Air Passenger Departure Tax (APDT) in October 2025, offering expanded exemptions and adjusting tax rates to enhance the city’s airport competitiveness. Travelers passing through Hong Kong International Airport (HKIA) will soon benefit from more flexible tax policies that aim to make transit and short-stay travel more convenient and cost-effective.

Currently, certain passenger groups are already exempt from the departure tax, including children under 12, passengers on direct transit flights, and those arriving and departing on the same day. The upcoming amendments will substantially broaden these exemptions, creating more opportunities for travelers.

The most notable change involves passengers with slightly longer layovers or multi-modal travel. Starting October 1, 2025, individuals arriving by aircraft and departing within 48 hours—either on the arrival day or the following day—will be exempt from the departure tax. This provision extends even to passengers arriving through alternative means like the Hong Kong-Zhuhai-Macao Bridge or by ship, who then depart by aircraft within the same timeframe.

To prevent potential misuse, the government will implement an exclusionary provision targeting individuals attempting to exploit the new rules by making brief return trips between Hong Kong and neighboring regions solely to qualify for the exemption.

Alongside these expanded exemptions, the departure tax will increase from $120 to $200 per passenger. While this might seem like a significant jump, the government emphasizes that the increase remains minimal compared to overall travel expenses.

The potential impact of these changes is substantial. Based on 2024 projections, approximately 830 air transfer passengers and 2.5 million intermodal transfer passengers could benefit annually. This translates to an estimated $670 million in potential revenue foregone—a considerable investment aimed at attracting more travelers to HKIA.

The government’s strategy extends beyond tax considerations. By making transit through Hong Kong more attractive, officials hope to stimulate broader economic benefits. The expectation is that more transfer passengers will spend money on local accommodations, dining, and other services, creating a positive economic ripple effect.

Practical implementation will be managed by the Airport Authority, which will establish a centralized refund application process. A new e-application platform will allow eligible passengers to request refunds through various methods, including cash at the airport, credit cards, and electronic payment platforms.

The legislative process for these changes is already underway. The Air Passenger Departure Tax Ordinance (Amendment of Second Schedule) Order 2025 will be published in the Gazette on June 13 and presented to the Legislative Council on June 18, setting the stage for the October 1, 2025 implementation.

For travelers and travel industry professionals, these changes represent a thoughtful approach to making Hong Kong a more attractive transit destination. By balancing tax adjustments with passenger-friendly policies, the government demonstrates a nuanced understanding of modern travel dynamics and economic development strategies.

Travelers planning trips through Hong Kong in late 2025 and beyond should familiarize themselves with these new regulations to maximize potential savings and understand their eligibility for tax exemptions.