Policy Address 2026: Hong Kong to relax licensing rules for island guesthouses, develop ‘ticket stub economy’

Hong Kong's leader, John Lee, outlined plans to relax licensing rules for guesthouses on the territory's outlying islands in his annual Policy Address speech. The chief executive stated that authorities will waive deed-of-mutual-covenant restrictions for guesthouse applications on properties with three storeys or less. This initiative is part of a series of measures to boost tourism in the city, as previously reported by local media.

Industry insiders had anticipated the policy to boost the number of guesthouses on outlying islands by 50 percent. Lee also revealed plans to develop a "ticket stub economy," which involves offering various discounts to visitors attending major events in Hong Kong to encourage them to extend their stay and spend more. The Hong Kong Tourism Board will link event organizers with relevant businesses to create a consumption chain from the event venue to the community.

Lee reaffirmed ongoing efforts to promote tourism, including developing the "yacht economy" and highlighting Hong Kong's "Muslim-friendly" status. Additionally, the Immigration Department will introduce an AI and facial recognition pilot scheme at the Hong Kong-Zhuhai-Macao Bridge port in December to streamline entry for cross-border vehicle travelers.

Lee also announced plans to expand a specialized tour guide licensing program to cover in-depth tours focused on Hong Kong's history and culture.