Tourism sector to receive tax rebates in 2020

Property tax rebates of 30% will be given to hotels, serviced apartments and MICE venues.

Companies in the tourism sector will enjoy various tax rebates for 2020 in light of the economic effects of the COVID-19 outbreak, finance minister Heng Swee Keat said in the Budget 2020 speech.

In particular, 30% property tax rebates will be granted for the accommodation and function room components of licenced hotels and serviced apartments, as well as prescribed meetings, incentives, conventions and exhibition (MICE) venues.

International cruise and regional ferry terminals will receive 15% property tax rebates, whilst integrated resorts will have 10%.

Under the aviation sector, there will be rebates on aircraft landing and parking charges, and assistance to ground handling agents. Changi Airport will also be granted a 15% property tax rebate, and its shops and cargo agents will enjoy rental rebates.

Further, the government will be working with some financial institutions to roll out a Temporary Bridging Loan Programme for a year, with a loan quantum of up to $1m and interest rate capped at 5%. To provide more cash flow, the government will take 80% of the risk.

The government will also extend funding period for the reskilling of workers from these sectors, along with other sectors affected by the COVID-19 outbreak, from three months to a maximum of six months under the Adapt and Grow initiative.

“Together with the Jobs Support Scheme, we will support employers in these sectors to retain and train more than 330,000 local workers. These workers can make full use of the downtime for training and upskilling to prepare for their recovery,” Heng said.