SPECIAL ALLOWANCE FOR HOTEL REFURBISHMENT SCHEME

Mr Chuang Shaw Peng asked the Minister for Trade and Industry whether he will consider extending the Special Allowance for Hotel Refurbishment Scheme beyond the safeguarded hotel zones so as to encourage more hotels to upgrade during the current low occupancy period.

The Minister for Trade and Industry (Mr Lee Yock Suan): Mr Speaker, Sir, the Special Allowance for Hotel Refurbishment Scheme was introduced in July 1998 to incentivise the hotel industry to refurbish during the current economic downturn. It aims to upgrade these hotels to prepare for the upturn in tourist arrivals when the regional economies recover. Preference has been given to hotels in the safeguarded hotel zones because they cannot be converted into other uses.

Applications from gazetted hotels outside the safeguarded hotel zones can be considered on a case-by-case basis for tax allowance of up to 130% of qualifying expenditure as compared to the limit of 150% for hotels in the safeguarded hotel zone. The Singapore Tourism Board is currently processing two applications from hotels outside the safeguarded zones.