We opened our very first hotel in Asia in Hong Kong in 1989. This was really a big jump for us all the way across the Pacific Ocean. Many asked me why we didn't get there earlier and why it took so long. I said we had to get to San Francisco first as we were an East Coast company and it took a long time to cross the United States and even longer to get to China.
I recently returned from a 9-day trip to Asia and again visited the Hong Kong JW Marriott hotel. Each time, I’m impressed with the tremendous vitality and energy of this phenomenal city of Hong Kong.
To me, it is the pinnacle of free enterprise. In my opinion if all the world’s economies performed like Hong Kong the world would not be suffering its current economic malaise and difficulties.
On my recent visit I learned that Hong Kong is the world’s third largest financial center after New York and London. There are 1400 US firms located in Hong Kong and the U.S. trade surplus to Hong Kong is our largest.
When I talk to business leaders there in that wonderful city, they believe that Hong Kong thrives because the government is small, there is less regulation and, most importantly, taxes are very low.
For instance, there is no sales tax, no capital gain tax, no tax on dividends, and no VAT tax. Business profits tax is 16.5% compared with 35-40% in the United States. But now here’s the big deal – individual income tax is 15% maximum. Middle income families pay 5% or less in taxes. So is the city going broke? No. In fact, in 2011 the city did so well they gave a distribution of US $900 to every citizen.
Hong Kong growth is slowing this year – primarily due to lower growth in Europe and the U.S., their major trading partners. But unemployment was only 3.4% last year. And that really represents full employment. That compares, of course, to over 8% in America. Is this any way to run a country? Well, you can be the judge.
I’m Bill Marriott and thanks for helping me keep Marriott on the move.
Mr Marriott, I just returned from one of many trips to HK and over the course of 8 years, Ive stayed at practically every Marriott property. They are all wonderful in their own way.
Your comments regarding the US vs. HK economies are stop on.
I only wish you would expand to Panyu so I can stay in a Marriott property when I frequently travel there.
Posted by: Nina Brackeen | 09/29/2012 at 09:10 AM
Great blog!!!
Thank you for describing so well!!
Posted by: Daffeny | 08/08/2012 at 07:24 AM
Mr. Marriott, great blog! Wish Mr. Romney will follow Hong Kong's tax brackets. We do need a smaller government.
Posted by: Peggy Liu | 08/07/2012 at 12:00 PM
The total US Defense Budget in 2012 is $2,263 for every man, woman and Child vs $106 per person for China's Defense Budget.(based on most recent census info) Americans could all be paying a 15% personal income tax rates too if we cut our Defense(Offensive) Budget by 75%. What's your opinion on that Mr. Marriott?
Posted by: Mike Stern | 08/06/2012 at 12:00 AM
Great Post!
Often times I am amazed at how much "Rhetoric" surrounds the Discussion on Taxes.
You bring forth an Excellent Point and would do much to keep Companies from going abroad and in turn create more jobs in the U.S.
THANKS for "Keeping it Simple"!....Debbie
Posted by: Debbie Saviano | 08/02/2012 at 07:23 PM
I'm glad that you're expanding into Hong Kong even more than you already are. But, have you thought about putting a hotel or two in Winter Haven, FL? Legoland Florida just opened the main theme park back in October and is shattering expectations. They then opened a water park inside the park back on Memeorial Day weekend. Winter Haven is sorely lacking in hotel accommodations to house the visitors to the park. We only have a few nice chains and those hotels are small. There is land available in Winter Haven, FL for sale or lease that is on the Chain of Lakes and has a lot of waterfront access. Legoland is on the Chain of Lakes.
Just a suggestion. Thanks for reading this. Keep up the great work on expansion!
Posted by: Jeff and Amy | 08/01/2012 at 08:36 AM
Why is this site now hosting propaganda for the Republican party? The mere paragraph stating "But unemployment was only 3.4% last year. And that really represents full employment. That compares, of course, to over 8% in America. Is this any way to run a country? Well, you can be the judge." What are you all trying to say here? That President Obama is not doing a good job? He's the one who turned this economy around, and we owe him a debt of gratitude for doing so! You are NOT going to win any customers over by posting these kinds of comments in your blog. What do these types of comments have to do with running Marriott International? And after all, is this really Bill Marriott speaking? This doesn't seem like something he'd say.
Posted by: Concerned and Troubled Guest | 07/31/2012 at 08:30 PM
I completely agree! I used to work in Hong Kong for little over two years, and found that the low tax rate and high competition in all fields from finance to hospitality was a great template for a successful economy. Singapore has a similar structure, but Hong Kong really is the "New York of Asia", for no better comparison.
Posted by: Josh Cauchi | 07/31/2012 at 06:20 PM
Right on! Way too much gov't involvement and high taxes. This country needs to build up its industries and not force them overseas. I'm very concerned about manufacturing and other things the U.S. used to make being outsourced. If we don't continue to produce and innovate our quality of life will continue to decline. Our government has a vital role in setting the table for growth. That's what this election is all about. Sue.
Posted by: Sue | 07/31/2012 at 09:45 AM
I believe that Hong Kong will be the next movement of my career plan. Thank you very much Mr.Marriott for updating us.
Regards.
Posted by: safa ekincioglu | 07/31/2012 at 07:15 AM
I have had several opportunities to stay at the JW Marriott, Hong Kong. I recall the great Hong Kong Harbor view from my suite. The executive/ concierge lounge was well stocked with variety of excellent snacks. We enjoyed shopping in the area as well. Syed T. A. Naqvi, Platinum Emeritus.
Posted by: Syed T. A. Naqvi | 07/30/2012 at 05:37 PM
Hong Kong's capitalism is known as the freest in the world.
In the 80's it excelled in the service industries and in the 90's it became a finance centre. After British rule ended in 1997, it was agreed that the status quo would continue for another 50 years. What happens after that is anyone's guess. The future is uncertain.
Posted by: Shaer | 07/30/2012 at 04:51 PM