As well as tourists, Hong Kong is also struggling to attract and retain foreign residents and companies who have been exiting amid China’s tightening control. Beijing imposed a national security law on the region in 2020 that has been heavily criticised around the world and blamed for curbing democracy and free speech.
The territory has also suffered a blow from China’s economic slowdown, with fewer visitors from the mainland.
The bet on booze comes after Hong Kong successfully ditched wine duties in 2008 and established itself as an Asian wine trading hub.
The policy may also stem the flow of local residents travelling across the northern border to the Chinese city Shenzhen for dining out.
The attempt to encourage drinking comes as younger generations in rich countries increasingly turn their back on alcohol in favour of healthier lifestyles and amid squeezed finances.
In other measures to try to push growth, the government will also loosen mortgage rules to support the struggling real estate sector.
Hong Kong’s 100pc alcohol tax was one of the highest in the world. Research from Oxford Economics showed that Laos is one of the few countries with an even higher tax on spirits of 110pc. In mainland China, the rate is between 15 and 25pc.
Separate figures from the World Health Organisation show that taxes account for 89pc of the cost of a typical bottle of spirits in Norway, while in the UK it is typically 64pc.