HK catering sector and retailers see sluggish business as HKers travel abroad over Easter holiday

Hong Kong’s catering sector and retailers have seen sluggish business over the Easter holiday, as Hong Kong saw over over 858k residents departing from the city.  

Simon Wong Ka Wo, president of the Hong Kong Federation of Restaurants and Related Trades (香港餐飲聯業協會) said on a RTHK programme on Monday that the outflow of people, equal to nearly 12% of the city’s 7.3 million population, had recorded about 15% to 20% drop in business, while only certain types of shops benefited from the return of tourists. 

Around 1.33 million Hong Kong residents travelled abroad from 6 to 9 April, he said. Although the catering business has recovered 80% to 90% since the relaxation of the pandemic restrictions and the daily business volume has reached HK$400 million, the overall business volume is estimated to drop to HK$230 to HK$250m after the relaxation of restrictions, there is a loss of at least HK$150m, or even as much as HK$170m.

“The decline is actually obvious. After the relaxation of pandemic restrictions (in December), businesses have actually recovered by 80% to 90%. But comparing levels in the past two months, there has been a 15% to 20% decrease. The impact is quite large." Wong said.

Don't miss: Hong Kong introduces measures to attract 200 family offices by 2025

Wong pointed out that even though there were still a large number of citizens staying in Hong Kong during the Easter holidays, their spending desire was not high. Meanwhile, many restaurants had to shorten their business hours due to decrease in sales, changes in people's dining habits, and insufficient manpower. He estimated that the distribution of consumption vouchers, which will be launched next week, will stimulate local consumption, and the number of mainland tourists will also further increase after June to improve business.

On the other hand, Hong Kong saw over 858k Hong Kong residents departing from Hong Kong from 7 April, while over 245k visitors arrived in the city, according to the official figures from the Immigration Department.

Join Content 360 - Hong Kong: Stories For A New Era where over 150 content marketers come together to shape the future.  Content 360 - Hong Kong is a must-attend conference that focuses on cutting-edge content trends, innovative creation techniques, strategies to customise your content for the newest marketing channels, and more. Don't miss out on this opportunity to elevate your content marketing game in Hong Kong! Tickets are on sale now, register today. https://conferences.marketing-interactive.com/content360-hk/

Related articles:

Hong Kong Ambassador Club set to strengthen investment partnerships in HK
Atome exits Hong Kong market after 3 years, refocuses in SEA business
Hong Kong introduces measures to attract 200 family offices by 2025
Hong Kong brands pay tribute to Cantopop legend Leslie Cheung with 'timeless' events