The Hong Kong catering industry anticipates a 30 percent drop in business over the Easter holiday, with upscale restaurants suffering the most, according to Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants & Related Trades. He noted that high-end establishments could see declines of up to 50 percent.
Wong described the market as “very quiet” during a radio interview on the final day of the four-day holiday. Initial estimates suggested a 25 percent decrease in business, but the situation has worsened, largely due to Hongkongers opting to travel abroad and increased northbound consumption.
The lack of public holiday status for Easter in mainland China has contributed to a shortage of mainland tourists visiting Hong Kong. Wong emphasized that the trend of northbound consumption is becoming increasingly significant, leaving the industry pessimistic about its future.
Families traveling during the holiday typically represent a high-spending demographic, which has adversely affected mid-range and high-end restaurants, reporting declines of 40 to 50 percent. Conversely, tea restaurants and fast-food outlets have experienced more moderate decreases.
Wong also expressed concerns regarding the economic outlook, predicting continued challenges for the industry. He pointed out that traditional bustling areas like Yau Tsim Mong have seen fewer visitors, while event-hosting locations such as the West Kowloon Cultural District and Kai Tak Sports Park have attracted more foot traffic, resulting in better performance for restaurants in those areas. He believes that a diverse array of events could encourage residents to dine out and spend more.
