Restaurants Brace for Decreased Sales During Mid-Autumn Festival
As the Mid-Autumn Festival holiday approaches, restaurants in Hong Kong are bracing themselves for a potential decrease in business. Simon Wong, President of the Hong Kong Federation of Restaurants and Related Trades, anticipates a 10% drop in sales compared to the previous year. This decline is expected to result in a decrease from HK$280 million to HK$250 million in revenue for the sector during the festive period.
Wong attributes this anticipated decline to the changing habits of residents, who are increasingly opting to travel during the holiday instead of dining out in the city. He notes that many people are choosing to explore destinations both within and outside of Hong Kong, such as other cities in the Greater Bay Area and Southeast Asian countries. This shift in consumer behavior is likely to impact restaurant businesses, as families choose to celebrate the festival at home with their loved ones rather than dining out.
Impact of Travel Trends on Restaurant Business
The increase in travel during the Mid-Autumn Festival holiday is expected to have a significant impact on the restaurant sector in Hong Kong. Wong predicts that the number of residents leaving the city for vacation will surpass the number of incoming tourists, leading to a decrease in spending power within the local market. Additionally, he highlights that the spending habits of tourists visiting Hong Kong have also declined by 20% compared to the previous year, further contributing to the challenges faced by restaurants.
Furthermore, the rise in travel during the holiday season is likely to result in a decrease in foot traffic at restaurants, particularly in areas that are not popular tourist destinations. Wong emphasizes that the concentration of visitors at specific locations, such as the Wan Chai harbourfront where a drone show will be held, may divert business away from other areas in the city. This uneven distribution of tourists could exacerbate the financial strain on restaurants that rely on local customers for revenue.
Challenges and Opportunities for the Restaurant Sector
Despite the anticipated decrease in sales, Wong remains hopeful that the restaurant sector can overcome these challenges with the support of dynamic initiatives from the government. With the upcoming Policy Address from the chief executive, there is an opportunity for policies and programs to be introduced that can stimulate tourism and boost the local economy.
One such initiative is the Tourism Board’s decision to host a drone show at the Wan Chai harbourfront to celebrate the Mid-Autumn Festival. While Wong acknowledges that this event may attract crowds to specific areas like Tsim Sha Tsui, he believes that it may not be sufficient to revitalize the restaurant sector as a whole. To maximize the impact of such activities, Wong suggests that the government should consider implementing strategies that can drive traffic to various parts of the city and support businesses in different districts.
In conclusion, the restaurant sector in Hong Kong is preparing for a challenging Mid-Autumn Festival holiday, with expectations of decreased sales and changing consumer behavior. While the rise in travel may pose obstacles for restaurants, there are opportunities for the sector to thrive with the right support from the government and innovative strategies to attract tourists and locals alike. By adapting to the evolving landscape of the hospitality industry, restaurants can navigate these challenges and emerge stronger in the post-pandemic era.