Latest news with #HongKongFederationofRestaurantsandRelatedTrades
RTHK
10 hours ago
- Business
- RTHK
Cut rents further to lift catering sector
Cut rents further to lift catering sector Simon Wong says visitors to Hong Kong are spending less. Photo: RTHK A catering sector representative on Saturday said rents will continue to be a challenge despite a recent reduction. Simon Wong, president of the Hong Kong Federation of Restaurants and Related Trades told a Commercial Radio programme that even though the SAR has been welcoming more tourists this year, business performance is worse than the pre-Covid period. This is because spending for each visitor has dropped by 20 percent. Noting that landlords have slashed rents by up to 15 percent on average in the past half-year – and even 30 percent in some districts – Wong expressed the hope that they would go down even further. "If there's so much empty space on the street, the landlords would feel that kind of pressure and they are willing to lower their rent at this moment. And I'm looking forward to more decrease in the rent because still the rents compared to other expenses are quite high," he told reporters. "Our operating expenses is comprised of rent, salaries and also food costs, and rental is one of the major expenses we encounter. So if the rent can go down by at least another 20 or 25 percent, it would help us a lot." Wong also noted that the phenomenon of Hongkongers heading north to spend is "irreversible", but he hopes that the government will expand multiple-entry visas to cover the entire Greater Bay Area, or even other mainland cities to help the catering sector. Meanwhile, Wong said he expects a campaign – which sees more than 3,800 restaurants offering discounts of up to 29 percent to celebrate the 28th anniversary of the SAR's establishment on July 1 –to boost business by up to 15 percent that day.
South China Morning Post
03-05-2025
- Business
- South China Morning Post
Hong Kong restaurants expect only small ‘golden week' gain despite tourist boom
Hong Kong's restaurants expect a modest 5 per cent rise in business at most during the ' golden week ' holiday despite visitor numbers increasing by a third over the first two days, as mainland Chinese tourists have tightened their purse strings, industry leaders have said. Advertisement Hong Kong welcomed 567,928 visitors on Thursday and Friday, the first two days of the Labour Day holiday that runs until May 5, a rise of 33 per cent compared with 425,776 over the same period last year. Immigration Department data showed that 195,875 visitors had entered the city on Saturday as of 4pm. That included 169,293 from the mainland, compared with 182,268 for the whole day last year. More than 298,000 Hong Kong residents departed for other destinations. Industry leaders attributed the rise in tourist numbers to the multi-entry visa scheme for Shenzhen residents and factors such as more promotion of Hong Kong across the border and the city featuring as a location on some mainland television shows. Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, estimated that the industry could only expect an overall 5 per cent rise in business despite the sharp increase in visitor numbers. Advertisement 'We can see large crowds in tourist hotspots such as Sai Kung, Tsim Sha Tsui and Mong Kok, with restaurants there getting better earnings,' he said.
South China Morning Post
18-04-2025
- Business
- South China Morning Post
Hong Kong restaurants brace for 25% drop in business due to Easter exodus
Hong Kong's restaurants are expecting business to fall by 25 per cent from usual levels this Easter weekend due to an exodus of residents, but some of the pain will be offset by an increase in the number of mainland Chinese customers, an industry leader has said. Advertisement The prediction on Friday came as Chief Executive John Lee Ka-chiu visited the fishing village of Tai O, where he offered assurances to businesses that he was determined to improve the economy. Crowds thronged border crossings as the four-day holiday began, with more than 656,000 outbound trips recorded on Friday. 'We can see that the number of people leaving Hong Kong far exceeds those coming in,' Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said. 'I predict a drop of 25 per cent in business compared to usual periods. 'However, this is not as bad as last year, which saw a drop in business of over 30 per cent.' Advertisement Wong said two factors would contribute to a slightly better performance this year: an increase in the number of mainland tourists visiting Hong Kong and a greater willingness among residents to spend. Business would be further helped by improved cooperation between the catering sector and shopping centres over promotions, which could boost footfall, he added.
South China Morning Post
14-04-2025
- Business
- South China Morning Post
Hong Kong restaurants to face 20% drop in business over Easter holiday: expert
Hong Kong restaurants can expect a 20 per cent drop in business during the coming Easter holiday, an industry leader has said, with the government estimating a 34 per cent increase of 6.04 million people entering and exiting the city's borders during the five-day period. Advertisement Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, told the Post on Monday that the decrease in business already took into account a 10 to 15 per cent increase in transactions based on last Easter, attributed to a rise in mainland Chinese visitors. 'Although there is no Easter holiday across the border, we do enjoy benefits from the new multiple-entry visa policy for Shenzhen residents to visit Hong Kong,' Wong said. 'Last year, the outflow of Hong Kong residents to the Greater Bay Area was extraordinarily high.' 'The drop [from normal business days] is due to the huge number of Hong Kong residents travelling, while visitors are spending less per person,' he added, conceding that those from the mainland were not spending as much as they used to. Earlier in the day, Wong told a radio programme that restaurants recorded a 20 per cent drop in business over the three-day weekend that started with the Ching Ming Festival earlier this month, which was more than the expected 15 per cent. Advertisement According to Wong, rents for restaurants have come down by about 10 per cent generally, which means that some businesses could reduce costs and cut prices for their dishes.
South China Morning Post
30-01-2025
- Business
- South China Morning Post
Hong Kong's Chinese restaurants welcome Lunar New Year with 10% income growth
Hong Kong's Chinese restaurants enjoyed a 10 per cent rise in business over the Lunar New Year holiday, driven by a boost in consumer spending spurred by festive events and an increase in mainland China visitors due to a revived multiple-entry visa scheme. Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said the catering industry expected to fetch about HK$1.2 billion (US$154 million) during the three days before the festive holiday. 'This year the industry has enjoyed a brisk business with a 10 per cent rise in income,' he said. 'Despite the trend of Hongkongers travelling overseas and heading north to spend, there are more mainland visitors coming to the city thanks to the multiple-entry visa scheme, leading to the warming up of spending sentiment. The scheme, which allows Shenzhen residents to make an unlimited number of visits to the city within a year to boost the city's economy, resumed on December 1. 'Also, with more festive events being organised, more locals are willing to dine out and spend. Actually, the industry has enjoyed a marked rise in business over the past two months as more Hongkongers are willing to stay out late.'
