Hong Kong's Restaurant Sector Faces Revenue Decline Amid Easter Exodus

Hong Kong's restaurant industry experienced a revenue drop of 6 to 7 percent over the Easter weekend, according to industry sources. This decline occurred despite a 15.4 percent increase in mainland Chinese tourists, who made 331,517 trips to the city during the holiday. The significant outflow of local residents, with over 2 million outbound trips recorded, overshadowed these gains. The Immigration Department reported that 2.12 million Hongkongers traveled abroad during the Easter break, marking a 14.34 percent increase compared to the previous year. This trend has become increasingly common during long weekends, leading to a reliance on major events and upcoming holidays for recovery.

South China Morning Post

Samme Cheng Pak-man, vice-chairman of the Institute of Dining Professionals, noted that the extended five-day public holiday this year encouraged more residents to leave the city. He stated, “Whenever there are three or more days of holiday, Hongkongers will travel abroad.” This shift in local travel habits, including frequent trips to Shenzhen, has become the "new normal," adversely affecting the local catering industry. Edward Leung Hei, chairman of the Hong Kong Feast and Retreat Association, echoed these sentiments, emphasizing that the food and beverage sector is struggling despite high hotel occupancy rates.

South China Morning Post

While local departures surged, the number of inbound visitors also increased. The Immigration Department recorded 411,972 visitors from mainland China during the first four days of the Easter break, a 16.13 percent rise from the previous year. Additionally, visitors from other regions grew by 1.79 percent. However, these increases were insufficient to counterbalance the impact of local residents traveling abroad.

South China Morning Post

Critics argue that the ongoing trend of local residents prioritizing travel over dining out is detrimental to the restaurant sector. The reliance on inbound tourism to sustain business is seen as precarious, especially when local travel habits continue to shift. Industry leaders are calling for strategies to adapt to these changing dynamics, emphasizing the need for innovative approaches to attract both local and tourist patronage.

South China Morning Post

Industry representatives have expressed concern over the implications of these travel trends on the local economy. They are advocating for measures to enhance the appeal of local dining experiences, particularly during peak travel seasons. The focus remains on leveraging upcoming events, such as the Labour Day "golden week," to stimulate recovery in the food and beverage sector.

South China Morning Post

• “Whenever there are three or more days of holiday, Hongkongers will travel abroad.” — Samme Cheng Pak-man, Vice-chairman, Institute of Dining Professionals

South China Morning Post

• “Edward Leung Hei, chairman of the Hong Kong Feast and Retreat Association and a former lawmaker, said that the F&B sector was struggling despite the high occupancy rate among local hotels.” — Edward Leung Hei, Chairman, Hong Kong Feast and Retreat Association

South China Morning Post

As the restaurant industry grapples with these challenges, the future remains uncertain, hinging on the ability to adapt to evolving consumer behaviors and preferences.

South China Morning Post