Fewer people are planning to eat out on the eve of the Lunar New Year, a restaurateur said. The bill per table is expected to be about HK$4,800 on the eve of the holiday down from HK$5,300 last year Hong Kong Federation of Restaurants and Related Trades chairman Simon Wong Ka-wo said.
He also described a drop in reservations as “alarming.”
Wong added: “We annually see an 8 to 10 percent increase in reservations, but this year we are seeing a drop of around 5 percent.
“This is due to a drop in consumption, with many consumers opting for cheaper meals.” Wong said owners have adopted a conservative approach in ordering their supplies after noticing that overall consumption has been affected by the mainland’s economic slowdown.
Association for Catering Services Management chairman Yeung Wai-sing feared that some restaurants may have to close as sales are expected to drop further after the holiday is over.
“This is likely to happen in April when the spring dinners of companies are over and the so-called off- season begins,” Yeung said. “I will not be surprised if some restaurants close down then.”
Hong Kong Inbound Tour Operators Association chairman Ricky Tse Kam-ting said the weaker economic outlook is also based on the 60 percent plunge in mainland tour groups for this Lunar New Year.
“This is the coldest year I have experienced in the industry. The figures might be shocking to you but the estimation is pretty conservative,” Tse said.
“We had around 400 to 500 groups in the past but only around 100 groups this year.”
The number of mainland arrivals was 45.62 million last year 2.9 percent lower compared with 2014, according to the Immigration Department. Many mainlanders are now heading for Japan and South Korea due to the exchange rate, while the younger ones prefer Europe, Tse said.
“Most of the visitors are middle-aged or older they have already visited Hong Kong and are looking for something new,” he said.
“Social media plays a big role with the younger generation. They see pictures and news about other countries and it is understandable that they want to go beyond [Hong Kong].”
A jewelry retailer also claimed that this is “the most difficult” year. Government data showed total retail sales in December last year dropped 6.1 percent, and the value of sales of jewelry, watches, clocks and valuable gifts shrunk 17 percent.
Jimmy Tang Kui-ming, chief of Prince Jewellery and Watch, expects sales in February to drop 20 percent from last year.
“The devaluation of the yuan, the stock market plunge and decreasing home prices are like a trio hitting the retail sector,” he said.
