Hong Kong’s July 1 celebrations to whet residents’ appetite with discounts at 1,000 food outlets, restaurants expect up to 20 per cent business boost
- Restaurant patrons will only have to pay 71 per cent of price on July 1 as part of wider celebrations to mark anniversary
- Food and catering sector hopes anniversary will deliver shot in arm, industry leader Simon Wong says
Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, told a radio show on Wednesday the drive was mutually raised by authorities and the industry to encourage residents to stay in the city and spend money.
He stressed most of the participating eateries would provide special offers with 29 per cent discounts on specific meal sets or dishes while keeping the original price of other menu items to maintain revenue.
“There are 17,000 restaurants in Hong Kong, if 10 per cent of them take part in providing discounts for residents, it helps create the festive and spending vibe,” Wong said.
“People tend to visit the Greater Bay Area for a short trip in the past during the July 1 holiday. We hope they will stay and also wish more mainland tourists will visit,” he added, echoing remarks made earlier to the Post on expectations the campaign would be a shot in the arm for the industry.
“A lot of locals have chosen to travel abroad over the past several public holidays, so it tends to be quite a difficult time for us. We look forward to these discounts giving us a boost,” Wong earlier said.
Southern district councillor Jonathan Leung Chun, who is also a spokesman for the Association of Restaurant Managers, said it was less about numbers and more about lifting spirits.
Leung said a variety of establishments – from coffee shops to large seafood restaurants – had agreed to take part, and that they were all free to present the 29 per cent discount in their preferred way.
“It could be for a single drink or a particular dish within a full meal,” he said.
Ray Chui Man-wai, chairman of Kam Kee Holdings, which runs 44 restaurants in the city, said his group would join the initiative by providing a 29 per cent discount on its signature tea set comprising deep fried chicken thigh and a red bean iced drink, charging HK$29 instead of HK$42 on July 1.
“We hope business will be boosted by 10 per cent over the July 1 weekend. We are still planning other special offers such as some dinner sets at HK$71,” said Chui, who is also president of the Institute of Dining Art.
Simon Wong Kit-lung, chairman of the Quality Tourism Services Association, said it was collaborating with several other catering industry associations to join the drive.
“Member restaurants can provide 29 per cent off drinks and meal sets for one day only on July 1, but details are still under discussion. We hope residents can enjoy a happy holiday,” Wong, who also chairs catering company LH Group, said.
A source close to the government said the celebratory activities might give consumption a boost.
The Post has contacted the Chief Executive’s Office for comment.
Economist Simon Lee Siu-po, an honorary fellow at the Asia-Pacific Institute of Business at Chinese University, said he did not think the discounts to be offered by restaurants could generate significant extra revenue.
“It is not cheap to dine out at any Hong Kong restaurants,” he said. “Many people may choose to travel and spend overseas.”
He pointed to an annual world competitiveness report released on Tuesday that ranked Hong Kong two notches lower at No 7 out of 64 economies in 2023 from a year ago, largely because of higher prices.
Nevertheless, the economist said it would be the first handover celebration without the shadow of the Covid-19 pandemic in several years, and it was expected to be filled with happiness.
Professor Terence Chong Tai-leung, executive director of Chinese University’s Lau Chor Tak Institute of Global Economics and Finance, also said the discount was more a gimmick given the catering industry was recovering quickly.
“If reducing prices can bring better business, restaurants should have done it themselves earlier. It’s just a gimmick without a boost in general spending. If the discount is only offered over just a few days, it will not have a big impact on business for the month,” Chong said.
“The main driving force for Hong Kong’s economy is tourism, not local residents. Providing discounts doesn’t necessarily keep people from travelling abroad during a short holiday,” he added.
Hong Kong’s last public holiday was Buddha’s Birthday on May 26. According to Immigration Department numbers, 877,298 residents left the city from May 24 to 26, while 835,116 people, including locals and visitors, entered.
Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, warned that the catering industry would still face pressure from outbound tourism.
“This means it will not be as competitive as before even if there are more full-house days at restaurants. The structural change in dining patterns will also continue to haunt the sector, as shown by earlier closing times now compared with a few years ago,” Ng said.
