Hong Kong hotels, tourist-area eateries report brisk trade over Lunar New Year

Hong Kong’s hotels and tourist-area restaurants have reported robust business during the Lunar New Year holiday, even as an increase in outbound travel by residents underscored the city’s increasingly visitor-driven festival economy. An industry leader said the city had also seen more mainland Chinese tourists this year partly because of worsening ties between China and Japan. Figures from the Immigration Department released on Thursday showed locals left the city in droves from February 13 to 18, with residents making 2.5 million journeys out, compared with 1 million tourist arrivals from the mainland and elsewhere. The number of outbound trips by Hongkongers over the six days was about 11 per cent higher than during the same period last year, while the number of incoming trips by visitors rose by 7 per cent. Despite the rise in visitor arrivals, the city still recorded a significant overall exodus, with the net outflow increasing by about 16 per cent year on year. Mainland arrivals increased, but the net inflow of visitors from over the border fell by about 20 per cent, indicating shorter stays. Despite these briefer stays, hoteliers reported strong business over the holiday. Miramar Group chief operations officer Alan Chan Chung-yee, who is also a lawmaker, said the occupancy rate at the company’s two hotels reached 90 per cent and 95 per cent respectively during the holiday period, with overall revenue increasing by 12 to 15 per cent year on year. Chan estimated that about 60 per cent of guests were from the mainland, with many arriving via high-speed rail. He said the longer Spring Festival holiday on the mainland, which lasted nine days this year, had boosted travel demand, with the proximity of Valentine’s Day to the festive period also attracting younger visitors. Chan also pointed to shifting regional travel patterns that were partly influenced by geopolitical currents. “Many flights from the mainland to Japan have been cut, and Hong Kong has become an important alternative destination to Japan,” he said, adding that some travellers also stopped over in Hong Kong for longer stays en route to the East Asian country. Relations between Beijing and Tokyo have deteriorated in recent months, prompting Chinese authorities to issue travel warnings and airlines to cancel large numbers of Japan-bound flights, diverting some outbound demand to nearby destinations including Hong Kong. A Sichuanese tourist named Jing who was travelling with her nine-year-old daughter, Apple Liu, said hotel room rates had doubled during the Lunar New Year period compared with her visit last summer, and she was paying about HK$2,000 (US$256) per night for accommodation. “I’m with my child, so we’re going to spend as we go, but I expect expenses to reach 20,000 to 30,000 yuan [HK$22,600 to HK$34,000],” Jing said of their seven-day stay. Jonathan Leung Chun, a catering sector lawmaker and vice-chairman of the Association of Restaurant Managers, said traditional Chinese restaurants enjoyed better business compared with last year, particularly for reunion dinners and bookings on the first few days of the break. Restaurants in popular tourism areas also benefited from increased foot traffic. “This year has actually been better than previous years … Besides mainland visitors, there have been more overseas tourists coming to Hong Kong,” he said, adding there was growing interest among international visitors in experiencing the festival atmosphere. However, the gains were not evenly distributed across the city’s districts, he added. While eateries in major tourist hotspots reported brisk business, restaurants in other neighbourhoods struggled to offset the departure of local customers during the long break. Mid-range restaurants in particular faced pressure as spending patterns shifted and diners gravitated towards establishments that were popular on social media. “You can see influencer-recommended restaurants with queues of 30 or 40 people outside, while nearby eateries may have no business at all,” Leung observed. He said the industry as a whole still needed better ideas to encourage visitors to stay longer and spend more, while creating stability for neighbourhood businesses during peak outbound travel periods. The government had earlier estimated that 11.38 million passengers would pass through Hong Kong’s sea, land and air control points from February 14 to 23. Authorities were counting on the city’s line-up of festivities, including the Lunar New Year parade on the first day, fireworks on the second day, Year of the Horse race day at the Sha Tin Racecourse on the third day and the Lunar New Year Cup on the fifth day, to encourage visitors to extend their stays.