Today (Dec. 24) is Christmas Eve, and many people are going out to enjoy festive dinners. Lan Kwai Fong Association Director, Ms. Chang, told the media that the overall market in Hong Kong is gradually recovering, though the pace is slower than expected.
She noted that consumers remain cautious in their spending. As a result, restaurants in Lan Kwai Fong continue to offer attractively priced Christmas set menus this year, with Christmas Eve specials starting from a discounted price of HK$588 (a 25% discount). "Such pricing was rarely seen before the pandemic," she remarked. Chang observed that many HK people have taken advantage of a nine-day holiday, leaving for overseas trips since last Saturday (Dec. 20). As of last night (Dec. 23), restaurants in Lan Kwai Fong reported a 70-80% reservation rate, and she expects the atmosphere to be livelier today, with more table bookings.
Festive atmosphere in Lan Kwai Fong draws more Western visitors
Chang further highlighted that in addition to mainland tourists, there has been a noticeable increase in visitors from Europe and the US, as well as from countries like South Korea and Thailand. This year, the Christmas atmosphere in Lan Kwai Fong is particularly vibrant. She also mentioned that bars and nightclubs in the area have invited world-class DJs to perform, creating a festive mood for partygoers. Tickets for Christmas parties and New Year countdown celebrations have been in high demand and are already sold out. "The lively atmosphere will carry on from Christmas into the New Year," she added.
According to Mr. Simon Wong, President of the Hong Kong Federation of Restaurants and Related Trades, restaurant business during this Christmas period has declined by about 10% compared to the same time last year. Both local residents and tourists are spending less per capita, with local consumer spending dropping by over 10% and tourist spending by nearly 20%. While the number of tourists remains considerable, economic challenges have limited the ability of restaurants to raise prices substantially. In fact, some restaurants are charging around 5% less than in previous years. He also noted that the recent Tai Po fire incident has dampened the public's festive mood, resulting in postponed gatherings and celebrations. Additionally, many residents have opted to travel abroad, putting further pressure on the local food and beverage industry, particularly on buffets.
Wong pointed out that mainland tourists, who do not have a Christmas holiday, may choose to visit HK over the weekend to experience the festive atmosphere. He hopes visitors from more distant regions will extend their stay in HK, which would help boost business. He also mentioned that the Island District, with its numerous celebrations, is likely to drive dining consumption in the area.
Hotel room rates surge, occupancy up by 10%
As for inbound tourists, Mr. David Leung, Founding President of the Hong Kong Guesthouse Association, revealed that a recent survey of about 100 member hotels in popular tourist areas such as Yau Tsim Mong and Causeway Bay showed an 8% increase in room bookings during this year's Christmas holiday compared to last year, with occupancy rates up by 10%. Room rates have risen by approximately 10-12%, with single rooms increasing from HK$340 last Christmas to about HK$380 this year, and double rooms rising from HK$480 to HK$550.
Leung explained that HK has actively organized large-scale events in recent years, coupled with the launch of new attractions and effective promotions, which have created a sense of novelty and boosted tourists' willingness to visit. This year, bookings were made earlier than usual, starting in October instead of November, reflecting tourists' anticipation of major events in HK.
"Concerts, exhibitions, and other large-scale events attract a significant number of visitors. Many choose to stay overnight, driving up hotel demand," he said. Leung emphasized that the events economy has had a notable impact on the hotel industry and the broader economy. He suggested that the government continue to promote large-scale events for at least three more years while maintaining strong publicity efforts to consolidate these gains.
Legislative Council member Leung Hei, whose family manages a hotel chain, stated that hotel prices have risen significantly in recent months, with room rates on Dec. 25 increasing by 7% year-on-year, and those on Jan. 1 surging by a staggering 88%. He attributed the Christmas price hike mainly to increased long-haul flights, with growing demand from European, American, and mainland travelers. The sharp rise in New Year's Day prices, on the other hand, was further boosted by a concert in HK by renowned mainland singer Zhou Shen.
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