Challenges Faced by Hong Kong's Hotel and Catering Industries During Mid-Autumn Festival

Issues Impacting Hong Kong's Hospitality Sector

Hong Kong's hotel and catering industries are facing a slump during the Mid-Autumn Festival, primarily due to the strong Hong Kong dollar, which has made the city less attractive to mainland Chinese tourists. The holiday period is only three days this year compared to last year's eight days, which compounded the challenges.

Price Adjustments and Occupancy Rates

Alan Chan Chung-yee, chief operations officer of the Miramar Group, stated that they had to cut room rates by 10 to 20 percent due to slow bookings. He emphasized the need to maintain occupancy rates, with the Tsim Sha Tsui hotel seeing about 85 percent occupancy, down from 92.7 percent last year. The hotel in Causeway Bay recorded a 95 percent occupancy rate with a 20 percent price reduction.

Factors like more countries offering visa-free entry are also playing a role in tourists' decisions, leading industry leaders to suggest elevating the Tsim Sha Tsui area as an entertainment hub.

Impact on Catering Industry

Michael Leung Chun-wah, chairman of the Association for Hong Kong Catering Services Management, reported a 10 to 15 percent decline in business for traditional Chinese restaurants. General spending has reduced, suggesting that the local economy is gloomy.

Concerns Over Tour Guide Practices

Annie Fonda, executive director of the Travel Industry Council, criticized unprofessional behavior from tour guides which could jeopardize the industry’s revival efforts post-pandemic.