London Daily

Focus on the big picture.
Wednesday, May 13, 2026

Hong Kong’s businesses expect a joyless holiday season as Covid-19 rules bite

Hong Kong’s businesses expect a joyless holiday season as Covid-19 rules bite

Some operators uncertain how long they can remain viable, with catering industry predicting 80 per cent drop in revenue over usual take in December in a normal year.

Hong Kong businesses struggling to survive the fourth wave of the coronavirus are expecting to take a severe hit over the Christmas and New Year holiday season after the government extended social-distancing rules until January 6.

The catering industry is bracing for an estimated 80 per cent plunge in revenue compared to the traditional take in December during a normal year.

The businesses, from restaurants to bars and party rooms, are demanding immediate financial assistance from the government, fearing that many establishments will have no choice but shut for good.

“It will be a very, very severe hit to the food and beverage sector,” said Simon Wong Kit-lung, who runs almost 40 restaurants under the LH Group.


Restaurants have been banned from offering dine-in service after 6pm.


Secretary for Food and Health Professor Sophia Chan Siu-chee said on Monday that all social-distancing rules would be extended until January 6. The rules included a ban on dine-in service from 6pm, a two-person limit per restaurant table, and that restaurants can only operate at 50 per cent capacity. Other businesses such as bars, party rooms and fitness centres must remain closed.

Chan warned that many Hongkongers continued to go out to shopping centres and other places last weekend, despite calls from the authorities to stay home.

Hours after the announcement, health authorities said Hong Kong recorded 85 new coronavirus infections, 27 of them local transmissions that were untraceable. The new cases pushed the city’s Covid-19 tally to 8,237, with 131 related deaths.

Wong said the extension was expected, as the pandemic still showed no signs of easing. He expected the catering sector to suffer a 70 to 80 per cent drop in revenue for December compared to two years ago, before social unrest hit economic growth.

“To be honest, the amount of business we can do right now is only marginal, especially since restaurants have to close by 6pm,” he said.

The legislature on Monday passed a package of HK$6.4 billion (US$826 million) in Covid-19 relief funding for industries suffering from social-distancing restrictions, marking the fourth round of handouts.

Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said businesses urgently needed the subsidies and urged the government to disburse the HK$3.4 billion allocated to some 17,000 catering operators as soon as possible.

Wong estimated the catering sector could suffer a HK$8 billion decline in revenue for December as the tightened restrictions covered the peak season, compared to the HK$11 billion generated the year before.

“Business is down in the doldrums and in urgent need of a lifeline.”

He stressed that Chinese-style restaurants suffered the most this month, as they could not serve traditional round-table winter solstice dinners. Some larger chains and hotels introduced takeaway poon choi, a communal vegetable and meat dish typically served during the holiday, but Wong said such gimmicks were “not very popular”.

Manuel Palacio, co-founder and CEO of Pirata Group, said the chain of restaurants has launched a small selection of festive takeout menus, and would also offer all-day brunches from 11am until 6pm for the Christmas season.

“We did expect the extension and we believe it is the right thing to do to protect us all in Hong Kong over the long term,” Palacio said.

Wing Chin Chun-wing, vice-president of the Hong Kong Bar & Club Association, estimated that the industry would lose out on HK$4.5 billion if venues have to shut in December and the rest of January.

“Closing bars in January again is highly likely because the new variant of the coronavirus is much more contagious,” Chin said, referring to a mutated coronavirus strain that was discovered in Britain.

“It’s expected the government will extend these measures into next month.”

Chin also warned that with bars shut over the peak season, youngsters might visit unlicensed venues, which would result in an even higher risk of infection.

Cat Hou Chui-shan, chairwoman of the Bartenders and Mixologists Union, said that several bar owners were counting on the latest relief funding to survive the next month and would assess whether to close down for good. Bartenders on unpaid leave or in part-time positions had also shifted to food delivery to make ends meet, Hou said.

“We’re very frustrated with the government because they’re taking way too long to put an end to the coronavirus pandemic,” she said. “They keep closing venues but there have been so many loopholes that were not the fault of the bars or catering industry.”

Brian Chui Wai-ho, co-founder of party room booking platform ReUbird, said that large party venues, those measuring between 2,000 sq ft and 3,000 sq ft, had to close down because they could no longer afford to pay rent.

“I would say the entire offline event industry and also the venue industry has been impacted by the pandemic by leaps and bounds, probably suffering a 70 to 80 per cent decline,” Chui said.

Chui added the online booking platform, which had 350 venue partners before the pandemic, stopped taking reservations for party rooms and has been focusing on coordinating orders for celebration cakes, balloons and decorations instead.

Newsletter

Related Articles

0:00
0:00
Close
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
Kennedy’s Quiet War on Antidepressants Sparks Alarm Across America’s Medical Establishment
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
×