London Daily

Focus on the big picture.
Wednesday, Oct 21, 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
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
×