Restaurant receipts in Hong Kong shrink in 2019 for first time in 16 years
The results came as the city suffers its first annual recession in a decade.
Total restaurant receipts in Hong Kong declined by 5.9% in value terms, the first annual decline since 2003, as various sectors continue to be impacted by the novel coronavirus outbreak and ongoing political discord.
Data from the Census and Statistics Department (C&SD) revealed that total receipts of the restaurants sector was provisionally estimated at HK$112.5 billion, decreased by 5.9% in value and 8.0% in volume compared with the whole year of 2018. The provisional estimate of the total purchases of restaurants decreased by 5.1% to HK$36.1 billion over the same period.
Total receipts of Chinese restaurants were down by 10.0% in value and 12.1% in volume whilst total receipts of non-Chinese restaurants decreased by 6.4% in value and 8.3% in volume.
In contrast, total receipts of fast food shops increased by 1.9% in value and 0.1% in volume whilst total receipts of bars decreased by 9.0% in value and 10.7% in volume.
As for miscellaneous eating and drinking places, total receipts increased by 1.6% in value, but decreased by 1.7% in volume.
C&SD also showed that restaurant receipts in the fourth quarter of 2019 were provisionally estimated at HK$26.0 billion, having decreased by 14.3% over a year earlier. In their statement, the department said this is the largest fall since the outbreak of SARS in the second quarter of 2003.
Over the same period, the provisional estimate of the value of total purchases by restaurants dropped by 13.0% to HK$8.4 billion.
Netting out the effect of price changes over the same period, the provisional estimate of the volume of total restaurant receipts decreased by 16.0% in the fourth quarter of 2019 compared to the previous period.
Analysed by type of restaurant and comparing the fourth quarter of 2019 with the same period last year, total receipts of Chinese restaurants were the most hard hit, having decreased by 19.2% in value and 21.1% in volume.
Total receipts of non-Chinese restaurants dropped 15.1% in value and 16.6% in volume whilst total receipts of fast food shops decreased by 3.7% in value and 4.9% in volume.
Total receipts of bars, meanwhile, were down 14.5% in value and 17.4% in volume. Receipts for miscellaneous eating and drinking places decreased by 8.2% in value and 10.6% in volume.
Analysed by month, the value of total receipts of the restaurants sector decreased by 14.2%, 14.9% and 14.0% respectively in October, November and December 2019, compared with the corresponding months in 2018.
“[T]he food and beverage sector has been facing an even more difficult business environment recently due to the threat of the novel coronavirus infection. The outlook down the road depends critically on how the situation of the novel coronavirus infection will evolve. The Government will continue to monitor the developments closely,” the department said in their release.
