Hong Kong stock market boom gives restaurants boost amid National Day ‘golden week’ holiday

Hong Kong’s recent stock market boom has given the local restaurant scene a boost in business, while the launch of mainland China’s “golden week” holiday has produced an uptick in occupancy levels at some small and medium-sized hotels, industry leaders have said.

They also said on Saturday that hotels were adapting to a change in booking patterns and offering stabler room tariffs as part of a strategy to entice customers.

The Hang Seng Index rose 10.2 per cent earlier this week on the back of a 13 per cent surge the week before, marking the biggest weekly rally in 26 years, after Beijing last month unveiled its most aggressive stimulus package to support the mainland’s flagging property and stock markets.

“Two weeks ago, my estimate for business in the food and beverage sector on October 1 was HK$280 million [US$36.1 million],” Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said.

The industry leader said he had adjusted his estimate to HK$300 million, matching last year’s figure.

“With the Hang Seng Index continuously going up, diners seem to be splashing out more or deciding to book to eat out at the last minute,” he said.

Wong added that the plethora of discounts offered by thousands of restaurants had helped, attracting visitors and also encouraging some residents to stay rather than spending their money across the border.