Hong Kong-owned hotels, restaurants in Greater Bay Area city of Zhaoqing enjoy bullish start to Year of the Ox
- Hong Kong entrepreneurs said their businesses in Zhaoqing were buoyed after authorities asked workers to stay put instead of travelling to their hometowns during the Lunar New Year
- Businesses in Zhaoqing were boosted after the local government handed out 300 yuan to each resident staying back in the city for the holiday
According to an estimate by the Ministry of Commerce, some 48 million people were expected to stay where they work instead of travelling to their hometowns during the seven-day break, as usually is the case.
This was in sharp contrast to Hong Kong, where pubs and bars were closed, and restaurants operated with limited seating capacity, to control the fourth wave of the pandemic. The restrictions were partially lifted after many months on Thursday, after the end of the holiday.
Yuhao Hotel, a boutique property with 60 rooms near the Dinghu Mountain lake area in Zhaoqing, was fully booked for the duration of the holiday.
“With so many workers staying put in Guangdong, short trips to Zhaoqing were a popular choice,” said Jack Wong Kam-ho, director of Hong Kong-based Perfect Construction Engineering (International), which owns Yuhao Hotel.
Perfect Construction, which specialises in building renovation, was founded by Wong’s father Danny Wong Sing-lam, who hails from Zhaoqing. In 2008, the company expanded into the construction business in Zhaoqing. And in 2012 it expanded into the hospitality business and opened the hotel two years later.
The Wongs decided to build a boutique hotel targeting price-conscious travellers after noticing a gap in the market, as Zhaoqing then only had some luxury resorts and five-star hotels.
The family-owned business spent 20 million yuan (US$3 million) to build the hotel, including the cost of the land.
“It is practically impossible for us to invest in the hotel business in Hong Kong as the land and labour costs are so high,” Wong said, adding that the same investment would fetch an 800 square feet flat in Hong Kong’s city centre.
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Wong said that the investment has proved to be a success. “We have attracted many business travellers and locals who go to Zhaoqing to attend meetings, concerts, wedding banquets or sightseeing,” he said.
While the Covid-19 pandemic has prevented Wong from travelling to the mainland, his local staff of 12 have been running the hotel operations smoothly.
Another Hong Kong businessman, Kenny Leung Ka-lap, who has varied interests in Zhaoqing, including construction and food and drinks, reported flourishing business during the holiday.
“Our bar and wine business during the Lunar New Year holiday rose by more than 50 per cent compared to normal period,” Leung said in a telephone interview from Zhaoqing.
Leung had to shut his F&B operations in January last year after the government imposed sweeping lockdowns to contain the pandemic. Since resuming operations in May business has been strong, he added.
The Zhaoqing’s government cash incentive of 300 yuan for all residents plus other shopping coupons to encourage workers to stay in the city during the holiday helped businesses.
Leung said transport infrastructure projects, such as the high-speed rail, have helped to boost Zhaoqing’s tourism and catering industries. Although the high speed train linking Hong Kong and Zhaoqing started in July 2019, it has been suspended due to the pandemic.
The project aims at ensuring two-hour journey times to inland-level cities within Guangdong province, and three-hour journey times from major cities in Guangdong to the capitals of neighbouring provinces, according to the government announcement.