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Zhaoqing is one of the most picturesque cities in the Greater Bay Area. Photo: Shutterstock

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
Hong Kong-owned hotels and restaurants across the border in Zhaoqing started the Year of the Ox on a successful note, with their facilities overrun by mainlanders, avoiding the fate of their counterparts here who endured a subdued holiday because of restrictions.
Entrepreneurs said their businesses in the Greater Bay Area city were buoyed after mainland authorities asked workers to stay where they work instead of travelling to their hometowns during the Lunar New Year, the most important festival of the year for the Chinese.

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.

Jack Wong Kam-ho, director of Perfect Construction Engineering (International), whose company has invested in Zhaoqing’s hospitality industry. Photo: Xiaomei Chen

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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“In Zhaoqing, we could do it as land and labour are much cheaper while the local government also supports Hong Kong businessmen to invest in the city.” 

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.

In August, Beijing approved a transport network project for the cities in the Greater Bay Area scheme. With an initial price tag of 474.1 billion yuan, these include a high-speed railway and urban transit network that will cover 4,700km within Guangdong province by 2025.

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.

It is expected that the transport facilities will bring more travellers to Zhaoqing. About 70 per cent of its roughly 15,000 sq km area is covered by scenic forests, lakes and rivers. The city is also known for its food, history and the picturesque Seven Star Crags and Dinghu Mountain.
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