Hong Kong third wave: struggling catering sector calls for HK$8 billion government bailout as restaurant ban looms amid Covid-19 crisis

Union urges targeted help for employees, with more expected to take unpaid leave, instead of earlier subsidies keeping businesses afloat

Industry leader warns losses for August alone set to hit HK$7 billion

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Operators of Hong Kong eateries have said they cannot survive on takeaway orders alone. Photo: Reuters

Published: 8:00am, 28 Jul 2020Updated: 11:24am, 28 Jul 2020

Hong Kong’s struggling catering sector has called on the government to dish out HK$8 billion (US$1.03 billion) in handouts to rescue hard-hit restaurants, with a sweeping ban on dine-in services to take effect on Wednesday amid the coronavirus pandemic.

An industry leader warned that without further financial aid from the government, thousands of operators might go out of business. The sector is facing a loss of HK$7 billion in August alone, as the city battles a third wave of Covid-19 infections.

On Monday, the government imposed unprecedented social-distancing measures, banning daytime dining at restaurants. A nighttime ban was put in place two weeks ago and still ongoing.

This came as the city recorded yet another daily high of 145 confirmed infections, the sixth straight day with more than 100 cases, bringing the tally to 2,778. Of the latest infections, 142 were local, also a new high.

At a regular press briefing by the health authorities on Monday, Dr Chuang Shuk-kwan, head of the Centre for Health Protection’s communicable disease branch, said the new dine-in rules could stem the Covid-19 surge.

Eating and chatting together is risky as people spit and spray their saliva everywhere, which may contain the virus

Professor David Hui, government adviser

Professor David Hui Shu-cheong, a Chinese University respiratory medicine expert who advises the government, said the latest measure was grounded in scientific evidence, as recent Covid-19 cases showed a possible pattern of transmission during mask-off activities such as at meals.