Tourism and relevant industries are severely challenged by the volatility of the COVID epidemic. The HKSAR Government, the tourism industry, frontline workers and other stakeholders are all contributing their ideas, hoping to come out from the pandemic-stricken environment and win this battle with the coronavirus.
To reinvigorate the tourism industry, the Tourism Board is actively working to relaunch various mega events and on marketing and promotion initiatives. Hopefully, these actions could continuously generate a positive ambience in the local market and stimulate the economy.
Tommy Li: Consumption Vouchers Proven Effective
In response to the volatile COVID situation, the Government had issued electronic consumption vouchers earlier on to boost local consumption and to speed up Hong Kong’s economic recovery.
Tommy Li, Vice-chairman of the Chamber and Chairman of Pak Shing Tong Group, looked forward to the Government’s relaunch of the consumption voucher scheme to invigorate the retail market. “The electronic consumption vouchers issued earlier on achieved instant success. The whole retail market, including the dried seafood sector, recorded prominent growth. Sales are expected to increase by about 30%.”
With the array of anti-epidemic measures implemented, people are spending much more time at home. Li anticipated that luxury items such as premium dried seafood will enjoy notable sales performance if the number of COVID cases flattens. He commented with a smile, “More and more citizens are cooking at home. This will certainly trigger increased demand for food ingredients and other household goods. In other words, there will be stronger needs for quality dried seafood and other ingredients. I am optimistic about this year’s sales performance during traditional festivals.”
Diversifying sales platform development
As the epidemic normalizes, developing the brand’s own e-commerce shopping platform is a necessity. “We are targeting an audience that comprises various age groups and have allocated more resources on developing a personalized online shopping platform for the brand. It will tie in with different social media applications, and online influencers will help to with our direct sales promotion. Our products will become more visible to younger consumers and our market can be more diversified.”
Li thought that the normalization of COVID is going to be a temporary challenge. He believed there will be an increased demand for health supplements and similar products that could help boost immunity. He commented that nourishing health products and traditional Chinese medicines with conditioning efficacy are gaining popularity in recent years. They are expected to sell 20% more year-on-year.
Steady sales made possible by direct marketing in China
Affected by the epidemic, the Hong Kong-mainland border has been closed for an extended period. When cross-boundary travelling resumes, the market will take time to fully recover. “Government authorities should work with different sectors and actively demonstrate the effectiveness of our anti-epidemic measures to quickly regain public confidence. Doing so, more people would feel comfortable to leave their homes to shop and to travel across the borders.”
Pak Shing Tong has been collaborating with Mainland distributors and partners on direct sales and marketing activities in China while complying with Hong Kong’s legal requirements. Chinese Mainland consumers can save the time to visit Hong Kong and make purchases through direct sales. With COVID wreaking havoc around the globe, this collaboration model has also been normalized and continued to demonstrate its effectiveness. “Through our Mainland distributors and partners, our products are sold to the Mainland market directly. This channel is estimated to represent some 30-40% of our overseas sales.”
Many hands do make light work. As such, Li proposed to set up industry-specific platforms to converge the strengths of each sector for the mutual interest of the industry. This should cost less to build and operate than establishing separate platforms. Such a platform could encourage participants to showcase their signature products and to join up in overcoming current difficulties.
Chung Wai-ping: COVID Relief Offers Timely Help
The Government has recently announced the fifth round of Anti-epidemic Fund measures. Chung Wai-ping, Standing Committee Member of the Chamber and Chairman of Tao Heung Group, describes these measures as timely help for companies affected by COVID and its associated anti-epidemic measures. The relief could help companies mitigate funding pressure and lower the risk of making employees redundant.
Driven by the Government’s consumption vouchers and as COVID once came under control, the overall business volume and consumption sentiments in the market were steadily recovering and growing. “When the number of COVID cases in Hong Kong gradually went down at the end of last year, our restaurants were fully booked from December to mid-February. Yet, epidemic circumstances are volatile and unpredictable. When anti-virus measures are tightened, citizens will be less keen on dining out, and the catering industry will suffer.”
To strictly contain the spread of the coronavirus, the Government announced that the evening dine-in curfew and other social distancing measures. Chinese New Year flower markets and other large-scale events were all cancelled. Chung hoped that the Government and different sectors could work together to fight the epidemic, and that citizens can get vaccinated. The industry can only recover when everyone chipped in with virus prevention actions.
Steady promotion wins the day
Chung quoted the CGCC Club located at the Chamber as an example, noting that business over weekdays, on average, has dropped to only 10% of pre-COVID times. The evening dine-in ban was another strong blow to its business. “It is fortunate that the Government is responding much quicker this time. Subsidies are quickly discussed and reliefs 5.0 is launched swiftly. This is very helpful for our sector to weather through the difficult situation and to keep our people employed.”
To ensure a steady cashflow, promotion expenses and strategies must be implemented prudently. At present, the Group have new dishes and discounts rolled out every month to attract customers. Products are optimized and new dishes are introduced without price hikes this year. Tao Heung has now become the preferred choice for customers when they purchase seasonal products.
“Our member’s online platform just went live. Customers can now use an app to order takeaways.” The company is also closely observing leasing trends for expansion and to strengthen its brand image. For example, new restaurants are integrating cultural, art and technology concepts. AR-enabled history exhibitions and architectural style in ancient China are also featured such that customers will be treated with a completely new brand experience.
Optimistic about the prospects of Hong Kong style Cantonese cuisine
The food and beverage market of Hong Kong is a mature one. Yet, there is not much room for development. Growth potentials are however rather promising in the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area). “Hong Kong style Cantonese cuisine has its word-of-mouth publicity in the Mainland market. With more than 20 years of experience on tapping into the Mainland market, I am very confident with the Group’s future.”
The Group has founded the “Tao Heung Chinese Culinary Institute” in Dongguan two years ago. It was set up to nurture a talent pool for future expansion into the Greater Bay Area. Chung hoped that the Government could invest more resources on Chinese cuisine training, and to establish large and long-term training facilities and directions, so as to encourage young people to join the industry and inject vitality to the sector.
Jason Wong: Industry Players Keen on Relief Application
The tourism industry of Hong Kong is basically in hiatus following tightened anti-epidemic measures and the cancellation of all sizeable events last month. As a way to support the industry, the Government had rolled out the Travel Agents Incentive Scheme and the Green Lifestyle Local Tour Incentive Scheme in response to the situation and extended the application period for another a year to 21 March 2022.
Jason Wong, Committee Member of the Chamber and Honorary Consultant for Hong Kong Travel Industry Council, pointed out that the Travel Agents Incentive Scheme could rarely benefit the industry under current travelling restrictions. On the contrary, the Green Lifestyle Local Tour Incentive Scheme is very popular within the industry and has received many applications. Yet, as the deadline is approaching, Wong hoped the Government would extend the scheme and help the industry to overcome current difficulties.
The tourism industry is no longer as prosperous as pre-COVID times, Wong commented that while the industry is in a half-suspended state.
“An increased vaccination rate could accelerate the pace for customs clearance with nearby regions such as Guangdong province and Macao and promote cross-boundary travelling. Gradual resumption of travelling activities would give the tourism industry a much-needed boost.”
Tackling the future with prudence and promoting in-depth cultural tours
Hong Kong has a rich culture, as demonstrated by the successive opening of M+ and Hong Kong Palace Museum. As Wong noted, the special administrative region has a distinctive character in terms of its local customs. In the future, the tourism industry will join up with the Employees Retraining Board and other authorities and launch training programs on in-depth cultural tours that offer training allowances. These initiatives could on one hand encourage frontline practitioners to add value to their self-development, and on the other, provide some income relief.
Although the coronavirus has continued to cast its shadow over Hong Kong, Wong said, “As COVID-19 normalizes, our society and the public are stringently adhering to anti-virus protection measures while the development of technology and medication advances. The multi-prong set-up should help us overcome adversity.”
