Economic rebound in Hong Kong Business Environment
Hong Kong’s economy has been hit hard by the COVID-19 pandemic, with the city experiencing its worst recession in decades. However, thanks to a combination of government policies, increased purchasing power, and a surge in traffic with mainland China, the city’s economy is showing signs of recovery.
The Hong Kong government has implemented a range of policies to support the economy during the pandemic. These include a series of relief measures for businesses and individuals, such as tax breaks, rental subsidies, and cash handouts. The government has also launched several initiatives to support the city’s key industries, such as tourism and retail.
One of the most significant government policies has been the introduction of the “LeaveHomeSafe” app, which allows individuals to check in and out of public venues using their smartphones to help trace potential COVID-19 cases. This has helped to reduce the spread of the virus, allowing businesses to reopen and the economy to gradually recover.
Accumulation of Purchasing Power
The COVID-19 pandemic has had a significant impact on consumer spending, with many people forced to tighten their belts due to job losses and economic uncertainty. However, as the situation has improved, Hong Kong residents have started to regain their confidence and purchasing power.
The government’s relief measures have helped to boost consumer spending, while the rollout of vaccines has also given people reassurance that the worst of the pandemic is over. This has led to a surge in retail sales, particularly in the luxury goods sector, which is a key driver of Hong Kong’s economy.
Increased Traffic with Mainland China
Hong Kong’s economy is closely linked to mainland China, with the city serving as a gateway to the Chinese market. The pandemic has disrupted this relationship, with borders closed and travel restrictions in place. However, as the situation has improved, travel between Hong Kong and mainland China has started to increase.
The Hong Kong government has introduced a range of measures to facilitate travel between the two regions, such as the introduction of a “health code” system that allows individuals to prove their COVID-19 status. This has helped to boost tourist numbers and support the city’s hospitality industry.
While the COVID-19 pandemic has had a significant impact on Hong Kong’s economy, the city is showing signs of recovery. Government policies, increased purchasing power, and a surge in traffic with mainland China have all played a role in this recovery. As the situation continues to improve, it is expected that Hong Kong’s economy will continue to rebound, providing a boost to businesses and residents alike.
The changes of catering services industry in Hong Kong after the pandemic.
One of the major changes that the catering services industry has experienced is the shift towards contactless payment and ordering systems. Many restaurants in Hong Kong have started using digital platforms and mobile apps for ordering and payment to minimize contact between customers and staff. This has not only helped to reduce the risk of transmission but has also improved efficiency and convenience for customers.
Another change is the implementation of health and safety measures to ensure the safety of customers and employees. Restaurants have increased their cleaning frequency and have implemented temperature checks and health declarations for customers and employees. Some restaurants have also installed air purifiers or improved their ventilation systems to improve indoor air quality.
Moreover, the pandemic has accelerated the trend of food delivery and takeaway services in Hong Kong. Restaurants have expanded their delivery services through online platforms such as Foodpanda, Deliveroo, and Uber Eats. Many restaurants have also created their own delivery systems, which have helped to reduce their reliance on third-party delivery platforms.
Additionally, the pandemic has led to a change in consumer behavior, with more people opting for healthier and more nutritious food options. Many restaurants have responded to this trend by offering healthier menu options, such as vegetarian or plant-based dishes, and promoting the use of locally-sourced ingredients.
Finally, the pandemic has also highlighted the importance of collaboration among industry players. Restaurants, delivery platforms, and food suppliers have collaborated to introduce new initiatives to support the industry, such as the launch of the “Dine and Save” scheme to encourage customers to dine out and the establishment of a food delivery alliance to provide support to smaller restaurants.
Overall, the catering services industry in Hong Kong has undergone significant changes in response to the pandemic. While the pandemic has presented challenges for the industry, it has also created opportunities for innovation and collaboration among industry players.
Unemployment rate and underemployment rate
Both the unemployment rate and the underemployment rate began to rise collectively from 12/2019. This is also the time when the epidemic began. The most serious of these are the construction and retail, accommodation and catering services industries.
This means that not only the number of unemployed people has increased, but even those who have a job are facing the dilemma of not having a job. Some employees still have salary income, but some employees have no income without starting work.
The emergence of the epidemic has reduced the profits of most companies. Many people are faced with unemployment and reduced income. Therefore, many companies have to delay the progress of the project. The citizens did not intend to decorate their homes in this environment. Project delays and business reductions naturally caused most employees to stagnate. Construction companies have reduced revenue and increased costs, so they will reduce costs through layoffs.
The rise in unemployment and underemployment rates in the retail, accommodation and catering services industries is predictable because they are directly affected by the epidemic. During the epidemic, the government’s anti-epidemic policies and citizens’ desire to buy directly hit the development of the industry. What is more interesting is that the unemployment rate of this industry, like other industries, does not fluctuate too much after 3/2020, but the underemployment rate has large fluctuations. It plummeted from 6.3% on 3/2020-5/2020 to 5% on 5/2020-7/2020, and then rose sharply to 6.3% on 7/2020-9/2020. Another similar drop occurred on 9/2020-11/2020. This may be because many of the occupations employed in these industries include part-time employees, such as part-time, speculation, etc. When the epidemic is severe, the number of customers will decrease, and the number of shop staff will naturally decrease, and vice versa.
Epidemic prevention measures
Business Mall has always attached great importance to the health and safety of customers, employees and their families. The new coronavirus epidemic continues to raging in Hong Kong. We immediately took the following measures to protect the health and safety of our colleagues and customers. 100% consultants The company has strengthened the following anti-epidemic measures:
Comprehensive cleaning and disinfection
- Complete cleaning and disinfection regularly, including thorough cleaning and disinfection of all facilities and tools
- Hire cleaning staff to clean the room with 1:99 bleach before each visit to enhance hygiene awareness
- Guests must wear masks
- Add temperature monitoring equipment to ensure that every customer and employee has a normal temperature before entering the company. If any respiratory infection or fever is found, you need to re-arrange a meeting date with the customer
- Provide alcohol handrub
- Place disinfection mats at the entrance and exit
- Employees must take their body temperature every day, and often use disinfectant handrub to clean their hands; wear surgical masks at all times; comprehensively strengthen employee personal hygiene, and strictly implement disinfection and cleaning guidelines
The company will continue to monitor developments closely and, if necessary, will introduce more measures to ensure the safety of customers and employees.
Sincerely thank you for your understanding and support!
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