A government plan released in last week’s budget to waive licence fees for restaurants, hawkers and restricted food permits for one year is unlikely to benefit consumers.
Nor will it provide a boost to Hong Kong’s struggling retail sector, which continues to see sales decline, according to business consultant Jack Chuang, a partner in OC&C Strategy Consultants.
He says Hong Kong tourism is not driven by food and beverage.
“Mainland tourists come to Hong Kong for the shopping and western visitors for the experience and the nightlife – so this policy will make little impact on either group,” said Chuang.
“Annual licence fees are relatively insignificant to restaurants, with the cost equivalent to less than a single employee’s monthly salary, starting as low as HK$ 2520 for premises under 100 sqms.
“Many businesses will simply maintain prices at existing levels and pocket the difference. Others will invest the small saving in the price, which will only stimulate marginal incremental business.”