Hong Kong tourism in distress: retail and hotel bosses try to go digital

Staycations could not replace the more lucrative earnings from business travellers, conferences and wedding banquets.

Release time : 2020-08-07 10:51:54

source : China Travel News

Hong Kong Television Network’s HKTVmall is thriving and expecting an unaudited profit of at least HK$90 million (US$11.6 million) for January to June - its first time in the black, after chalking up accumulated losses of HK$1.7 billion since 2015.

Business boomed as stay-at-home Hongkongers switched to buying more online. It hired more than 260 full-timers since March, and started recruiting close to 200 more from May.

Run by entrepreneur Ricky Wong Wai-kay, the online mall is a rare bright spot in Hong Kong’s ravaged tourism, retail, and food and drink scene. Already hurt by last year’s anti-government protests, the sector has been devastated as the Covid-19 pandemic halted international air travels, keeping visitors away.

From tour agencies to hotels, shops and restaurants, 2020 is proving a struggle to reinvent their businesses, go online or risk going bust.

Online baking classes, anyone?

In June, the Hong Kong Tourism Board launched a “Holiday at Home” campaign, offering more than 10,000 deals online for dining, shopping and entertainment.

Change was forced on the Taiwan Good Travel Company, which previously thrived on taking groups of visitors around Hong Kong or leading tours abroad. At peak periods, its three full-time staff plus about 10 freelance guides ran more than 100 coach trips a month.

After travels ended abruptly, it switched in late June to offering tours designed for locals, and hosted about 400 people in 10 groups until Covid-19 cases surged again in mid-July.

One of its packages included a visit to a mask factory and a tour to take in the architecture around Tai Kwun, the arts centre in Central that used to be a police station. The fee of HK$98 per person included a meal.

Race to sell more online

The retail sector has seen a scramble to downsize physical operations and move towards e-commerce, as sales slumped by 33.3 per cent to HK$160.8 billion in the first half of this year.

Hong Kong Retail