Part four of a four-part “economic clock” series looking at lunch time and dinner time spending. Parts one , two and three focus on New York City, Melbourne and Sydney, and London.
Hong Kong’s late economic reopening in December 2022 leaves its economy still in recovery mode in 2023. Restaurant receipts in the first half of 2023 are at 91% of levels in the first half of 2019, according to government data.
One way of breaking down that percentage is via restaurant type. For example, non-Chinese restaurants and fast-food restaurants lead with 101% and 99% while Chinese restaurants languish at 81%.
Another way is via restaurant location. That is the approach adopted here to help businesses and governments understand how hybrid work has reconfigured where and when people dine out.
Despite a strong return to office, hybrid work persists. A comparison of the first six months of 2023 with the annual average of 2022 and 2019 shows residential districts attracting a higher share of dining spending at the expense of business districts, such as Central and Western district, Wan Chai district and Eastern district, and of the popular dining district Yau Tsim Mong.
Cashless acceptance has also risen in residential districts with the pandemic prompting more affordable dining outlets to accept card payments.
Yet despite the clarity of the trend from business to residential, its impact should not be overstated. The actual rise in lunch time share for residential districts is somewhat understated since most workers have returned to the office. Central and Western district and Wan Chai district are both major business districts and together account for a quarter of total lunch time spending with respective shares of 20% and 5% across 2022 and 2023. They are followed by Yau Tsim Mong district, Eastern district and Kwai Tsing district with 13%, 11% and 9%. 1
Unlike lunch time, where the return to office influences shares of spending based on proximity to workplaces, dinner time should reflect shifting preferences more clearly.
During the first half of 2023, Sha Tin district saw the greatest increase in dinner time dining share of 1.4% relative to the rest of the economy. It was followed by Kwai Tsing district at 1.1% and Sai Kung district, Tai Po district and Yuen Long district, each at 0.8%. On the other end, the top three districts to fall out of favor were Eastern district at -1.7%, Yau Tsim Mong district at -1.2% and Tsuen Wan district at -1.1%.
The loss in share for Yau Tsim Mong district, a popular place for gatherings and tourists, may be the result of a lack of tourists as Hong Kong’s inbound tourism recovers. Meanwhile, Sai Kung district – known as the “back garden of Hong Kong” on account of its fishing villages, scenery, hiking trails and seafood restaurants – grew in popularity in both 2022 and 2023 relative to 2019 as Hong Kong residents embraced nature activities.
Hong Kong’s “hot spots”, where people gather on weekends, are clear from how a particular district’s share of spending relative to other districts rises sharply on weekends to outperform the rest of the week. These hot spots tend to be away from main business districts, which typically see a decline in footfall on weekends. Popular hot spots have broadly been consistent over 2019, 2022 and 2023. They include areas like Sai Kung district, Tai Po district, Yuen Long district, Tuen Mun district and Sha Tin district.
Meanwhile, some districts have seen a relative loss in dining popularity on weekends in 2022 and 2023 relative to 2019. This shift is reflected in a smaller increase in dining share attracted to the district on weekends versus weekdays, which occurs regardless of overall decreases in share across the whole week. These districts include Kowloon City district, Wong Tai Sin district, Tsuen Wan district and Sham Shui Po district.
The changing economic clock of Hong Kong provides a lesson for businesses and governments: as work becomes more hybrid, so does consumer behavior.
Businesses may need to recalibrate operations to align with new consumption patterns. New high-traffic days may call for higher turnover; a growing nighttime economy may call for expanded offerings.
Governments may need to rethink urban planning. Existing public infrastructure and services may not be able to accommodate the spread of economic activity beyond central business districts to residential and rural areas.
The change is not solely in when and where people work but in broader lifestyle shifts. By keeping pace with a city’s shifting economic rhythms, businesses and governments can better position themselves for the future.
To learn more about economic insights from the Mastercard Economics Institute , contact your Mastercard representative or request a demo. request a demo
Footnotes
1 Mastercard Economics Institute analysis of aggregated & anonymized switched volumes across Hong Kong till Q3 2023. Nominal Hong Kong dollars unadjusted for FX.
About the Mastercard Economics Institute
Mastercard Economics Institute launched in 2020 to analyze macroeconomic trends through the lens of the consumer. A team of economists, analysts and data scientists draws on Mastercard insights - including Mastercard SpendingPulse™ - and third-party data to deliver regular reporting on economic issues for key customers, partners and policymakers.
Disclaimer
© 2023 Mastercard International Incorporated. All rights reserved.
This Mastercard Economics Institute presentation (This "Presentation") and content or portions thereof may not be accessed, downloaded, copied, modified, distributed, used or published in any form or media, except as authorized by Mastercard. This presentation and content are intended solely as a research tool for informational purposes and not as investment advice or recommendations for any particular action or investment and should not be relied upon, in whole or in part, as the basis for decision-making or investment purposes. This presentation and content are not guaranteed as to accuracy and are provided on an "as is" basis to authorized users, who review and use this information at their own risk. This presentation and content, including estimated economic forecasts, simulations or scenarios from the Mastercard Economics Institute, do not in any way reflect expectations for (or actual) Mastercard operational or financial performance.