On the 26th of last month around 4 p.m., in an alley in Hong Kong's Central district, even before the peak commuting hours, many diners were enjoying meals. Some restaurants recognized as 'best places to eat' by the Michelin Guide were already fully booked, and there were long lines in front of these establishments. A Hong Kong resident I met on the street noted, 'It is common to dine out day and night,' adding that 'it is also a common sight to see people dining out early in the morning.'
Hong Kong is emerging as a 'big player' in Asia's dining industry. The high degree of social participation among women and the high housing costs have led to a more developed dining culture compared to other Asian countries due to smaller kitchens. Hong Kong residents spend more than 60% of their monthly food expenses on dining out. Cindy Wong, head of the tourism and institutional sector at the Invest Hong Kong, said, 'On average, Hong Kong residents dine out 11 times a week.' This indicates they resolve more than half of their weekly meals through dining out.
As the dining culture has developed, Hong Kong has a high concentration of restaurants given its small area. Currently, there are over 17,000 restaurants operating in Hong Kong. Considering the population of Hong Kong is 7.5 million, there is approximately one restaurant for every 427 people. With the intense competition, the quality of food is also high. As of last year, there were 79 Michelin-starred restaurants in Hong Kong, with six, including 'The Chairman,' making it to Asia's 50 Best Restaurants.
Hong Kong's dining market has not always been flourishing. Due to the COVID-19 pandemic in 2020 and strict quarantine measures, the number of restaurants in Hong Kong sharply declined to around 15,000. That year, restaurant receipts in Hong Kong were about $10.2 billion (approximately 14 trillion won), a nearly 30% decrease compared to the previous year. However, the increased restaurant vacancy rates due to the pandemic led to a drop in rental prices, creating opportunities for the dining industry in Hong Kong post-pandemic.
Cindy Wong, head of the tourism and institutional sector at the Invest Hong Kong, stated, 'Depending on the location, restaurant rental prices have dropped by about 30% compared to before the pandemic,' adding, 'Typically, lease contracts are renewed every 3 to 5 years, but recently, some restaurants are signing leases for 10 years to maintain lower rental prices.' She further noted, 'Now is the right time for overseas corporations in the food and beverage sector to enter the Hong Kong market.'
Following the end of the pandemic, a surge of tourists from around the world is energizing Hong Kong's dining industry. Last year, about 45 million tourists visited Hong Kong. While this number does not reach the 65 million who arrived in 2018, it is nearly three times the 16 million from South Korea. Consequently, as of 2023, restaurant receipts in Hong Kong amounted to about $14 billion (approximately 20 trillion won), marking a 26.1% increase compared to the previous year. The same level was maintained last year.
As the dining industry in Hong Kong grows, corporations from mainland China are also entering the Hong Kong market. According to global real estate services firm JLL (Jones Lang LaSalle), in the first half of 2023, mainland Chinese companies accounted for only 18% of foreign food and beverage brands entering Hong Kong, but this figure increased to 33% in the first half of last year. Additionally, with the rising popularity of K-culture, more locals are seeking Korean cuisine, leading to a 2% increase in the proportion of Korean restaurants compared to the previous year.
The Hong Kong government is also striving to promote the growth of the dining industry. Various food and beverage-related exhibitions and fairs are indicative of this. Last month, an Asian vegetarian food fair was held in Hong Kong. Moreover, the Hong Kong government significantly revised the tax rate on high-alcohol beverages last year, reducing the tariff on alcoholic products with an alcohol content of 30% or higher and an import price of over 200 Hong Kong dollars (approximately 38,000 won) from 100% to 10%.