Following the city’s deadliest inferno in Tai Po, a wave of Christmas celebration cancellations has left party room and catering operators grappling with unprecedented declines in bookings, with some recording a 20 to 40 percent year-on-year drop in their revenue.
Hung, who runs two party rooms in Kwun Tong, noted a 20 percent decrease in December business compared to past years. He explained that December is usually a peak season for the industry, where they would receive one to two bookings daily throughout the month.
However, they reported five days with no reservations in December, even on Christmas Day.
“Frustration is widespread among operators, as even the normal bustling days from December 24 to 26 saw no bookings,” he said.
He added that one of their 1,200-square-foot venues, designed for larger gatherings, did not receive any bookings for groups of over 15 people this month, as several clients canceled shortly after the fire.
“The cancellations came swiftly, just two or three days after the incident. The fire not only impacted the victims but also the emotional well-being of others, particularly those more sensitive to the tragedy,” he said.
The cancellations have also taken a toll on the catering industry.
Leo, a catering company representative, said that while they processed at least 800 orders in the previous Christmas season, this year the orders were cut by half, leading to a 40 percent drop in overall revenue.
He said many clients, including large corporations and public institutions, canceled their year-end celebrations following the fire, and some customers even retracted orders after prepaying deposits just days before their events.
He noted the company usually received over 300 orders for catering packages serving more than 50 people. However, the number of orders plummeted to between 40 and 50 this year.
They had even imported 100 turkeys from the United States, but sold only about half. He said the company had hired 20 more chefs in anticipation of increased holiday orders, which ultimately led to wasted ingredients and labor costs.
While he understands the reasons behind the cancellations, he stressed that the catering industry relies heavily on seasonal demand, with Christmas accounting for nearly half of their annual revenue, expressing hopes for a turnaround next year.
