RECYCLING CRISIS STAYING HOME HK recyclers struggle to survive amid curbs on Domestic tourism becomes popular on waste paper imports by overseas economies mainland as global travel restrictions stay > GBA2 > GBA3

GBAFriday, February 5, 2021 FOCUS EDITION | DAILY ‘Ox’ to give major cities a lift

Migrant cities seen to reap economic benefits as workers put off Lunar New Year home travel plans amid pandemic. Zhou Mo reports from Shenzhen.

t’s considered an enormous sacrifice for a worker on the Chinese mainland to give up joining in the annual Spring IFestival travel rush back to their hometowns to be with their families for the biggest traditional festival on the Chinese calendar. Lu Xin, who works for a semicon- ductor company in Shenzhen, did just that. After days of dithering, the 29-year-old decided not to return to Ganzhou in southeastern province and sought a refund for the high-speed train ticket she had bought for the journey on Feb 9. This year’s Spring Festival, which ushers in the Year of the Ox, starts on Feb 12. It’s the first time she won’t be spending the festival with her family since she began working in Shenzhen six years ago. “It’s better not to leave and be on the safe side,” said Lu, explaining that her chief concern is that she might not be able to return to work on time in case of a city lockdown as seen in Wuhan, Hubei province last year after the coronavirus pandemic broke out. Lu is among millions of migrant mainland workers who, by Chinese tradition, would return to their home- towns for the all-important family reunion dinner on Lunar New Year’s eve. However, amid a winter resur- gence of the pandemic, central and local governments have urged people to stay put to reduce the possibility of infections caused by mass population “We’re struggling with more fac- ber of consumers would have left movements, and many people have to tory workers departing these days,” Shenzhen. But this year, we expect put their plans on hold this year. said Lu Bin, president of Brothersbox our business to grow by more than New Year traditions on hold The Ministry of Transport has fore- Industrial, a Dongguan-based com- 20 percent compared with the previ- cast 1.7 billion passenger trips will be pany specializing in manufacturing ous average,” said Liu Hanqing, who made during this year’s Spring Festi- packaging, stationery products and runs a hotpot restaurant in the city’s By ZENG XINLAN in Hong Kong “drastically di¡ erent” from previ- the fi rst half of 2021,” Cheng said. val travel season — up more than 10 game-class toys. Nanshan district. The restaurant, [email protected] ous ones in consumer tra¦ c and He forecasts retail sales of 2021 to percent from the same period in 2020 After the central government like many others, for the fi rst time spending. “The retail sector will rebound by 15 percent to HK$376 — but still 40 percent lower than that unveiled measures to reduce the fl ow launched takeout dinners for Lunar Around this time every year, a remain challenging amid the lin- billion from last year, providing of pre-COVID 2019. of people during the Chinese New New Year’s Eve to cater to the chang- few days before the Lunar New gering impact of the pandemic, as that Hong Kong’s travel restrictions The change is expected to have a Year holidays, factory workers had ing consumption environment. Year, Jenny Wong and her husband, inbound tourism is unlikely to see are subsequently removed by the big impact on economic production chosen to leave for their hometowns In Guangzhou, nearly 30 percent Albert Wong, usually are packing a swift rebound in the near term,” third and fourth quarters. and consumption across the country, at a faster pace fearing they would of restaurants plan to o¡ er takeout for their cross-boundary trip to said Michael Cheng, Chinese main- Technology offers a beacon of especially in Guangdong province, be required to present negative COV- dinners for Lunar New Year’s Eve, Guangzhou for a family reunion land and Hong Kong consumer hope to the retailers who are still which has the largest migrant popula- ID-19 test reports and be subject to according to a local media report. — a typical trip for many Hong markets leader at PwC Asia Pacifi c, reeling from the heavy blow in sales tion nationwide. 14-day quarantine if they left after Over 30 percent of local catering Kong people. This year, however, in an interview with China Daily. during the pandemic. “A number Jan 28 when the travel rush began, enterprises said they will remain open the tradition has to give way to the Cheng predicted that Hong Kong of local e-commerce platforms To benefit production Lu said. during the holidays. pandemic-induced new normal. retail sales in January 2021 will have emerged successful in taking According to a report by Haitong “We’ve taken various measures Zhang Yi, chief executive of con- “It’s frustrating,” said Jenny shrink by 18 percent from Janu- advantage of increased online traf- Securities, the decrease in the number to make them stay. For example, we sultancy iiMedia Research, said, Wong, a retired administrator in ary 2020, while February sales will fic, social-commerce, and preva- of workers going home for Spring Fes- asked medical workers to come to the however, the reduced population her 70s, “I cannot go anywhere,” increase by more than a third com- lent trends of livestreaming,” Cheng tival will signifi cantly boost economic factory to conduct COVID-19 tests; we movement will have a limited impact citing the compulsory quarantine pared with the same period last said. He suggests businesses adapt production as businesses can resume told our workers the company would on the mainland’s overall consumer — lasting at least 14 days — on year, shortly after the pandemic to a changing consumer profi le and operations quicker than usual. pay for their tests. We also paid their market. the Chinese mainland to curb the fi rst struck the city, to HK$30 bil- establish closer relationships with Under such circumstances, the January wages in advance, but many “According to our recent survey, transmission of COVID-19. lion ($3.9 billion). “We expect a local customers through online added value of industrial output in still left. We now have less than one- nearly 80 percent of respondents Born and raised in Hong Kong, seasonal upsurge in shop tra¦ c as promotion campaigns and loyalty the fi rst two months of 2021 is pro- third of front-line workers at hand,” said they would like to consume dur- the Wongs are accustomed to visit- local consumers engage in festival programs. jected to grow by more than 40 per- he said. ing the holidays ing their mainland-based siblings shopping ahead and during Chi- Some are already taking such cent over the same period a year ago, As a result, Lu had to allocate the wherever they are. Therefore, a major with delicate Hong Kong pastries nese New Year,” Cheng said. “This action. Shopping malls across the report said. company’s o¦ ce sta¡ to the assem- change we expect to see is that part and dim sum to celebrate the Lunar would translate into a sales spike town, whether painted in auspi- Hoekiet Chong, general manager bly lines to help with the production of the previous consumption in the New Year. But this year, there is in the fi rst half of February and a cious hues or embellished with of Flex Power System (Dongguan), work. smaller cities or rural areas will be no holiday shopping. What’s more, relatively muted second half.” New Year-themed red balloons, are said over 70 percent of the company’s “Luckily, some of our overseas cli- transferred to the major cities this the Wong Tai Sin festival ceremony The consumption will be driv- marching toward the long-expected employees are expected to forego ents have postponed delivery of their year,” he said. and Che Kung Festival Fair have en mostly by local shoppers with spending spree from patrons with their home travel plans this year — orders due to soaring shipping costs. Tourist sites and hotels in and both been canceled because of the extra savings and pent-up demand all they have to o¡ er. “Local con- up 50 percent from previous years. This gives us time to think of solu- around major cities like Guangzhou coronavirus. accumulated from the long-curbed sumption will be the key contribu- The Dongguan-based manufactur- tions,” he said. and Shenzhen will see more visitors Without tourists from the physical shopping, Cheng said. tor for our malls,” said Fiona Shiu, ing plant of US electronics manu- Local governments in Guangdong as two-day trips will become a popu- mainland, family reunion din- “Hong Kong consumers have deputy director of retail (Hong facturer Flex International, which province have rolled out incentives to lar choice for those staying behind, ners and holiday-gift purchasing, been saving up over the past year Kong) at Swire Properties, which has more than 5,500 workers, mainly induce workers to stay put during the he added. Hong Kong, a shopping paradise, as various movement restrictions owns Pacifi c Place, Cityplaza, and produces electronics items. upcoming holidays. The incentives is embracing an unprecedented curbed physical spending such Citygate Outlets in Hong Kong. “We “The stay-put policy will allow us to include giving away red packets, free Contact the writer at Lunar New Year. as travel, gyms, and beauty. Some are seeing Chinese New Year cam- achieve the highest quarterly revenue tickets to places of entertainment and [email protected] The festival season will be have turned to the stock market paigns launched much earlier this this year compared with the same o¡ ering technical training subsidies. and benefi ted from the recent bull year, with more diverse o¡ erings quarter in previous years, generat- run, while interest rates remain and customer-centric approaches ing more than 30 percent additional To boost consumption at ultralow levels. The resulting — for example, providing personal- revenue,” said Chong. The usual scenes of empty streets wealth accumulation has, to some ized services that can help to drive “It will also help boost local con- and vacant homes in key migrant degree, increased purchasing pow- sales.” For some restaurants, “spe- sumer industries with more people cities during the Spring Festival are Models pose for er and created latent demand for cial Chinese New Year menus can celebrating the festive season in expected to change this year. Res- photos at the physical consumption as soon as be delivered right to your door,” Dongguan.” taurants, supermarkets and hotels Chinese New restriction measures eventually Shiu added. Year installations Flex Zhuhai campus, with more are upbeat about their business dur- ease up.” Despite a localized strategy and of Cityplaza than 14,000 employees, expects its ing the weeklong holidays, saying The Year of the Ox is unlikely to quick adaption to technology, in Quarry Bay. shower retailers with bullish senti- Shiu predicts that “the market will production capacity to grow by about the increase in the number of people This year’s 20 percent year-on-year during the staying behind will help boost local Spring Festival ment. “A lack of clarity about the remain challenging in the near festive holidays, with a projected 30 consumption. campaigns were resumption of inbound tourism, term”, citing a soft local consump- percent increase in manpower. “In previous years, our business launched much particularly from the mainland, tion sentiment and an internation- For many other businesses, how- during the Chinese New Year period earlier than usual. will put pressure on brick-and- al travel standstill being the main ever, it’s a di¡ erent story. was relatively bleak as a large num- PROVIDED TO CHINA DAILY mortar retailers, at least through factors.