Upscale restaurants in Hangzhou are struggling as government departments and state-owned companies cancel most year-end banquets after Beijing announced eight measures to fight corruption and cut government expenditures across the nation.
The year-end banquets are usually booked two months before the Spring Festival, however, all banquets booked by government departments in the city have been canceled, said a salesman at Zhijiang Hotel.
Five-star Zhejiang Narada Grand Hotel accepted reservations from government departments since August. Each booking was for 20 to 40 tables at 4,000 yuan (US$640) per table. However, nearly 20 such banquets had been canceled this month.
Some restaurants said sales are likely to drop 70 percent from the same period last year due to governments’ cutting costs.
Some privately owned companies also canceled year-end banquets. Ali Group canceled its banquets and gave employees cinema tickets instead on Wednesday.
Under the central government’s new measures, officials are forbidden from accepting gifts, government departments cannot hold extravagant parties, and flowers are forbidden for use at government meetings.
Source: Hangzhou International Center