Accommodation industry suffers 59.2% plunge in activity

Major service industries saw decreases of different magnitudes for 2020.

The accommodation sector suffered a 59.2% loss in business activity in 2020, according to the latest government census.

Major service industries, including accommodation, suffered a year-over-year decrease in business receipts with food services down by 29.4%, administrative and support services by 25.4%, retail by 24.3%, and transportation industry by 19.6%, according to the Census and Statistics Department.

Comparing Q4 2020 with the Q4 2019, larger decreases were recorded in business receipts of the accommodation services (-33.3%), administrative and support services (-26%), food services (-25.1%), banking (-12.2%), retail (-9%), and transportation (-6.5%) industries.

Meanwhile, double-digit increases were recorded in business receipts of the courier (+28.4%), financing (except banking) (+12.2%) and warehousing and storage (+11.5%) industries in 2020.

Comparing quarter on quarter against Q4 2019, the courier industry rose by 36.2%, real estate by 27.4%, warehousing and storage 27%, financing (except banking) by 17.6%, and insurance by 10.1% industries during the same period.

The government said the business environment, particularly for the consumer-facing service industries, is likely to remain challenging in the near term as the epidemic is yet to be fully contained and inbound tourism remains frozen.

“With the launch of the COVID-19 Vaccination Programme, the threat of the epidemic would be mitigated, providing the necessary conditions for a more solid and broad-based revival of economic activities in the second half of 2021. The government will continue to monitor the developments closely,” according to a press release.