Govt, corporate banquet bookings decline by 30%

Shanghai's hotels and restaurants have taken 30 percent fewer reservations this year from companies and government agencies for end-of-the-year parties, the Shanghai Restaurants Cuisine Association said Monday.

Reservations from companies and government agencies have fallen in response to a government directive last year that ordered officials to avoid wasting public funds, said Jin Peihua, deputy secretary-general of the Shanghai Restaurants Cuisine Association.

The CPC Central Committee issued eight rules in December 2012 that instructed government officials stop splurging on extravagant banquets and meetings. The next month, hosts of government agencies and State-owned companies canceled hotel and restaurant bookings for Spring Festival's Eve.

Related businesses have seen something similar happen for the upcoming Spring Festival's Eve, which falls on January 30 next year.

Shanghai Xijie Public Relations Co, which organizes year-end parties, has received only one order from a State-owned company.

In the past, it has organized year-end parties for at least five government agencies or State-owned companies each year, said a company employee surnamed Luo.

And in this year's case, the client company has already reduced its budget for the party, said an employee surnamed Ma with Shanghai Xijie Public Relations Co.

The popular restaurant Shanghai Min has begun taking reservations for year-end parties from December 15 to February 15, said Zhu Xiaochao, a restaurant employee. Reservations have so far kept pace with last year's, but the restaurant hasn't received nearly as many bookings from government agencies and State-owned companies.

Nonetheless, the highly prized private rooms at the city's more popular restaurants have all been booked, Jin said. Half of the tables in the restaurants' dining rooms have also been booked.

A private room at the Shanghai Min restaurant in Changning district, which offers banquet dinners priced at more than 2,000 yuan ($328) per table, were booked up two weeks ago, an employee surnamed Wang told the Global Times.

Because Spring Festival's Eve has become such a popular day for dining out, most restaurants offer an early and late dinner to meet the rising demand. The early dinner runs from 4:30 pm to 6:45 pm. The late dinner runs from 7:30 pm to 9:45 pm.