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Firms scrimp on year-end parties

Private companies have cut spending on year-end dinners and lucky draw prizes, industry professionals told the Taipei Times yesterday.

"Many companies have told me that their budgets for this year's year-end dinner was cut and ask if we can offer something cheaper," said Monica Feng (范慧齡), public-relations manager at the Asiaworld Plaza Hotel (環亞飯店).

Taiwanese firms traditionally hold year-end dinners and offer prize give-aways to thank employees for their effort. This year, most year-end dinners will take place in mid-January 2003, right before the start of Lunar New Year celebrations on Jan. 31.

She added that in order to meet customer needs, Asiaworld has decided to lower their basic 10 person banquet price from NT$12,000 per table to NT$10,000.

For decades, year-end dinners have been a cash cow for restaurants, according to Feng, with sales accounting for up to 30 percent of annual food and beverage sales.

Drinking is an integral part of the year-end shindigs.

"Sales generated from alcohol consumed in year-end dinners is usually triple that of regular banquets," she said.

Tight company budgets are forcing hotels to be flexible on prices.

"Companies can name their price and we will offer meals based on their budgets," said Daphne Wang (王金微), a deputy manager at Grand Formosa Regent Taipei (麗晶飯店).

She added that, generally speaking, high-tech firms are more generous with year-end dinners, spending on average about NT$2,500 per person, while traditional businesses fork out a more conservative NT$1,200 per person, on average.

The most economic year-end meal Grand Formosa offers is the tea-time buffet, priced at NT$350 per person.

"We provide a wide selection for companies planning to hold year-end dinners," she stressed.

Even though restaurants are trying their best to stimulate sales, the result may not be impressive.

"With many Taiwanese companies either cutting their work force or close their factories and moving to China, year-end dinner bookings are expected to decline this year," said Evelyn Kung (龔臻瑜), a marketing official at the Howard Plaza Hotel (福華飯店).

She added that, currently, this year's bookings are about 10 percent lower than last year.

However, another international hotel said they are expecting to see sales increase.

"As of today, our bookings are up 10 percent over last year," said Jackie Chang (張汝萍), a public relations official at Far Eastern Plaza Hotel (遠東飯店).

She explained that, due to last year's Sept. 11 attacks, many foreign companies cancelled year-end dinner banquets, while this year these companies will celebrate.

In addition to hotels, appliance retailers are also trying to cash in on the year-end celebration.

"We've selected and listed hundreds of electronics products for companies' year-end lucky draw shopping lists," said Eileen Shou (守寍寍), spokesperson of Tsann Kuen 3C (燦坤).

Knowing that most companies have cut their lucky draw budgets, the company decided to put more effort into marketing more affordable items.

She explained that, in previous years, lucky draw items priced below NT$2,000 usually accounted for about 50 percent of the total value of the prizes, while this year that percentage may go up to 60 percent.
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