He estimated that cancellations had resulted in a 10 to 20 percent drop in business and government consumption compared with one year earlier.

Meanwhile, high-end restaurants that do not rely on government and SOE clients have been less affected.

Hilton Shanghai mainly receives orders from multinational companies, so the new cutbacks have had a negligible influence on its business, the company's PR Manager Angeline Huang told the Global Times Monday.

However, some restaurants, especially those at the local government liaison offices in Beijing, have benefited from cancellations at more swanky venues, as they offer better privacy, Beijing News reported Monday.