Hong Kong lawmakers have described a new government proposal allowing up to 1,000 restaurants to welcome dogs as a “good step forward”, with one legislator calling it a “test case” for the pet economy.

Agriculture and fisheries sector lawmaker Chan Pok-chi said on Wednesday the measure struck a balance between the interests of the public and restaurant operators.

“This is the first time that [authorities] have loosened regulations in the past 30 or so years; I think it’s a proposal that responds to the demands of restaurants while balancing diners’ needs,” he told a radio programme.

The Environment and Ecology Bureau proposed on Tuesday that all licensed restaurants could apply to become dog-friendly premises, except those serving hotpot and barbecue due to “safety concerns”.

It suggested setting a quota of about 500 to 1,000 eateries – around 3 to 5 per cent of Hong Kong’s restaurants – in the first phase. Authorities would draw lots if applications exceeded the quota.

Chan noted that the government’s proposed quota would mean only a small proportion of the city’s thousands of eateries would be registered as dog-friendly, giving operators flexibility to determine how best to accommodate pets , while ensuring diners who did not like dogs still had plenty of options.

He added that the proposed rules – including prohibiting dogs from using utensils intended for customers and requiring them to be leashed or tied to a fixture at all times – would be acceptable to all parties.