The City's Endless Vigil: Is the Party Over with China's Tightening Grip?
Once a lively city that never slept, its vibrant streets now appear deserted as China tightens its grip Amid scattered patrons hopping from one empty bar to another, the party seems to be fading away
Sign up for CNN's newsletter Meanwhile in China to stay informed about the country's rapid growth and its global implications. While moving from one empty bar to another, it's difficult to comprehend that the lively streets they are meandering through were once bustling in Asia.
On Thursday evening, which is typically bustling, there is an absence of bustling crowds to navigate, no partygoers overflowing onto the sidewalks, and no need to wait for a table. In some of the stops along this subdued pub crawl, they find themselves alone in the establishment.
However, it wasn't always like this. Despite the current state depicted in this recent snapshot, it may be hard to believe that Hong Kong was once a prominent destination for nightlife in Asia. It was renowned for being a vibrant and energetic city that never slept, with its neon lights and a fusion of Eastern and Western cultures. Previously, the bars would be overflowing with patrons well into the early hours of the morning, even on weekdays.
In 1997, when Britain handed over control of Hong Kong to China, images of the event were broadcasted worldwide. To celebrate the new era, a 12-hour rave took place with notable performers such as Boy George, Grace Jones, Pete Tong, and Paul Oakenfold. China's message at the time was that despite the forthcoming changes, Hong Kong's "anything goes" spirit would remain intact. The city was promised a significant level of autonomy for the next 50 years and reassured that its Western influence could continue. As Deng Xiaoping, China's leader at the time, famously stated, "Horses will still run, stocks will still sizzle, and dancers will still dance."
The dancing in Hong Kong continued long after the British left, with the city retaining not just the capitalist spirit but also various freedoms that were nonexistent in the rest of China. These included not only the ability to gamble on horse races, as Deng mentioned, but also political freedoms such as freedom of the press, speech, and the right to protest. Even demands for greater democracy were accepted, at least for a period of time.
However, as the halfway mark of those 50 years approached, Deng's promise began to lose its meaning for many. Massive protests, starting with the opposition to the "patriotic education" legislation in 2012, followed by the Occupy Central movement in 2014 and pro-democracy demonstrations in 2019, prompted China to impose a comprehensive National Security Law that curtailed civil liberties. As a result, numerous pro-democracy figures have been imprisoned and tens of thousands of residents have chosen to leave the city.
That crackdown and the erosion of Hong Kong's freedoms have been extensively documented, but it is only in recent times that a lesser-known consequence of China's crackdown has become apparent: in the streets and bars, trendy clubs and Michelin-starred restaurants, the once vibrant city that never slept has started to experience a lull.
People gather outside a restaurant on a near-empty street in the Soho area of Hong Kong.
Noemi Cassanelli/CNN
Drying up
The city's nightlife, once a vibrant and renowned hub for regional recreation, has now faded into a dim reflection of its former glory. It was once celebrated for its ease of navigation, surpassing Japan, its lively atmosphere, surpassing Singapore's, and its freedom, surpassing mainland China.
Now, in correlation with the decline in political liberties, the business in the once-vibrant bars of the city is gradually declining. And although there is debate about whether politics or Covid is ultimately responsible, there is widespread agreement that corrective measures are necessary.
Official data reveals that bars generated approximately $88.9 million in the first half of 2023, displaying an 18% decrease compared to the $108.5 million earned during the corresponding period in 2019.
In an attempt to halt the decline, the Hong Kong government has initiated a "Night Vibes" campaign that includes bazaars at three waterfront locations, invested a significant amount of money in a recent fireworks display to commemorate China's National Day, and reintroduced a dragon dance, illuminated by incense sticks, in the neighborhood of Tai Hang.
These efforts have generated a combination of criticism and ridicule, as many have pointed out the irony of the campaigns' opening ceremony featuring two white lions - a color traditionally associated with funerals in Chinese culture. Additionally, the bazaars have been affected by a mixture of typhoons and security concerns regarding the use of fireworks.
Despite the controversy surrounding the events, Hong Kong's Chief Executive John Lee remains adamant that they were a success. He claims that over 100,000 people have visited the bazaars and that 460,000 tourists from mainland China flocked to the city for National Day. As for the white lions, officials described them as "fluorescent." According to a Hong Kong government spokesman, the activities have received positive feedback from both local residents and tourists. The recent Hong Kong Wine & Dine Festival attracted 140,000 attendees, and shopping malls supporting the Night Vibes campaign reported an increase in both visitor numbers and sales.
A man walks past a closed bar along a near-empty street in the Soho area of Hong Kong.
Noemi Cassanelli/CNN
Covid or crackdown?
Some blame Covid solely for the situation, stating that it has exacerbated the situation, as Gary Ng, an economist at the French investment bank Natixis, explains: "It is evident that the current circumstances are worse than previous times, and this can be attributed to the side effects of Covid, which have significantly altered our way of life."
Few can deny the impact that Covid has had. Throughout the pandemic, Hong Kong adopted a zero-tolerance approach, similar to that of mainland China, which, although not as severe, still caused a significant number of expatriates to leave and relocate to other Asian cities such as Singapore, Thailand, and Japan. Suddenly, Hong Kong, with its lengthy quarantine requirements for incoming travelers and restrictions on restaurant capacity, became dull in comparison to the vibrancy of Singapore.
Live music in small venues remained prohibited for over 650 days under Hong Kong's pandemic restrictions. However, there are individuals who argue that Hong Kong is unwilling to acknowledge a more profound issue with its nightlife, which extends beyond the influence of the pandemic. They question why Hong Kong has not experienced the same recovery as other locations.
The city's response to Covid should be viewed in the context of its eroding freedoms, according to these observers. Prior to the outbreak, China had been exerting more control over Hong Kong due to widespread pro-democracy protests.
It introduced restrictions on freedoms - such as of expression and of the press - which were supposedly guaranteed at the time of the handover.
In LAM TIN, KWUN TONG, CHINA on December 29, 2021, the office of Stand News was searched by 200 police officers who carried news material and evidence in blue plastic boxes. As a result of the political suppression, the editorial board members, editors, and pre-board member pop-singer Denis Ho were arrested during the raid of the Hong Kong independent news outlet. (Photo by Alex Chan Tsz Yuk/SOPA Images/LightRocket via Getty Images)
Alex Chan Tsz Yuk/SOPA Images/LightRocket/Getty Images
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Songs and slogans associated with the protests were prohibited, memories of past protests were erased from the internet, sensitive films were subjected to censorship, and newspaper editors were accused of sedition and collaborating with foreign entities. The government argues that enforcing these measures is crucial for Hong Kong to regain stability and prosperity while preventing interference by foreign powers, as claimed by China.
"We vehemently condemn and firmly dismiss the unsubstantiated assaults, defamations, and character assassinations directed at the HKSAR's commitment to safeguarding essential rights and freedoms in Hong Kong," a spokesperson stated in response to CNN, utilizing Hong Kong's official designation.
However, critics retaliate, arguing that none of these actions contribute to an environment conducive to relaxation, leisure, and casual conversation.
"People may feel compelled to exercise self-censorship during conversations at restaurants or bars due to the uncertainty of who might be listening. In order to feel a sense of security, they may opt to have these discussions within the confines of their homes," stated Benson Wong, a former associate professor with expertise in local politics. He reminisces about the days when he could freely engage in open discussions at dai pai dongs - outdoor food stalls known for serving Cantonese dishes and a generous supply of beer - where patrons would openly exchange conversations spanning from celebrity gossip to political matters.
Now though, he said, "one wont feel happy if they have to watch everything they say."
A man sits inside a bar in Lan Kwai Fong, Hong Kong's renowned nightlife hub.
Noemi Cassanelli/CNN
Where have all the drinkers gone?
Whether it was Covid or the crackdown, or some combination of the two, an exodus of middle-class Hong Kongers and affluent expats has taken place in recent years.
In the past year, the city experienced a net decrease of 60,000 residents, marking the third consecutive decline and resulting in a total of 7.19 million usual residents by the end of 2022. This represents a significant decrease of nearly 144,000 compared to the end of 2020. Many of these individuals are Hong Kongers who have seized the opportunity to apply for special visas and pursue paths to citizenship in Western countries like Britain, Canada, and Australia, following China's crackdown.
But there has been a continuous trickle of expatriates leaving the city, reminiscent of a post-colonial hangover, who had remained long after Britain's departure. These expatriates were primarily professionals in the finance and law sectors, known for their strong work ethic and penchant for partying, regardless of political circumstances.
Now, local media is flooded with news of banking and law firms shifting their offices, partially or completely, to competing financial centers like the now-thriving Singapore.
View of buildings from Victoria Peak in Hong Kong, China, on Thursday, Jan. 27, 2022.
Paul Yeung/Bloomberg/Getty Images
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Ng from Natixis mentioned that the departure of expats and Hong Kongers with a higher income will undoubtedly affect bar and restaurant owners, as these demographics constitute a significant portion of their customer base.
The proportion of people from mainland China replacing these two groups has increased, comprising over 70% of the 103,000 work or graduate visas granted since 2022, as reported by the Immigration Department. Economists highlight that this new dominant group of migrants have distinct spending habits. Yan Wai-hin, an economics lecturer at the Chinese University of Hong Kong, mentioned that the vibrant nightlife of the city was previously supported mainly by expats and middle-class locals who embraced the tradition of enjoying a cold drink after a tiring day.
"The makeup of the population is different now," Yan said. "Now we have more immigrants from the mainland, and they tend to love to go back to mainland China to spend instead."
âBusiness is challengingâ
In Hong Kong's renowned nightlife hub, Lan Kwai Fong, the music may be losing its vigor, but it hasn't ceased entirely. This district has always been associated with bustling streets packed with partygoers, spilling out from the bars while the air resonates with exuberant conversations, clinking glasses, and the pulsating beats of dance music that carry on well into the night.
But during a recent visit by CNN, there was little to distinguish the area from any other street.
People stand and drink in Lan Kwai Fong in 2017, back when the place was still pumping.
Billy H.C. Kwok/Getty Images
Richard Feldman, owner of the popular gay bar Petticoat Lane located at California Tower in Lan Kwai Fong, expressed that the current situation has been immensely difficult, and there is still a long way to go before things return to normal. Feldman, who has been part of the business community in the area for over thirty years, noted that there has been a slight improvement in business over the weekends compared to weekdays. Additionally, he observed that establishments with a strong reputation have experienced less impact.
However, he also mentioned that the presence of Western individuals was declining universally in a formerly popular spot for expatriates.
According to Becky Lam, another bar owner, "Previously, it was a combination of expats and local professionals who would gather for drinks and late-night dancing. However, this particular demographic has significantly decreased over the past year. Now, we are seeing an increase in mainland customers."
Lam, a co-founder of several bars and restaurants in Hong Kong, including the wine bar Shady Acres in Central, noted that mainland Chinese customers are more inclined towards restaurants than bars and generally prefer to end their night out earlier. Furthermore, she mentioned that during weekdays, her establishments have observed a decrease in customer numbers by half when compared to the pre-pandemic period.
"Theyll settle for the Happy Hours and thats it. We are not talking about 2 a.m. to 3 a.m.," she said.
Against all odds
There are other problems gnawing away at the nightlife sector.
"Peoples habits have changed since Covid, as many are so used to staying at home watching TV and Netflix," Feldman said.
During the pandemic, Hong Kong implemented a prolonged prohibition on bars and dine-in services in order to reduce social gatherings, which was perceived by many as a reflection of mainland China's "zero-Covid" approach. Consequently, shops and malls were impacted and adjusted their operating hours owing to the reduced number of customers. As a result, the modified hours have become the prevailing practice, with certain shops now closing as early as 9 p.m., contrasting with the pre-Covid norm of 10:30 p.m.
Lan Kwai Fong during its heyday in 2017
The city's nightlife is further hindered by the influence of a robust Hong Kong dollar in comparison to the Chinese yuan, impacting the spending habits of both local residents and potential tourists.
Marco Chan, head of research at real estate and investment firm CBRE, stated that individuals from the mainland are not as inclined to visit this area for shopping, whereas people in Hong Kong prefer going to Shenzhen to make their purchases. According to Chan, mainland tourists have become more cautious about traveling to Hong Kong, whereas many Hongkongers are choosing to spend their weekends in mainland China, where numerous services are available at significantly lower costs.
âIt was international, now its domesticâ
Allan Zeman, famously dubbed the "Godfather of Lan Kwai Fong," presents a more sanguine outlook compared to others, as he transformed the modest plaza in Hong Kong's Central district into a renowned hotspot for nightlife. He remains resolute that the business situation is not as dire as it may seem.
He estimates mainland Chinese customers now account for 35% of the patrons in Lan Kwai Fong and says they are big spenders.
Allan Zeman, chairman of Lan Kwai Fong Group, says mainland Chinese tourists are still spending generously.
Noemi Cassanelli/CNN
"They will visit upscale establishments such as the California Tower rooftop club, where they easily spend anywhere between 400,000 to 550,000 Hong Kong dollars ($51,000 to $70,000) on beverages alone," he explained optimistically. According to him, Hong Kong's robust currency and fewer incoming flights in comparison to the pre-Covid period are currently hindering the city's recovery. However, he remains confident that this situation is temporary."
Bar owner Lam believes that for Hong Kong to prosper again during the night, it must reassess its regulatory strategy. He highlighted the authorities' efforts in recent years to eliminate the city's iconic neon lights in the name of safety as an instance of the current misguided approach, expressing concern that Hong Kong's emblematic nighttime symbols are gradually disappearing.
According to Lam, she mentioned that her bar, Shady Acres, had received instructions to exclusively serve customers inside and close all doors and windows after 9 p.m., following its licensing regulations. Lam emphasized that facing such challenges is common in Hong Kong. However, she drew inspiration from neighboring cities such as Bangkok, Shanghai, and Taipei. Lam noted that these cities have vibrant nightlife scenes, characterized by late-night enjoyment through music, street art, and dining options.
Feldman, a resident of Petticoat Lane, put forward another idea. He expressed that Hong Kong was once a much more globalized hub, whereas presently it has become primarily focused on the domestic market. According to Feldman, the city should exert every effort to entice individuals not only from China but from all corners of the globe.
