This city never slept. But with China tightening its grip, is the party over?

As patrons move from one nearly empty bar to another, it’s difficult to imagine that the sparsely populated streets they traverse were once among the liveliest in Asia.

This is a Thursday evening, typically a bustling night, but there are no crowds to navigate, no partygoers overflowing onto the sidewalks, and no need for reservations. In some of the stops on this subdued bar crawl, they find themselves as the sole occupants of the room.

However, it wasn’t always like this. Despite the current snapshot, Hong Kong was once a prominent hub in Asia’s nightlife scene. It was renowned for its vibrant, neon-lit cityscape that never slept, where Eastern and Western cultures converged, and bars buzzed with activity well into the early hours, even on weekdays.

Such scenes were widely broadcast in 1997 when Britain handed over sovereignty of its prized former colony to China. Locals and visitors alike celebrated the new era with a 12-hour rave featuring renowned artists like Boy George, Grace Jones, Pete Tong, and Paul Oakenfold.

At that time, China conveyed the message that while change was coming to Hong Kong, its “anything goes” spirit would endure. The city was promised a high degree of autonomy for the next 50 years and was assured that its Western-style freedoms would remain intact. As Deng Xiaoping, China’s then leader, put it, “Horses will still run, stocks will still sizzle, and dancers will still dance.”

For many years after the British departure, the dancing did indeed continue. Hong Kong not only retained its capitalist spirit but also enjoyed a range of freedoms unheard of in mainland China, including political freedoms like freedom of the press, speech, and the right to protest. Even calls for greater democracy were tolerated, at least for a while.

However, just over halfway into those 50 years, Deng’s promise now feels empty to many. Periods of mass protests in 2012 against “patriotic education” legislation, the Occupy Central movement in 2014, and pro-democracy protests in 2019 prompted China to impose the far-reaching National Security Law, severely restricting civil liberties. Hundreds of pro-democracy activists have been imprisoned, and tens of thousands of residents have chosen to leave.

The crackdown and the erosion of freedoms in Hong Kong have been extensively covered, but more recently, a less-reported consequence of China’s tightening grip has come to light: in the streets, bars, trendy clubs, and Michelin-starred restaurants, the city that used to stay awake around the clock has started to doze off.

Fading away

The city’s nightlife has significantly dwindled from its heyday when it served as a regional hub for leisure and entertainment. Hong Kong was known for being more accessible than Japan, livelier than Singapore, and more open than mainland China.

Now, in what appears to be parallel with the erosion of political freedoms, the once-thriving bar business in the city is facing a downturn. While some debate whether politics or the COVID-19 pandemic is to blame, there is a consensus that action is needed.

Official data indicates that bars earned approximately $88.9 million in the first half of 2023, which is 18% less than the $108.5 million generated during the same period in 2019.

To address this decline, the Hong Kong government has launched a “Night Vibes” campaign, featuring bazaars at three waterfront locations, organizing a lavish fireworks display to celebrate China’s National Day, and reintroducing a dragon dance lit with incense sticks in the Tai Hang neighborhood.

These efforts have received a mix of criticism and mockery, with some highlighting the irony of the campaign’s opening ceremony featuring two white lions, a color traditionally associated with funerals in Chinese culture. The bazaars have also faced interruptions due to typhoons and security concerns related to the use of fireworks.

Nonetheless, Hong Kong’s Chief Executive John Lee asserts that these events have been successful, citing that at least 100,000 people visited the bazaars, and 460,000 mainland Chinese tourists came for National Day. Regarding the white lions, officials claim they were “fluorescent.”

A spokesman for the Hong Kong government told CNN that these activities have been “well-received by local residents and tourists.” Furthermore, a recent Hong Kong Wine & Dine Festival attracted 140,000 patrons, and shopping malls participating in the Night Vibes campaign reported increased visitor flow and turnover.

Covid or crackdown?

There are those who attribute the decline in Hong Kong’s nightlife solely to the COVID-19 pandemic.

“It’s obvious that it’s worse than before. This is the side effect of Covid, which has changed the way of life,” said Gary Ng, an economist with French investment bank Natixis.

Certainly, COVID-19 had a significant impact. During the pandemic, Hong Kong adopted a zero-tolerance approach, similar to mainland China’s, though not as extreme. This approach led many expatriates to leave Hong Kong and seek refuge in other Asian cities like Singapore, Thailand, and Japan. Hong Kong’s stringent quarantine requirements for incoming travelers and restrictions on restaurant capacity made it seem less appealing, while Singapore, by comparison, appeared more vibrant.

Hong Kong’s pandemic restrictions also had a detrimental effect on its nightlife. For over 650 days, live music was nearly banned in small venues.

However, some argue that Hong Kong is not acknowledging deeper issues that have been affecting its nightlife, which predate the pandemic. They point out that other places have managed to recover from the pandemic’s impact, so why not Hong Kong?

These observers believe that Hong Kong’s response to COVID-19 should be seen in the context of the city’s ongoing erosion of freedoms. Prior to the emergence of the virus, China had been tightening its control over Hong Kong in response to pro-democracy protests that had swept across the city. The introduction of restrictions on freedoms such as freedom of expression and freedom of the press, which were supposedly guaranteed at the time of the handover from Britain to China, has contributed to the challenges faced by Hong Kong’s nightlife.

Songs and slogans associated with the protests have been banned, and any references to past protests have been scrubbed from the internet. Sensitive films have been subjected to censorship, and newspaper editors have faced charges of sedition and colluding with foreign forces.

The government argues that these legal measures are necessary to restore stability and prosperity in Hong Kong and to prevent what China perceives as interference from “foreign forces” in the city.

In response to criticism, a government spokesperson stated that they strongly disapprove of and reject groundless attacks and accusations against Hong Kong’s protection of fundamental rights and freedoms.

However, critics argue that these measures create an atmosphere where people feel the need to self-censor when having conversations in restaurants or bars because they are unsure who might be listening. This, in turn, discourages people from socializing freely and openly.

Benson Wong, one of the many individuals who have left Hong Kong, expressed that people used to enjoy dining at dai pai dongs, open-air stalls selling Cantonese dishes and often serving beer, where patrons freely discussed topics from celebrity gossip to politics. However, he now believes that individuals may hesitate to speak their minds in such settings, leading to a less enjoyable social experience where people feel the need to be cautious about what they say.

Where are all the people who drink gone?

In recent years, Hong Kong has experienced an exodus of both middle-class residents and affluent expatriates, driven by a combination of factors including the COVID-19 pandemic and the political crackdown.

Last year, the city witnessed a net outflow of 60,000 residents, marking the third consecutive year of population decline. As of the end of 2022, the number of usual residents had decreased to 7.19 million, representing a drop of nearly 144,000 from the end of 2020.

Many of those leaving Hong Kong are individuals who have taken advantage of special visas and citizenship pathways offered by Western countries such as Britain, Canada, and Australia in response to China’s crackdown on the region.

In addition to these departures, there has been a steady stream of expatriates leaving the city. These expats, who stayed on even after Britain’s departure from Hong Kong, were often professionals in finance and law known for their strong work ethic and vibrant social scene, regardless of the political situation.

Local media reports now highlight the relocation of banking and law firms, either partially or entirely, to rival financial centers like Singapore, signaling a shift in the business landscape.

Regrettably for bar and restaurant owners, the two demographic groups that are departing are among their most significant customer bases.

“The expats have relocated, as well as higher-income Hong Kong residents. Their departure will certainly have an impact,” noted Gary Ng from Natixis.

Increasingly, these departing groups are being replaced by individuals from mainland China, who now make up over 70% of the 103,000 work or graduate visas granted since 2022, according to the Immigration Department. Economists highlight that these newly dominant migrants typically have different spending patterns.

Yan Wai-hin, an economics lecturer at the Chinese University of Hong Kong, pointed out that Hong Kong’s previously vibrant nightlife relied heavily on expats and middle-class locals who were accustomed to the traditional drinking culture of enjoying a cold beverage after a long day.

However, the population’s composition has shifted, with more immigrants from mainland China, and these newcomers tend to prefer spending in mainland China rather than in Hong Kong.

“Business is challenging”

In Hong Kong’s most renowned nightlife district, Lan Kwai Fong, the music and revelry may have diminished, but it hasn’t come to a complete halt.

Lan Kwai Fong was once famous for its bustling streets filled with partygoers overflowing from bars, creating an atmosphere filled with lively conversations, clinking glasses, and late-night dance music.

However, during a recent visit by CNN, the area appeared much like any other ordinary street, lacking the vibrant nightlife atmosphere it was previously known for.

Richard Feldman, who manages the gay bar Petticoat Lane at the California Tower in Lan Kwai Fong, expressed that the current situation remains extremely challenging and far from a return to normal.

As the chairman of the Soho Association with over three decades of experience in running businesses in the city, Feldman noted that business has been slightly better on Fridays and Saturdays compared to weekdays. Establishments with a strong reputation have been less impacted, but he also observed a decline in the number of Western patrons in what was once a favored expat destination.

Becky Lam, another bar owner and joint founder of various Hong Kong bars and restaurants, including the wine bar Shady Acres in Central, mentioned that there has been a shift in the customer demographics. While mainland Chinese customers are willing to spend, they tend to prefer restaurants over bars and are less likely to stay out late.

On weekdays, Lam noted that the bars she manages are only attracting half the number of customers compared to pre-pandemic times. She emphasized that these customers are more inclined to participate in Happy Hour deals and tend not to stay out as late as before.

Against all odds

Other issues are slowly but surely eating away at the nightlife industry.

According to Feldman, “since Covid, people’s habits have changed because many are so used to staying at home and watching TV and Netflix.”

In what many perceived as a nod to mainland China’s “zero-Covid” plan, Hong Kong implemented a protracted ban on bars and dine-in services throughout the pandemic in an effort to reduce social gatherings.

Due to a decrease in patronage, stores and shopping centers had to shorten their operation hours. Many of those shortened hours are now the norm; instead of closing at the pre-Covid standard of 10:30 p.m., several stores now close as early as 9 p.m.

Strong Hong Kong dollar relative to Chinese yuan influences how both Hong Kong residents and prospective visitors spend their money, which is another factor working against the city’s nightlife.

According to Marco Chan, head of research at real estate and investment firm CBRE, “people from the mainland are less likely to come here to shop, while people in Hong Kong are going to Shenzhen to spend their money.”

Many Hongkongers have been spending their weekends in mainland China, where many services are available for a fraction of the cost, Chan added, even if mainland tourists are now reluctant to travel to Hong Kong.

“It was international, now it’s domestic

Allan Zeman, the businessman who transformed the little plaza in Hong Kong’s Central district into a well-known nightlife hotspot and is referred to as the “Godfather of Lan Kwai Fong,” strikes a more upbeat pose than most and maintains that things are not as dire as they seem.

He claims that 35% of Lan Kwai Fong’s clients are currently mainland Chinese, and they are high spenders.

According to Richard Feldman, Hong Kong’s strong currency and a relative reduction in incoming flights compared to the pre-COVID era are contributing factors to the city’s sluggish recovery. He believes that this situation is temporary.

Bar owner Becky Lam, however, suggests that Hong Kong needs to reconsider its regulatory approach in order to revitalize its nightlife. She points to recent efforts by authorities to remove the city’s famous neon lights in the name of safety, asserting that these iconic nighttime symbols are gradually disappearing. Additionally, Lam mentioned that her bar, Shady Acres, has been required to serve customers indoors only and close all doors and windows after 9 p.m. as part of its licensing conditions.

Lam compares Hong Kong to neighboring cities like Bangkok, Shanghai, and Taipei, which have vibrant nightlife scenes with music, street art, and late-night dining. She believes that these cities make nighttime entertainment more appealing, while Hong Kong faces regulatory hurdles.

Feldman, from Petticoat Lane, has a different suggestion. He believes that Hong Kong should strive to become an international destination once more, attracting people not only from China but from all over the world to rejuvenate its nightlife.