December is upon us – a festive season synonymous with gatherings and parties. Hong Kong, known as the “City that Never Sleeps,” was once renowned for its vibrant nightlife, characterized by bustling economic activity. Restaurants and bars operated round the clock and were often packed with customers. 

However, the city has experienced a significant downturn during the three long years of the pandemic. Despite society returning to normal, nightlife has remained stagnant. The Government has acknowledged the lack of momentum and has taken action by launching the “Night Vibes Hong Kong” campaign, which kicked off in mid-September. This initiative aims to entice people to venture out and revive the city’s once renowned nightlife buzz. 

Changing Lifestyle Habits

There is a growing belief that the lifestyle habits of many individuals in Hong Kong have experienced a significant transformation in the wake of the pandemic. As a result, people are now out less frequently during the evening, leading to adjustments in the operating hours of local shops, restaurants and malls. This, in turn, has limited the options available, presenting a challenge for the city's evolving nightlife scene.

Supporting this notion, the Mastercard Economics Institute released a report in May that examined the behaviour of Hong Kong consumers. The study revealed that while dining out remains an integral part of Hong Kong's social culture, the implementation of social distancing restrictions during the pandemic has sparked a shift towards home cooking. This has led to a noticeable decrease in dining-out expenditures, accompanied by an increase in spending at grocery stores. These emerging habits are likely to stay in post-Covid Hong Kong. 

Hong Kong is not alone in facing this challenge; other international destinations are also grappling with a similar issue. Despite their unique characteristics, the struggle to rejuvenate the night economy is a shared experience. 

In the United Kingdom, the pandemic has had a profound and lasting impact on the £66 billion night-time economy over the past three years. Despite various towns and cities launching individual strategies in recent years to support recovery, the evolving late-night habits of consumers and the ongoing cost-of-living crisis continue to pose significant post-pandemic  challenges. Recent figures released by the Night Time Industries Association, in collaboration with research agency CGA, reveal that since June 2020, more than a third of nightclubs have permanently closed their doors. In just the past year, 120 nightclubs have shut down, leading to a record low of 873 nightclubs as of June 2023. 

Japan hasn’t been spared either. The pandemic-induced shift in consumer behaviour has resulted in underwhelming performances of izakaya bars and karaoke parlours. Added to this, the increasing prevalence of remote work has particularly affected nightlife in city centres, which heavily relied on office workers as their main customers for after-work socializing. Despite some signs of recovery in the consumer market, izakaya bars are still only operating at 70 per cent of their pre-pandemic capacity, while karaoke parlours are struggling at just 30 per cent.

What’s Next?

The pandemic has brought about lasting changes in our lives, resulting in significant structural shifts in society. Consumer behaviour has undergone a transformation, with a greater emphasis on social interaction, new experiences, and a heightened focus on mental health and wellness. Workstyles have also experienced changes, particularly with the widespread adoption of remote working.

As the saying goes, "In every crisis, there lies an opportunity." While Hong Kong’s night economy has undeniably suffered from the pandemic, it has also opened the door to long-term transformation and upgrading. Although the effectiveness of the "Night Vibes Hong Kong" campaign is yet to be determined, it should be recognized as an initial phase of revitalization efforts. It is crucial to explore ways to attract a diverse range of customers and showcase the international appeal of Hong Kong’s nightlife to win customers back.

Doris Fung, dfung@chamber.org.hk