The Hong Kong of 20 years ago is gone. It’s time to accept it

Changes in the population structure and attitudes to food, consumption and health have left our cityscape and hospitality sector looking old and tired
We need to embrace the new opportunities being presented and transform Hong Kong into an interesting and attractive place again

Ian Brownlee

Published: 9:30am, 18 Feb 2024

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The Hong Kong budget for 2024/25 will soon be announced. Will it take account of the fundamental changes Hong Kong is undergoing? Changes in population structure and community attitudes will shape our social and economic activities. We need to change the way we invest in, plan and manage our city.

Some changes are related to technology, others because of Covid-19, including changes in attitudes to health and well-being, and greater awareness of sustainability. Yet other changes relate to competition for Hong Kong residents’ time and money in Shenzhen. The collective impact of these factors means Hong Kong will never be the same again.

The “shopping paradise” that we knew is a thing of the past. New activities are needed to occupy the enormous areas of underused retail space. This is not necessarily a bad thing. As retail rents drop, the space becomes more affordable for different types of activities.

When industrial activities moved north in the 1980s, large areas of industrial floor space became available for other uses. Fo Tan became a hub for art and other innovative uses. Hong Kong people took the opportunity and created a range of new jobs and experiences. Cheaper retail space now provides new opportunities for our entrepreneurs to do something different.

In terms of Hong Kong’s population structure, there has been a significant decrease in the number of children, while those in generations X, Y and Z are entering middle age, and the baby boomers are moving into retirement and old age. These oldies have a lot of time to fill, and the young old (those aged 65-75) are often active, health conscious and have time on their hands and money to spend. They need a positive role in this changing society.

Meanwhile, the X, Y and Z generations have grown up with the internet and see sustainability as a significant part of their lives. They especially value health and fitness after the experience of the Covid-19 pandemic.

Runners take part in the 10km race in the Standard Chartered Hong Kong Marathon event, along the Island Eastern Corridor on January 21. Hongkongers have become more health conscious since the pandemic. Photo: Elson Li

Compared to their parents, they are less likely to buy things and prefer to spend on experiences, on health and wellness, and on sports, culture, entertainment and outdoor experiences. They also shop online and are happy to order food in and spend time at home. With fewer people out and about, retail hours could be shorter, with later opening and earlier closing times.

The younger cohorts also drink less. According to the Health Department, alcohol consumption has dropped by nearly 20 per cent, from 2.84 litres of alcohol per capita per year in 2018 to 2.29 litres in 2022. Another survey has found that, in 2018-19, 15.3 per cent of respondents aged 15 to 24 said they had indulged in binge drinking in the previous 12 months. Between 2020 and 2022, the proportion crashed to 3.6 per cent.

As the baby-boomer cohort grows older and reduces their alcohol consumption, the younger generations replacing them are drinking less.

This coincides with an increased awareness about the health risks of alcohol consumption. The prevailing medical advice is that even small amounts of alcohol can have significant negative health effects. Government policies in general seek to reduce alcohol use.

This trend has significant implications for our nightlife and bar scene. Empty premises and fewer patrons will make these areas appear as derelict neighbourhoods. There is a major need to transform the bars and clubs to make them more welcoming to people who already find the traditional bar scene unattractive.

Working from home and flexible work hours mean there are more opportunities for people to participate in non-work activities throughout the week. Add to this the flexibility of retirees and there is a much larger group of people who can take time out for other activities during weekdays. The flexibility of working hours also reduces the concentration of people in offices, and cuts demand for restaurants and shopping.

These are the inevitable changes that come from changes in the population mix and cultural expectations. The most important thing is to accept that the Hong Kong of the mid-2000s has gone and won’t return. Incentives to consume more will conflict with the sustainability ideals of reducing unnecessary shopping.

New forms of experiential entertainment and those related to health and well-being will become more attractive. This provides scope for the development of new art and cultural activities.

Food will remain an important focus, but it will continue to evolve. Different types of small eateries are opening up in vacant retail spaces. We may also see more vegetarian fare as more people reduce meat consumption for health and sustainability reasons.

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Hong Kong’s traditional dai pai dong street-food stalls fight to stay open

New shopping centres could become focal points for community-based activities, more so than in the past, and feature more shops related to wellness, health and fitness. Older centres could be progressively refocused.

Hongkongers who rave about the better shopping and cheaper meals in Shenzhen say that they enjoy spending time there. Why is this sense of enjoyment missing in Hong Kong?

In the upcoming budget, the government would do well to invest in improving public areas, rather than giving out consumption vouchers and trying to revitalise our traditional shopping and nightlife scene, which is now contrary to what many want.

It should look to upgrade and paint our public buildings, renew our pedestrian spaces with quality pavements, plant more trees and provide lots of seats for our active elderly. Above all, let’s focus on making Hong Kong a nice place to be.

Ian Brownlee is managing director of Masterplan Limited, a planning and development consultancy