PanamaTimes

Friday, Apr 26, 2024

Way the music died: can Asia’s nightclubs survive Covid-19?

Way the music died: can Asia’s nightclubs survive Covid-19?

Nightclubs from Singapore to Hong Kong are suffering. Will the arrival of vaccines be music to their ears?

Before the coronavirus pandemic, Zouk, one of Singapore’s oldest and most elaborate nightspots, easily attracted at least 3,000 partygoers a night. Now it sees only 150 patrons every evening and has had to transform parts of its 31,000 square feet complex into a restaurant, spin studio and cinema.

“We used to make more money in one night than we make in a month now,” said Andrew Li, the chief executive of Zouk Group. Revenue nosedived by over 85 per cent, he told This Week In Asia, meaning he had to cut 25 per cent of his staff, with more cuts possibly on the cards.

Like Zouk, many businesses in Singapore’s vibrant nightlife scene are reeling from the economic fallout as a result of the pandemic. Elsewhere in Asia, similar establishments remain shut as governments impose fresh lockdowns to tackle new waves of infections. In Hong Kong, for example, bars, nightclubs and party rooms have been closed since late November while Malaysian authorities recently extended a movement control order to the end of February.

Does this spell doom for the nightlife sector? Health care experts and economists suggest it depends on whether the country has kept the virus under control, the speed of vaccine roll-out, and the monetary help governments can afford to offer.

But they were more cautious than bullish, noting that the industry would likely receive little or no help given its considerably small contributions to the economy.

FIRST TO SHUT, LAST TO REOPEN?


While there have been reports that the nightlife scene is slowly resuming in mainland China and Taiwan – with videos of maskless partygoers revelling in underground clubs and music festivals – other parts of Asia remain wary, guided by incidents in South Korea and Hong Kong where clubs and dance studios triggered new waves of infections.

Even in Singapore, which appears to have the virus under control with negligible numbers of community infections, most nightspots have yet to be given the green light to fully resume normal operations. Bars and pubs with food licences have been allowed to reopen but must observe rules such as a maximum capacity of eight people per table and not being allowed to serve alcohol after 10.30pm.

Karaoke lounges and nightclubs, deemed as having a higher risk of virus transmission, had banked their hopes on a pilot programme to reopen a handful of clubs that was set to kick off last month. But it was postponed indefinitely at the eleventh hour due to a slight uptick in cases.

Following the news, there was a spike in businesses wanting to exit the industry, according to Chua Ee Chien, an executive committee member of the Singapore Nightlife Business Association, with over 225 companies expressing an interest in doing so.

Already, local media had reported that 59 businesses in the sector folded in the first half of 2020, and more than 100 nightspots have not been allowed to resume operations since the pandemic.

Zouk's DJ Nash D performs in front of a video camera during a “cloud-clubbing” party that was live-streamed in March after entertainment venues were temporarily closed.


“One of the concerns we have is whether they will have the means to maintain their current positions with no revenue in sight. With the pilot being postponed, businesses that spent money prepping for that are now in an even tougher position,” said Chua, who is also owner of cocktail bar Jekyll and Hyde.

He urged operators to consider other measures to survive, including altering their business model, similar to what the Zouk Group did by incorporating indoor cycling classes in their sprawling compound. “Owners need to accept that the pandemic is not going to be over any time soon,” Chua added.

The picture remains equally bleak across the border. A report in September last year revealed about one in five entertainment outlets in Malaysia had closed.

Similarly, in Hong Kong, Privé Group owner John Rana said revenue dipped by more than 95 per cent, primarily because clubs and bars were only allowed to operate fully for less than two months last year. All the other months, he said, nightspots were either barred from opening or were limited to fewer hours of operation.

Rana said the group, which has seven restaurants, bars and clubs, has now placed more focus on its eateries: “We are not worrying that far about whether the industry will bounce back. We are more worried about whether we can survive till tomorrow because government [restrictions] just keep extending without [support] for the industry.”

Bars remain closed at Hong Kong’s Lan Kwai Fong district during the fourth wave of coronavirus infections.


MORE AID?


Governments across Asia have offered some form of financial support for the industry. In Singapore, authorities are still co-funding about 30 per cent of local workers’ wages alongside rental waivers.

Rana said he has received cash assistance from the Hong Kong government based on the group’s liquor and restaurant licences as well as floor-size subsidies. Still, he felt this was not enough to keep businesses alive as Hong Kong’s high rental costs added a huge financial burden.

Chua of the Singapore Nightlife Business Association also voiced similar sentiments: “The government will not look to pump in cash, but if they let these businesses die out, what will replace them?”

But even as nightlife establishments and organisations eye greater governmental support, Song Seng Wun, economist at CIMB Private Banking, pointed out that governments might not render much help.

“To be brutally honest, it is not a huge contributor to the economy,” he said. For Singapore, there is no official breakdown for the industry but Song estimated that the nightlife industry only made up a “fraction of a per cent” – a similar figure for most Asian economies.

Selena Ling, head of treasury research and strategy at OCBC Bank, offered a slightly larger estimate, saying that in the city state, the sector is grouped under a bigger category of recreation, community and personal services, which accounted for 6 per cent of GDP.

The importance of nightlife also differed among countries, she noted. In Thailand, for example, it is of higher priority as international tourists usually flock to the country for its busy night scene. This way, Ling said, there are intangible benefits from the sector, such as enhancing the attractiveness of Thailand as a tourist destination.

Li, the chief executive of Zouk Group, felt that the nightlife sector also “gave back to society in terms of experience, memories, social connection, and even mental health”.

But these, Song said, are often unseen benefits that could be overlooked by authorities. From a government policy stance, he said, this would mean that the nightlife industry would be pushed down the priority list, below other ailing sectors such as the aviation, manufacturing and even the broader hospitality industries.


THE FUTURE OF NIGHTLIFE


Health care experts were hesitant to say if it was wise for governments to open up the nightlife industry now, but Hsu Li Yang, an infectious diseases expert, suggested this would depend on the risk appetite of politicians and whether there was a growing push from nightlife operators.

Another factor would be the individual country’s success in containing the virus, said Hsu, the associate professor at the National University of Singapore’s Saw Swee Hock School of Public Health.

He also pointed out that most bars, karaoke lounges and nightclubs were not designed with physical distancing or natural ventilation in mind. “Many people also do not go to these places to sip drinks quietly by themselves [so] they can potentially be sites for super-spreading events in regions where there is ongoing community transmission.”

Singapore’s now-delayed pilot to reopen clubs provided a snapshot of how the future of nightlife would look, such as requiring patrons to present a negative Covid-19 test and wear face masks, even on the dance floor. Nightspots would also host only 100 people at most, with separate dancing and dining zones holding 50 people each.

A separate, smaller-scale pilot for bars that kicked off earlier in December also prescribed that establishments cannot play recorded music at louder than 60 decibels, while live music and other forms of entertainment such as dancing, darts and pool are barred.

Still, Teo Yik Ying, dean of the Saw Swee Hock School of Public Health, felt it would be difficult to allow the industry to resume solely on the back of these measures. Zouk Group’s Li also felt it did not make sense for a consumer who would not need to do a test if they went to a restaurant or bar to drink instead.

People dance at the Zouk nightclub in Singapore before the coronavirus pandemic.


Hsu described the future of the nightclub industry as “definitely challenging”, and said it was clear that venue operators would need to ensure their venues are safe, which could include focusing on more intimate events and having systems in place to avoid queues at entrances.

Teo added there was a “good chance” of the sector bouncing back only if a vaccine roll-out in a particular country is successful, and there is sufficient data to prove it reduces the risk of infection and transmission.

While he was wary about the virus situation changing, Li said he was eyeing a recovery by the end of this year, after the Singapore government said it plans to vaccinate its entire 5.7 million population by then.

Or as Song, the economist, put it: “The industry will come back at some point, but we don’t know when. And when it does, there will be pent-up demand and revenge spending again.”

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×