Long Walk Along the Harbourfront

Gorgeous day for a walk and admire the Hong Kong skyline

This morning my friend and I did the 11.5km walk from North Point to Kennedy Town in just over two hours. It was a great way to walk off an accumulation of calories and see the city the way I used to see it when I lived in Hong Kong.

It was already sunny and hot at just after 8.30am when we set off, and luckily we had slathered on sunscreen and wore a hat. We walked past North Point, seeing people make use of seating areas to eat a snack, look at their phones or read the newspaper, and Fortress Hill before going to Tin Hau and Causeway Bay, walking around the Police Officers' Club.

Construction for the route in Sai Ying Pun

In Wan Chai there was a running race going on -- the My Boy 3K Family Run, based off of a comic strip character. We saw many people dressed in blue T-shirts with medals around their necks and then the actual race route along the Wan Chai waterfront. 

When we got to the Hong Kong Convention and Exhibition Centre it was great to see the familiar sight of Victoria Harbour and both Hong Kong Island and Kowloon. I was not able to spot any cats by the rocks though. 

Meanwhile there is construction extending from the Grand Hyatt Hong Kong so that people can walk from the hotel across an overpass to reach the walking path which will be fantastic once it's done; guests won't be confused as to how to get there and be able to enjoy the skyline by the harbourfront.

Pretty soon we arrived in Central, and spotted a military ship docked; I was surprised there were no People's Liberation Army soldiers out in front of the gates guarding the ship...

Military ship docked in Central

At the Ferry Piers there were the usual crowds hanging around waiting for friends or family before boarding together to go to the outlying islands and it wasn't as packed as it used to be pre-pandemic.

Shun Tak in Sheung Wan was basically the same, though with more pollution from the Turbocat ferries. I don't miss the noise pollution and the gasoline smell.

Soon after we arrived in Sai Ying Pun, and at Dr Sun Yat-Sen Memorial Park there were people exercising, children playing, and walking like us. But after passing the sports centre the route was diverted with lots of construction along what used to be the boardwalk.

My friend noted that not much seemed to have been completed since the last time he walked by this area. Alas will have to see how it looks the next time.

Finally we reached Shek Tong Tsui where we saw the former Instagram Pier that has been blocked off for years from public access, and soon enough we arrived at Kennedy Town.

The coffee shop Arabica is still very popular with mainland tourists thanks to Xiaohongshu, and across the street, many were trying to get a shot of themselves with Victoria Harbour in the background. There were more people taking pictures with the line of Banyan trees on Forbes Street. It is quite the miracle how the seeds for these trees landed in between the rocks of the stone wall and managed to cling on and grow into trees. 

Banyan trees are a tourist attraction in K-Town

It was heartening to see most of the restaurants and shops are still around.

Bakehouse Bakes up Success Story

Chef Gregoire Michaud with Bakehouse's famous egg tarts

Bakehouse is an extremely popular bakery that sells loaves of sourdough bread, pastries, cookies, sandwiches and doughnuts. Its most famous product is the sourdough egg tart, similar to the pastel de nata with its caramelised egg custard.

It was started 2018 by Swiss Gregoire Michaud, who quit his job as executive pastry chef at the Four Seasons Hong Kong. He first set up a wholesale business in 2013 supplying bread to hotels and restaurants before opening the retail bakery Bakehouse.

There are queues daily at the various locations

For someone who covers the food business it's been fascinating to watch Bakehouse grow from its first shop in Wan Chai to now having seven locations around Hong Kong.

A few days ago I caught up with Michaud and he continues to have a very humble attitude towards building his business and brand, and knowing full well that consistency is key.

The last time I talked to him was during the Covid-19 pandemic and he was having a hard time despite long lines at Bakehouse; the wholesale side of his business had completely plunged because hotels and restaurants did not order any bread, as hardly any customers dined out.

While retail sales at Bakehouse were doing very well, it was just barely enough to get by those few years. After the pandemic was over and borders reopened, sales bounced back very quickly.

Michaud said that the second most popular location after Wan Chai is Tsim Sha Tsui, with mainland customers passing through the area via the high-speed rail and thanks to Xiaohongshu, these visitors will go to Bakehouse and pickup not one box of egg tarts (six per box), but eight -- yes eight boxes of egg tarts. 

The flaky egg tarts are made with sourdough

But then someone on Xiaohongshu posted that if they wanted to skip the lines in Tsim Sha Tsui they should go to the Causeway Bay location.

There are even people in Taiwan who fly to Hong Kong specifically to stand in line at Bakehouse to buy the egg tarts and then get back on the next flight to deliver them to people who have ordered them online.

Some local residents have given up lining up for the prized egg tarts, saying because Bakehouse is trying to keep up with demand, quality has dropped...

Last year it was reported Bakehouse sold a whopping 18,000 to 20,000 egg tarts per day. At HK$12.50 each, that's a cool HK$91.25 million annually.

Quite amazing considering Michaud and his team were experimenting with some leftover sourdough dough to make egg tarts.

And they really are delicious. 

Hong Kong's Fortunes Fall Flat

People went to Che Kung Temple to have their fortunes read

Today Hong Kong's fortune for the Year of the Snake was chosen and it was a warning for the city's government to be prudent and spend wisely.

Kenneth Lau Ip-keung, chairman of the Heung Yee Kuk, knelt down on a cushion in the Che Kung Temple in Sha Tin and gently shook a round container filled with numbered bamboo sticks on an angle until one fell onto the floor.

It was No. 24, considered a "neutral" stick that had the corresponding poem: "Do not do anything wrong during your life or cause trouble because of your greed, unless you have a noble person helping you, you should not waste your efforts."

Lau gave his own interpretation: "This fortune means that everyone should do good things and everyone should do what is right. As long as you are not greedy, it will be OK. Things that are done should also be practical."

He was hinting his take on the prophecy was directed at Financial Secretary Paul Chan Mo-po, who will deliver the budget on February 26.

"The financial secretary needs to make a decision amid the HK$100 billion (US$12.8 billion) deficit, I believe that everyone has very high expectations," Lau said.

"Besides spending within his means, I hope the financial secretary will look after the middle-class and low-income residents and not raise fees or taxes."

Lau also pointed out people should not do things just for money, alluding to the recent news of people trapped into scam farms in Cambodia and Myanmar.

However, fortune-teller Chan Tin-yan says the prophecy is a bad one for Hong Kong.

"The city's economy will be bad, it will be utterly terrible," he said. "Che Kung is telling the city government not to bother with so many frivolous things, he is not asking them to do these things."

Indeed.

But the problem is the government doesn't have many creative or innovative ideas to jumpstart the economy, only relying on the mainland which has now backfired, with more locals residents going up north instead in search of cheap shopping and dining sprees.

How about having some foresight and long-term planning that will benefit future generations? 

Wouldn't that be novel?

Hong Kong Struggles to Retain Mainland Visitors

Not many visitors come to celebrate Chinese New Year in HK

It's the second day of the Lunar New Year in Hong Kong, but despite the festivities, including the fireworks display, the tourism industry is finding it challenging. Hotels are reporting about 90 percent occupancy, which sounds promising, but visitors are having shorter visits, and mainland tourists aren't spending much money in the city.

Travel Industry Council chairman Tommy Tam Kwong-shun had said 1.45 million mainland tourists were expected to visit Hong Kong between January 28 and February 4, about 15 percent more than last year. 

But some skeptics pointed out many mainlanders are from just across the border, and the convenience of transportation networks have motivated them to make day trips than book hotels.

Mainlanders prefer to eat cheaply, no shopping

"Since the multiple-entry scheme serves only Shenzhen residents for now, visitors probably won't choose to stay overnight," said Jack Cheung Ki-tang, director of CTS HK Metropark Hotels Management.

He noted the average spending for those who stayed overnight in Hong Kong was around HK$1,300 (US$167) per night, with an average of two nights per trip, less than the three nights in previous years.

Cheung also noted mainland visitors preferred eating at cha chaan tengs or noodle shops, indicating they did not want to spend money at full-service restaurants or order room service.

According to Immigration Department numbers, 79,895 mainland visitor trips were made into Hong Kong on the first day of the Lunar New Year, while locals made 330,633 trips out of the city.

While many Hongkongers stay in the city to celebrate the new year with family, a lot of them prefer to use the several days' holiday to go abroad, either to the mainland to visit relatives, or travel regionally to places like Thailand, Vietnam, and of course, Japan.

Year of the Snake Seems like a Tough Sell

It's a tough sell to get customers to buy flowers for CNY

Although Chinese New Year is only days away, in Hong Kong, vendors selling flowers and potted plants at the flower market in Victoria Park are reporting sluggish sales.

While there are a lot of people checking out the fair, which has 395 stalls this year, flower sellers like Lee Siu-ming, owner of Chun Shing Flowers Trading, which specialises in orchids, are reporting business is down by 30 percent.

"People aren't willing to spend," he said. "I am negotiating prices with them till my gums bleed, but some of them still aren't convinced."

There are 395 stalls at Victoria Park this year

Lee said the reasons were because of the slow local economy and people going to Shenzhen and other places in China to shop.

However, stalls selling snaked-themed products seemed to do well, like snakes on cushions and stuffed toys. 

One stall vendor observed that while many mainlanders came to the fair, they were more curious about what was available and hesitant to buy anything. 

"They're more interested in sightseeing and taking pictures," said Terrence Lo, who was selling books.

"The language barrier and concerns about customs regulations deter them from buying books."

In addition, local customers aren't buying as much either.

"The older generation who are often our most loyal customers, are becoming more selective," Lo said. "They're looking for bargains and are less likely to make impulsive purchases."

Sounds like the Year of the Snake is going to be a tough one, much like the Dragon before it...

Review: Lanxuan Restaurant

The shrimp toast is impressive at the new Lanxuan Restaurant

When Chinese people get together, they invariably talk about which restaurants are good these days. This one's not as good now, we went there recently, or we heard the chef has left this other place, and so on. You have to keep track of when you heard the news as things may have changed since then.

The latest is that Chef's Choice, a restaurant on Broadway and Ash used to be pretty good, but the chef left. Where did he go? South to Richmond to a recently opened restaurant with a Mandarin name.

Bizarre beach scene lights up the restaurant

Called Lanxuan Restaurant, it replaces Marina One Richmond Seafood Restaurant next to Tom Lee Music on No. 3 Road and Capstan. Before that it used to be a Knight and Day.

The head dim sum chef who used to be at Chef's Choice is Wei Lai, who has over 30 years' experience in the kitchen, and in May won gold in the team and individual categories of the ninth World Championship of Chinese Cuisine.

Lanxuan's interior is very mainland Chinese in style, with a massive digital screen at the back of the restaurant showing a beach resort scene, with palm trees, blue skies, sandy beach and low couches that look inviting...

This "picture" is so incongruous with the rest of the restaurant which serves a combination of Cantonese and northern Chinese dishes... in a way a strange combination as well.

On the dim sum menu, diners can also order boiled water fish or 水煮鱼... most of the staff speak Cantonese, but some customers are mainlanders. 

Pan-fried vermicelli with beef was a highlight

Nevertheless, overall the dim sum was pretty good, made fresh and interesting fillings. We also ordered rice roll filled with beef paste and had chilli sauce drizzled on top which was different, and shrimp toast was actually pretty good. Shrimp mousse was placed on top of a slice of white bread, deep fried and covered in sesame seeds. There's a decent ratio of shrimp mousse to toast, and hardly oily too which is impressive.

We also had some steamed cake which looked dense, but was actually fluffy and not too sweet. 

We may have found our new dim sum spot, but that digital beach scene has got to go... 

Lanxuan Restaurant

3631 No. 3 Road #170

Richmond, BC

604 285 8989

Dire Straits for Luxury Brands

Hong Kong's luxury malls are looking pretty empty these days

The projections are that big spenders from the mainland won't be splashing the cash in Hong Kong, Paris, Milan and London anytime soon, as China's economy continues on its downward spiral.

Analysts say this year is not good, and aren't even holding their breath for next year either and it's hurting luxury brands in their stock value.

Tiffany & Co's Shanghai shop to halve its space

Burberry Group had its market value plunge 70 percent from the past year, causing the brand to lose its inclusion in London's FTSE 100 stock list. 

Gucci and Hugo Boss have also been hit hard, both losing half their value over the past year. Gucci is owned by Kering, which owns Moet Hennessy and Louis Vuitton, which was Europe's largest company by market cap a year ago, has fallen to second place.

To that end, Tiffany & Co owned by LVMH is looking to halve the size of its Shanghai flagship store, while high-end malls in Hong Kong are practically empty. 

Hermes is sitting pretty with Brunello Cucinelli

The only brands doing well are the ones catering to the uber rich -- Hermes International selling Kelly and Birkin bags, and Brunello Cucinelli with its cashmere sweaters. 

May they live long and prosper!

HK's Golden Retail Era is Over

A mall with empty shops isn't a very inspiring experience

In another sign that Hong Kong's economy is floundering is to look at the retail sector, plunging to pandemic levels. Yes, not pre-pandemic but during the Covid-19 era.

Mainland visitors, who used to be the priority customers in luxury boutiques snapping up designer handbags to pharmacies for shampoo to baby formula are tightening their belts and preferring a cheaper way to visit the city.

Hong Kong's retail sales plunged 7.3 percent in the first seven months of the year compared to 2023, according to government data that was published on Friday. And that's a big drop considering there was a 52.2 percent increase in visitors during the same period.

Street-level shops are also sitting empty

Mainland visitors who stayed overnight spent HK$6,495 (US$833) per capita in 2023, while same-day visitor spending plunged 37 percent to just HK$1,383 last year.

Why? 

"The reduced spending of middle class Chinese tourists in Hong Kong can be attributed to the economic slowdown -- started by the property downturn, shift in consumption patterns, increased focus on savings due to challenging employment prospects and changing travel preferences," said Christine Li, head of research for Asia-Pacific at Knight Frank.

She says this has led to mainland visitors focused more on experiences than material goods, and there are first-timers to Hong Kong who don't have has deep pockets as previous Chinese tourists. As a result they opt for "zero-dollar" tours, where everything has been prepaid.

"They take pictures for their online accounts, but they don't spend money. They're not spending the same amount of money in shops or restaurants like they used to," observed Simon Smith, Savills' regional head of research and consultancy for Asia Pacific. "The golden era for Hong Kong's retail market is over. That's the reality."

Of the 30 shops in Heritage 1881, only 3 open

Ouch.

To make it even worse for the local retail scene, Smith says Hongkongers are rushing to Shenzhen on the weekends to take advantage of restaurants and shops at one-third of the cost in Hong Kong.

Shopping malls like Heritage 1881 in Tsim Sha Tsui are practically empty. It used to have high-end shops like Tiffany and Co, watch shops and Shanghai Tang, as well as a very expensive Japanese restaurant, but according to Bloomberg, of the 30 shop spaces, only three are occupied now.

Many analysts say it will take a long time before Hong Kong's retail industry bounces back, and when that happens how many shops will survive that long?

HK's Economy Strugging in the Doldrums

Hong Kong's economy won't be recovering anytime soon

Hong Kong's economy isn't going to be bouncing back anytime soon with the latest numbers.

According to the Hong Kong Immigration Department, the statistics are as follows:

Following the Covid-19 pandemic, there's even more Hongkongers leaving the city than five years earlier, and a 39 percent drop in mainlanders coming to Hong Kong.

These numbers are not a good sign, and when Beijing has announced that permanent residents who are not ethnically Chinese can now apply for a five-year visa to the mainland, there's going to be a greater exodus from Hong Kong.

What is the Hong Kong government going to do about it, besides chasing mega events as if they were women?

Kevin Yeung Yun-hung, Secretary for Culture, Sports and Tourism must be relieved that he just needs to focus on collecting two pandas from Sichuan to bring to the city within months. That will involve him leading a delegation to go there to discuss the logistics of transporting the pandas, quarantine and naming them.

Only Good News in Hong Kong

Lee tells journos to tell more good stories about Hong Kong

Chief Executive John Lee Ka-chiu is telling journalists to tell "good Hong Kong stories" to counter what he called "slanders and attacks" from the West.

He said this in Mandarin during an event held by the pro-establishment Hong Kong Federation of Journalists. During his speech Lee claimed politicians and journalists from the West were "time and again targeting Hong Kong by fabricating lies, spreading false narratives, slandering Hong Kong, and intentionally speaking of Hong Kong like a place with no freedom."

"In the face of these immoral people, Hong Kong's journalists should all the more unite, take the initiative and be professional," Lee said.

"[Journalists] should tell good stories of Hong Kong's special advantages, international business environment and captivating nature at our doorstep... to counter the slander and attacks aimed at Hong Kong," he added.

Let's see...

This week the Hang Seng Index fell below 16,000 points, well below what it was in 1997;

Property prices have fallen to its lowest in seven years;

The city's press freedom has plummeted to 140 out of 180 regions by Reporters Without Borders;

Hong Kong's birth rate is one of the lowest in the world;

But the good news:

More mainlanders are settling in Hong Kong;

It's fun to go shopping in Shenzhen;

Someone has a chance of winning HK$38 million in the Mark 6 Jackpot;

The MTR has new eight-car trains that are being put into service.

We try to tell the good news, if the government had some...

Independent Restaurants in HK are Shuttering

This fine dining restaurant offered intricate dishes with stories

A few days ago I saw a social media post from a young chef's girlfriend that he was closing his restaurant in Hong Kong's Mid-Levels in a few days and told people to eat there one more time.

There were a few comments asking what was happening but she didn't reply.

It was a small fine dining restaurant with 22 seats, most of them by the bar where everyone had a front-row seat at the open kitchen to watch the chefs prepare food and have it served personally by the chef-owner. Every few months he created a new eight-course menu with new dishes, each with its own story.

Here diners had a front-row seat of the kitchen

Then today I saw the chef's social media posts saying kitchen equipment was for sale along with all the tableware, dishes, glasses, furniture... 

I messaged him, asking what was next.

He later replied saying he wasn't sure. He explained that he quickly made the decision to close because business was terrible in 2023, from March to November and could not see how 2024 would be significantly better. 

"We see no light at the end of the tunnel of 2024 either. The market is going to crash," he texted.

Crash?!

Rent wasn't an issue in his case the landlord was his partner's uncle. Even though the restaurant had low overhead costs, they could barely make enough profit compared to a restaurant with comparable overheads.

"I even injected capital two times," he added, to pay for food and staff salaries. 

The restaurant closed abruptly a few days ago

Hong Kong has become very expensive to dine in, which has resulted in many escaping to Shenzhen on the weekends for cheap splurges. It also doesn't help that a big chunk of the middle class and upper middle class, as well as expats have left the city too.

Independent restaurants are having a tough time surviving financially, and he observes those who will make it through are the ones within restaurant groups that have deep pockets, or those who have adapted to cater to mainland diners' tastes.

"I can't afford the first, and cannot sleep doing the second," he texted.

One can probably surmise the latter means lots of seafood like oysters, lobsters and sea urchin, truffles and caviar on every dish. 

From a wealthy family, this chef can afford to take a break and not even work, but only in his early 30s he needs to find something to do.

What do you do after you've opened your own restaurant for two years -- during the Covid-19 pandemic no less? Would he be willing to work under someone else again? 

Then a friend just told me that Maxim's, which has a giant chain of bakeries and restaurants is not looking to expand further in Hong Kong or the mainland, but in Southeast Asia instead. 

Even though Maxim's owner is pro-Beijing, it is looking elsewhere to expand. Even correct political leanings won't help you make an extra buck in China...

HK Decked Out but Not Enticing Visitors

All decked out by no people coming through in Hong Kong

Friends are reporting a lot of people on the streets of Hong Kong, but in terms of data, the Christmas season has been really quiet, with business slowing down significantly compared to last year when Covid-19 restrictions were still in place.

This Christmas more than 1.32 million outbound trips were recorded over the past three days, almost triple the number of visitor arrivals. Of the visitors who entered Hong Kong, 77 percent were from the mainland.

HK venues not big enough for Swift and Swifties

Anthea Cheung So-may, director of the Lan Kwai Fong Association, called for the government to hold more large-scale concerts and invite global star singers and bands to perform to attract more overseas tourists.

However, the national security law implemented in 2020 has made the city less desirable a place for artists to perform in, and also for international stars like Taylor Swift, they are looking for cities with venues large enough to hold their fans, which Hong Kong does not have at all. 

Meanwhile retail sector legislator Peter Shiu Ka-fai said the industry was affected by Hongkongers flying elsewhere for Christmas, while the holiday was not celebrated by mainlanders, and so not many crossed the border to shop.

"... overall, both the world economy and the Hong Kong economy are average... The spending power of mainland tourists was not as strong as before 2018," said Shiu.

Decorated malls not enough to entice shoppers

He called for the government to create more activities, events and offers to entice shoppers, both locals and visitors to spend in the city. Shiu asked for service to improve, particularly having a more friendly attitude towards customers.

This is tough when you feel like the situation is bleak... that said Hongkongers have that "Lion Rock spirit" and must persevere though this tough patch if they want the city to survive long term.

Harvey Nichols Bows Out of Landmark After 18 Years

Harvey Nichols bows out of Landmark shopping mall

After 18 years, high-end luxury retailer Harvey Nichols will be vacating its space in Hong Kong's Landmark shopping mall at the end of March, citing weak consumer sentiment.

Owned by Hong Kong-based Dickson Concepts (International), Harvey Nichols will be leaving the 60,000 sq ft of space over five floors empty, though it will continue to have a presence in Pacific Place in Admiralty, according to Dickson Poon group executive chairman.

Poon (left) cites weak consumer sentiment

"Consumer sentiment remains weak", while mainland Chinese tourists in the city are "no longer focused on shopping as they used to be before the pandemic," he said, citing weaker-than-expected retail spending during Golden Week holidays in May and October.

The closure of Harvey Nichols in Central is yet another blow to Hong Kong's retail sector, which has also seen Sogo department store shut its doors in Tsim Sha Tsui in March.

It is interesting to note that Landmark, owned by Hong Kong Land, has vastly diversified its portfolio with more of its office space converted into restaurants.

One new concept is called Forty-Five in Gloucester Tower featuring four restaurants, including the newly-opened Cristal Room by Anne-Sophie Pic and a private club. 

It's gotten to the point where the restaurants in Landmark are now competing amongst themselves for customers, which doesn't bode well for the sustainability of the dining establishments there.

Cristal Room by Anne-Sophie Pic in Landmark

But back to the impending departure of Harvey Nichols. It's a hard pill for Poon to swallow, having prided himself on buying the British retailer and bringing it to Hong Kong, and now it can't keep going in Central.

It's also a sign that people are looking for something other than material goods to make themselves happy, which is a good thing, or their spending power has weakened immensely. Time will tell which one it is.

Famous Macau Water Show to Return

There were lots of acrobatic stunts in the show

Macau is getting back its pre-pandemic stride with Chinese tourists flocking to the former Portuguese enclave and checking out the sights with a bit of gambling on the side. It also helps that five new hotels have opened in the last few months to house them all.

And perhaps for old times' sake -- the show The House of Dancing Water will return to City of Dreams in Macau after it effectively shut down because of the Covid-19 pandemic. During that time it had to let go of 137 performers after their blue card or work visas ran out.

One of the stars was a former ballet dancer

The House of Dancing Water was a show that featured dancing with and without water, acrobatics, dancers, really flexible African performers and even motorcycle stunts -- set in ancient China. Go figure.

The show, designed by former Cirque du Soleil director Franco Dragone, opened in 2010 and by early 2020 some 6 million people had seen it. There had been plans to tweak the show for the following year, but that was postponed indefinitely.

But now it seems there are plans to revive the show by the end of next year.

"We're just now going through the process of the remount," said David Sisk, chief operating officer of Melco Resorts. 

"We've been doing a lot of work on The House of Dancing Water theatre to get it up and ready. We just started doing our first shows there. We're doing a production right now where we're doing some musical things there on a weekly basis. And towards the middle of November, we'll get back out of that and get started back on the remount of The House of Dancing Water."

Over 6 million had watched the show over 10 yrs

Melco has to get the show on the road again -- China expects fewer Macau's resorts to offer fewer gambling -- or "gaming" activities and more entertainment.

It will be interesting to see how Melco revamps the show. The resort had just purchased the show from Dragone in 2019 and then the pandemic hit. Melco hasn't had much luck developing its own shows. In 2018 it had a car-themed one called Elekron that tanked very quickly because it solely aimed to appeal to male audiences. But even then they weren't interested.

Perhaps they will need Dragone's magic touch again?

Word of the Day: Special Forces Travel

People like to buy a coffee and sit outside by the waterfront

The new buzzword among young Chinese mainlanders is 特种兵式旅游 or "special forces travel" -- visiting as many destinations as possible in a short period of time while spending the least amount of money.

They look to the app Xiaohongshu to help them plan their itinerary, and Hong Kong is one of their destinations.

Taking photos on the "special forces travel" list

Instead of lining up at luxury brand stores to buy the latest handbag or shoes, they are on a budget and visiting Hong Kong's various districts, though one in particular is really popular -- Kennedy Town, where I used to live.

They are descending on the waterfront, where a certain coffee shop known by its "%" sign -- Arabica -- is a super hot spot for "special forces travel".

The place was already very popular with locals who would come here on the weekends and pose with their lattes and iced coffees, and now it seems their mainland counterparts are doing the same, except in exponential numbers.

In Xiaohongshu, Kennedy Town is described as "the most romantic neighbourhood" in the city, perhaps with the waterfront scenery paired with eclectic stores and cafes, made popular by Arabica and Slowood, an eco-friendly shop that invites customers to buy food in bulk.

It's easy to get to too via tram, MTR and bus.

Slowood is an eco-friendly shop drawing visitors

Some believe young mainlanders traveling on budget is a sign that China's economic recovery hasn't come to fruition as hoped, and the property sector seems to be teetering to the brink with Evergrande Group and Country Garden having deep financial problems.

Other say post-pandemic they want to go out and experience life outside as much as possible to make up for lost time.

While it's good that money will be going to local businesses instead of multinational conglomerates, visitors should be careful while taking pictures at Kennedy Town's waterfront! There's a lot of traffic there that doesn't stop!

Fine Dining Struggles in Hong Kong

Ecriture's minimalist style with maximalist views of the city

The big news the other day was hearing that two Michelin-star restaurant Ecriture in Hong Kong's Central district suddenly shuttered. Executive chef Maxime Gilbert posted the news on Instagram.

"Yes. It is a bit of a shock. I am still shocked," he told a Hong Kong newspaper, but did not elaborate further.

Executive chef Gilbert is shocked at the closure

The restaurant group Le Comptoir that is behind Ecriture didn't reply to reporters' inquiries.

However, there were rumours in the industry that the restaurant hadn't paid its staff for months, and that Le Comptoir hadn't paid rent for a year -- sounds extreme, as any landlord would have locked them out months earlier if that happened.

One would imagine suppliers haven't been paid in full either.

This comes as other restaurants like Haku, that had finally moved from Harbour City to IFC with a stunning view has also closed, along with Rosita, a joint venture by chefs Ricardo Chaneton and Agustin Balbi.

Fine dining restaurants are having sluggish business these days, with expat bankers leaving Hong Kong, and mainlanders preferring to eat fishball noodles than foie gras.

Ecriture was best known for its indulgent caviar tart -- a large tart covered with uni and topped with caviar and gold leaf. It was dripping with decadence and every other table had an order of it when this tart was unveiled.

Ecriture's infamous and decadent caviar tart

Gilbert's other stunning dish was line-caught turbot that was wrapped in chunks in seaweed and then poached in dashi. 

He just finished a promotion at Amber in the Landmark Mandarin, where chef Richard Ekkebus invited back several alumnae chefs to come back and cook.

It's yet another bid to entice diners back to Amber -- for a short period of time.

And then what?

It's a tough call -- chefs want to do fine dining and chase Michelin stars, but at the moment people are watching their wallets and just want to eat cheaply.

During the pandemic, there was literally a captive audience. But now that restrictions are lifted, people are dying to travel and going back to their old ways again. However, no one's coming to Hong Kong...

Hong Kong's Tourism Numbers Don't Add Up

This campaign focuses more on China tourists than N America

A friend from Hong Kong told me the hospitality sector is still struggling despite the city being fully open for tourists and the government pushing its "Hello Hong Kong" campaign.

Hotels are hurting the most, with low occupancy numbers, while high-end restaurants are trying to lure in diners with set menu deals.

And the Hong Kong government is wondering why the tourists aren't coming...

Chan wonders why tourists aren't coming to HK

Financial Secretary Paul Chan Mo-po said the city needed to improve its tourism offerings even though it had 3.6 million visitors last month, up 30 percent from June.

On his blog, Chan wrote inbound tourism would continue to be the main drive of economic growth for the remainder of the year, along with private consumption. As a result, Hong Kong needed to improve its attractiveness to visitors.

"Many tourists, especially the young ones, come to Hong Kong mainly to attend exhibitions, cultural and artistic activities or major concerts," he wrote.

"This change in travel and consumption patterns means that we need to deliver what our tourists value: the features, creativity and quality of products and services, as well as the user experience."

It took Chan this long to figure this out?

Obviously neither he nor his fellow officials have learned anything from the Covid-19 pandemic, that people are seeking experiences over shopping and what does it have to offer that's new?

The mainland Chinese people who have visited Hong Kong are not interested in going there again, and so the only ones coming now are newbies.

Will more conferences lure people back to HK?

Their consumption spending power is much lower than previous visitors, and with China's high speed rail network, Chinese tourists don't have to stay overnight in Hong Kong -- they can zip across the border to Shenzhen for a cheaper hotel room before going back to Hong Kong again (if they so please).

But more importantly it's the implementation of the national security law, with headlines around the world reporting about the eight pro-democracy activists and former lawmakers with HK$1 million bounties over their heads, and the arrests of many others that has scared potential long-haul visitors from coming.

Another is the exorbitant prices for flights that have deterred many from coming back too.

However, former financial services secretary Chan Ka-keung tries to put the blame on other factors.

"A lot of people still -- because of the slow economic activities -- are not traveling much. It's not just Hong Kong not receiving tourists, many countries in Asia aren't receiving tourists either," he told reporters.

Has he seen Japan and Taiwan overwhelmed with visitors?

"But Hong Kong of course has another problem, which is because of the propaganda from the western media, a lot of people don't understand Hong Kong," Chan continues. "We should host more exhibitions and conferences, get more people to come to Hong Kong to see for themselves."

Perhaps if the city's government wasn't so repressive and arresting so many people then maybe more potential visitors would feel comfortable to travel there? The Hong Kong Police recently boasted it has collected over 380,000 tips from its reporting hotline.

For Chinese visitors, it's a stark reminder of home, not a respite.

Superficial Taxi Reforms

Taxis are the target of numerous complaints in Hong Kong

It is difficult to understand why the Hong Kong taxi industry has been so bad for so long. It's as if it's dying a long slow death, though the only saving grace is that the fares are very inexpensive compared to other major cities in the world.

Nevertheless there are so many complaints about the service, from taxi drivers wearing shirts sticking out, taking drags on cigarettes, to mostly elderly men who in recent months have fallen asleep at the wheel and crashed into sidewalks and pedestrians. 

Others take advantage of naive mainland tourists and take them on outrageous joy rides or give a lot of attitude to customers, making the ride tense and awkward.

Many find the drivers' attitudes unbearable

When you get into a taxi, you immediately sink several inches into your seat because so many other bottoms have sat there for decades, and the vehicle has not been replaced because the license costs a fortune.

Is it no wonder that Hong Kong residents prefer taking other ride-hailing services like Uber? The driver comes to you, the vehicle is very clean, you can choose to have music or not and give well-deserved tips. 

But instead the taxi industry wants the government to shut down services like Uber because it makes its own business look really bad.

The Hong Kong Taxi and Public Light Bus Association claims it will reform its drivers by introducing a demerit system. But the association claims only a small number of drivers behave poorly.

The scheme will fine cabbies with three, five or 10 demerit points if they violate any of the 11 offences. If drivers accumulate 15 or more points within a two-year period, he or she will be disqualified from operating a taxi for three months.

Some have a lot of distractions from the road...

What are the 11 offences? They include overcharging, wilfully refusing or neglecting to accept a hire , using a route that is not the most direct one, and refusing to carry the number of passengers requested as long as the vehicle has the capacity to do so.

However there is no sign of reforming the annoying 4pm switch -- when taxis all over the city are unavailable from around 3.30pm till after 4pm because they need to take the car to the next driver. Why not have this staggered throughout the day so that people can still get access to taxis? Do they all have to switch over at the exact same time?

When this rule is changed and vehicles are updated then yes Hong Kong's taxi service will be improved. But for now people should have a choice of how they want to get from A to B. Taxis have to do better. Way better.

Mocking Incident Puts Cathay Pacific on Damage Control

Three Cathay flight attendants were fired for mocking passengers

Cathay Pacific's problems continue to prevent it from getting itself out of the rut of the pandemic and now it has to do major reputation rebuilding after some flight attendants verbally mocked some Chinese passengers.

On a recent flight from Chengdu, Sichuan province to Hong Kong, three crew members were accused of making fun of passengers' language abilities by saying in English, "If you cannot say 'blanket', you cannot have it."

A Mandarin-speaking passenger complained about the incident which at first led the trio to be suspended, and then fired.

Lee warned Lam not to repeat the incident

But that was not enough.

Hong Kong Chief Executive John Lee Ka-chiu waded into the issue, saying he was angered and disappointed, and that he had personally instructed Cathay Pacific management to handle the incident seriously, and that the airline must review staff training and improve its customer service culture.

"These disrespectful words and deeds have hurt the feelings of compatriots in Hong Kong and the mainland, and also undermined the city's existing culture and values of respect, courtesy and inclusiveness," he said.

"I am outraged and disappointed by the fact these bad deeds happened on a Hong Kong flight."

He told Cathay Pacific's CEO Ronald Lam Siu-por the incident was serious and had damaged Hong Kong's image, and urged Lam to ensure the incident would not be repeated again.

For his part Lam apologised in Mandarin to passengers who were affected by the incident as well as the wider community, and vowed to prevent a repeat of the situation.

Lam will ensure training and "customers first"

The CEO said he would lead a cross-department task force to enhance the company's "customers first" culture, and ensure its service had a solemn and polite image, and improve its quality.

Does Lee know that Hong Kong residents disparage mainland tourists on a daily basis? Is he going to punish them too?

Post-Covid there are complaints from the tourism sector that the city is getting the cheap Chinese tourists, the ones who have never visited Hong Kong before and don't mind seeing only the free landmarks and eating rice boxes. 

That's because the tensions between mainlanders and locals were never resolved as far back as a decade ago -- remember the term "locusts"? -- and so it's no wonder these situations have flared up again. 

Trying to get Hongkongers to shut up will be very hard, despite the dependence on these cross-border tourists to get the hospitality industry back on its feet again. 

It's a pity Hong Kong has put most of its eggs in this China basket, when all investors know it's better to diversify to ensure more balanced returns...