Alive and Kicking

Life in the buzzing megalopolis called Hong Kong is slowly returning to normal. Face masks have disappeared from mannequins in couture window displays, the handshake is once again the business greeting of choice, and restaurants and bars don't look like furniture showrooms anymore. "Everything seems a bit rosier now," says Jonathan Zeman, COO of Lan Kwai Fong Holdings, owner of many trendy bars, restaurants and serviced apartments catering to the expat community in the city center. "We are seeing a lot more business travelers at our places." That includes those on the steep stone streets of the lively Lan Kwai Fong district, a must-stop for visitors before the epidemic hit.

Zeman can thank Hong Kong's ambitious efforts to defibrillate an economy that had all but seized during the recent outbreak. With 300 dead, Hong Kong become known as ground zero for the severe acute respiratory syndrome (SARS) epidemic, laying low an already stumbling economy and devastating the local travel industry. During the height of the panic, the airport handled just 20% of its normal passenger flow, and hotel occupancy rates fell to less than 20%. Among the no-shows were the Rolling Stones, who canceled a much anticipated concert, although they will appear at a festival in the harbor in November.

To get tourist dollars flowing again, the government initiated a nearly $200 million recovery scheme. Dubbed the Relaunch Hong Kong promotion, the three-month-old campaign has already wooed Chinese basketball titan Yao Ming, soccer superstar David Beckham and their respective teams. The campaign has collaborated with airlines and hotels to offer special discounts. United Airlines, which has just announced a resumption of its regular flight schedule, is offering a five-day air-and-hotel package from the U.S. starting at $499. Cathay Pacific and Singapore Airlines have a joint six-night, eight-day Hong Kong and Lion City package for as low as $1,098. China Airlines has a three-night two-for-one special from the U.S. West Coast starting at $949. The special promotions appear to be working. Most upper-end hotels, like the Ritz-Carlton and the Island Shangri-La, are reporting more than four out of five rooms booked. "Just look at the lobbies," says a relieved Mark Lettinbichler, chairman of the Hong Kong Hotel Association.

At the height of the SARS epidemic, the city's oft stumbling tourism bureau was running an ad campaign with the unintentionally ironic tag line "Hong Kong: it will take your breath away." Not that there could have been anything that would have inspired tourism then. As overworked medical officials covered in chemical-warfare gear raced to the next hot spot, multinationals were evacuating staff, and international trade fairs were being rescheduled. "It was really scary," recalls Cliff Wallace, managing director of the Hong Kong Convention and Exhibition Centre, which is back to its normal slew of shows.

It wasn't just the decline in tourism that whacked this city. Residents weren't going out, and many restaurants had to temporarily close their doors, lay off staff and hope that the virus was subdued before the beer went flat. Now the clatter of china and the clink of wineglasses can once more be heard around town at establishments like Vong, atop the Mandarin Oriental Hotel, and Kaetsu at the Grand Hyatt.

The story is the same at the city's sleekest business haunts, such as the Peninsula's renowned Felix restaurant, known for its stunning view and sleek Philippe Starke decor, and the uber-hot and stylish 1/5 bar in the Wanchai district. "It's happening here again," says Callas Chu, the bar's assistant manager.

There is still the lurking fear of a SARS rebound. November will be the critical month, warns Hong Kong Medical Association president and local legislator Dr. Lo Wing-lok. As well as being peak tourist season, it is also high time for the coronavirus, of which SARS is a strain. "It is like a post-SARS carnival now," he says. Hong Kong is better prepared to handle any outbreak, but it is hoping that the party doesn't stop.