As the Unrest in Hong Kong Intensifies, Dealers Grapple With the Pros and Cons of Attending Art Basel’s Fair in the City

Two galleries have withdrawn from the Art Basel Hong Kong fair
amid ongoing protests in the Asian city, artnet News has
learned.

The galleries, which asked to remain unnamed, are exceptions
rather than the rule: Of the more than 50 exhibitors we reached out
to (of the 242 that attended last year), the vast majority said
they are moving ahead with plans to participate, but are monitoring
the constantly evolving situation closely. A spokesperson for
the fair told artnet News it currently has no plans to “postpone or
relocate our 2020 show.”

The protests in Hong Kong took a new turn on Friday, as the
territory’s chief executive, Carrie Lam, activated a colonial-era
prohibition on wearing face masks at protests—a rule that had not
been invoked since 1967. Authorities formally charged two
protesters with violating the rule on Monday, the Guardian reports.

The move was designed to help quell the demonstrations that have
rocked the city since June, when a now-withdrawn extradition law
sparked a wave of anti-government protests that have evolved into
broader calls for democracy and investigations into the use of
police force. Last week, police fired a live round at a
teenage protester at point-blank range.

But instead of calming the unrest, news of the anti-mask
ordinance only added fuel to the protests, according to
the AFP. Thousands of protesters flooded the
streets on Friday and over the weekend, according to reports,
including in the Central neighborhood where many blue-chip
galleries are based. They tore down and burned a banner celebrating
70 years of Chinese Communist Party rule, which the mainland is
marking with parades and festivities this fall.

Damage Control

So far, Art Basel Hong Kong—the most important market event in
the region—is proceeding as planned, although organizers are
working overtime to allay exhibitors’ nerves.

“With several months to go until our scheduled show opens in
late March 2020, we feel it is too early to speculate as to what
the situation in Hong Kong will be like then,” an Art Basel
spokesperson told artnet News. “In spite of the current situation,
Hong Kong continues to be the best location to host our fair in
Asia—with its leading position as a financial center of the
continent, as well as its thriving local cultural scene.”

In London last week, Marc Spiegler, Art Basel’s global director,
was spotted making the rounds at Frieze on Thursday, encouraging
exhibitors to hold off making a decision about whether to
participate or withdraw. Multiple dealers told artnet News that the
fair’s organizers had reached out to them—either in person, over
e-mail, or by phone—to discuss the state of affairs in recent
weeks.

According to one dealer, organizers
likened the current situation in the Asian city to the yellow vest
protests that swept Paris last fall, claiming that it was business
as usual during the week and that clashes between protesters and
police were restricted to particular neighborhoods on the
weekends.

The exhibitor list for the 2020 fair has not yet been made
public, though an Art Basel spokesperson says it is on track to be
released on schedule in late October. Many longtime participants
are in the midst of planning their displays; a number have already
booked flights.

In its statement, Art Basel emphasized that galleries and
auction houses have been continuing to conduct business as usual in
the city. (In fact, a major new record for
Yoshitomo Nara was set in Sotheby’s contemporary art sale in Hong
Kong on Saturday.) “That said, we do understand that the situation
is nuanced and constantly changing, so we will continue to monitor
the situation closely and remain in close contact with all our
exhibitors,” the spokesperson said. “The safety of our staff,
exhibitors and visitors will remain our top priority as
always.”

To Go or Not to Go?

Opinions differ on which is the greater risk: participating in
the fair or sitting it out.

Dealers say they anticipate that far fewer collectors from
mainland China will attend out of fear of discrimination or
reprisal, reducing the buying power of the collector base
significantly. Since August, tourism to Hong Kong has plummeted
almost 40 percent, according to the
Financial Times, and retail sales have dropped by
around a quarter compared to 2018.

“What’s certain is that there will be fewer collectors from
mainland China and elsewhere who are concerned to travel there, we
already know that,” says Lisa Spellman of 303 Gallery.
Nevertheless, she plans to attend to continue to cultivate the
local market. “Right now,” she notes, “we are thinking about how
we’ll adjust our presentation accordingly.”

At a time when profit margins for small and midsize dealers
remain thin, the stakes are high: A successful fair can be the
difference between a profitable year and a bad one. One gallerist
said the hefty cost of travel, booth fees, and shipping, combined
with the uncertainty of whether top clients would attend, has made
the Hong Kong fair increasingly unappealing. But other galleries
are loath to pull out because they do not want to lose their spot
in the future; Hong Kong remains an important market and gateway to
the rest of Asia.

Multiple dealers also expressed anxiety about the optics of
attending the fair—few want to cross a picket line of protesters
and police. Although Gerd Harry Lybke of Galerie Eigen +
Art currently plans to participate, he says: “For me, it’s more a
question of politics and human rights [than the market].”

Other dealers remain unfazed and firmly committed to both Hong
Kong and the Basel brand. “We are completely supportive of the
region and completely supportive of what Basel is doing,” says
Rachel Lehmann of Lehmann Maupin. Dealer Kamel Mennour says he is
“monitoring the situation in Hong
Kong” and remains “cautious about changing political and economic
circumstances.” But he notes that “we have been participating in the fair for many
years and have great faith in the Art Basel brand.”

Gallerists with permanent spaces in Hong Kong acknowledge that
the situation is serious, but remain bullish on the vitality of the
region. Simon Lee, which has an office in Hong Kong, closed a few
times over the summer in solidarity with the protests. “Galleries
like ours with pied-à-terre have an easier decision to make,” a
spokesperson for the gallery notes. “But it’s understandable that
galleries from abroad cannot afford to take the risk.”

Read Art Basel’s statement on the situation in Hong Kong in full
below.

We are following the recent protests in Hong Kong, SAR closely.
With several months to go until our scheduled show opens in late
March 2020, we feel it is too early to speculate as to what the
situation in Hong Kong will be like then.

In spite of the current situation, Hong Kong continues to be the
best location to host our fair in Asia – with its leading position
as a financial center of the continent, as well as its thriving
local cultural scene. As such, we do not have any plans to postpone
or relocate our 2020 show. In fact, we are actively moving forward
and will be announcing our exhibitor list in late October, as
usual, and we remain confident that we will be able to deliver a
show of the highest quality in 2020.

This fall, we have seen that the art scene in Hong Kong has
continued business as usual in the city, with gallery openings and
auctions proceeding as expected. That said, we do understand that
the situation is nuanced and constantly changing, so we will
continue to monitor the situation closely and remain in close
contact with all our exhibitors. The safety of our staff,
exhibitors and visitors will remain our top priority as always.

The post As the Unrest in Hong Kong Intensifies, Dealers
Grapple With the Pros and Cons of Attending Art Basel’s Fair in the
City appeared first on artnet News.