Feature

Chinatown or 'ghost town'? How Sydney's iconic district is struggling due to COVID-19

For shop owners in Sydney’s iconic Chinatown district, the economic impacts stemming from COVID-19 were being felt long before the government restrictions were enforced.

chinatown dixon house

Shops inside the iconic Dixon House are either closed or empty. Source: SBS

In what is usually one of Sydney's busiest commercial districts, the hustle and bustle of Chinatown in the inner-city suburb of Haymarket has ground to a halt. 

Government restrictions to combat the spread of COVID-19 have crippled most retailers in the district, the main being the prohibition of people from dining at restaurants and cafes, subsequently prohibiting public gatherings of more than two people. 

As a result, as many as 60 per cent of the shops along Chinatown’s iconic Dixon Street are closed, while many others are struggling to survive.

A survey by SBS Cantonese found that of the 186 shops on both sides of Dixon Street, only 74 are still open, as of the writing of this article.
Chinatown
Only a handfull of pedestrians are seen in the once crowded Dixon Street. Source: SBS
Of the 104 restaurants, only 45 of them are open for takeaway orders.

The economic impacts were being felt in this district months before the government measures were enforced, with Chinese businesses in Sydney’s cultural hubs reporting losses of up to 50 per cent over fears of the spread of the virus in late January.
Chinatown
Source: SBS

‘Only five customers a day’

For Mr and Mrs Lau, who have run the dried seafood and herbal medicine business, Thai Shun Co, since 1997, this “miserable” period where the district is a "ghost town" is one which they had never witnessed before.

They stopped purchasing goods from their regular wholesalers a month ago and say they have so far experienced an 80 per cent downturn in sales.

"[On the worst days,] there were only 5-10 customers. How miserable is this," Mrs Lau says.
Chinatown
Many shops owners say they have not purchased goods from suppliers for a month. Source: SBS
As for the future, she feels the situation is “hopeless”, but she resolves that “there are no other solutions but to stay strong”.

Among other shops in the normally thriving Dixon House, we observed only one customer in a usually-thriving barbershop.
Chinatown closed
"Temporarily closed" notices are scattered all over the street. Source: SBS
One of three GP clinics remains open in the centre, while another has opted to provide telemedicine.

One of the doctors, Dr Albert Kin Yuen Leung tells SBS Cantonese that he has not thought of temporarily closing the clinic. 

“I think, for us GP doctors, it is not feasible to shut down at this moment,” he says. 

“Patients do have to visit a doctor when they experience urgent matters.”

Despite that, he says that he has never experienced such a drop in patients since he opened in 1990.
Chinatown clinic
This GP clinic remains open despite no patients coming in. Source: SBS

No travel tours for two months, at least

Meanwhile, many of the well-known travel agencies in the district are closed for business.

The manager of one travel agency who remains open tells SBS Cantonese that revenue is down more than 90 per cent. In recent days, Mr Lin cannot recall receiving a single customer through his doors.

He says the most common reason that customers are getting in contact is to request tickets to be refunded.
Chinatown travel agecy
Most travel agencies are closed for business, with those remaining mostly processing refund requests. Source: SBS

Newly opened Hong Kong-style cafe has lost 80 per cent of business

Kowloon Cafe, which was frequently full when it opened in late 2019, is now only open for takeaway orders.

Owner Dick Kwong said business has declined between 70 and 80 per cent from the peak, with only 30 to 40 takeaway orders being processed on most days.

He says he had planned to temporarily suspend business but has since dismissed the idea knowing that his employees hope to keep their jobs.

“Let's give it a go and see if we would be able to turnaround things so that [employees] can continue working here,” he says.
Chinatown restaurant
He says customers of a newly opened cafe have "disappeared" in a matter of five months. Source: SBS
Mr Kwong says he is currently negotiating for a reduction in rent.

"But there is no evident progress at the moment. [He] said I can defer the payment, but he's not willing to waive the rent."

Other restaurants in Chinatown are facing a similar fate. In the food courts of Dixon House, Sussex Centre, and Harbour Plaza, there are only a handful of takeaway customers.
Chinatown food court
Food courts have chairs removed, with restrictions requiring stores to only provide takeaway services. Source: SBS

Takeaway orders for delivery companies up by 20 per cent

For delivery companies and workers in the “gig economy”, this period is one of prosperity.

We observed at least eight delivery bikes rushing through the street in a five-minute interval.

One of the major food delivery companies in Sydney, EASI, tells SBS Cantonese that delivery orders in the Sydney CBD spiked by 20 per cent between February and March.

Furthermore, the average order volumes have also increased by 11 per cent, while customers' order frequency have risen by 6 per cent.
Chinatown food delivery
Food delivery services seem to be the only "winner". Source: SBS

City of Sydney says ‘aid measures are in place’

A City of Sydney spokesperson tells SBS Cantonese that the COVID-19 pandemic has had a significant economic impact on businesses across the city, including in Haymarket.

"To support local businesses, the City has already provided the option of short-term deferred payment plans for rates. Property owners, including those in Haymarket, can seek to defer council rate payments due to financial hardship, and the CEO also has the delegation to review rents in Council-owned premises for tenants that require support and waive fees and charges where appropriate for Health and Building compliance activities," the spokesperson said.

"The City is assessing Haymarket Chamber of Commerce’s application for the new business support grant, which will be considered by Council in June."

Furthermore, the council has also announced a new series of small business grants worth $2 million, which will allow businesses to modify their operating model to produce income and supply products, develop online and e-commerce capabilities, do training and professional development to better prepare for a return to business activities, and invest in capital works to help the business benefit from the economic recovery.

People in Australia must stay at least 1.5 metres away from others and gatherings are limited to two people unless you are with your family or household.

If you believe you may have contracted the virus, call your doctor (don’t visit) or contact the national Coronavirus Health Information Hotline on 1800 020 080. If you are struggling to breathe or experiencing a medical emergency, call 000.

SBS is committed to informing Australia’s diverse communities about the latest COVID-19 developments. News and information is available in 63 languages at .


Share
6 min read
Published 8 April 2020 11:35am
Updated 12 August 2022 3:19pm
By Winmas Yu, Yiu Wah Lin


Share this with family and friends