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March 25, 2014

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Home » City specials » Hangzhou

Luxury crackdown hits haunts of elite

By Wu Huixin | March 25, 2014, Tuesday | Print Edition

THE nominally public shores of Hangzhou’s scenic West Lake used be the preserve of the rich and powerful in around 30 exclusive clubs set in splendid enclaves with awe-inspiring views.

No common people were allowed, underscoring the widening gap in China between rich and poor and making many people indignant.

President Xi Jinping’s anti-pomp and anti-graft campaign has changed that and the Hangzhou government has ordered 30 private lakeside clubs closed until they can serve the people, all the people.

Two have reopened as ordinary teahouses, but they’re losing money.

In the past, when people passed the exclusive West Lake Clubhouse they peeked at it and wondered how opulent it really was and how China’s elite amused themselves.

Today, they can step inside the formerly forbidding, sacrosanct premises, now the Kaixin Teahouse, linger over a cup of Longjing tea priced at 18 yuan (US$2.90), and take in the lake view.

Since late January the former luxurious clubhouse has been opened to the masses who venture into the rather obscure Lotus in the Breeze in the Crooked Courtyard Park.

In the past, each table at the clubhouse cost a minimum of 5,000 yuan. That was before the campaign against lavish banquets and ostentatious gift-giving that sent chills through the bureaucracy and elite who enjoy a very cozy relationship.

Since early this year, West Lake Clubhouse and another 25 private clubs along the lake were ordered closed. Last year four others were shut.

These venues occupied public space on the lakeside and interfered with sightseeing, to say the least.

Technically, ordinary people could not be barred, but few ventured into the unwelcoming, upscale surroundings to appreciate what was supposed to be a public view.

To date, all remain closed, except for the West Lake Clubhouse and Jiu Li Song Clubhouse, both of which are now affordable teahouses.

The Hangzhou government now prohibits other private, luxury establishments from opening in the West Lake Scenic Area.

Most sumptuous clubs were operated by wealthy Zhejiang enterprises and rich businessmen and opened to their friends who wined and dined and did deals.

The West Lake Clubhouse belonged to the Hangzhou Commerce and Tourism Group. The ultra-exclusive members-only Jiang Nan Hui was built by Ma Yun, chairman of the e-commerce giant Alibaba Group and seven other Zhejiang entrepreneurs.

Some establishments were opened in old buildings dating from the late Qing Dynasty (1644-1911) and early Republic of China Period (1911-1949), including former residences of celebrities.

The famous Bao Qing Villa with a spectacular view was built in 1907 by merchant Xing Gengxin, featuring an ornate, baroque architectural style. In 2005, it was turned into a high-end clubhouse, costing around 10 million yuan in renovations and catering mainly to business and government banquets. It was closed last April, a month after Xi was elected president.

Since taking office as president last March, Xi has demanded curbs on excessive public spending at the taxpayers’ expense, covering the “three public consumptions.” They are official receptions and entertainment; overseas trips; and purchase and use of luxury vehicles by officials.

The government also issued “eight rules” for official behavior, including bans on expensive meals of many costly dishes, showy public trips with big entourages, and stoppages of traffic for official motorcades.

The issue today is how best to use all those closed luxury venues for the public benefit; not all can become teahouses and restaurants.

Suggestions have been made to turn them into libraries, exhibition halls and centers for cultural communication. Ideas were put forward in the middle of last month by deputies of the Hangzhou People’s Congress.

“We are working with other government departments and soliciting opinions from citizens and experts to develop a plan,” said Shen Haijun of the Hangzhou Commission for Discipline Inspection.

It isn’t known when that plan will be disclosed.

The transition for these privately owned venues is not easy. Letting in the public is a money-loser.

West Lake Clubhouse isn’t raking in money anymore.

“Now we serve 100 to 300 guests every day, but we still lose money every month due to the high rent,” says Xu Derong, manager of Kaixin Teahouse, formerly the West Lake Clubhouse.

He declined to disclose the rent.

Although the secluded location inside Breeze in the Crooked Courtyard Park was once an advantage that lured the elites, its location off the beaten track has been a disadvantage in attracting paying guests today.

In early February, an incident gave the just-opened public teahouse a bad name.

When it opened during the Spring Festival, locals swarmed in when they heard it was no longer a haunt of the elite who had snubbed them.

It was swamped and there were too few waitresses to handle the throng. Some visitors thought the teahouse was denying service to ordinary people and they complained on weibo.

This caused a stir since locals were not sure whether the venue was open to them or not.

Manager Xu made a mea culpa and admitted to the Morning Express newspaper that the service had been inconsiderate and promised to improve.

To demonstrate that the situation had indeed changed, Xu and the staff replaced antique decorations and expensive Chinese herbal medicine that had been displayed in the lobby — with red paper lanterns.

Today, the Hangzhou West Lake Scenic Area Administration Committee dispatches periodic patrols to ensure that the closed private clubs do not reopen without permission. So far, none has reopened on the sly.

Hangzhou


 

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