28 minute read
Business Focus
Government Support and Incentives
By Tommaso Borgia, Associate Hawksford
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The Hong Kong Government has launched three rounds of measures since the beginning of this year, totaling HK$287.5 billion (approximately 10% of its GDP), for the proposed objectives of helping businesses to stay afloat, keeping workers in employment and relieving the financial burdens of individuals and businesses affected by the Covid-19 outbreak. Among them, a HK$120 billion relief package was announced in the 2020-21 Budget while a total of HK$167.5 billion was injected into the newly established Anti-epidemic Fund.
Under the first round of the Anti-epidemic Fund approve by the Legislative Council on 21 February 2020 – for which HK$30 billion was allocated – the Government has established, among others, the Retail Sector Subsidy Scheme to target businesses which sell goods at physical locations to the public for personal or household consumption. A sum of HK$5.6 billion was earmarked under the Scheme’s funds to benefit some 70,000 retailers, through a one-off subsidy of HK$80,000 for each store which is capped at a maximum of HK$3 million per retail group (equivalent to no more than 38 stores).
For the F&B industry, the Food License Holders Subsidy Scheme was established with a total fund allocation of $3.7 billion. A one-off subsidy of HK$200,000 was provided to eligible license holders of premises currently in operation, including restaurants, marine restaurants and factory canteens. Meanwhile, a subsidy of HK$80,000 was provided to eligible license holders of operating light refreshment restaurants, fresh provision shops, food factories, bakeries and siu mei and lo mei shops.
On 8 April 2020, the Government announced a HK$137.5 billion package for the second round of relief measures under the Anti-epidemic Fund. This included a HK$80 billion Employment Support Scheme (ESS) to help employers retain employees and avoid redundancies. The subsidy is capped at HK$9,000 per month (50% of HK$18,000, the monthly median wage in Q2 of 2019) per employee for six months, to be paid in two tranches. The first tranche will provide wage subsidies for three months from June to August 2020, while the second tranche will be disbursed in September 2020 and cover wages until November. Each employee can choose any one month from December 2019 to March 2020 as their “specified month” as basis for calculating the subsidy amount.
The subsidy comes with two main requirements for eligible employers, namely not to implement redundancy during the subsidy period and to spend all the government subsidies on paying wages to their employees. The application for the first tranche of wage subsidies commenced on May 25, lasting for three weeks until June 14 – the application details for the second tranche are yet to be released. Moreover, under the ESS, self-employed persons who have set up an MPF account on or before 31 March 2020 may apply for a one-off lump-sum subsidy of HK$7,500. The Scheme is expected to benefit about 260,000 employers, or some 1.77 million employees.
Other measures available under the second round of the Anti-epidemic Fund worth mentioning include the Distance Business Programme (“D-Biz Programme”), launched by the Government to support enterprises in maintaining their businesses and services during the epidemic through adoption of IT solutions. Each applicant can submit one application with no more than three IT solutions among 12 categories. The D-Biz Programme’s funding ceiling is set at HK$100,000 per selected IT solution. In other words, each enterprise can receive total funding of up to HK$300,000. The application period began on 18 May and will remain open until 31 October 2020.
Hawksford Corporate Services Hong Kong Limited is a global leading financial services consulting firm. It provides a complete suite of services that span all aspects of setup and ongoing company administration.
Bringing more than 10 years’ experience, we facilitate businesses worldwide to tap into the Asian emerging markets by ensuring comprehensively that statutory and regulatory compliance of the companies are met. With its personalized and competitively priced services, Hawksford strives to provide each of its clients a strategic advantage in the market in which it operates. We’ve helped companies in a wide range of industries from manufacturing, retail, tech, innovation, trade and luxury fashion. In order to ensure a seamless service fine tuned to the specific regulatory, business and cultural aspects of the country of origin of its clients, Hawksford employs as account managers professionals with different languages skills from Spanish to English, from German to Italian. With 200 staff across Asia and 450 globally, based in different offices, our people are experienced, highly qualified and multi-lingual covering over 20 nationalities and 22 languages. Our ingrained culture of entrepreneurialism means we are perfectly positioned to work with ambitious entrepreneurs, multinational companies and SMEs, partnering with you for growth and helping you make the most of your commercial decisions and business objectives. We have the local knowledge to help you navigate your business.
hawksford.com
Three keys to ensure enterprise resilience in turbulent times
The COVID-19 pandemic has affected every element of business, from the robustness of supply chains to the stability of the financial markets, the availability of the labour force and the vitality of customer demand. In this unpredictable environment, one of the keys to business survival – and to future success – is ensuring resilience throughout the entire enterprise.
Before the pandemic, businesses were already working hard to maintain resilience in the face of other fast-moving trends, including disruptive technologies, extended supply chains and changing customer expectations. Facing COVID-19, businesses must now urgently assess all aspects of their resilience, hone in on key improvement areas, and keep them under review to be able to successfully navigate through these difficult times.
Below are three key areas for businesses to maintain enterprise resilience:
1. Financial resilience
Financial resilience refers to the ability to withstand financial impact on liquidity, income and assets. The financial effects of the pandemic are reminiscent of the 2008 financial crisis, but with the stresses extended across every sector of the economy. Previously healthy businesses are suddenly coming under acute financial pressure. Keeping financial resilience strong requires companies to adapt existing financial frameworks to a more hostile, volatile environment in which profitability, cash flow and access to finance are coming under simultaneous pressure. Three focus points within this pillar are financial stress testing and forecasting, liquidity and financing, and financial crisis response and contingency planning.
2. Operational resilience
COVID-19 has become the single greatest threat to the continuity and existence of many businesses. The maturity of an organisation’s operational resilience now has the very real potential to dictate whether an organisation can survive. Under severe operational stress, organisations will need to make important judgment calls, deciding which products, services and processes should be kept operational. In these circumstances, firms will need to understand their prioritisation criteria, what constitutes the minimum viable business model, and develop a viable recovery strategy. In turn, this will have implications for staff and potentially involve difficult discussions with customers and suppliers and the potential closure of sites and facilities. Legal and regulatory implications are also certain. Companies that demonstrate strong operational resilience are the ones who will be able to withstand these operational shocks and continue to deliver their core business.
3. Commercial resilience
As the COVID-19 pandemic takes its course, and as official responses evolve, customer behaviours are changing in ways never seen before. Market access and demand for products and services is changing rapidly, as are customer behaviours, with material shifts in channel usage, often daily, and in several different ways at the same time. Businesses in every sector of the economy are taking dramatic steps to respond to these unprecedented changes. For example, product lines are being streamlined; capacity is being switched to areas of high demand; and resources are being redirected towards online channels. There has also been increased collaboration between firms to share limited distribution networks. Firms that can successfully monitor, measure and adapt to changes in demand in markets, channels, products and services will emerge as winners.
In this unpredictable environment, one of the keys “ to business survival – and to future success – is ensuring resilience throughout the entire enterprise. Businesses must now urgently assess all aspects of their resilience, hone in on key improvement areas, and keep them under review to be able to successfully navigate through these difficult times”
Grant Jamieson, Partner, Head of Advisory, Hong Kong, KPMG China
Source: KPMG China, “COVID-19: A Guide to Maintaining Enterprise Resilience - Hong Kong Edition”, 2020. https://home.kpmg/cn/en/home/ insights/2020/04/covid-19-a-guide-to-maintaining-enterprise-resilience.html
KPMG China is based in 26 offices across 24 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Jinan, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuhan, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located. KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 153 countries and territories and have 207,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG’s appointment for multi-disciplinary services (including audit, tax and advisory) by some of China’s most prestigious companies.
Business models to choose for doing cross-border e-commerce in China
By
Rebecca Wong, Tax Partner, PwC China Crystal Liu, Senior Tax Manager, PwC China
During the past six years from 2014 to 2019, online retail sales is the key driver for China’s retail market growth, reaching over 30% compound annual growth rate according to statistics. Many overseas companies who have not yet had retail footprint in China are speeding up their market entry via cross-border e-commerce as the risks and costs involved are generally lower than setting up a company or have physical presence in China.
There are a lot of commercial, operational and regulatory considerations in conducting cross-border e-commerce, for instance:
Different models will bring different China tax and customs implications as well as different customer experiences.
Model 1: An overseas company operates its global website to accept orders from China-based consumers
China-based consumers place orders and make payments online via a global website. The goods are usually couriered from overseas to China and it takes time for shipment and delivery. The importers (i.e. the consumers) shall pay import taxes, which will be either the so-called ‘postal tax’ ranging from 13%, 20% and 50% depending on product categories; or the ‘general import taxes’ which consist of customs duties, import VAT and import consumption tax (i.e. consumption tax is levied only for a few designated categories).
Model 2: An overseas company sells goods via a cross-border e-commerce marketplace
China-based consumers place orders and make payments online via the cross-border e-commerce platform run by marketplaces (such as Tmall Global, Global.jd etc.). The goods may be stored in overseas for shipment upon orders or in bonded warehouses in China. The marketplaces process orders with the designated information connected with the China customs so that the customs declaration and importation procedures are less complicated than normal trade. The consumers can enjoy a lower import tax regime, the so-called ‘cross-border e-commerce tax regime’, where customs duties are exempt, and import VAT and import consumption tax are taxed at 70% of the normal rates. Under the special tax regime, a single order shall not be more than RMB 5,000; and the maximum purchase spending by an individual consumer is RMB 26,000 in each calendar year. Please note that currently around 1,400 items are available for sales via this cross-border e-commerce importation policy.
Model 3: Setting up a China company to run both retail stores and website
The China retail company imports the goods from overseas (i.e. B2B importation) and pay import taxes (i.e. customs duties, import VAT and import consumption tax at normal rates) under the general trade mode. The China retail company conducts domestic sales via its stores and website. The goods are usually stored in China for fast delivery. The customers can have better experience with a good O2O strategy in place.
Under both models 1 and 2, consumers would bear the import taxes effectively; while under model 3 the retailer would bear the import customs duties and import consumption tax (if applicable); and the import VAT would be creditable against the output VAT derived from sales income. In addition, the sales income and trading profit of the seller are kept in an overseas company for models 1 and 2 while that would be kept in a China company under model 3. Hong Kong is commonly chosen as the procurement and e-commerce trading hub in view of its low tax and simple tax system as well as its proximity to connect with mainland China.
Companies should thoroughly study the regulations and local citylevel practices in designing an optimal business model. It is important to evaluate the feasibility and tax implications of different operational models; conduct consumer survey to decide the product mix, price strategy and online traffic; budget the relevant costs in working with different parties (such as the charges of marketplaces, payment agents, warehouse and customs agents, etc.).
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with over 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc. com.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
We provide organisations with the professional service they need, wherever they may be located. Our highly qualified, experienced professionals listen to different points of view to help organisations solve their business issues and identify and maximise the opportunities they seek. Our industry specialisation allows us to help co-create solutions with our clients for their sector of interest.
We are located in these cities in China: Beijing, Shanghai, Hong Kong, Shenyang, Tianjin, Dalian, Jinan, Qingdao, Zhengzhou, Xi’an, Nanjing, Hefei, Suzhou, Wuhan, Chengdu, Hangzhou, Ningbo, Chongqing, Changsha, Kunming, Xiamen, Guangzhou, Shenzhen, Macau and Haikou.
How to Manage Your Company From Anywhere
By Mr Filippo Buzzi, Fidinam
Since the beginning of 2020, social distancing has meant working from home for many companies. This is leading to a “business transformation” on multiple levels. Even for small companies, with few internal processes, this shift can prove challenging without solid solutions in cloud computing. The Economist has recently published an article titled “The nowhere firm – How to manage a business without a headquarters”, mentioning the practice, typically within start-ups, of using online tools and software to run a business outside the office.
Fidinam Hong Kong has built inhouse knowledge to help SMEs master this transitioning phase, while ensuring that operations stay up and running. (FreshBooks, Invoiced, Xero).
Working From Home
The practice of Working From Home dates back to the 1970s. Nowadays, it is quite a common practice worldwide, particularly in the Middle East, Latin America and Asia. According to a Reuters poll, about 10% of professionals in these regions have been working from home everyday for the past decade.
For Hong Kong companies, the advantages are clear: less time spent commuting positively impacts employees’ quality of life, reduces rental
how does one implement teleworking procedures effectively?
To answer this question, Fidinam has developed an implementation strategy that involves the integration of three types of cloud tools – all of which are easy to adopt and enable effective “remote management” of your company. These include online communication platforms (Slack, Skype, Zoom), task management software (Asana, Scoro, Workzone) and accounting software costs for companies and mitigates negative effects on the environment. But
External Consultants
Online Communication Tools
Managers
Accounting Software
Task Management Software
Employees
Credit Card Payments Accountant Clients Bank
The roles and benefits of each participant in this implementation strategy are as follows:
Managers are at the core of this strategy, since they must utilize these cloud tools to manage their staff in various ways. For instance, tasks will be assigned through online communication tools, deadlines are set up through task planning software, and decision-making processes will be influenced based on financial data obtained through accounting software.
Employees see their communication efficiency increased by messaging colleagues and sharing documents through online communication platforms. Moreover, their duties are prioritized by the management team through online project planning, and can expedite the issuance and delivery of invoices with the automated features of accounting software.
Clients of the company receive invoices directly to their mailbox and can pay by credit card, dramatically reducing the time spent on payment settlement. Accountants can access accounting software to accomplish budgetary tasks without the need for meetings or delivery of physical documents.
External Consultants can access virtual data rooms and channels established within online communication platforms to cooperate with the management team and company employees.
Within this process, a robust and user-friendly accounting software is of critical importance – particularly one is capable of automatically connecting with most banks in Hong Kong. This is so that information is automatically imported into the system, reducing time spent on data entry and human error while optimizing operations. As an example, Xero provides access to financial information for both companies and advisors.
Founded in 1960 in Lugano (Switzerland), Fidinam is a privately owned Group providing a wide range of solutions for companies and individuals.
Our services include tax and wealth planning, trust and corporate services, business consulting and real estate consulting.
fidinamgw.com
Do you like music, art, theatre?
Do you like music, art, theatre? Are you interested in conferences, talks and seminars about design, art and culture? Then don’t miss the opportunity to attend our events. We are government body, part of the Italian Ministry of Foreigner Affairs and we aim to bring to Hong Kong a great selection of events throughout the year.
By The Italian Cultural Institute
2020 is a year that commemorates 3 big names of Italian culture. It is 500 years since the death of renowned painter Raffaello, whilst the writer Gianni Rodari and his wonderful children stories and the great film director Federico Fellini would both be celebrating their 100th birthday this year. The Italian Cultural Institute planned a number of exciting events to celebrate the lives of these artists, but due to the current situation we had to reschedule them. Follow our Facebook and Instagram pages or check our website to keep up-to-date with all our events.
Follow us on your favourite social media platforms – Facebook, Instagram or Twitter – or subscribe to our YouTube channel to see some of our live events that you might have missed.
Facebook: istituto.dicultura | Instagram: italianculturalinsitute.hk | Twitter: @IICHongKong
To learn more about upcoming Italian events you may contact:
Italian Cultural Institute, c/o Consulate General of Italy Hong Kong Suite 3201, 32/F Central Plaza 18, Harbour Road, Wanchai - Hong Kong www.iichongkong.esteri.it | iichongkong@esteri.it
Upcoming Events
LIVE EVENTS
Chatting in Italian at The Italian Club, Central
A bi-monthly appointment to give the opportunity to people who study Italian to practice in a fun and relaxed atmosphere. An experienced Italian teacher will guide you while you are practising to help you improving your vocabulary.
When: July 7th, July 21st, August 4th Where: The Italian Club, 32 Elgin St, Central Time: 5.30 pm - 7.30 pm
Book presentation: Painter and Patron: Illustrations of the Maritime Silk Road in 16th century Códice Casanatense by Peter Gordon & Juan José Morales
Peter Gordon & Juan José Morales will present their new book: Painter and Patron in the Maritime Silk Road in the Códice Casanatense. The Códice Casanatense is an Indo-Portuguese collection of some 76 captioned watercolours now held in the Biblioteca Casanatense in Rome. Deposited there at the beginning of the 18th century, it resided in almost complete obscurity for two and a half centuries and was not brought to scholarly attention until the 1950s. It has never been discussed in detail for the general reader.
When: Friday, July 17th Where: Hong Kong Bookfair, Room S222-223, Hong Kong Convention and Exhibition Centre Time: 6:00 pm – 7:30 pm
ONLINE FREE EVENTS Press Room - Italian articles made easy - FREE webinar by Italian Journalist Stefania Lupi
You have learned Italian and now you are looking for a step forwards. Would you like to start reading Italian newspapers and magazines but you find it difficult to understand them? Italian journalist Stefania Lupi will hold a series of FREE webinars in which she will explain and comment on newspaper articles about various current topics. When: July 15th (topic: fashion), July 30th (topic: beauty), August 30th (topic: food) Where: Zoom - Online platform (you will receive a link to participate to the meeting). Please note that the registration ends 12 hours before the start of the event. Time: 8:00 pm Hong Kong and Milan. She has a degree in International Law and a master degree in Social Communications, majoring in Journalism. She has been a professional journalist since 1991, working as a correspondent for a number of beauty, fashion, food and lifestyle magazines.
FREE webinar to learn Italian with Italian polyglot Elisa Polese
Make the most of your free time by learning or improving your Italian in a fun and efficient way. Participate in a FREE webinar with polyglot Elisa Polese. She will guide you and explain how to learn Italian in a fast and efficient way. Level: from basic level to A2
When: July 17th, August 21st Where: Zoom- Online platform (you will receive a link to participate to the meeting). Please note that the registration ends 12 hours before the start of the event Time: 7:00 pm
About the teacher: Elisa Polese is a professional language teacher, language coach, and author. She has studied more than 25 languages and teaches 13 of them. She holds an MA in International Communication from the University of Modena and Reggio Emilia (Italy), an MA in Didactic from the University of Siena and Perugia (Italy), and she is the author of a number of languages courses and the book: Multilingual learning: become fluent in multiple languages.
Fare Cinema 2020 - the Italian film festival for the promotion of
the Italian cinema and film industry
For a week, a series of content dedicated to the Italian cinema and film industry will be available on the RaiPlay platform, which will be available worldwide without geographical limitations and will have English subtitles. Among the available contents we point out: • a masterclass by the screenwriter, director and journalist Gianfranco Angelucci dedicated to Federico Fellini’s cinema; • two master classes by journalist and film critic Gianni Canova dedicated respectively to Alberto Sordi and contemporary Italian cinema; • fourteen video lessons on the “professions of cinema” made in collaboration with the main trade associations; • two short films made by foreign filmmakers and dedicated to the figure of Federico Fellini, produced in collaboration with the Italian Embassy in Santiago de Chile and the Italian Cultural Institute of Toronto; • the virtual visit of the exhibition “Il Centenario. Fellini in the world” promoted by the DGSP and set up at the moment in San Paolo.
When: June 15th - June 21st Where: www.raiplay.it
Re-create & Re-stART
- Audrey Azouley
After months of battling the COVID-19 pandemic since the discovery of the virus in December 2019, it appears the world is finally beginning to embark on the road to recovery.
During this period of recuperation, we now more than ever need something to ignite within us a sense of solidarity – and perhaps the answer lies in the arts. Since January, several live performances and shows in Hong Kong have been cancelled in accordance with social distancing measures. However, this has not stopped local performance art companies from showcasing their craft. For instance, City Contemporary Dance Company (CDCC) has pursued a number of innovations that take advantage of online tools. The group has uploaded footage of past performances and workshops onto social media, livestreaming behind-the-scenes talks and dance classes, as well as broadcasting rehearsals online. As explained by Raymond Wong, managing director of CCDC, these online performances are intended to provide comfort and connection to those stuck in quarantine. That being said, the transition to online performances comes with a number of challenges, including the need to rethink stage theory and adapting to performing for cameras instead of a live audience. Yet performance companies have much to gain in exchange – the elimination of physical limitations such as geography and seating capacity creates the potential for a vastly expanded, global viewership.
Beyond Hong Kong, the pandemic has also highlighted the importance of art as an international symbol of hope and unity. Artists and musicians the world over have shifted their focus towards how best to aid in combatting COVID-19, utilizing their talents to circulate health guidelines, spread optimism and prevent misinformation. This is perhaps best exemplified by 2020’s World Art Day, which featured such humorous and topical works as the Mona Lisa wearing a surgical mask or self-isolating in the Louvre. Besides, the pandemic has also sparked debate on the future of art – while artists have moved online in response to the closure of venues and cancellation of events, doing so has shed light on a growing digital divide among vulnerable groups. This has prompted UNESCO to launch the “ResiliArt” movement, which aims to affirm the resilience of art, shed light on the effects of COVID-19 on creative industries and prepare for the future through debates, sharing and advocacy efforts among artists across the globe
It speaks volumes that the epidemic has failed to stifle the creative spirit, and in fact has served as a vehicle of innovation and community support. This resilience should serve as an inspiration to individuals and organizations from all facets of society.
How the art world replies to the pandemic
On February 7th, 2020, Art Basel Hong Kong announced the cancellation of its forthcoming edition, which was scheduled to open to the public on March 19th at the Hong Kong Exhibition and Convention Centre. Amid the social unrest and the outbreak of the COVID-19 pandemic, the art fair cancellation wasn’t totally unexpected. And since then, like a series of dominoes, most arts events, exhibitions, fairs, and biennales have been postponed or cancelled one after another.
However, the art world never stops. It is indeed true that creativity thrives when faced with a crisis. Artists are catalyzers – they are those that filter situations, including negative ones, through their own experiences and sensibilities, returning them to us in the form of artworks.
By Claudia Albertini Director at Massimo De Carlo, Hong Kong
It is undeniable that since the outbreak of the pandemic, the art business has been deeply affected, and the dynamics between demands and offers have shifted. In this new and unstable environment, our gallery’s priorities have been to guarantee the positions of our team across all four locations, protect our artists by securing income and therefore work out alternative strategies to continue selling their artworks.
At the same time, we have had to make adaptations to the working arrangements of our four locations. During the lockdown, smart working has become essential, and thus we have implemented our systems to be able to work from home.
Overall, the main challenge has been to present artworks without being able to open exhibitions to the public. To achieve this, we have chosen to take advantage of the digital and virtual sphere.
Hence, on April 14th, Massimo De Carlo has launched its fifth gallery, VSpace: the first virtual art gallery. The project to create a virtual space had been in the pipeline since last September – in a sense, COVID-19 gave us the chance to put the idea into practice and it proved very successful.
Setting up a show within a virtual space is nowhere similar to organizing a show in a physical space. The process and order in which elements are added and taken into consideration is very different, which proves that new perspectives are essential in order to reach the same result. Henceforth, this poses a new challenge for ourselves and our artists. It is important to envision that while the virtual will not replace the physical – yet – it has become a part of our lives and can facilitate communication, especially in our field and under current circumstances. The crisis we are now facing is something that we have never experienced before, given that it is not political or financial in nature. However, it is a crisis of consumption, and the art world serves a very sophisticated niche of customers. It is reasonable to assume that it will be a while before the art market recovers.
In the past five years or so, we have experienced art as “events”. The current impossibility of gathering at the same time and place will affect the future of the art system, which is cosmopolitan and global by nature. The consequent limitations on “movement” and “interaction” have higher implications because “art needs to be seen up close”.
The secret perhaps lies in understanding the changes and adapting to them. It is indeed a great opportunity for those with vision and focus to keep moving forward.
The future of culture, from analog to digital
As several aspects of everyday life have seemingly come to a standstill in the face of the COVID-19 pandemic, it seems natural to assume that leisure and recreation as we know them have become impossibilities. The appreciation of art and culture comes to mind – having heard of repeated cancellations of events and closure of institutions, the future of creativity might appear bleak. Not so! As the great Leonardo da Vinci once said, “Art lives from constraints and dies from freedom.” Perhaps in a stroke of irony, the distance forced upon us by the epidemic has fostered a newfound openness to others and to culture, strengthening the links between artistic creation and society. It goes without saying that artists stand at the forefront of this mindset, but venues are just as important. Across the world, we are observing a rapid paradigm shift that is turning a bid for survival into a chance at innovation.
By Rajib Hussain
Digital Initiatives
In keeping with the spirit of art, museums have leveraged technology to pursue creative solutions to diminished visitor numbers and closures as a result of social distancing. For instance, many museums have taken to launching online exhibitions on a range of topics – Beijing’s Palace Museum in particular has taken the opportunity to revisit some of its most popular exhibits with a digital touch, such as “Embracing the Orient and the Occident: When the Silk Road Meets the Renaissance”. The Palace Museum has also upgraded its digital cultural relic storage, showcasing high-definition images and 3D panoramas of over 52 thousand of its antiques.
Of course, a movement towards online content need not require sacrifices in interactivity or educational value. Other initiatives that the Palace Museum has spearheaded include “Panoramic Palace Museum”, a virtual reality experience that allows visitors to explore the former royal residence that comprises the museum in immersive detail. It also celebrated the 600th anniversary of the Forbidden City, where the museum is housed, by holding its first-ever online guided tours to an audience of over 10 million people.
Trend Towards Digital Transitioning
One way or another, COVID-19 has emphasized the growing need for museums and other cultural institutions to adapt to an increasingly internet-dependent world, irrespective of the extent to which they have previously utilized technology in their operations. For some, this has meant a rapid rethinking of future plans in order to survive the pandemic. While challenging, doing so comes with a number of advantages, namely the creation of new jobs within the sector.
According to Wang Chunfa, director of the National Museum of China, there is a rising demand for a new kind of talent that understands both museum operations and information technology, in order to support the shift towards customized, multimodal cultural experiences. In other words, creatives such as photographers, software engineers and even online engineers might find themselves crucial to the digital transition of museums, as well as the reimagining of how culture is delivered beyond physical locations.
Encouraging Future Collaboration
In recent months, museums have begun moving towards museums and institutions working together to weather the financial effects of the pandemic. Sydney Hawkins, director of the University of Michigan Museum of Art (UMMA), explained that UMMA has been in regular meetings with fellow museums across the United States. On the table are mutual marketing strategies, collective exhibitions and sharing of collections to minimize costs. This comes as an efficient and effective response to the potential aftermath of COVID-19, which threatens to render museums unable to sustain themselves due to a lack of opportunity to plan events within their spaces following closures during the pandemic.
