Art Basel Cancels Its Hong Kong Edition, Citing ‘Sudden and Widespread Outbreak’ of Coronavirus

After weeks of speculation and uncertainty about whether the
deadly coronavirus would force the cancellation of this year’s
edition of the Art Basel Hong Kong fair in March, organizers have
finally released an official announcement this afternoon: the fair
has been called off.

The Swiss fair’s owner, MCH Group, sent out a statement this
afternoon saying that the event, which was scheduled to run between
March 19 and 21 at the Hong Kong Convention and Exhibition Center,
was unable to proceed as planned due to the outbreak and spread of
the novel coronavirus.

After the virus was declared a global health emergency by the
World Health Organization last week, MCH leaders said, they had “no
option but to cancel the upcoming edition of Art Basel Hong Kong.
Numerous factors informed this decision, including fundamental
concern for the health and safety of all those working at and
attending the fair; the severe logistical challenges facing the
build-out and transit of artwork to the show; and the escalating
difficulties complicating international travel, all arising as a
result of the outbreak of the coronavirus.”

According to an email sent to exhibitors announcing the news,
Art Basel’s organizers will reimburse galleries for 75 percent of
their stand fee and will not ask to be paid for special orders for
walls or lighting placed in advance with the fair. (This stands in
contrast to when the first edition of Art Basel Miami Beach was
canceled two months before it was scheduled to open in 2001
following the 9/11 attacks, when booth fees were simply rolled over
to the next year.)

“The decision to cancel Art Basel Hong Kong was an extremely
difficult one for us,” said Bernd Stadlwieser, CEO of MCH
Group, in a statement. “We explored every other possible option,
including postponing the fair, and gathered advice and perspectives
from many gallerists, partners, and external experts. However,
today, we have no other option but to cancel the fair.”

The global death toll of the virus has reached at least 565
people, with more than 28,000 cases confirmed in mainland China,
according to
NBC. Following China’s decision to close state museums two
weeks ago, Hong Kong shuttered its own public art institutions
indefinitely last week. Several airlines, including Delta,
American, and United, also suspended or reduced the number of
flights to China during the fair’s run. And Carrie Lam, Hong Kong’s
chief executive, has ordered all entrants from China to be
quarantined for 14 days, severely limiting the chances that
mainland Chinese collectors would come to the fair.

Meanwhile, major corporations, including Art Basel’s lead
sponsor UBS, have imposed travel restrictions on employees. On
Monday, Swatch even canceled a
retailer event scheduled to be held in Zurich in late February and
early March “in order to guarantee the welfare of our guests,
partners, and colleagues.” The outbreak is also hitting the economy
of Hong Kong—which had already entered a recession amid ongoing
protests—hard. Some experts have
predicted the city’s economy will shrink another 2.6 percent
this year as a result of the outbreak and its ripple effects.

Marc Spiegler, the global director of Art Basel, said in a
statement that the outcome could not be avoided. “Our thoughts are
with those affected by the recent coronavirus outbreak all around
the world. We are acutely aware of the important role that the fair
plays within the region’s cultural scene and for our galleries,
both in Asia and around the globe,” he said. “Our team dedicated
extensive time and effort to ensure our show in March would be a
success over the course of the past year. Unfortunately, the sudden
outbreak and rapid spread of the novel coronavirus radically
changed the situation.”

Tension over the fair was elevated even before the coronavirus
outbreak, as dealers grappled with
attending as pro-democracy protests are ongoing in the
city. Two weeks after 24 galleries sent a pointed
letter to the fair demanding concessions due to the
uncertain political situation, London dealer Richard Nagy issued
his own even more heated message to organizers and colleagues in
light of the rising concerns about the virus, writing in a letter
that “not one of our foreign clients will be attending and they are
surprised the fair is still on.”

In recent days, pressure increasingly mounted on Art Basel to
make a decision as deadlines for art-shipping approached. In
her statement, Adeline Ooi, Art Basel’s director of Asia, expressed
gratitude to “our exhibitors, partners, and friends all over the
world, and especially in Hong Kong, who have stood by our side,
lent their support, and shared insights and opinions over the past
days and months. Our commitment to Asia and Hong Kong has not
changed, and we look forward to the 2021 edition.”

The threat of the virus comes at an already tense moment for
Art Basel and its Swiss owner, MCH Group. The corporation is
suffering from financial strain and shareholder
dissidence from an investor group known as AMG, led by
Erhard Lee. In an earlier message to
exhibitors before the coronavirus outbreak, Art Basel’s
organizers had demurred from granting their request for a 50
percent booth fee discount, calling it “financially
untenable,” especially considering the unforeseen changes that have
already had “a significant financial impact for Art Basel.”

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‘Sudden and Widespread Outbreak’ of Coronavirus appeared first
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