Xintiandi in Shanghai will no longer host a New Year's countdown gala as Huangpu district police will not be able to provide crowd and traffic control for both the countdown and the concurring 3D light show on the Bund.

Xintiandi communication manager Zhao Lieying said Tuesday that the 10-year-old event has been cancelled for good. "We negotiated with Huangpu district officials over the last two months about the planning of the New Year's gala," she told the Global Times. "However, we were told that the police would be stretched too thin if they had to provide security at both the Bund and Xintiandi."

Xintiandi, owned by Shui On Land, a Hong Kong-based property developer, has hosted a fireworks display at the area's Taipingqiao Lake each of the past 10 years. More than 20,000 people attended the three-hour event last year, and an additional 50,000 people gathered at nearby restaurants and pubs to celebrate the New Year.

The end of the event, a favorite among the expatriate community, has worried hotel and restaurant managers in the area, who are concerned that fewer New Year's Eve revelers will result in less revenue on what has been one of their more lucrative days.

Jose Raviaz, the bar manager at Fountain at Xintiandi, said that the cancelation will hurt the restaurant's business. "Our tables were booked at least a month in advance last New Year's Eve," he told the Global Times. "Many guests had dinner at our restaurant before heading to the lake for the celebration."

A manager surnamed Huang at 88 Xintiandi, a boutique hotel by the lakeside, said that their rooms overlooking the lake were completely booked last year as they offered a clear view of the fireworks. "We expect to lose at least 60 percent of bookings next New Year's Eve," he told the Global Times. "It will greatly hurt our business as some guests may choose to book a room at the Bund instead."

Last year, more than 200,000 people attended the 3D light show at the Bund on New Year's Eve, which also requires a large security contingent. In past years, there had been enough police for both events, but that changed last year, when the Shanghai Municipal government folded the former Luwan district, where Xintiandi was located, into Huangpu district.

Xintiandi is a popular upscale shopping, dining and drinking destination for tourists, expats and the wealthy.

Louise Winther, a Swedish woman who has been living in Shanghai for four years, said she celebrated three New Year's Eves at Xintiandi.

"It is a shame that the fireworks gala have been canceled," she said. 

Still, Zhao said there are other holiday festivities that Xintiandi might be able to host. "Xintiandi is still talking with district authorities, and a fireworks display might be held on Christmas Eve," she said.