The theatre faces closure when its lease expires in August 2009. The manager of the theatre refused to comment last night.

The survey findings outline a number of recommendations, including that Eastern District be developed into a Cantonese opera hub to further develop community interest in the art and stimulate the district's economy.

The recommendations include building facilities for training and performances, and promoting the Cantonese operatic tradition among the younger generation.

Industry insiders and district councillors welcomed the idea, suggesting new venues be built in locations that can be easily accessed by public transport, such as North Point or Sai Wan Ho.

The Chinese Artists Association of Hong Kong, which represents the Chinese opera sector, had previously called for a permanent theatre to be built on the cleared site of the former North Point Estate.

Sunbeam Theatre opened in 1972 and holds an average of 300 Cantonese opera performances a year.

Cantonese opera actress Chan Kim-seng said the city lacked venues for performances and the closure of the Sunbeam would be a big loss.

'It would not be a bad thing to have the new theatre built in North Point, as long as it's accessible by public transport,' she said.

Kong Tze-wing, chairman of district council's leisure and culture committee, said the Sunbeam Theatre was the best venue for the opera performances.

'The art has been in the Eastern District for many years and I think we should preserve it,' he said.

As an alternative, he suggested a new theatre could be built in Java Road in North Point, which is well serviced by public transport.

Leisure and culture committee vice-chairman Alex Fu Yuen-chuen welcomed the proposal.

'Most of the population in Eastern District are elderly. It is necessary to preserve Cantonese opera and it would be good to develop [this new opera hub],' he said.

'There's a piece of land that is appropriate in Sai Wan Ho near the Eastern Magistracy. It's for government and community use.'