Hong Kong arts hub renews call for financing proposal backing as Legco summer recess looms

The authority behind Hong Kong’s premier arts hub has renewed calls for the government to back a proposal that promises much-needed financial aid, with the city legislature’s looming summer recess to delay approval until at least October. Paulo Pong Kin-yee, a board member of the West Kowloon Cultural District Authority (WKCDA), also appealed to the government to give the organisation more flexibility over funding options. The Post has learned that the authority in March last year submitted a proposal to sell land in the district to the Culture, Sports and Tourism Bureau, pending a government decision. But Legislative Council discussions about the plan to help the WKCD might be delayed until October as lawmakers are set to start their summer recess later this month. “When setting [key performance indicators, or KPIs], the government should factor in the flexibility WKCD needs to enhance its cultural vitality and international reach,” Pong said in a letter to the Post. “Effective KPIs that balance growth with prudent financial management are essential for securing WKCD’s success and global standing.” Henry Tang Ying-yen, chairman of the WKCDA’s board, issued an ultimatum in May and said the government had until August to make a decision, as the district only had a year’s worth of funding left. A spokeswoman for the authority said last week that the organisation was working closely with the government to address the financial challenges and was confident that a decision would be made soon. Meanwhile, the bureau told the Post that the authority was a self-financing statutory body and had a responsibility to improve its financial position if it aimed to continue developing and operating. “The government has received WKCDA’s proposal on improving its financial situation,” a bureau spokeswoman said. “We have engaged an independent consultant to assist in reviewing WKCDA’s financial position and its proposal, as well as exploring other viable means to help alleviate its financial challenges, and will keep members of the public informed as and when appropriate.” The last meeting of Legco’s finance committee before the summer recess takes place on Friday, with the authority’s funding request absent from the agenda. Tang, a standing committee member of the Chinese People’s Political Consultative Conference, the country’s top political advisory body, also warned in May the district would be forced to shut down its museums for two days a week or reduce the opening days for its Cantonese opera centre if the funding crisis remained unresolved. In the latest call to action, Pong noted London’s Tate Gallery and the Centre Pompidou in Paris were world-renowned museums that could barely cover operating and maintenance costs, despite welcoming large influxes of visitors. “In the long run, allowing WKCD greater flexibility and room for improvement will help it achieve financial stability and operational success,” Pong said. He also said ensuring the district had all necessary resources aligned with plans for the city to foster cultural development. “Given sufficient time and policy support, I believe that WKCD will be able to achieve self-financing,” the board member said. Pong stressed that the district’s importance should not be overlooked in terms of encouraging cultural exchange between the East and the West, as well as supporting the city’s bid to become a global cultural hub. “More importantly, it helps drive tourism and strengthens ties between the people, the cities and the countries,” he said. The district would also contribute to Hong Kong’s integration into the Greater Bay Area, an economic zone that also includes Macau and nine mainland Chinese cities, with a population of 86 million. The latest available annual report showed the underlying operating deficit for the arts hub fell to HK$718 million (US$91.8 million) in the 2022-2023 financial year, 7 per cent lower than in 2021-22. The authority attributed the improvement to the city’s return to normality following the Covid-19 pandemic, and the operation of M+ and the Hong Kong Palace Museum at full capacity. The underlying operating deficit is calculated before depreciation, amortisation and financial costs are taken into account. It also recorded a 50 per cent reduction in losses for that year compared with a forecast published by the authority in 2021.

Hong Kong arts hub renews call for financing proposal backing as Legco summer recess looms

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}West Kowloon Cultural District Authority seeking support for financing plan after earlier warning of depleting operations budget

West Kowloon Cultural District Authority seeking support for financing plan after earlier warning of depleting operations budget