West Kowloon says deficit normal, pay under review
SingTao · 2 SOURCESabout 3 hours ago2 MIN
Summary
West Kowloon Cultural District's basic operating deficit widened to HK$998 million in 2025/26, drawing renewed scrutiny at a Legislative Council panel meeting on October 12. Board chairman Bernard Chan said the district remains a public cultural asset with free access for residents and visitors, and argued that losses are normal because cultural facilities take up far more space than commercial uses. He said revenue reached a record HK$768 million for the year, with strong growth in ticketing-related sponsorship and retail, and described 2027/28 as a watershed when new facilities and projects should materially change operations. He also said management pay is internationally competitive rather than arbitrarily set, but pledged to review remuneration as cost control remains a priority.
Key Points
- Chan told lawmakers on October 12 that West Kowloon recorded a HK$998 million basic operating deficit in 2025/26, up 29.7% year on year.
- He said operating revenue rose nearly 20% to a record HK$768 million, while the district's cost-recovery ratio ranks among the world's leaders.
- Chan argued commercial facilities occupy only about 3% of the site's area, making full cost recovery unrealistic as more cultural venues open and expenses rise.
- Ticketing-related sponsorship income increased by more than 30%, and retail revenue more than doubled from a year earlier, showing improving income generation.
- Responding to calls for pay cuts, Chan said West Kowloon needed world-class talent to win rapid international recognition, but promised to review management remuneration.
Why It Matters
For Hong Kong, the debate is no longer only about one year's deficit, but about whether a publicly funded cultural district can build a durable business model without further government injections. The next phase of openings, commercial tenders and property development will shape whether West Kowloon can balance its public mission with financial sustainability.