'Arts Hub Finances Sound Despite Rising Deficits'

The head of the struggling West Kowloon arts hub, Henry Tang, on Monday assured legislators that the project’s finances are sound despite projections of increasing deficits over the next several years.

Giving an update on the hub’s financial situation, the West Kowloon Cultural District Authority chairman conceded that while operating deficits are expected to rise from HK$299 million in the 2019-20 financial year, to more than HK$1.5 billion by 2022-23, this will be balanced out when retail, dining, office, and hotel facilities open up and start generating revenue.

Tang said there was a ‘mismatch’ in financing – with money-making elements coming on stream later than costly cultural facilities.

He also acknowledged that the project is facing a number of significant challenges that were outside their control, including the global Covid-19 pandemic that has forced the authority to cancel or rescheduled hundreds of performances and activities.

Despite Tang’s assurances, some lawmakers expressed concerns that the project could turn into another Ocean Park – with the government having to step in to bail out the arts venue.

Hong Kong First lawmaker Claudia Mo says it's inevitable that they will seek more funding from Legco.

“They keep spending money and they have no income at all at the moment, and for the next three years. So many big [facilities] like the M+ museum and the Palace Museum will all be opening, so I don’t see where the money would be coming from, except government coffers”, Mo said.