‘Live on borrowed money’ worst thing for West Kowloon as financial proposal not yet approved

The worst thing for the West Kowloon Cultural District Authority would be to “continue to borrow money”, its CEO Betty Fung Ching Suk-yee said, adding that the government has hired an independent third party to assess their financial proposal submitted last year. 

Yet, Fung said they haven’t heard any updates regarding the proposal, which suggests allowing the sale of certain residential projects in order for West Kowloon to obtain more funding. 

Fung had warned that the original HK$21.6 billion government funding is set to exhaust by March 2025. 

In an interview with Ming Pao, Fung said West Kowloon is now more capable of making money and pointed to commercial sponsors, which has risen from HK$27 million in 2021/22 to HK$197 million in 2022/23. 

M+ Museum and the Hong Kong Palace Museum recovers about 46 percent and 44 percent of costs respectively, Fung added, keeping up with renowned museums across the world. 

She continued that the annual expenditure for the HKPM is about HK$400 million, including some HK$200 million spent on holding exhibitions as well as fees on insurance, transportation, electricity, and management and salaries. 

Even if West Kowloon could raise about HK$100 million, after counting in the rent and the admission fees the district would still have to cover the remaining half of the HK$400 million, she noted. 

She said West Kowloon welcomed over 4 million visitors in 2022/23 and believed that the two museums will also see over 4 million visitors this year. 

Fung also said West Kowloon will hold the first Hong Kong International Cultural Summit this coming March and representatives from some 20 museums will come and sign cooperation agreements with West Kowloon. 

She added that Hong Kong can be a liaison between many museums that wish to enter the Asia market but are not familiar with the environment.