The West Kowloon Cultural District Authority (WKCDA) told LegCo on Tuesday that its 2025/26 operating deficit widened to HK1.85 billion.
Meanwhile, its HK$21.6 billion one-off upfront endowment provided by the government from 2008 is expected to be fully used up by 2026/27.
WKCDA’s chief executive Betty Fung Ching Suk-yee attributed the higher spending to preparations for the soon-to-open West Kowloon Performing Arts Centre, an expanded business scope, rising visitor numbers, and greater spending on facility management and digital technology.
Operating income excluding interest income rose 19 percent year on year, or HK$123 million, driven by ticket revenue from popular exhibitions and performing arts programs.
Corporate sponsorship also grew strongly, with both increasing 30 percent year on year. The Ancient Egypt Unveiled: Treasures from Egyptian Museums saw strong demand for cultural and creative merchandise, driving overall retail revenue up 24 percent year on year.
However, total underlying income, including interest income, fell by 1.72 percent to HK$856 million, which was due to a sharp reduction in the one-off funding placed in banks, Fung said, warning that related income will continue to fall as more projects are rolled out.
Separately, its first public-private partnership project, the AST Development Project comprising three commercial office buildings, is expected to be completed within 2027 and will provide stable rental income.
It highlighted that global financial services firms such as J.P. Morgan have committed to leasing a total gross floor area of approximately 250,000 square feet of AST.
Furthermore, the Authority is preparing to tender its first residential development in the West Kowloon Zone 2B in the first half of next year, with a gross area for residential development and RDE facilities of the project at most reaching 108,500 square meters and about 20,000 sq m, respectively.
It is also preparing to launch the tender for the hotel, commercial, and cultural-creative integrated project in Zone 2A next to the High-Speed Rail West Kowloon Station.
The Authority emphasizes that it is in a financial transition period and will continue to actively generate revenue by leveraging West Kowloon's internationalization and industrialization advantages as commercial projects roll out.
