Cultural district ponders more loans as it awaits government response

The West Kowloon Cultural District Authority is currently facing financial challenges and may need to acquire additional loans to sustain its operations.

The district's CEO, Betty Fung Ching Suk-yee, has expressed concern about the government's delayed response to the district's financial restructuring plan.

The district is projected to deplete its funds by mid-next year, and Fung hopes that the government will promptly approve their proposal to minimize any negative impact on ongoing exhibition negotiations.

In response to the situation, Kevin Yeung Yun-hung, the Secretary for Culture, Sports, and Tourism, has acknowledged the financial difficulties faced by the district.

"The government is actively exploring solutions to assist in resolving the issue," he said.

He added that the government will continue to collaborate with the WKCDA to address the financial challenges.

Fung said in an interview with a local newspaper that the government has engaged an independent third party to evaluate the financial proposal submitted by the district last year. The proposal suggests generating additional funding for the WKCDA through the sale of specific residential projects. However, the authority has yet to receive any updates regarding the assessment.

Fung cautioned that the original government funding of HK$21.6 billion is projected to be depleted by March of the following year.

"Currently, the district relies on borrowing loans," she said and expressed her concerns about the limited duration before their reserves are exhausted. "The worst-case scenario for the authority would be to continue relying on borrowed funds," Fung said.

She also said the M+ Museum and the Hong Kong Palace Museum managed to recover about 46 percent and 44 percent of their respective costs. "These figures are in line with other renowned museums worldwide," she said.

Fung said the annual expenditure for the Palace Museum amounts to around HK$400 million, which includes expenses related to exhibitions, insurance, transportation, electricity, management, and salaries.

Even if the district manages to raise about HK$100 million, taking into account rental and admission fees, there would still be a significant portion of the HK$400 million expenditure to cover.

The WKCDA announced that on the third day of the Lunar New Year, the M+ Museum and the HKPM collectively welcomed 18,000 visitors. The two museums received a total of 15,000 visitors on the previous day, Sunday.

Fung said that the WKCDA had over 4 million visitors during the 2022/23 financial year, which she considered an achievement. She expressed confidence that both museums would attract over 4 million visitors in the current year.

Fung also said the WKCDA will host the first Hong Kong International Cultural Summit in March. Representatives from about 20 museums are expected to attend the summit and sign cooperation agreements with the district.

Fung highlighted Hong Kong's potential as a bridge between numerous museums seeking to enter the Asian market and familiarise with the regional environment.