West Kowloon Cultural District Authority deficit widens to HK$998 million
The West Kowloon Cultural District Authority reported a deficit of HK$998 million for the 2025/26 fiscal year, up nearly 30 per cent from the previous year, mainly due to preparatory work for the upcoming West Kowloon Performing Arts Centre. The authority said it expects to stay within the governmen
The West Kowloon Cultural District Authority recorded a deficit of HK$998 million for the 2025/26 financial year, an increase of about HK$229 million, or nearly 30 per cent, from the previous year, according to a document submitted by the Culture, Sports and Tourism Bureau to the Legislative Assembly.
The authority attributed the wider deficit mainly to preparatory work for the upcoming opening of the West Kowloon Performing Arts Centre, which required increased operational spending to cope with a broader scope of activities and rising visitor numbers, as well as upgrades to facility management and digital technology applications.
Basic operating revenue for the 2025/26 financial year stood at HK$856 million, roughly the same as the HK$871 million recorded the previous year. The authority projected that its total operating deficit for the three financial years from 2024/25 to 2026/27 would remain within the ceiling set by the government.
Despite higher spending, the authority said revenue grew significantly, from HK$645 million in the 2024/25 financial year to HK$768 million in 2025/26. Cost recovery rates across all major business units improved, and the overall cost recovery rate, excluding interest income, rose from 37 per cent to 40 per cent.
The authority described the West Kowloon Cultural District as being in a financial transition period. It said it is actively pushing forward residential and commercial development projects in the district, including preparations for the tender of the first residential project in Zone 2B, expected to be launched in the first half of next year, and a mixed-use project involving a hotel, commercial and cultural facilities in Zone 2A next to the High Speed Rail West Kowloon Station.
The authority added that it had made steady progress in advancing its financing strategy during the 2025/26 fiscal year, broadening funding sources and improving short-to-medium-term cash flow pressures. It expects revenue to improve significantly as the district's first office project is completed next year and residential and hotel projects are gradually tendered from the 2027/28 financial year onwards.