West Kowloon eyes 2027/28 as turning point towards operating returns
West Kowloon Cultural District Authority posted a HK$998 million operating deficit in 2025/26, up about 30 per cent year on year, but chairman Bernard Chan says 2027/28 will be a watershed as new venues open and revenue grows.
The West Kowloon Cultural District Authority reported a basic operating deficit of HK$998 million for 2025/26, an increase of about 30 per cent year on year, in a paper submitted to the Legislative Council's Panel on Home Affairs, Culture and Sports.
Authority chairman Bernard Chan said deficits at cultural facilities are normal, adding that the district has gradually built up its ability to generate income, with ticket and sponsorship revenue each rising more than 30 per cent and retail income more than doubling year on year. He said commercial projects would be accelerated to broaden revenue sources and strengthen the district's long-term financial base.
Chan described 2027/28 as a watershed, saying the district would enter a new phase and gradually move towards an operating harvest period. He noted that the West Kowloon Performing Arts Centre, the Art Park Tower and the extension of the West Kowloon Waterfront Promenade would be completed around that time, shifting the challenge from cash flow to using the district's hardware and software strengths to create income without government funding.
The Performing Arts Centre is scheduled to open next year with several major programmes, serving as a new engine for the cultural and creative industries, Chan said. The Art Park Tower, the district's first public-private project, is also expected to be completed next year and will begin generating additional commercial revenue.
Operating income for 2025/26 reached HK$768 million, up nearly 20 per cent year on year, the highest since the authority was established, with a cost recovery rate among the world's best, Chan said. Visitor numbers reached 17 million in the past year, with tourists accounting for about 60 per cent. Merchandise from the Ancient Egypt civilisation exhibition brought in more than HK$33 million, a record for exhibition and programme merchandise sales at the district.
