Hong Kong cut tourism sector funding by 40 per cent, despite spending HK$784 million of taxpayer dollars on loss-making Ocean Park
- Permanent Secretary for Culture, Sports and Tourism Joe Wong defends reduced HK$951.5 million for sector in 2023-24 financial year
- Lawmakers pick up on slashed budget and question government over decision to reduce spending while dishing out large sum to theme park
Permanent Secretary for Culture, Sports and Tourism Joe Wong Chi-cho this week defended the HK$951.5 million allocated to the industry for the 2023-24 financial year. The figure, stated in legislative documents released earlier this month, was picked up by some lawmakers who challenged the government’s decision to pull back support and queried funds allocated to the theme park.
The amount was HK$575.9 million less than the HK$1.53 billion the sector received in the financial year ending March 31.
In a written reply to questions on government spending, Wong said Ocean Park Corporation had received HK$784 million in funding in 2022-23.
He responded to lawmaker Chan Yung who asked why the tourism budget had been slashed when the sector needed support urgently. Lawmaker Sunny Tan also weighed in, asking whether the theme park had used other funds allocated by the government previously.
Teddy Chung Wai-tong, president of the Hong Kong Tourism Association, said the reduced funding was “not good”.
“We have just restarted the industry, but tourism has been in a poor state for three years. Some help in starting up will be much appreciated,” he said.
New funds could be used to repair or buy new tour coaches, he said, adding subsidies would also help operators to hire more drivers, including foreign labour, as they faced a shortage of workers.
The industry was severely battered during the pandemic, as strict global travel restrictions kept visitors away. There were thousands of lay-offs and numerous tour agencies folded.
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With the lifting of travel restrictions this year, Hong Kong received 4.4 million visitors in the first three months.
An Ocean Park spokesman told the Post the 2022-23 funding sum was part of a HK$1.66 billion government grant approved by the Legislative Council in 2021.
“The funding was fully utilised to cover the operating and capital expenditures of Ocean Park and Water World and enabled [the corporation] to implement future strategies announced in January 2021 amid the Covid-19 pandemic,” the spokesman said.
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Lawmaker Sunny Tan also asked why the park failed to attract any bids in a tender exercise for a retail, dining, and entertainment zone last year, despite Legco’s approval of HK$13.23 million funding for the project in 2020.
He called for an update, saying there were media reports that “the proposal is not yet finalised and may be scrapped”.
Replying to Tan, the Culture, Sports and Tourism Bureau said the park would have marketing promotions for local and non-local visitors and was moving ahead with plans for an adventure zone.
Tendering procedures to outsource the development and operation of that zone began last month and were expected to be completed in the fourth quarter of the year, the bureau said.
The park spokesman said the zone remained part of its transformation plan, designed to integrate conservation and education elements to create unique nature and adventure-themed experiences.
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As for the retail, dining and entertainment zone, the bureau said no proposal had been received in the tender exercise conducted last year because of factors such as the impact of the pandemic and the downward trend of global market conditions.
In January, Ocean Park Corporation chairman Paulo Pong Kin-yee admitted that the reopening of Hong Kong’s border with mainland China resulted in fewer visitors than anticipated.
Four months on, the park had seen a “gradual increase” in tourists, with arrivals peaking over the Lunar New Year and Easter holidays, he said.
He added the park had introduced an array of initiatives for visitors, including marine tourism programmes, new multimedia shows and seasonal events.
Additional reporting by Wynna Wong
