Imaginative answers required to financial problems at Hong Kong arts hub
- Popular West Kowloon Cultural District needs a sound self-financing strategy, and must not become just a property developer
There was a time when the West Kowloon Cultural District remained nothing more than a deserted corner for jogging, cycling and some one-off events years after the ambitious arts hub project was fresh from the drawing board.
Adding to the woes were serious delays, financing setbacks and musical-chair management at the body overseeing the development, raising doubts as to whether the city was aiming too high when the blueprint was conceived in 1998.
Thankfully, that is history. Today, the area is one of the favourite places for locals and tourists alike, with world-class museums, open green space and magnificent views to enjoy.
The managing West Kowloon District Authority has reason to be proud. The M+ museum has already attracted more than 4 million visitors, while as many as 1.4 million have flocked to the Palace Museum since its opening in July last year.
How has Hong Kong’s West Kowloon arts hub landed in financial trouble?
The attendance is impressive, especially considering the impact of the prolonged Covid-19 pandemic. But the facilities are costly to operate, and the authority suffered a net loss of HK$1.56 billion (US$199 million) last year.
It had always been envisaged that a sustainable financing model would follow after the endowment fund of HK$21.6 billion from public coffers ran out, the latest estimate being by March 2025.
Under the plan, the authority was expected to make use of residential and office space to help finance future development.
Few details have been released so far. It is understood that the plan submitted to the government for consideration involves changes in the original development approach.
The authority should be reminded that it is not a property developer, and should not become one. It should remember there were concerns that the arts hub would become a property-driven project when development models were first floated for public discussion 25 years ago.
Questions raised over financial appeal of Hong Kong arts hub’s land use proposal
The goal of self-financing has to be reconciled with the original vision of building a world-class cultural district accessible to all. The authority is required to make good use of the land to finance future operations. This includes generating sufficient revenues to run the existing facilities and to deliver more.
This is not easy. As pointed out by the authority, no global counterparts can survive on the proceeds of arts and cultural facilities alone without government funding, sponsorship or other commercial activities. But the public also would not like to see the popular site becoming another property-led venture.
The city has come a long way in pursuing the goal of becoming a world-class arts hub. It is important for the government and the authority to work out a sound development and financing strategy and make the West Kowloon Cultural District a showcase of success.
