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Hong Kong’s West Kowloon Cultural District, as seen on August 18. The cultural district’s fiscal challenges present the Hong Kong government with an occasion to recalibrate its cultural stewardship. Photo: Sam Tsang

Letters | Hong Kong’s West Kowloon Cultural District deficit is an investment opportunity, not a loss

  • Readers discuss recognising the long-term economic and social benefits of cultural funding, and how to increase enjoyment of museum free days
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The West Kowloon Cultural District saw a HK$718 million (US$92.1 million) operating deficit for the 2022-23 financial year. While alarming at first glance, this shortfall, leading to a potential fund depletion by early 2025, is a strategic investment in a vibrant artistic future, not a fiscal misstep.
This moment presents an opportunity for decisive action by the Hong Kong government to foster cultural growth and reimagine the city’s identity as a global cultural nexus, aligning with the ambitions of China’s 14th five-year plan.

Museums and cultural institutions are cornerstones of societal enrichment. They also yield substantial economic returns. The American Alliance of Museums has found that for every US$100 of value-added output created by museums, an additional US$220 of value added is created in other sectors of the US economy.

Despite seeming substantial, the HK$718 million gap amounts to just about 0.1 per cent of Hong Kong’s government spending. Yet this small percentage represents a significant opportunity for the government to invest in cultural funding, unlocking further potential for long-term societal and economic benefits.

The West Kowloon Cultural District’s strategic development could position Hong Kong alongside cultural centres like Paris and New York. Institutions within the district, including M+, the Palace Museum Hong Kong and Xiqu Centre, could transcend their roles as mere cultural conservators to become engines of economic and social change, bolstering creative industries and urban development.

The emerging economic impact of these centres on Hong Kong highlights the need for a new study – building upon a 2007 assessment by the Financial Secretary’s Office of the cultural district’s economic impact – to support further investment decisions.

The traditional laissez-faire policy, while historically successful in other sectors, does not suffice for the unique needs of non-profit cultural entities. Museums cannot rely on alumni networks or market-driven funding. A financial model overhaul is necessary, one that recognises the public value of these institutions and their historical underfunding in a market-dominated economy.

The West Kowloon Cultural District’s fiscal challenges reflect a systemic cultural financing issue, presenting the Hong Kong government with an occasion to recalibrate its cultural stewardship. Investment in the district and its institutions will be a strategic move to enhance Hong Kong’s cultural and economic stature on the world stage. It calls for a forward-thinking, sustainable funding model that acknowledges the intrinsic value of these institutions, in rejuvenating Hong Kong’s status as a cosmopolitan hub.

Gilbert Choy, director, Cloud House, and adjunct research fellow, Institute of Economics, Chinese Academy of Social Sciences

Museums should plan better free entry days

I visited the West Kowloon Cultural District on November 12, when the M+ museum was open for free entry in celebration of its second anniversary. On arrival I found a long queue outside the museum. Not being a fan of waiting in queues, I decided to make the most of the sunny day to explore the area.

It was bustling with people enjoying a picnic or watching a free concert in the park. I couldn’t help but feel sorry for those who preferred to queue for what I guessed to be around two hours, rather than enjoy the day out in the Art Park.

In hindsight, the museum could have extended its opening hours, say, until 10pm. This would have provided visitors with more flexibility to enjoy both the museum and the outdoor activities.

During my visit, I noticed a lot of tourists from mainland China. It’s evident that the West Kowloon Cultural District and its attractions have a strong appeal to visitors from outside Hong Kong.

Long queues on museums’ free entry days are not uncommon here. Perhaps M+ and other museums managed by the Leisure and Cultural Services Department should reconsider the way they organise free entry days to make it more enjoyable for everyone. Finding ways to minimise queuing and optimise the overall experience would enhance the cultural offerings and attract a wider audience.

Ilnur Minakhmetov, Jordan

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