CEO of the West Kowloon Cultural District Authority (WKCDA) Betty Fung on Thursday said the arts hub's operating deficit for the current fiscal year is expected to be HK$1 billion, similar to that of the previous year.

At a press event, Fung said the number of visitors to the district last year was lower than expected, and revenue from ticket sales and museum merchandise fell 20 percent year-on-year.

The hub's catering businesses also brought in lower revenues than expected, she said, adding that the authority will continuing operating on loans for the time being.

Fung pledged that the WKCDA will continue to strictly manage its expenditure, while rolling out more exhibitions to attract visitors.

Those planned for this year include an exhibition of more than 60 works of Spanish artist Pablo Picasso at the M+ museum between March and July, and a special exhibition featuring Chinese cuisine and related artworks at the Hong Kong Palace Museum between March and June.

The Palace Museum will also hold the city's largest exhibition of ancient Egyptian treasures for decades, with some 250 objects loaned from several influential museums.

The cash-scrapped authority aims to submit a development application to the Town Planning Board in the coming weeks for building housing blocks on a plot in the area spanning 20,000 square metres.