Heavy losses incurred by the West Kowloon Cultural District Authority are the result of a "time-lag problem" that ensues when cultural venues have opened but the commercial developments meant to support them have not yet been built, its chairman said.

Speaking on RTHK's On Broadcast Drive programme, Bernard Chan said the district already has two museums and two performance venues up and running but the revenue flowing in from the box office and venue hirings is far from enough to break even.

"No cultural facility anywhere in the world can balance its books solely on tickets, venue hire or dining," he said, pointing out that other cities are backed by all manner of subsidies.

"Some have very high taxes, so many funds and companies are very willing to donate because it reduces their tax bill. In places like Europe, most of it is government subsidies."

The commercial part of the development is only just getting under way, he said, with some projects due to open next year and others several years later, while spending on them has already begun – which is why the losses look so daunting.

Chan said he was determined to turn West Kowloon into both a cultural and a commercial centre as artistic undertakings need financial support to be sustainable, and the two have to coexist.

He noted that the national 15th Five-Year Plan supports Hong Kong deepening its development as a centre for cultural and artistic exchanges between the nation and the world.

In this regard, Chan said, the city's prolonged contact with the West lets it present Chinese culture in a way that audiences, including overseas visitors, can understand, making it a unique strength of the city.


Edited by Aaron Tam