To enable the public to have a better understanding of the financial aspect of the West Kowloon Cultural District, the Hong Kong Arts Development Council (ADC) has commissioned the Centre for Cultural Policy Research of the University of Hong Kong to conduct an academic financial study for the District. The contents and results of the study were announced today (Monday) at 6:00 pm at the Lecture Hall of the Hong Kong Museum of History, Tsim Sha Tsui.

The independent academic study is conducted by a research team led by Dr Desmond Hui and Dr K C Wong. It covers the land value of the Cultural District, as well as the construction of arts and cultural facilities, and makes financial assessments based on certain assumptions used by the Research Centre.

The study shows that the land value of the commercial portion (assuming current residential building at $7,000 per square feet, and excluding the development cost of the commercial portion) is $24.6 billion. A total of $13.2 billion could be used to construct the core and other arts and cultural facilities, as well as facilities under the Foster Scheme. It is also sufficient to build additional arts and cultural facilities, such as a 2,500-seat concert hall which is desired by the arts community. The remaining $11.4 billion could be used to set up a Trust Fund to generate income to cover the operating cost of the arts and cultural facilities. Assuming an annual investment return of 6%, a total of $469 million of yearly deficit could result if the District is run on government principles, while a yearly profit of $9 million could be generated if the Cultural District is run on commercial principles. From the questionnaire survey conducted by the ADC, it is proposed that the Trust Fund could be managed by a statutory body or a non-profit company composed of members from the arts and business communities, representatives from the government, and the successful proponent, who together constitute the board of directors for a period of 30 years.

To access the report, please visit the ADC’s website. The ADC will also submit the study report to the government authorities for consideration.