What new facilities are contributing to the increased operating costs?

The commissioning of the WestK Performing Arts Centre, which includes three theatres and a dance venue, is contributing to increased operating costs.

Hong Kong’s West Kowloon Cultural District Authority (WKCDA) has recorded a growing deficit of HK$998 million in the last financial year, as rising revenue failed to keep up with increased operating costs.

West Kowloon Cultural District Authority Reports HK$998 Million Deficit

Rising operating costs, including staff expenses for new facilities, have widened the deficit for Hong Kong's West Kowloon Cultural District Authority.

Flat illustration of ledger, modern architecture, empty stage, crumpled paper, city skyline

2026-10-07 · Updated 2026-10-07

Hong Kong's West Kowloon Cultural District Authority (WKCDA) has reported a deficit of HK$998 million for the last financial year, an increase attributed to rising operating costs that outpaced revenue growth. The authority's latest financial figures were released ahead of a legislative council meeting.

Increased operating expenditure was partly due to higher staff costs, which the WKCDA linked to the upcoming commissioning of the WestK Performing Arts Centre. This new center, scheduled to open next year, will feature three theatres and a dance venue.

The WKCDA, a government-established statutory body founded in 2008 to promote arts and creative industries, manages several key cultural institutions including M+ museum, the Hong Kong Palace Museum, the Xiqu Centre, and outdoor event spaces. This marks the seventh consecutive year the authority has operated at a loss.

In response to financial challenges, the WKCDA secured a HK$3 billion bank loan in February and is pursuing residential development projects to generate additional income. The Artist Square Towers, a commercial office project expected to be completed next year, is anticipated to provide a steady rental income, with JPMorgan Chase already committing to leasing space.

Further revenue streams are expected from planned residential and hotel projects, with tendering set to begin in the 2027-28 financial year. In July, it was disclosed that seven executives from M+ Museum and the Hong Kong Palace Museum earned a combined HK$20.9 million in the past financial year, averaging over HK$260,000 per month per executive.

FAQ

What new facilities are contributing to the increased operating costs?: The commissioning of the WestK Performing Arts Centre, which includes three theatres and a dance venue, is contributing to increased operating costs.
What happened?: Hong Kong’s West Kowloon Cultural District Authority (WKCDA) has recorded a growing deficit of HK$998 million in the last financial year, as rising revenue failed to keep up with increased operating costs.