The government plans to make half of the annual funding for Hong Kong’s nine major arts groups performance-linked, with the other half as baseline funding. The baseline share would fall from about 77 per cent to 50 per cent. The performance-linked portion would be calculated using non-government income, including box-office and other operating income, and performance against key indicators. Secretary for Culture, Sports and Tourism Rosanna Law set out the proposal in a written reply to legislators. It is due to be phased in from the 2027/28 financial year and fully implemented in 2032/33.
The proposed indicators would combine measurable activity with assessments of how groups operate. Quantitative measures include audiences who buy tickets, paid performances, box-office income, overall occupancy and cultural-exchange performances in Hong Kong and overseas. Qualitative measures would cover artistic standards, local talent training, industry development, governance and financial management.
The government says targets would reflect each group’s artistic character, operating scale and development strategy. Initial levels would draw on past performance and data; the government would review and adjust them later in light of experience and changes in social conditions.
Under the proposed system, groups performing well could receive more funding, while weaker performance could lead to cuts. Persistent failure to meet targets could cost a group its major-group status. The Advisory Committee on Arts Development would assess groups on an ongoing basis and meet them to hear about their work and results, including why particular targets had been missed.
Consistently strong mid-sized arts groups would be able to apply for major-group status and would be assessed against the indicators used for existing major groups. Applications are expected to open in 2027, with successful groups potentially joining the scheme from the 2031/32 financial year.
A legislator who is vice-chairman of the Hong Kong Arts Development Council said the number of major groups should not be fixed. He urged the government to use reasonable, quantifiable assessment criteria and said decisions on which groups qualify should follow their performance, rather than a rigid promotion-and-demotion target.