Source: Hong Kong Government special administrative region
Following is a question by the Hon Jonathan Stuart Lamport and a reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (July 8):
Question:
The Government is vigorously developing the mega event economy to promote the development of the tourism industry. However, while the number of visitor arrivals increased by 12 per cent year-on-year last year, the increase in overnight visitors was only 6 per cent. There are views that although the ancillary facilities for cross-boundary transport following mega events facilitate travel for visitors, they also encourage visitors to depart immediately after the events, thereby preventing the mega event economy from transforming into actual economic benefits. Regarding promoting the high-quality development of the tourism industry, will the Government inform this Council:
(1) of the expenditure and revenue for each mega economic event organised or subsidised by the Government in the past three years, as well as the details of the per capita spending in Hong Kong by overnight and same-day visitors participating in these events; whether it has assessed the actual economic impact on local sectors, such as catering, retail and hotel, caused by the large number of visitors who do not stay overnight after participating in mega events;
(2) of the ways to promote the high-quality development of Hong Kong’s tourism industry, ensuring that the visitor flows generated by the mega event economy can effectively transform into commercial dividends, so that sectors such as catering, retail, hotel, public transport and various leisure experiences can benefit comprehensively; and
(3) given that the Government has been vigorously exploring international tourism in recent years, and it is learnt that foreign investors are considering building hotels on outlying islands to develop a resort destination similar to Bali in Indonesia, whether the Government will consider providing assistance?
Reply:
Thank you, President.
Mega events are a vital engine driving Hong Kong’s tourism and economic development. On the one hand, mega events directly attract visitors to Hong Kong, boosting consumption in sectors such as hotels, catering, and retail; on the other hand, they create employment opportunities in industries such as transport, logistics, and event production. The benefits of mega event economy should not be measured solely by whether visitors stay overnight. Even if some visitors arrive and depart on the same day, they generate actual spending on transport, catering, and experiential activities, etc, thereby driving the development of the entire industry chain. In particular, since its opening last year, the Kai Tak Sports Park (KTSP) has achieved a critical breakthrough for “Mega Events + Tourism”. To date, the Kai Tak Stadium has hosted over 60 major sports events and concerts, attracting over 2.4 million spectators, effectively driving surrounding consumption and employment, and injecting tangible momentum into the local economy. The continuous rise in visitor arrivals also reflects the success of the “Mega Events + Tourism” strategy. In the first half of 2026, visitor arrivals to Hong Kong reached about 26.71 million, representing a year-on-year increase of 13 per cent, with Mainland and non-Mainland visitors increasing by 16 per cent and 5 per cent year-on-year respectively.
In response to the Hon Jonathan Stuart Lamport’s question, my reply is as follows:
(1) In recent years, the Government, in collaboration with the Hong Kong Tourism Board (HKTB), has promoted various mega events to foster the integrated development of culture, sports, and tourism. Over the past three years, the “M” Mark System and the Mega Arts and Cultural Events Fund have supported a total of 95 events, involving an amount of approximately $1,125.04 million. The HKTB will also continue to enhance the scale of its six flagship events and introduce new elements to attract more visitors to Hong Kong.
Regarding visitor spending, there is a structural shift in visitor consumption patterns, moving from a previous focus on shopping to a greater emphasis on culture and experiences. In recent years, the per capita spending of overnight and same-day visitors remained at levels of over $5,000 and $1,000 respectively. In 2025, the per capita spending of overnight visitors rose slightly from $5,490 in 2024 to $5,503, and it is expected to increase slightly to $5,530 in 2026. For same-day visitors, per capita spending was adjusted from $1,235 in 2024 to $1,139 in 2025, and is expected to remain at a similar level in 2026. Although some visitors attending mega events do not stay overnight, they still spend on transport, catering, and entertainment. Taking the KTSP as an example, each event can create nearly 10 000 temporary jobs, and the actual economic contribution far exceeds ticket revenues and visitor spending. Benefiting from the robust growth in visitor arrivals, the tourism expenditure associated to inbound tourism in 2025 rose by 13 per cent over the previous year to $217.5 billion, and is expected to further increase by about 10 per cent to $238.1 billion in 2026.
(2) In response to changing visitor travel patterns, we are adopting a “Mega Events+” strategy to promote high-quality tourism development. Mega events are upgraded from standalone items into cross-period, cross-district themed experiences, with a view to extending visitors’ stay in Hong Kong and broadening consumption scenarios so that catering, retail, hotels, and transport can all benefit. Taking the Hong Kong Rugby Sevens this year as an example, the three-day event attracted over 113 000 spectators, with over 30 per cent being non-local visitors. In the same week, the Tradition HKFC 10s and the “Racing with Rugby” activities at Happy Valley Racecourse were also held. Complemented by city-wide celebrations and catering discounts, this successfully stimulated the surrounding economy. On cultural mega events, “Art March” this year linked up multiple cultural events spanning the entire month, with Art Basel Hong Kong and Art Central jointly attracting around 55 000 visitor admissions. To further amplify the benefits of mega events, the HKTB will leverage major events in August this year, such as the Hong Kong Football Festival 2026 and the musical “CATS”, to proactively collaborate with merchants across different districts to launch a new round of ticket stub discounts. It will also upgrade the Hong Kong Wine & Dine Festival, one of its flagship events, into a month-long “November Gourmet Month” to entice visitors to extend their stay in Hong Kong. We will also continue our efforts to bring major cultural, sports and tourism events to Hong Kong. For example, we have successfully secured the “HYROX World Championships 2027” to be held in Hong Kong for the first time.
Meetings, incentive travel, conventions and exhibitions tourism is a major source of high value-added overnight visitors. The Government, together with the HKTB, is actively striving to secure major international conventions and exhibitions to be staged in Hong Kong. For example, the five‑day 108th Lions International Convention successfully concluded yesterday (July 7), attracting around 17 000 delegates from across the globe. Some delegates also travelled to the city with their family members, generating demand for over 10 000 hotel rooms and boosting spending in catering, retail and related sectors, with significant economic benefits. In May this year, the HKTB also signed a three-year Memorandum of Understanding with Informa Markets, a leading global trade exhibition organiser, to introduce a portfolio of premium international exhibitions, such as supercars and luxurious yachts, to Hong Kong, thereby attracting international high-end business visitors. Concurrently, the HKTB is actively expanding potential and high value-added source markets, such as the Middle East, to increase the proportion of overnight visitors.
(3) Hong Kong possesses unique coastal and island resources, with an edge in developing island tourism. The Government welcomes interested organisations to make good use of these natural resources to develop integrated resort projects on the premise of respecting and protecting the ecological environment, thereby offering visitors novel and diverse tourism experiences. If any organisation raises concrete proposal, the Culture, Sports and Tourism Bureau is pleased to actively explore with relevant organisations and serve as a facilitator, co-ordinating with relevant bureaux and departments to remove administrative barriers and jointly foster the development.
Source: Hong Kong Government special administrative region
LCSD and EDB co-organise Shaanxi-Henan study tour to enhance secondary teachers’ knowledge of Sui and Tang dynasties These experiences not only help teachers integrate museum elements into their classrooms, thereby enriching their teaching methods and content, but also empower the schools to design more inspiring study tours for students in the future. Ultimately, this will promote heritage education and enrich Hong Kong students’ interest in learning Chinese history.Issued at HKT 18:42
Source: Hong Kong Government special administrative region
Remarks by S for Health at media session on incident of errors in embryo biopsy specimens Reporter: Would the Government consider penalising Heal Fertility (Limited), given that it has not reported the case to the Department of Health within 24 hours? Why cannot the CUHK, when the case starts, notify the Council on Human Reproductive Technology, but they had to report to Heal Fertility (Limited) to report to the Council?
Secretary for Health: According to the Private Healthcare Facilities Ordinance (Cap. 633), day procedure centres have to report any serious untoward incidents within 24 hours. So in this particular incident, the centre has definitely breached this requirement, and the Department of Health has already requested the centre to provide a report within four weeks. Based on the report and further investigation findings, the Department of Health will consider any regulatory action for the breach of the Private Healthcare Facilities Ordinance.
Reporter: What measures would the Government implement to ensure timely reporting of these facilities in the future?
Secretary for Health: About the Private Healthcare Facilities Ordinance (Cap. 633), there is already a code of practice that these day procedure centres have to report serious untoward incidents within 24 hours. But for the part of the human reproductive technology, there is no definite time limit for reporting. Considering the fact that this is a little bit more complicated, the centre has decided to investigate further before reporting to the Council. Whether we need to put in a time frame for reporting, we will consider that after we have the full investigation report for this incident.
(Please also refer to the Chinese portion of the remarks.) Issued at HKT 18:37
Source: Hong Kong Government special administrative region
LCQ18: Occupational safety and health of air crew members Question:
Some members of the sector have relayed that, air crew members are required to deal with a wide range of unforeseen incidents while providing in-flight services, including verbal disputes between passengers, physical confrontations, various security incidents and breaches of regulations, and requests for medical assistance. This, combined with the need to work long-term day and night shifts, meet high service standards and work in confined spaces, places additional psychological strain on air crew members. In this connection, will the Government inform this Council:
(1) whether it knows the respective numbers of unforeseen incidents that occurred in the passenger cabin on flights departing from or arriving in Hong Kong over the past three years (broken down by type of incident); of the reporting mechanism in place;
(2) whether the Civil Aviation Department has provided local airlines with guidelines or mechanisms for air crew members to handle unforeseen incidents in the passenger cabin; if so, of the details and the review cycle;
(3) whether it knows if local airlines currently provide adequate mental health counselling and support for their air crew members; if so, of the details; and
(4) given the geopolitical tensions in recent years, should war or other emergencies occur at a flight’s destination, forcing the air crew members to remain stranded there, whether the HKSAR Government will require local airlines to establish overseas emergency support teams for the crew or put in place contingency mechanisms to maintain close contact with them and provide appropriate support, thereby ensuring their personal safety?
Reply:
President,
The International Civil Aviation Organization (ICAO) has promulgated stringent standards on aviation safety. As the regulator of civil aviation affairs, the Civil Aviation Department (CAD) has been comprehensively regulating the operations of local airlines in accordance with the requirements of the ICAO and the Air Navigation (Hong Kong) Order 1995 (Cap. 448C) through the established regulatory regime and monitoring mechanism. Local airlines are subject to strict scrutiny by the CAD on a routine basis (including conducting flight inspections and operational records inspections, and also requiring local airlines to effectively implement safety management systems and formulate policies and procedures relating to risk assessment and emergency response mechanisms) to ensure that flight operations comply with airworthiness and safety standards, thereby ensuring aviation safety. At the same time, airlines are also required to implement aviation security measures in accordance with the Aviation Security Ordinance (Cap. 494), its subsidiary legislation, and the Hong Kong Aviation Security Programme. This includes formulating corresponding procedures and arrangements for handling in-flight security incidents, unruly passengers, and other situations that may affect aviation security, with a view to ensuring aviation security.
In consultation with the Security Bureau and the Labour Department (LD), the reply to the Member’s question is as follows:
(1) and (2) According to the standards and recommended practices of the ICAO, airlines are required to formulate standard operating procedures that comply with cabin safety guidelines to handle various in-flight incidents relating to aviation safety or aviation security. In addition, pursuant to Article 86 of the Air Navigation (Hong Kong) Order 1995, the CAD requires all local airlines to report incidents involving aviation safety to the CAD under the Mandatory Occurrence Reporting (MOR) Scheme. Upon receipt of relevant reports, the CAD will conduct a review and, where necessary, conduct investigations with the airlines and assess the investigation results. For aviation security incidents, airlines must report to the CAD in accordance with section 20 of the Aviation Security Regulation (Cap. 494A). Upon receipt of the relevant reports, the CAD will also conduct a review and follow up with the airlines as appropriate if necessary.
Year The reports involving cabin safety received under the MOR Scheme pursuant to Article 86 of the Air Navigation (Hong Kong) Order 1995 mainly include cases of passengers and crew members feeling unwell, as well as medical needs due to injuries caused by turbulences; as for the unforeseen security incidents in cabins received through the reporting mechanism under the scope of section 20 of the Aviation Security Regulation, they mainly include assault and other disorderly conduct. With the increase in the number of flights in recent years, the number of reports of various incidents in 2025 has increased compared to previous years.
(3) It is understood that local airlines have generally adopted various measures to support the mental health of their employees (including crew members), such as signing the Mental Health Workplace Charter, organising promotional activities, and providing employee support groups and hotlines. Furthermore, to enhance the awareness and capacity of employers and employees in managing work stress and mental health issues, the LD and the Occupational Safety and Health Council (OSHC) organise occupational health talks and publicity activities related to work stress and mental health from time to time. The LD and OSHC also have published publications on work stress management to provide practical ways for managing work stress and preventing mental health issues at personal and organisational levels. In addition, the LD has been collaborating with the Department of Health (DH) and OSHC to jointly organise the Joyful@Healthy Workplace programme for many years. This initiative encourages employers and employees to work together to create a positive work environment, promoting healthy eating, physical activity, and stress management. To further enhance employers’ and employees’ awareness of mental health, the DH, LD and OSHC have also launched the Mental Health Workplace Charter together.
(4) With full support from the Office of the Commissioner of the Ministry of Foreign Affairs in the Hong Kong Special Administrative Region and the Chinese diplomatic and consular missions, the Assistance to Hong Kong Residents Unit of the Immigration Department (ImmD) has all along been striving to provide Hong Kong residents in distress outside Hong Kong, including crew members, with all practicable assistance.Issued at HKT 12:00
Source: Hong Kong Government special administrative region – 4
The Police will implement special traffic arrangements in Happy Valley today (July 8). These arrangements will remain in effect until the race meeting has concluded, spectators have dispersed, and traffic conditions return to normal.
A. Traffic arrangements before the commencement of the first race
The following road closure and traffic diversions will be implemented from 50 minutes before the start of the first race for day racing, or from 6pm onwards for night racing:
1. Road closure
Southbound Wong Nai Chung Road between Queen’s Road East and the up-ramp outside the Hong Kong Jockey Club (HKJC) will be closed, except for vehicles heading for Aberdeen Tunnel.
2. Traffic diversions
– Southbound Wong Nai Chung Road between Village Road and the up-ramp outside the HKJC will be rerouted one way northbound;
– Traffic along eastbound Queen’s Road East heading for Wan Chai and Happy Valley will be diverted to turn left to Morrison Hill Road;
– Traffic along southbound Morrison Hill Road heading for Happy Valley will be diverted via Sports Road and Wong Nai Chung Road;
– Traffic along Queen’s Road East cannot turn right to Wong Nai Chung Road, except for vehicles heading for Aberdeen Tunnel;
– Traffic from Cross Harbour Tunnel heading for Queen’s Road East will be diverted via the down-ramp leading from southbound Canal Road flyover to Morrison Hill Road to turn right at the junction of Wong Nai Chung Road and Queen’s Road East; and
– Traffic from Cross Harbour Tunnel heading for Happy Valley or Racecourse will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, southbound Morrison Hill Road, Sports Road and Wong Nai Chung Road.
B. Traffic arrangements before the conclusion of race meeting
The following road closure and traffic diversions will be implemented from about 35 minutes before the start of the last race:
1. Road closure
– The up-ramp on Wong Nai Chung Road outside the HKJC leading to Aberdeen Tunnel;
– Southbound Wong Nai Chung Road between Queen’s Road East and the up-ramp leading to Aberdeen Tunnel;
– Southbound Wong Nai Chung Road between Village Road and the Public Stands of the HKJC;
– Westbound Leighton Road between Wong Nai Chung Road and Canal Road East; and
– Southbound Morrison Hill Road between Leighton Road and Queen’s Road East.
In addition, southbound Wong Nai Chung Road between the up-ramp leading to Aberdeen Tunnel and the Public Stands of the HKJC will be closed from about 10 minutes before the start of the last race.
2. Traffic diversions
– Eastbound Queen’s Road East at its junction with Morrison Hill Road will be reduced to one-lane traffic heading for northbound Canal Road flyover;
– Traffic from Cross Harbour Tunnel heading for Wan Chai will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, U-turn slip road beneath Canal Road flyover, Canal Road West and Hennessy Road;
– Traffic from Cross Harbour Tunnel heading for Happy Valley will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, eastbound Leighton Road and Wong Nai Chung Road;
– Traffic along southbound Morrison Hill Road will be diverted to turn left to eastbound Leighton Road;
– Traffic along southbound Morrison Hill Road heading for Happy Valley will be diverted via eastbound Leighton Road and Wong Nai Chung Road; and
– Traffic along westbound Leighton Road will be diverted to Wong Nai Chung Road.
C. Prohibition for learner drivers
Learner drivers will be prohibited to turn left from Caroline Hill Road to Leighton Road between one and a half hours before the start of the first race and one hour after the last race. In addition, learner drivers will be prohibited from accessing the following roads within the above period of time:
– Shan Kwong Road between Yik Yam Street and Wong Nai Chung Road;
– Village Road between its upper and lower junctions with Shan Kwong Road;
– Percival Street between Hennessy Road and Leighton Road;
– Canal Road East; and
– The service road leading from Gloucester Road to Canal Road flyover.
D. Suspension of parking spaces
Parking spaces on southbound Wong Nai Chung Road between Sports Road and Blue Pool Road will be suspended from 11am to 7pm for day racing, and from 5pm to 11.59pm for night racing respectively.
All vehicles parked illegally during the implementation of the above special traffic arrangements will be towed away without prior warning, and may be subject to multiple ticketing.
Actual implementation of road closure and traffic diversion will be made by the Police at the time depending on traffic conditions in the areas. Motorists should exercise tolerance and patience, and follow the instructions of police officers on site.
Source: Hong Kong Government special administrative region
Local man convicted and jailed for possessing duty-not-paid cigarettes Customs officers intercepted a 60-year-old man for inspection at the Chung Ying Street Checkpoint in Sha Tau Kok on June 24. Upon inspection, a total of 700 duty-not-paid cigarettes were found on him and in his shoulder bag, with an estimated market value of about $3,500 and a duty potential of about $2,300. He was subsequently arrested.
Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offence.
Customs reminds members of the public that under the DCO, cigarettes are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Members of the public may report any suspected illicit cigarette activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hkIssued at HKT 17:25
Source: Hong Kong Government special administrative region – 4
Invest Hong Kong (InvestHK) today (July 8) welcomed the signing of the first works contract and a second-phase Memorandum of Understanding (MOU) between the Hong Kong University of Science and Technology (HKUST) and a consortium of French companies, marking a progressive step that translates the low-carbon retrofit partnership commenced in September 2025 into concrete action.
Signed by HKUST, Schneider Electric and Veolia, the works contract sets a retrofit pilot in motion at the Lee Shau Kee Business Building on the HKUST campus. It adopts a groundbreaking Energy Performance Contract (EPC) model, under which both French companies finance the upfront investment, to be recovered over a 15-year term through verified energy savings, while HKUST bears no construction or equipment costs. At its heart is an AI-powered system that senses real-time classroom occupancy and adjusts the cooling mechanism automatically, keeping users comfortable while cutting wasted energy. The project is expected to be completed within 24 months.
As well, HKUST, Bouygues-Dragages and Veolia signed the second-phase MOU that aims to extend the collaboration beyond the initial building to student residences and other campus blocks. It will also explore innovative financing mechanisms to support the broader retrofitting across Hong Kong. Together, these two agreements move the partnership toward a scalable, data-oriented, and market-driven model for decarbonising the city’s built environment.
These latest initiatives build upon the publication of the Team France Green Paper by a coalition of French diplomatic, trade, and commercial entities in Hong Kong back in April 2024 – collectively known as Team France – dedicated to accelerating the city’s path to carbon neutrality by 2050. Supported by the strategic advisory of the Consulate General of France in Hong Kong and Macau and the facilitation of InvestHK, this groundwork led to a pilot retrofit partnership with HKUST in 2025.
Officiating the signings, the Consul-General of France in Hong Kong and Macau, Ms Christile Drulhe, said, “After the signing of the first-phase MOU last year, I am delighted to see HKUST and our partners in Team France press ahead and turn ambition into action through this pioneering project. By leveraging the HKUST campus as a pilot to drastically reduce energy consumption and French investment as a test case of public-private partnership, this initiative powerfully demonstrates how French innovation and Hong Kong excellence can accelerate the low-carbon transformation of our built environment.”
The Director-General of Investment Promotion of InvestHK, Ms Alpha Lau, said, “Carbon neutrality is crucial to communities and businesses alike, while offers immense business opportunities. This collaboration highlights how world-class European green technology aligns with Hong Kong’s targeted green ambitions. In this groundbreaking pilot, we do not just facilitate investment but also help build an addressable sustainability market that connects government, industry, academia, research and investment.”
Acting President of HKUST, Professor Tam Kar-yan, said, “Our partnership with Team France began in 2025 with an MOU to explore opportunities in building decarbonisation and retrofitting. That MOU laid a strong foundation for what we formalise today: a performance-based model defined by measurable outcomes and clear accountability under this EPC. We are moving from intention to implementation, and through a second-phase MOU with Team France, expanding collaboration to the broader retrofit initiative, reflecting HKUST’s enduring commitment to decarbonisation, energy efficiency, and a net-zero future.”
Given that over 90 per cent of Hong Kong’s existing buildings are expected to still be standing in 2050, the retrofit sector offers substantial opportunities for European and international companies to invest, innovate, and grow, while contributing to the high-quality development of the city.
Regarding the continued concerns over the transparency and accountability of charitable organisations in society, will the Government inform this Council:
(1) of the respective numbers of tax-exempt charitable organisations, as well as institutions newly exempted and those whose exemption status had been withdrawn under section 88 of the Inland Revenue Ordinance (Cap. 112) in each of the past five financial years; among cases whose exemption status was withdrawn, of the major reasons involved (e.g. incompatible with the charitable purpose, cessation of operation, accounting issues) and, among which, the number of institutions whose exemption status has been withdrawn due to failure to pass the regular reviews;
(2) other than the Tax Guide for Charitable Institutions and Trusts of a Public Character currently published on the website of the Inland Revenue Department (IRD), whether the IRD has compiled a separate and more detailed internal reference document and consolidated the principles for determining “charitable nature” and “public interests” as illustrated in the relevant case laws; if it has, whether it will consider further consolidating the relevant principles into more detailed administrative guidelines or practical explanations and make them available to the public, so that applicant institutions and members of the public may have a clearer understanding of the relevant criteria;
(3) given that the Law Reform Commission (LRC) pointed out in its Report on Charities published in December 2013 that solely relying on case law rather than a clear statutory definition of what constitutes “charitable purpose” might affect the clarity of the law, has the IRD encountered any questions of interpretation arising from different case laws during its regular reviews of exempted institutions; if it has, how it will follow up and address the issues;
(4) given that it has been more than 12 years since the LRC Report on Charities was published, and upon gaining experience from the implementation of the existing administrative measures, has the Government conducted any internal discussion or preliminary studies regarding the “charity commission” proposed by the said Report; whether it will consider consulting stakeholders on the pros and cons of different modes of regulation for charitable organisations in due course, with a view to exploring the feasibility of improving the frameworks of the relevant legislation in the long run;
(5) given that the Audit Commission pointed out in paragraph 1.4 of its Report No. 68 published in April 2017 that the Social Welfare Department (SWD), the Home Affairs Department (HAD) and the Food and Environmental Hygiene Department (FEHD) have respectively regulated different types of charitable fundraising activities held in public places, and that paragraph 5.7 of the said Report pointed out that the SWD and the HAD have imposed audit and submission conditions on the accounts of fundraising activities, while the FEHD has merely imposed similar requirements on institutions which are granted a relatively large number of licences each year, whether the authorities will study and gradually standardise the relevant regulatory standards, including requiring all charitable fundraising activities involving public places to submit audited accounts, and formulating clearer disclosure requirements regarding the use of donations and fundraising expenses; if so, of the details and timetable; if not, the reasons for that; and
(6) to further enhance transparency and public monitoring, whether the authorities will establish an inter-departmental central information platform for charitable organisations and consolidate information such as basic data, exemption status, licences and audited accounts of such organisations which are currently scattered across various departments, so as to facilitate public access; if so, of the details and timetable; if not, the reasons for that?
Reply: In consultation with the Environment and Ecology Bureau, the Financial Services and the Treasury Bureau, and the Labour and Welfare Bureau, I, on behalf of the Government, now give a reply to the various parts of the question raised by Professor the Hon Alex Fan as follows:
(1) Charities are exempted from tax if they meet the conditions stipulated in section 88 of the Inland Revenue Ordinance (Cap. 112) (IRO), i.e. (i) the profits are applied solely for charitable purposes; (ii) the profits are not expended substantially outside Hong Kong; and (iii) either the trade or business is exercised in the course of the actual carrying out of the expressed objects of the charity, or the work in connection with the trade or business is mainly carried on by persons for whose benefit the charity is established.
In the past five financial years, the total number of tax-exempt charities, as well as charities newly exempted from paying tax and those with tax exemption status withdrawn by the Inland Revenue Department (IRD) are set out below:
Financial year (as at March 31) In the past five financial years, the number of charities with tax exemption status withdrawn by the IRD and the reasons for withdrawals are as follows:
Financial year (as at March 31)Dissolved or wound upCeased operation or became dormantNo response to the IRD’s enquiries or untraceableNo longer qualified for the status of a charitable institution or trust of a public character The IRD does not maintain breakdown on the number of charities with tax exemption status withdrawn for failing regular reviews.
(2) and (3) In processing applications for tax exemption under section 88 of the IRO, the IRD has been making reference to the relevant common law cases to determine whether the applicant is a charity at law, and whether the organisation is established for public benefit. The IRD regularly reviews the tax-exempt charities to ascertain whether their objects are still of charitable nature and whether the activities are compatible with their stated objects. Each case is considered on its own merits, having regard to the facts and circumstance of the particular case. The IRD will also update the Tax Guide for Charitable Institutions and Trusts of a Public Character from time to time to provide clear guidance to the applicants and the public.
The IRD has not encountered interpretation issues arising from applying the relevant common law cases when conducting regular reviews of tax-exempt charities. As regards the suggestion to establish a charity commission, the LRC stated in its final report that the public consultation conducted in 2011 reflected that there was clearly no broad consensus across the community on whether such a commission should be established in future. Taking into account the polarised views and concerns expressed by the public and stakeholders during the consultation period, the LRC ultimately recommended that a charity commission should not be established at that time. On the other hand, since the legislation and monitoring in relation to charitable organisations involve different bureaux and departments, and that the establishment of a dedicated department or organisation as the regulator of charitable organisations would have significant implications on the definition and operation of charitable organisations in Hong Kong, the Government needs to examine the recommendation thoroughly and carefully, and will continue to keep under review its suitability and implementation timing. (6) To enhance the transparency of information provided by the charitable organisations and to facilitate public access, the Government has, since 2018, strengthened the consolidation of information held by various departments in relation to charitable fund-raising activities and uploaded it onto the dedicated fund-raising activities page on GovHK. Apart from enabling the public to inspect the audited accounts submitted by organisations which obtained approval to organise charitable fund-raising activities, the webpage also allows public access to information on different types of approved fund-raising activities. It also contains the Good Practice Guide and practical information provided by various departments for organisations intending to conduct charitable activities to draw reference. Issued at HKT 14:22
Source: Hong Kong Government special administrative region
Government reappoints Executive Director of Urban Renewal Authority The Secretary for Development, Ms Bernadette Linn, said, “Mr Wilfred Au possesses rich professional expertise and experience and is well versed in the URA’s overall operation. In the past three years, Mr Au has played a pivotal role in formulating the framework and implementation details of the URA’s policies, especially in pushing forward urban redevelopment projects, as well as the ongoing review of the URA’s financing and operating model. We look forward to continuing our close working relationship with Mr Au to tackle the challenges of urban renewal.”
Mr Au is an architect by profession. He was appointed Executive Director of the URA and took up the post of Executive Director (Commercial) in July 2023. Mr Au supports the URA’s Managing Director in formulating and implementing policies and initiatives on matters relating to planning and design, property and land, and business strategy. Issued at HKT 14:15
Source: Hong Kong Government special administrative region
LCQ3: Sustainable development of public museums Question:
There are views that on the premise of not affecting public services, public museums should proactively expand diversified revenue channels. In this connection, will the Government inform this Council:
(1) whether it has compiled statistics on the (i) income, (ii) expenditure, (iii) total attendance, and (iv) average facility utilisation rate of all museums under the Leisure and Cultural Services Department (LCSD) and the West Kowloon Cultural District (WKCD) Authority respectively in each of the past five years;
(2) of the respective annual remuneration of the top five senior management personnel of the Hong Kong Palace Museum and M+ since the official commencement of operations; moreover, as it is reported that over 10 self-service donation kiosks will be installed at various venues across the WKCD starting from the 1st of this month to encourage members of the public to support the development of arts and culture, whether it knows the expenditure on purchasing such donation kiosks, the estimated maintenance costs, and the estimated amount of donations to be received in the next three years; and
(3) of the latest progress, costs involved and expected economic gains of the authorities’ introduction of market-based business models into museums under the LCSD; whether there are plans to promote collaborations between museums under the LCSD and private enterprises for strategic brand crossovers and franchising, so as to develop more diversified revenue sources?
Reply:
President,
Museums play a vital role in cultural inheritance and social education. The Government continuously reviews the development and future plans of the 15 museums under the Leisure and Cultural Services Department (LCSD), in order to meet the general public’s need for museums and art appreciation. Meanwhile, to promote the diverse development of Hong Kong’s local cultural ecosystem, the Government drives the development of the West Kowloon Cultural District (WKCD) project, providing the West Kowloon Cultural District Authority (WKCDA) with a one-off upfront endowment of $21.6 billion and the development rights of the land within the WKCD for constructing and operating the WKCD project on a self-financing basis.
My reply to the question raised by the Hon Chan Pui-leung is as follows:
(1) The public mission of museums under the LCSD is to preserve and promote tangible and intangible cultural heritage. In addition to organising exhibitions on various subjects, such as visual arts, history, culture, science and technology, the museums also actively provide broad access to cultural education and services (such as lectures, demonstrations, workshops and roving exhibitions). Since August 2016, with the approval of the Legislative Council, the Government has been offering free admission to permanent exhibitions of museums, while charging a modest admission fee for the permanent exhibitions of the Hong Kong Science Museum and the Hong Kong Space Museum to meet their operational needs. This arrangement is in line with the practice adopted by public museums in the Chinese Mainland, where permanent exhibitions are generally open to the public free of charge. Although LCSD museums are not operated primarily for profit, they actively generate revenue from various sources, including tickets sales for film screenings, licence fees from shops and cafes, rental charges for hiring facilities, and sales of cultural and creative products.
As for the WKCD, both M+ and the Hong Kong Palace Museum have proactively expanded their revenue streams. A number of exhibitions and cultural and creative products of the two museums have been well-received by the public. Currently, admission income, sponsorships, and commercial revenue (including venue hiring, cultural and creative products), each accounts for about one-third of the total income. The combined income of the two museums in 2025-26 increased by more than 20 per cent compared to the previous year.
Detailed data of the museums under the LCSD and the WKCDA are set out in Annex I.
(2) There are a total of seven senior executives in the two museums of the WKCD, with the total remuneration expenditure amounting to approximately $20.9 million in 2025-26. When determining the pay adjustment, the WKCDA takes into account multiple factors, including Hong Kong’s market pay and economic conditions, the staff turnover rate and financial position of the Authority, and the work performances and existing pay positions of the executives. Please refer to Annex II for details.
Fundraising income is one of the most important income sources of the WKCD and accounts for about one-third of the overall recurrent operating income. In 2025-26, the fundraising income of the WKCDA reached $219 million, representing an increase of over 30 per cent compared to the previous financial year. The WKCDA draws on the experience of overseas cultural institutions in attracting individual donations, and installed self-service donation kiosks in the museums, performing arts venues and other venues in the WKCD since July 1 this year, to facilitate the public to support the WKCD in promoting arts and culture development. There is no additional cost implication to the WKCDA, as the self-service donations kiosks are developed and manufactured by a technology company which will also cover the operating expenses. The objective of the WKCDA is to foster public support and participation in the development of arts and culture, and the self-service donation kiosks primarily solicit small donations which are not expected to account for a substantial proportion of the overall fundraising income.
(3) The 2025 Policy Address has announced that the LCSD will introduce market-based business models in designated facilities to provide more diverse value-added activities. These include leasing out museums on their closing days for commercial or private use and opening up more venues for hire. In this connection, the LCSD invited the submission of Expressions of Interest (EOIs) in end 2025 regarding the introduction of a market-oriented operation model at relevant facilities. A total of 14 EOIs were received. The respondents included organisations engaged in event or advertising planning, as well as property development companies, among which a number of concepts and proposals were of reference value. The LCSD increased the number of venues available for hire in the tender in response to the suggestions made in the EOIs and invited tenders in April 2026 for introducing market-based business models at 26 designated LCSD facilities, such as the Hong Kong Museum of Art and the Hong Kong Science Museum. It is anticipated that operators will be appointed by the end of 2026. The associated revenue and costs will be subject to the monthly fee levels proposed by the successful bidders, and the actual expenses involved in the activities. Following the implementation of the initiative, the LCSD will continuously assess its economic benefits.
The LCSD has all along welcomed crossover collaborations with corporations and commercial brands, aiming to leverage their branding impact to promote museum activities and programme. Crossover products previously launched through collaborations between the LCSD museums and commercial brands include phone cases, food products, and brick sets. Looking forward, the LCSD will continue to explore more collaborative initiatives under market-based business models. Thank you, President. Issued at HKT 14:09