The operator of Hong Kong's Kai Tak Cruise Terminal will see its lease expire in May 2028. A reporter from Wen Wei Po visited the terminal yesterday and found that, as no cruise ships were scheduled to arrive, only one retail store and one restaurant were open for business in the terminal's attached commercial area, out of a total of seven shop spaces. Two units were vacant, while the remaining three were shuttered. Some merchants described that management issues were squandering the terminal's unique tourism advantages.
To better utilize the terminal and enhance the tourist experience, the SAR government's Culture, Sports, and Tourism Bureau on May 22 invited commercial organizations, non-profit groups, cultural and creative industries, sports organizations, and young entrepreneurs to submit expressions of interest (EOIs) for optimizing the use of the terminal's spaces. A government source said that the aim is to gather innovative ideas from various sectors, with feasible projects to be implemented as soon as possible. Rent reductions will be offered to incubate young entrepreneurs.
In future tenders, the SAR government plans to set Key Performance Indicators (KPIs) for operators, with critical factors including the number of ship dockings and the commercial zone's operation. The contract will also stipulate requirements for improved transport infrastructure and mechanisms to address underperformance.
Underutilized commercial spaces; pity!
Previously, Secretary for Culture, Sports, and Tourism Rosanna Law described the cruise terminal's development as "somewhat unfortunate." To assess the situation, a Wen Wei Po reporter visited the terminal and found sparse foot traffic in its 5,600-square-meter commercial area and public spaces on the rooftop and second floor, with only two shops open.
To stay afloat, the restaurant has pivoted to serving tour groups, attracting mainland tourists during lunch hours. The souvenir shop also saw some customers. However, the rest of the mall resembled a "ghost town," with all other shops closed, two of them completely vacant.
An anonymous merchant noted that the current operator focuses solely on terminal operations, relying on docking fees for revenue, while neglecting mall management. "For example, a cargo lift has been broken for a month with no repairs, leaving merchants frustrated. We're barely surviving on our own." If the government replaces the operator, they stressed the need for equal emphasis on both terminal operations and commercial management.
Another merchant hoped a new operator would attract more cruise ships and offer rental incentives. "That would be good for us. We hope the government can quickly improve the terminal so we can run our businesses with peace of mind."
Call for innovative proposals
The Culture, Sports, and Tourism Bureau invited EOIs to better utilize the terminal's commercial and public spaces. Now, the bureau is reviewing the lease terms for the terminal and will launch a tender by year-end. A spokesperson noted that the Development Blueprint for Hong Kong's Tourism Industry 2.0, released last year, includes an Action Plan on Development of Cruise Tourism with five strategies and 17 measures to establish Hong Kong as an Asian cruise hub. Enhancing the terminal's public utility is one such strategy.
With the Kai Tak Sports Park opening in March and a newly connected pedestrian path between the sports park and cruise terminal, the Home and Youth Affairs Bureau has also completed tendering for a "Youth Post" and cultural exchange space near the terminal, set to open this year. A government source said the area has the potential to become a youth business hub, incubating young entrepreneurs through innovative proposals.
Though the new operator will take over in three years, the source said feasible ideas could be fast-tracked. Inspired by the Housing Authority's "Well Being · Start-Up" Programme, the government may offer rent waivers, such as six months free or discounted rates, to young entrepreneurs leasing vacant shops. The goal is to boost foot traffic and business opportunities through public-private-community collaboration.
KPIs for new operator
The government will set KPIs for the new operator, with key metrics including cruise ship arrivals and mall performance. The source added, "The mall and public spaces could host performances, concerts, and exhibitions."
Optimistic about the tender response, the source cited Hong Kong's recovering cruise industry, growing residential population near Kai Tak, new sports facilities, and upcoming green transit infrastructure as positive factors.
Interested parties must submit EOIs via the Tourism Commission's website by July 18. A briefing will be held on June 3—details are available in the invitation document.
(Source: Wen Wei Po; Journalists: Yim Kai-wa; Man Sam; English Editor: Darius)
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