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In response to media enquiries, a spokesman for the Leisure and Cultural Services Department (LCSD) said today (October 25) that after the take-over of the Hong Kong Stadium by the then Provisional Urban Council on 26 May 1998, and subsequently by the Leisure and Cultural Services Department on 1 January 2000, the Stadium had been managed effectively and had been in a healthy financial state. The spokesman said that the following account would enable the public to better understand the running of the Stadium in the past 2 1/2 years:-

(a) Stadium Pitch Condition

Following the take-over by the then Provisional Urban Council on 26 May 1998, returfing work was carried out at the Stadium from June to July 1998 at a cost of $1.6 million.

The Stadium has taken intensive care of the pitch to meet the climatic and environmental changes, in order to maintain the pitch at international sporting standards.

In the past 2 1/2 years, the Stadium and the pitch in particular, have been the subject of many positive reports and commendations from the media, the Hong Kong Football Association, the Hong Kong Rugby Football Union and national teams from abroad. Indeed following the successful conclusion of the Rugby Sevens 2000, Hong Kong Rugby Football Union wrote to the Department to say that the condition of the pitch was the best ever.

(b) The Staging of Events

The usage rate of the Stadium has always been a matter of public concern and the Department has therefore kept the situation under close scrutiny.

On average, the Stadium holds about 30 events every year including large scale sports events such as the Lunar New Year Soccer Series and the Rugby Sevens. The Stadium is well equipped, with a seating capacity of 40,000, and is most suitable for holding events for a large audience.

To boost the Stadium's usage rate, the Stadium management has launched a number of promotion schemes, including concessionary rentals, which are calculated on the basis of the actual operating expenses plus 10% administrative overhead. The concessionary rental scheme aims to encourage non-profit-making and charitable organisations to hold community events in the Stadium. Since the commencement of this scheme in 1999, we have approved eight applications so far.

The satisfactory condition of the pitch has also allowed the Department to arrange more soccer matches. In 1997/98, the former management approved 23 matches in the soccer season, whereas the Department arranged 39 and 27 matches in the 1998/99 and 1999/2000 seasons respectively. During the 1999 Olympics Qualifying Rounds, 10 soccer matches were held in nine days. In one particular case, three matches were held within one day.

The National Day Celebration Show in 1999 took place on the Stadium pitch. It was the first time that such a large-scale performance was held on the pitch. It took slightly less than three weeks for the pitch to fully recover to enable other events to be held.

With 2 1/2 years' experience in turf maintenance, the Stadium management has every confidence in maintaining the pitch in such a good condition and that more events can be held there. The Department is now in the final process of producing a VCD on this premium venue and copies will be sent to local and overseas organisations to invite them to use the Stadium for their events.

(c) Financial Status

The current financial status of the stadium is healthy with surpluses in the past two years. The revenue generated in 1999/2000 was $49 million and operating expenses in the same year were $47 million (including staff cost) with a surplus of $2 million. The operating expenses covered the costs for some essential major maintenance works after the take-over by the Department such as slope maintenance, leakage repairs and part replacements of the air-conditioning system. All these amounted to $15 million. The economic downturn in recent years has naturally had an effect on the Stadium's revenue.

Following the revival of the economy, the Department forecasts gradual increases in the usage rate. To cope with these expected increases, the Department will manage the Stadium and run its daily routines more flexibly and effectively.

"The Department will live up to its mission: We exert our best to serve the community," the spokesman added.

End/Wednesday, October 25, 2000

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