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Following is a question by the Hon Sin Chung-kai and a reply by the Secretary for Home Affairs, Dr Patrick Ho, in the Legislative Council today (February 11):

Question:

The Jockey Club Kau Sai Chau Public Golf Course is currently the only public golf course in Hong Kong. The City University of Hong Kong conducted a study in 2003 on the effectiveness and feasibility of constructing a new golf course in Hong Kong. The study results indicate that about 500 000 trips were made by Hong Kong people to the Pearl River Delta Region for playing golf every year. Their cumulative expenditures amount to about HK$563 million. It is expected that a new golf course in Hong Kong can generate revenues of HK$60 million each year and create 388 posts, among which 350 are for unskilled grassroots workers. In this connection, will the Government inform this Council:

(a) whether it knows the average utilisation rate of the above public golf course in the past three years and whether the course has made profits, losses or achieved a breakeven;

(b) whether the authorities have conducted a study on the economic benefits generated by the construction of a public golf course, including whether the construction and utilization of the course can create more local employment opportunities and tie in with the development of tourism so that more golf-lovers can be attracted to Hong Kong; if no such study has been conducted, of the reasons for that; and

(c) of the criteria adopted by the authorities for determining whether a new public golf course should be constructed and whether they have drawn up the construction plan concerned; if so, of the location of the course and the timing for construction; if not, the reasons for that; whether the authorities have received indications of interest in constructing a public golf course from organisations other than the Hong Kong Jockey Club; if so, of the details?

Reply:

Madam President,

(a) The Jockey Club Kau Sai Chau Public Golf Course (the Golf Course) is one of the community sports projects co-organised by the Hong Kong Special Administrative Region Government and the Hong Kong Jockey Club (HKJC). The Golf Course consists of two 18-hole golf courses and a driving range. The land was provided by the Government and a sum of HK$500 million was donated by the HKJC to construct the facilities of the Golf Course. The aim was to promote golf among Hong Kong people by allowing them to use the facilities for the sport without the prerequisite of acquiring membership. In accordance with the memorandum concluded between the Government and the HKJC in 1994, the HKJC would manage the Golf Course on a self-financing basis. All of the surplus generated should be used to develop and upgrade the facilities of the Golf Course. The Golf Course started its operation officially in 1995.

In the past three years (i.e. 2000/01, 2001/02 and 2002/03), the utilisation rate of the Golf Course was 74 per cent during weekdays and 94 per cent during weekends and holidays, resulting in an average utilisation rate of 84 per cent.

Information from the HKJC reveals that in the past three years (i.e. 2000-03), the Golf Course has generated an average surplus of $19.5 million from its operation each year. After deducting the depreciation charges for the amortisation of the initial capital costs of the Golf Course, however, the Golf Course experienced an average book annual deficit of $9.5 million in the past three years.

Apart from the Golf Course, there are presently five privately operated golf courses in Hong Kong which are situated in Fanling, Deep Water Bay, Clear Water Bay, Shek O and Discovery Bay respectively. Except the one in Shek O, all of the other four golf courses are open to public use on a limited basis.

(b) The Tourism Commission and the Hong Kong Tourism Board have not conducted any focus study on the benefits to the economy or tourism generated by the construction of a public golf course.

From the perspective of sports development, the Home Affairs Bureau mainly takes into consideration the local accessibility and acceptability, as well as the potential for development of a certain type of sport in its allocation of public resources to the sports facilities. As for golf, we are giving policy support to its development. Actual support is rendered by means of different channels and modes. For instance, we are providing annual funding to the Hong Kong Golf Association through the Sports Development Board on a recurrent basis and the Leisure and Cultural Services Department is also funding the golf training courses organised by the Association. To tie in with the local development of golf, the Government also provides driving ranges in Tuen Mun, Kwai Chung and Tai Po besides the Golf Course in Kau Sai Chau in order to promote the sport and enhance the skill of the participants.

Apart from cooperating with the HKJC in the construction of the existing Golf Course, we also welcome submission of innovative and mutually beneficial proposals on the development of local golf courses from the private sector.

(c) As a public golf course is not a population-based facility, there is no established planning standard. Since the construction of a golf course involves substantial resources (including the precious land resources), the Government has to give serious consideration to the following factors before deciding whether a construction proposal should be implemented:

(i) the demand of local residents for such a facility; capital and operating costs of the facility;

(ii) suitability of available sites;

(iii) ecological and environmental protection issues in site identification and construction; and

(iv) a comparison of relative effectiveness, assuming that the public money is invested in other sports facilities.

Up to the present, we have not received any indication of interest in constructing a public golf course from any organisations.

Nevertheless, in view of the increasing popularity of golfing amongst local residents, we have written to the HKJC to ask about their intention of developing a third 18-hole golf course in Kau Sai Chau. A definite reply from the HKJC is expected shortly.

Although apparently the demand of local golf-lovers for golf courses is fairly high, the planning for and construction of a golf course in Hong Kong are not easy at all. The implementation of a construction proposal will be subject to the compliance of geographical requirements, various assessments, including environmental and traffic impact assessments, as well as cost effectiveness. The construction of a golf course in Hong Kong is also a comparatively controversial issue. For instance, the Sha Lo Tung golf course project in Tai Po proposed several years ago captured much public attention and triggered a lot of debate because of environmental protection considerations, and the project was finally shelved. As regards the feasibility study of the City University of Hong Kong quoted by Hon Sin Chung-kai, I learnt that the Director of Friends of the Earth had raised several queries on its results and recommendations in the newspaper. As such, although our sports development policy encourages the development of golf sport, and despite the support and cooperation rendered to it accordingly, we still have to seriously consider the estimated impacts and effectiveness of investing substantial public resources in the construction of local golf courses.

Thank you.

Ends/Wednesday, February 11, 2004

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