Following is a question by the Hon Ray Wong and a reply by the Acting Secretary for Culture, Sports and Tourism, Mr Raistlin Lau, in the Legislative Council today (July 15):
 
Question:
 
     According to the Hong Kong Film Industry Data 2025, a total of 275 films were released in Hong Kong last year, of which only 41 were Hong Kong films, while total box office revenue (first-run films) for the year was about $1.05 billion, representing a year-on-year decline of about 17 per cent. Regarding the measures to support Hong Kong's film industry, will the Government inform this Council:
 
(1) whether it has assessed the impact of the closure of a number of cinemas and the decline in box office revenue in recent years on Hong Kong's film production chain and local practitioners in the film industry, as well as the effectiveness of the Film Development Fund and other support measures; whether it will consider providing short-term support to cinema operators, including rental relief or tax concessions, in order to maintain the sustainable development of Hong Kong's cinema network and the industry;
 
(2) whether it will consider increasing the frequency of the Cinema Day event, collaborating with the business sector to offer cinema-going promotions and ticket-holder spending activities, and formulating a more systematic strategy for promoting cultural consumption that integrates tourism, catering, night economy and mega events, so as to foster the synergistic development of the film industry and other cultural and creative industries, thereby expanding the local cinema-going market; and
 
(3) what long-term strategies are in place to help Hong Kong films tap into the Guangdong-Hong Kong-Macao Greater Bay Area and overseas markets, and to explore with the Mainland authorities ways to improve the distribution as well as vetting and approval arrangements for Hong Kong-produced films, thereby promoting the "going global" of Hong Kong films?
 
Reply:
 
President,
 
     The Government has been closely monitoring the development of the Hong Kong film industry (including cinemas) and maintaining close communication with the trade. The Cultural and Creative Industries Development Agency (CCIDA) has launched various funding schemes through the Film Development Fund (FDF) to enhance quality film production, nurture talent and build audience, with a view to propelling the long-term development of the film industry.
      
     My reply to the question raised by the Hon Ray Wong is as follows:
 
(1) and (2) The supply and operation of cinemas are market-driven. In recent years, various factors such as the impact of the pandemic, diversified entertainment sources and increasing use of home theatres, have caused change in audience viewing habits, leading to a contraction in global film investment and an underwhelming attendance rate of the cinemas. Against these macro environments, cinemas in Hong Kong are, understandably, also facing challenges in operation. At present, there are 54 cinemas in Hong Kong across all 18 districts, higher than the number of 48 cinemas 10 years ago (in 2016), and not far from the pre-pandemic level of 61 in 2019.  Some cinemas that folded have since reopened under new operators.
 
     In terms of box office performance, in the first half of 2026, the total box office revenue of Hong Kong cinemas was 25 per cent high than that of the same period in 2025, while the box office revenue for Hong Kong films alone reached $286 million, already having surpassed the total annual revenue of Hong Kong films in 2025 by 32 per cent. In fact, the total cinema box office revenue in 2025 amounted to $1,131 million, which was comparable to the average over the preceding five years (2020 to 2024) of $1,133 million. When compared with the pre-pandemic level, the total box office revenue in 2025 dropped by around 41 per cent from $1,923 million in 2019, while the box office revenue of Hong Kong films alone decreased by around 14 per cent only. This demonstrates that the decline in total box office revenue of Hong Kong cinemas was mainly attributed to the lack of international blockbusters.
      
     The Government has been actively promoting the development of Hong Kong film industry. Since 2007, the Government has injected over $2.9 billion into the FDF. As at the end of June 2026, about 500 projects had been approved with $1.5 billion committed, which includes an amount of $600 million for financing or subsidising more than 120 films, which have engaged over 120 emerging directors and producers, thereby helped groom new blood for the industry. These films also garnered over 370 nominations and won more than 290 awards in total at local and international film awards and film festivals. Some of these films have achieved remarkable box office results, such as "A Guilty Conscience", the first local film to accumulate a box office of over $100 million in Hong Kong; and "Another World", the highest-grossing Hong Kong animated film in local box office of all time.
      
     To attract audiences to cinemas to watch movies and broaden the audience base, the FDF has, since 2023, sponsored the Hong Kong Theatres Association (HKTA) to organise the Cinema Day annually in April or May, and the 1st October Movie Fiesta: Half-price Spectacular on the National Day. Data shows that average admissions on event days increased by about four times and box office revenue increased by about three times compared with usual days, demonstrating that these initiatives are effective in encouraging movie-going, while benefiting the cinema industry at the same time. The HKTA and cinemas also took these opportunities to collaborate with nearby restaurants and shops to launch promotional offers, enabling the public to relive the leisure routine of "shopping, dining, and movie-going" to stimulate surrounding economic activities. Although these concessionary activities have proven effective in attracting audiences, it does not mean that effectiveness could be increased by simply raising the frequency of events. The Government needs to assess a variety of factors, including the fiscal implications on the Government and marginal utility of the measures. We will engage in discussion with the trade on this matter.
      
     To broaden the income sources of cinemas, CCIDA has been following up on the views of the HKTA and has co-ordinated communication between the trade and relevant government departments (including the Food and Environmental Hygiene Department, the Fire Services Department, and the Buildings Department) to streamline the application procedures for cinemas to be used for live performances. The streamlined procedures are expected to be implemented in Q3 this year.
      
     Actually, attracting audiences to go back to cinemas requires a multipronged approach. The Government has also proactively developed film-related tourism hotspots in recent years, to enhance the interest in Hong Kong films amongst local citizens and tourists and to ensure the sustained visibility of Hong Kong films outside the cinemas. In May 2025 and January 2026 respectively, CCIDA launched two movie set exhibitions, namely, "Kowloon Walled City: A Cinematic Journey" and "Yau Ma Tei Police Station: A Cinematic Journey", to promote the synergies of the film industry and tourism. Both exhibitions have received positive feedbacks, and CCIDA will continue to actively promote various measures that foster cultural and tourism integration.
 
(3) The Government is committed to expanding the markets for Hong Kong films in Chinese Mainland and overseas. The FDF has launched several schemes to promote co-productions, including the Hong Kong-Asian Film Collaboration Funding Scheme, the Hong Kong-Europe-Asian Film Collaboration Funding Scheme, the Film Financing Scheme for Mainland Market, and the Film Production Grant Scheme for Promoting Chinese Culture.
 
     Furthermore, the FDF launched the Film Festival Promotion Scheme and sponsored the Hong Kong Economic and Trade Offices overseas to collaborate with local film institutions and festivals, leading industry delegations to participate in renowned film festivals and sponsoring organisation of Hong Kong film programmes outside Hong Kong. These initiatives aim to promote emerging talents and facilitate communication and business collaboration with the industry's international counterparts.
      
     Regarding the Chinese Mainland market, the "platform release" model introduced in recent years allows films to be released in specific cinema chains, different cities/regions, or multiple runs before nationwide theatrical release. This new model offers new opportunities. CCIDA will continue to encourage the trade to leverage various relaxation measures under the Mainland and Hong Kong Closer Economic Partnership Arrangement which promote mutual benefits and joint and complementary development of the film industries in Hong Kong and the Chinese Mainland.
      
     The film market is ever evolving, and the support measures of the FDF must also keep pace with the times. We will maintain close communication with the trade, and provide in a timely manner financial and other forms of support tailored to the industry's needs, such as strengthening assistance for location filming and increasing the number of platforms to enhance the visibility of Hong Kong films, thereby fostering the long-term development of the film industry.

Ends/Wednesday, July 15, 2026
Issued at HKT 13:03

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