Hong Kong leisure projects hit by building delays

Major leisure infrastructure projects in Hong Kong, including the West Kowloon Cultural District and Ocean Park’s new hotel and waterpark - are experiencing significant overruns as a result of construction delays and contractural issues.

At the end of last week, the West Kowloon Cultural District Authority (WKCDA) fired its main contractor following a protracted financial settlement controversy, raising uncertainty over further delays and cost overruns at the multibillion-dollar arts hub.

On Friday the WKCDA said it had terminated the HK$5.9 billion (US$750 million) contract for the M+ visual culture museum, the centrepiece of the arts precinct, with Hsin Chong Construction due to the company’s insolvency.

The Authority said poor management at the firm had led to “significant delays”on site.

The WKCDA advised that an urgent tendering exercise is underway for a new contractor, and is expected to take six to eight weeks.

At Hong Kong theme park Ocean Park, a new hotel, expected to be opened at the end of last year, and then as of June, is now planned to be open in October.

Delays at the popular theme park have also seen its planned HK$2.9 billion (US$360 million) waterpark also originally scheldued to open in 2017 now unlikely to be completed before the end of next year.

Known as Tai Shue Wan Water World, the project was expected to attract 1.5 million visitors in its first year of operation and contribute HK$842 million (US$107 million) to the local economy in 2018, according to Hong Kong Government submissions to the Legislative Council in 2013.

But Ocean Park has not decided on the launch date, saying it depended on marketing and preparatory arrangements.

Facing rising competition from Hong Kong Disneyland’s ongoing HK$10.9 billion (     expansion as well as new tourist attractions in the region, loss-making Ocean Park pinned its hopes for fresh growth on the all-weather water park and two high-end hotels, the other being a Fullerton Hotel due for completion in 2021.

The plan is to transform the 41-year-old theme park into an international resort destination.

Image: Artist's concept for the West Kowloon Cultural District (top) and no launch date has been decided for Ocean Park's Tai Shue Wan Water World (below).