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CSD/3/2016 Commission on Strategic Development Promotion of Cultural For Meeting on 8 September 2016 Paper Ref : CSD/3/2016 Commission on Strategic Development Promotion of Cultural and Creative Industries in Hong Kong Introduction Cultural and creative industries (CCIs) comprise a set of knowledge-based activities that deploy creativity and intellectual capital as primary inputs and deliver goods and services with cultural, artistic and creative contents1. The Census and Statistics Department (C&SD) has identified the following 11 sectors as CCIs: art, antiques and crafts; cultural education and library, archive and museum services; performing arts; film, video and music; television and radio; publishing; software, computer games and interactive media; design; architecture; advertising; and amusement services. 2. In terms of organisation of business in the Hong Kong SAR Government, a division of responsibility is drawn between cultural and creative industries. Those sectors which traditionally have a higher commercial element (design, digital entertainment, advertising, architecture, film, broadcasting, music, publishing and printing) are classified as creative industries, and have been put under the purview of the Commerce and Economic Development Bureau (CEDB). Those less commercially-oriented and art-focused sectors fall under the purview of the Home Affairs Bureau (HAB) and are regarded as arts and cultural activities. In the context of supporting arts development in Hong Kong by the Hong Kong Arts Development Council (HKADC), arts activities 1 In the international community, the concept and definition of CCIs are still evolving. The terms “cultural and creative industries”, “creative industries”, “cultural industries” and “copyright industries” are used by different international organisations and countries/territories to describe CCIs. Based on the definition adopted by the United Kingdom, one of the countries which first sought to define and identify CCIs for promotion and development, CCIs are “those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property”. - 1 - are categorised into ten art forms – music, dance, drama, xiqu (Chinese opera), literary arts, visual arts, film (and media) arts, arts education, arts administration, and arts criticism. Nevertheless, there are also other genres in the arts that are multi-disciplinary in nature (such as theatre technical arts). 3. In general, arts and cultural activities cannot easily develop into a financially self-sustaining industry. Cultural services in Hong Kong such as museums, libraries and performance venues are mostly publicly run by the Government. For the non-governmental players in the sector, most of them require government support in different aspects, including funding support for the creation and production of arts programmes, provision of publicly funded venues for presentation of programmes, grooming of talents through arts education programmes provided by the publicly-funded Hong Kong Academy for Performing Arts (HKAPA), as well as audience building and arts education to promote the long-term development of the arts. 4. Notwithstanding the division of responsibilities within the Government for CCIs, in real life, the distinction between cultural industries and creative industries is much less clear. There are some examples of cultural activities developing into an industry, for example, art trading. There are also examples of creative industries becoming part of Hong Kong’s culture, for example, local comics and the local film industry. A brief note on art trading in Hong Kong is at Annex A. Economic and social significance of CCIs to Hong Kong 5. It is a global trend for advanced economies to make use of CCIs as engines for propelling economic growth and tools for diversifying the economic base. The economic contribution of CCIs to Hong Kong can be partly quantified in the generation of value added for gross domestic product (GDP) and job creation. Some headline figures compiled by C&SD are as follows – ˙ In 2014, the value added of CCIs was $109.7 billion. From 2005 to 2014, the value added of CCIs in nominal terms increased at an average annual rate of 8.6%, significantly - 2 - faster than the average annual growth rate of the GDP of Hong Kong at 5.4%. CCIs’ share of Hong Kong’s GDP increased from 3.8% in 2005 to 5.0% in 2014; ˙ Between 2005 and 2014, double-digit growths for value-added were registered in various sectors, namely advertising (10.2%), architecture (14.9%), design (16.9%) as well as software, computer games and interactive media (11.6%); ˙ Employment in CCIs increased from 171 990 in 2005 to 213 060 in 2014. This represents an average annual growth rate of 2.4%, which is faster than the average annual rate of increase of total employment in Hong Kong at 1.3% over the same period. Accordingly, CCIs’ share of total employment of Hong Kong climbed from 5.1% in 2005 to 5.7% in 2014; and ˙ Between 2005 and 2014, significant growth rates for employment were registered for some sectors such as architecture (4.5%) and design (5.7%) as well as software, computer games and interactive media (3.7%). Arts and cultural industries 6. Promotion of the arts and culture is crucial to every society. It not only enriches the quality of life for people in Hong Kong and adds colors to our diversified city life, but also highlights our cultural identity as an international city rooted in traditional Chinese culture. Arts and cultural development also provides a good platform for engaging youths and helps attract incoming visitors to experience the unique cultural landscape of Hong Kong, a place where the east meets the west. Snapshots of the state of development of specific genres of arts, including performing arts, visual arts and literary arts, are at Annex B. 7. Arts and culture also plays a significant role in building social cohesion by enabling dialogues between peoples and nations, thus contributing to social wellbeing, strengthening our communities, and enhancing understanding and acceptance of differences. - 3 - Creative industries 8. Creative industries are characterised by a large number of small and medium enterprises (SMEs). They enable our economy to more flexibly respond to the changing economic environment. Cross-sectoral collaboration (crossover) is common among creative sectors. Harnessing the use of digital technologies and platforms as well as lower-cost distribution and promotional channels, local creative industries can be readily expanded to cover markets outside Hong Kong. However, the business opportunities provided by the digital technologies and platforms have no boundaries and are equally available to local and overseas entities in the industry. 9. Creative industries also have a broader positive impact on the society. As consumers, members of the public are able to enjoy the products of creative industries. The growth of creative industries also provides employment opportunities to our young people and helps diversify our economic base. As creative industries mainly rely on creative thinking rather than capital, academic qualifications or working experience, the entry barrier and start-up cost is relatively low. Self-employed entrepreneurs and start-ups are common. More importantly, creative industries provide young people with an avenue to realise their potential and a path to self-actualisation. Relevant Government policy, strategy and current landscape (A) Arts and cultural industries Arts and cultural policy and current landscape 10. The Government’s vision is to develop Hong Kong into an international cultural metropolis with a distinct identity grounded in Chinese traditions and enriched by different cultures, where life is celebrated through cultural pursuit; and creativity is a constant driver of progress in the community. It is the Government’s objectives to – (a) provide opportunities for wide participation in culture and the arts; - 4 - (b) provide opportunities for those with potentials to develop their artistic talents; (c) create an environment conducive to the diversified and balanced development of culture and the arts; (d) support the preservation and promotion of our traditional cultures while encouraging artistic creation and innovation; and (e) develop Hong Kong into a prominent hub of cultural exchanges. Strategy and support measures 11. The Government has been actively creating an environment conducive to the diversified development of culture and the arts, upholding the freedom of artistic expression and creation, and encouraging wide participation. 12. In 2016-17, HAB allocates $4 billion on arts and culture development (excluding capital works expenditure). The recurrent resources are mainly deployed for running public cultural services by Leisure and Cultural Services Department (LCSD), subvention to our key strategic partners in arts and culture, i.e. the HKADC and the HKAPA; providing recurrent subvention to the nine Major Performing Arts Groups; provision of venue support for arts activities; as well as arts education and promotion. A breakdown of the provision in 2016-17 is at Annex C. From 2014-15 to 2016-17, the annual recurrent expenditure on the arts and culture has increased by 15%. With additional resources available from dedicated funds such as the Arts and Sport Development Fund and the Cantonese Opera Development Fund, etc., funding support, in the form of time-limited or project grants, is also available for nurturing
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