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Raymond Wong says that the largest expense for cinema owners righ now is rent
courtesy of mingpao.com |
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| Albert Yeung hopes property owners would lend a helping hand |
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| Albert Yeung has suffered huge losses due to the pandemic |
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| Aside from cinema owners, Simon Yam also urges each major company to reduce rent |
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| Carlos Chan |
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Michelle Wai hopes the industries would reach an agreement soon
courtesy of on.cc |
The novel coronavirus has had severe impact on every
business and industry. Yesterday the Hong Kong Theaters Association issued
an open letter, stating that under the pandemic cinemas have suffered
serious setbacks. Box office revenue has dropped drastically from the
same period of the past year, almost 90%. The Association pleaded with
property owners to reduce rent and get over the hard times with cinema
owners. Cinema circuit boss Raymond Wong Pak Ming also asked property
owners to consider rent according to business operation rate.
The Hong Kong Theaters Association said that even though the
government earlier provided an one time subsidy to the industry, it was
not enough to help the industry out of the crisis as the cinema industry
fell into an unprecedented crisis!
The Association said that 80% of the box office revenue came from
foreign language films. Currently the pandemic remained rampant in many
nations around the world, film productions and distributions have halted.
With a severe film supply shortage, cinemas suffered even more. Over
the past half a year, cinemas have coordinated with government pandemic
prevention measures numerous times. Basically they could not operate
normally. Now they are in zero income condition, have no way to pay
rent to property owners and other shopping center fees, not to mention
operation cost. The industry again pleads with various property owners
to cancel rent at the most difficult time for cinemas, to change to rent
according to business operation rate and drastically reduce management
and other costs in order to get over the hard times together. Otherwise
cinemas would have difficulty with their survival and the entire film
industry chain would be affected.
Cinema circuit boss Wong Pak Ming said, "In the half a year
under the pandemic, every business and industry have been affected in
Hong Kong. Despite the government's "employment support scheme" subsidy,
it has been less than effective! Salary only took up 10% of the cost
but cinema rent took up 80%. Thus I plead with various property owners
to consider rent according to business operation rate, to get over the
hard times with the industry so cinemas would be able to continue to
provide basic entertainment to the people."
Emperor cinema circuit boss Albert Yeung Sau Sing yesterday
pointed out that the cinema industry currently was in an extreme
depression, as operation was rather difficult. "First film supply is
an enormous problem, because of the pandemic now many films have stopped
productions. Even when cinemas will open up again in the future, the
movies available to them would last to February to March next year, or
even January to February. As for other uncertain factors like the
current China U.S. trade war. How would U.S. film open in the Mainland?
For now no one knows, without the Mainland they probably won't open in
Hong Kong either."
Mr. Yeung revealed that the cinema operation has become more
difficult with every step. Every month he faced enormous expenses.
In some of the more popular districts cinema rent has risen above HK$ 6
million, before salary and other expenses were even considered. In the
past half a year, in order to coordinate with the government pandemic
prevention measures, cinemas basically could not operate normally. Now
they are in zero income condition, making operation harder than hard!
How much money did he lose during the pandemic? Yeung Sau
Sing said, "I am really embarrassed to say, astronomical figures! (What
kind of assistance would you like property owners to provide?) Now many
property owners have reduced rent, but the reduction amount won't be able
to help us out of this crisis. The situation really is dare, as box
office has dropped 90%! I hope property owners can cancel rent, and use
box office business operation rate as rent to get over the hard times
together! If cinemas close, Hong Kong people would lose even the most
basic entertainment of watching movies." As for "astronomical" monthly
losses, has he planned for the worst? He helplessly said, "The worst
is closing, cancelling renovation, equipment, everything."
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