Government Launches Early Tender to Revamp Kai Tak Cruise Terminal Operations

The Hong Kong government has invited open tenders for the next operator of the Kai Tak Cruise Terminal, introducing more demanding performance requirements and broader managerial duties in an effort to revitalise the site as a major tourism asset. The new contract will commence on June 1, 2028, and run for 10 years, with the possibility of a five-year extension subject to satisfactory performance.

Under the proposed arrangement, the successful bidder will be responsible for overseeing the entire terminal, including public spaces, and may face financial penalties if agreed targets are not achieved. According to the Culture, Sports and Tourism Bureau, efficient management of the terminal is essential for attracting cruise vessels to Hong Kong and supporting the long-term growth of the cruise industry, while also enhancing the terminal’s role as a multi-purpose public facility.

Although the current operator, Worldwide Cruise Terminals, holds a lease that expires in May 2028, the government has opted to begin the tendering process earlier to ensure a smoother transition and to address operational shortcomings identified in recent years. Officials have indicated that the new agreement will impose stricter key performance indicators and expand the operator’s responsibilities beyond berthing services to include active commercial development and destination promotion.

The tender documents specify that, in addition to cruise-related operations, the next operator will manage the Podium Gardens, the rooftop park and other supplementary commercial areas. These spaces are intended to be leased to private or non-profit organisations for commercial, cultural or sports activities, particularly during periods of low cruise traffic, to improve year-round utilisation of the site.

Performance will be assessed through indicators such as the number of annual ship calls, the volume of non-cruise events hosted, visitor numbers generated by these events and occupancy levels of retail and ancillary areas. Financial sanctions for underperformance will apply from the third year of the contract. Bidders will be evaluated primarily on non-price factors, which will account for 70% of the assessment and include experience, operational strategies and proposed performance targets, while price considerations will make up the remaining 30%.

Since its opening in 2013 at a cost of approximately HK$8.2 billion, the terminal has attracted criticism over inadequate transport links and poorly utilised commercial facilities. Despite its original purpose as a cornerstone of Hong Kong’s ambition to become a regional cruise hub, it has frequently been labelled a “white elephant” due to its remote location on the former airport runway.

Public dissatisfaction intensified in August 2023, when the arrival of a major cruise ship following the pandemic exposed serious transport bottlenecks, leading to long waits for taxis and public transport. The incident prompted public criticism and compelled the government to implement emergency measures and conduct a comprehensive review of terminal management.

Secretary for Culture, Sports and Tourism Rosanna Law Shuk-pui stated that launching the tender at this stage would provide sufficient time for a new operator, or the existing one if it submits a successful bid, to reform operations. She added that the initiative is consistent with the government’s updated tourism development blueprint, which aims to better integrate the cruise terminal with the wider Kai Tak area, including the recently opened Kai Tak Sports Park.