Hong Kong private sports clubs must pay land premiums or open doors as leases end

New arrangement, first announced in 2019, ends long-standing concessionary land premiums granted to private sports clubs that are closed to public

Hong Kong’s 15 private sports clubs must either pay one-third of their land premium, ranging from tens to hundreds of millions of dollars, or open their doors to the public when their leases expire at the end of the year, authorities have confirmed.

The Culture, Sports and Tourism Bureau said on Tuesday that it has begun notifying the clubs and outlining lease renewal procedures, including premium payment requirements.

The arrangement, first announced in 2019, ends the long-standing concessionary land premiums granted to private sports clubs that are closed to the public.

Under the new terms, the clubs must pay one-third of the land premium upon lease renewal. Alternatively, they may convert into community organisations, pay only a nominal land premium, and fully open their facilities to the public.

A government source said the land premiums paid by these clubs could range from tens to hundreds of millions of Hong Kong dollars.

Private clubs have long faced scrutiny for occupying prime public land at nominal or nil rents under colonial-era arrangements while maintaining exclusive, high-cost memberships.

Public discontent has grown amid Hong Kong’s acute land shortage, with criticism that such clubs continue to enjoy preferential treatment.