Hong Kong lawmakers and the video games community on Monday called for moves to grow the sector, and proposed measures to set up a dedicated government department, provide sustained funding support and host mega esports events in the city.

Lawmaker William Wong Kam-fai released his proposal at a workshop on video games, saying the sector could be an important driver not only of employment, economic growth and diversification, but also of the development of the technology, cultural and tourism sectors.

The commercialization of esports would boost businesses in running sports clubs, ticket sales, electronic products, sponsorship, and other support services. It could also create jobs for players, coaches, anchors, therapists and event organizers.

Wong said the Hong Kong Special Administrative Region government should first put the sector into the cultural and sports category to quell negative public thinking concerning video games

In his proposal, Wong said the Hong Kong Special Administrative Region government should first put the sector into the cultural and sports category to quell negative public thinking concerning video games.

Second, a dedicated department should be set up under the Culture, Sports and Tourism Bureau to lead and coordinate the overall development of the video games industry.

Measures would include formulating a five-year development plan, encouraging wider adoption of technological applications, and creating synergy between the video games sector and other creative and cultural businesses.

Also, the efforts going into boosting the sector need to be matched by a sustained funding program to support video games companies, esports clubs, and event organizations, said Wong, who is also a national political advisor and an associate dean of the faculty of engineering at the Chinese University of Hong Kong.  

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The tech guru added that there should be moves to lure more esports activities to the city, which would also be in line with the government’s drive to rev up post-pandemic recovery by staging a vast array of mega events.

Chief Executive John Lee Ka-chiu last week announced plans to hold more than 100 events in the latter half of the year, including entertainment expos and fashion weeks. The events are expected to contribute HK$7.2 billion ($922 million) in consumer spending and to generate an additional HK$4.3 billion in economic value for the city.

“Considering the rapid growth of esports it is wise to strive for international esports events to come to the city, which can attract inbound tourists and promote the development of the tourism sector,” Wong said.

As an example of success, South Korea — one of the most developed esports markets — saw its cultural industry exports amount to around $12.5 billion in 2021, of which the video games industry ranked first with about $8.7 billion, accounting for 69.6 percent of the total, according to data from South Korea’s Ministry of Culture, Sports and Tourism.

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In Hong Kong, total video games revenue was $1.4 billion in 2022 and is forecast to exceed $1.8 billion by 2027, increasing at a five-year 5.1 percent compound annual growth rate, according to accounting firm PwC.

Last September, the Hong Kong team won the silver medal in the video game Dream Three Kingdoms 2 at the 19th Asian Games in Hangzhou —the first time that esports had been included in the Games as a medal event.

But strong headwinds remain. Wong cited some investors’ concerns about the city’s limited market size, high labor costs, talent shortage and a lack of official support.