Film Industry

Hong Kong is a major film production centre. During the year, a total of 79 films produced in Hong Kong were released. Action films, romance and comedies were the main genres.

In 2003, there were 57 cinemas (with 188 screens) compared with 61 cinemas (with 184 screens) in 2002. The box-office hits of the year included Finding Nemo ($31.89 million), Twins Effect ($28.42 million) and Infernal Affairs III ($28.04 million)³.

Film Classification System

Hong Kong has a three-tier film classification system: Category I (suitable for all ages); Category II, which is subdivided into Category IIA (not suitable for children) and Category IIB (not suitable for young persons and children); and Category III (for persons aged 18 and above only). The objective is to allow adults wide access to films while protecting persons under the age of 18 from exposure to potentially harmful material.

Category IIA and IIB classifications are advisory (no statutory age restriction is imposed) and are intended to give more information to movie-goers, parents in particular, to help them select films for themselves or their children. Age restriction is mandatory for Category III films.

During the year, 1 555 films were submitted for classification, compared with 1 944 films in 2002. Of these, 689 were classified Category I (12 with excisions), 362 Category IIA (none with excisions), 335 Category IIB (eight with excisions), and 169 Category III (21 with excisions). Film trailers, instructional films and cultural films intended for public exhibition also require censorship but do not need to be classified into any category. During the year, 3 309 such items were approved for exhibition.

Film classification standards are kept in line with society's standards by regular surveys of community views and consultation with a statutory panel of advisers, comprising about 250 members drawn from a wide cross-section of the population. A public opinion survey on the film classification system conducted in 2002 showed that the vast majority (97 per cent) of the public considered the current film classification standards acceptable.

Decisions on film classifications may be reviewed by the Board of Review (Film Censorship), a statutory body established under the Film Censorship Ordinance. The board comprises nine non-official members appointed by the Chief Executive, with the Secretary for Commerce, Industry and Technology as an ex officio member. There was one case of reviewing the censor's decisions in 2003.

Government Support

The Government is committed to providing a favourable environment conducive to the healthy and long-term development of the film industry in Hong Kong. The Film Services Advisory Committee was established in May 1998 to provide a conduit for dialogue between the industry and the Government and to advise on the work of the Film Services Office, set up under the Television and Entertainment Licensing Authority, which facilitates film production in Hong Kong and promotes Hong Kong films locally and abroad. The committee is appointed by the Chief Executive and comprises the Secretary for Commerce, Industry and Technology who is the chairman, four representatives from the Government and public bodies and nine non-official members.

Since its establishment in April 1998, the Film Services Office has obtained the agreement of over 1 130 organisations, including government departments, to let their premises for location filming and has published reference materials in this regard for the industry. To facilitate film production in Hong Kong, the office provides one-stop service to the film industry on location filming requests of a more complicated nature. During the year, it dealt with 463 such requests, with a 99 per cent success rate. To assist the film industry in applying for lane closures for location filming purposes, the Film Services Office, in consultation with the Police Force, Transport Department and Highways Department, promulgated a set of guidelines in March 2001. Under this mechanism, the office is responsible for coordinating the processing of such applications by other departments; 102 applications for lane closures were approved in 2003.

To promote Hong Kong films internationally, the Film Services Office facilitated the organisation of Hong Kong Film Festivals in Antwerp, Toronto, Calgary, Vancouver, Washington DC and Seoul. The Film Services Office also promoted Hong Kong as a choice for location filming at the global expositions 'Locations 2003' and 'Busan International Film Commission & Industry Showcase'. During the year, 157 overseas crews, including the production team of the Hollywood film Lara Croft Tomb Raider: The Cradle of Life, carried out location filming in Hong Kong.

The Film Development Fund, which was established in 1999, provides financial support to a wide variety of projects that can enhance the professional and technological capabilities of the film industry so as to strengthen its competitiveness. By year-end, a total of $47 million had been approved for 68 projects to promote the development of the local film industry. They included training courses, workshops, seminars, consultancy studies, surveys, film awards presentation ceremonies, overseas promotional projects as well as sponsorship for Hong Kong films' participation in overseas film festivals.

The $50 million Film Guarantee Fund was established in April 2003 on a pilot basis for two years. It seeks to assist local film production companies to obtain loans from local lending institutions for film production. It also serves to stimulate the establishment of a film financing infrastructure in Hong Kong. The fund provided loan guarantees for four film projects and the total amount guaranteed was $8.63 million.

With the commencement of the Entertainment Special Effects Ordinance and its subsidiary legislation on March 16, 2001, a streamlined regulatory system is now in place to facilitate the use of pyrotechnic materials for producing special effects for films, television and theatrical productions. Under this legislation, the Commissioner for Television and Entertainment Licensing is the Entertainment Special Effects Licensing Authority responsible for licensing special effects operators; issuing discharge permits; registering and regulating the supply, conveyance and storage of pyrotechnic special effects materials. In 2003, the Authority processed a total of 1 192 applications, representing an increase of 42 per cent and 73 per cent over 2002 and 2001, respectively. This indicates that the regulatory system has been well received and utilised by the industry.