Established by ordinance with an autonomous governing council, the Academy offers professional training in dance, drama, music, film and television, theatre technical arts and Chinese traditional theatre. A series of special celebratory programmes was arranged to mark the Academy's 20th anniversary, climaxed with the inauguration of the Academy Alumni Association in June.

The Bethanie, an 1875 former French Mission building at Pok Fu Lam, was designated as the Academy's second campus with detailed architectural designs being developed and submitted to the authorities for approval.

The Academy's regional and international profile continued to develop through successful overseas tours. With the support of the Hong Kong Economic and Trade Offices in Brussels and Singapore, the School of Music undertook performance tours throughout Europe and Asia in January and February.

The Academy's Extension and Continuing Education for Life (EXCEL) Unit celebrated its third anniversary in May. During the year EXCEL enrolled 6 000 participants in 258 courses across the spectrum of arts disciplines.