Creative and productive: Central Policy Unit Head Lau Siu-kai and HK University's Desmond Hui say creative industries bring both jobs and economic benefits to Hong Kong.

Hong Kong's creative industries have the potential for further development, with an average annual growth of 1.8% against an average 0.8% total employment growth between 1996 and 2002.

These are the findings of a baseline study released today.

In terms of employment, there were 25,342 establishments engaging 153,190 people in the sector in 1996. These grew to 30,838 with total employment reaching 170,011 last year.

The sector's share of total employment is also going up, from 5% in 1996 to 5.3% last year.

HK University Centre for Cultural Policy Research Director Desmond Hui said the figures have proved creative sector employment is growing.

In 2001, the sector contributed $46.1 billion to the local economy, accounting for 3.8% of GDP. The corresponding figures in 1996 were $47.67 billion and 4.1%.

Mr Hui said the overall contraction could be attributed to the economic downtown since 1997. The creative sector as a whole recorded an average annual growth of -0.7% while annual GDP growth stayed at 1% during the period.

The sector's growth pattern is invariably due to the volatile nature of creative industries that demonstrates rapid rebound when the general economic condition is improved, he said.

He also suggested a cross-sector platform for exchange is necessary in view of the relatively strong tendency of economic interaction among segments of the creative sector.  This will boost communication within the sector and sharpen its competitive edge.

On CEPA, Mr Hui believed the advertising, architecture, film and video industries may benefit from the arrangement.

Also speaking at the press conference, Head of Central Policy Unit Lau Siu-kai said Hong Kong's environment is conducive to the development of creative industries.

Strengths include intellectual property protection, ever-flourishing businesses and information technology, an open and diversified society, freedom of creativity, as well as people's flexibility.

He believed creative industries will be a key motivation of Hong Kong's future economic growth, and have the potential for further development.

The Central Policy Unit commissioned HK University in September last year to conduct a baseline study on the city's creative industries.

Details of the report are available at www.info.gov.hk/cpu.