Five of the eight cultural properties in Taipei operated by non-governmental organizations have reported revenue deficits, with Grass Mountain Chateau (草山行館), Chiang Kai-shek’s (蔣介石) former presidential residence-turned-gallery in Yangmingshan National Park, registering the largest losses, including a NT$2 million (US$ 65,000) loss in 2013.
The loss-making properties have raised concern about the city’s management of the cultural industry.
Democratic Progressive Party Taipei City Councilor Chou Po-ya (周柏雅) said that although the chateau generated NT$11.3 million in revenue in 2013, its expenses surpassed revenue by nearly NT$2 million, according to a report on the city’s assets recently submitted to the Taipei City Council by the city’s Department of Cultural Affairs.
Photo: Yu Pei-ju, Taipei Times
Food and beverage services generated 82 percent of the chateau’s revenue, Chou said, adding: “Is the potential for Taipei’s cultural and creative properties merely in food and drink?”
The other loss-making properties are Taipei Story House (台北故事館), Zhishan Cultural and Ecological Garden (芝山文化生態綠園), Tsai Jui-yueh Dance Research Institute (蔡瑞月舞蹈研究社) and Guling Street Avant-garde Theatre (牯嶺街小劇場), he said.
The Lin Yutang House (林語堂故居), the home of the famed writer on Yangmingshan that is managed by Soochow University, did not turn a profit, but its income met its expenses, Chou said.
However, 70 percent of its income comes from the government’s NT$3.8 million subsidy, he said.
“The [university’s] financial management was too accurate,” he said.
The two properties that have made a profit are the Yong An Art Center (永安藝文館) in the Muzha District (木柵) — also known as Performing Art School 36 — and the Wistaria Tea House (紫藤廬) in downtown Taipei, he said.
The art center posted a NT$500,000 net profit, topping all other contractors in terms of profitability, but averaging out a profit of just NT$42,000 per month, Chou said.
The teahouse made a net profit of NT$12,000 in 2013 by subletting the historic property to a dining business, he said.
Chou called on the city government to make public the financial report on these properties to encourage better teams to take over their management.
However, Taipei Department of Cultural Affairs Executive Secretary Liu De-chien (劉得堅) said that most of the cultural properties are not profit-oriented, but serve as cultural and educational centers, and that the government would continue subsidizing contractors to keep the properties operating.
For example, the operator of the chateau has to cover expense of exhibitions and artist-in-residence programs in addition to offering dining services, Liu said, adding that although the property has been running at a loss for three years, the operator has its own management philosophy and is willing to renew the contract.
The key responsibility of some properties is to promote arts, such as the dance classes held at the Tsai Jui-yueh institute, Liu said.
The city government requires the operators of these properties to use less than 30 percent of the floor area for business purposes, which means lower profit margins, Liu said.
He also said that publishing the financial report online might reveal confidential business information.
The city is looking for a new contractor for the Taipei Story House, which is temporarily closed, Liu said.
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