The Leisure and Cultural Services Department (LCSD) of Hong Kong has awarded a HK$122.78 million lifeguard and first aid services contract to Spotlight Enterprises for six public swimming pools, prompting scrutiny over the use of public funds amid past staffing shortcomings.
The contract, awarded in July and extending the previous two-year agreement to three years, covers services at Island East, Tai Kok Tsui, Lam Tin, Tung Cheong Street, Tsing Yi Southwest, and Ping Shan Tin Shui Wai swimming pools. The total value represents a significant increase from the initial HK$75.9 million agreement secured in September 2024 under a trial scheme addressing lifeguard shortages.
Despite the department’s satisfaction with the contractor’s overall performance, a report by the Audit Commission highlighted that Spotlight Enterprises failed to provide the required lifeguard staffing on seven occasions between August 2024 and August 2025. The LCSD was also criticized for delayed responses, taking up to 305 days to deduct payments and up to 311 days to issue default notices for these staffing lapses. Additionally, some incidents were not documented in the required monthly performance appraisal reports.
The department indicated it would review the trial scheme’s implementation after the initial contract expired in July this year. However, the decision to extend and increase the contract value has raised concerns over fiscal prudence, particularly given the previous staffing issues.
The contract requires Spotlight Enterprises to deploy 68 staff members daily across the six pools, translating to an average monthly expenditure of approximately HK$568,400 per facility and around HK$50,000 per lifeguard. By comparison, civil service lifeguards in Hong Kong typically earn between HK$19,000 and HK$27,000 per month, according to recent job postings, although the firm’s specific pay rates remain undisclosed.
Nick Wu Kai-wing, vice-chairman of the Hong Kong and Kowloon Life Guards’ Union, criticized the arrangement as an inefficient use of public money, noting the relatively small size of the pools and contending that staffing levels were excessive. Wu argued that the city’s lifeguard shortage occurs primarily during summer months and that the outsourcing contract led to increased lifeguard availability in winter, resulting in an oversupply at certain locations.
Lawmaker Bill Tang Ka-piu, chairman of the Legislative Council’s Home Affairs, Culture and Sports Panel, suggested exploring seasonal outsourcing as a potential cost-saving measure. Tang proposed dividing pools into groups with different outsourcing schedules to evaluate cost-effectiveness and warned against market concentration that could undermine competition in government tenders.
The LCSD maintained that the pools operated smoothly over the past two years without closures due to manpower shortages and that the outsourcing arrangement proved effective. The department said it adhered to government procurement protocols by considering price, management plans, innovation proposals, experience, and certifications when awarding the contract. It attributed the contract price increase to the tight labor market, necessitating competitive compensation and a backup manpower deployment mechanism to ensure uninterrupted pool operations.