Hong Kong Disneyland reports tremendous loss in its 10th year
- Written by arounddb, 15 February 2016
Earlier this week, Hong Kong Disneyland reported its first loss since 2011. Dwindling attendance amid rising costs resulted in a loss of HK$148 million for 2015.
This same year however saw the park's second-highest annual revenues and third-highest annual attendance in its ten year history, according to Variety. It also marked six consecutive years of per capita guest spending growth.
The theme park opened in September of 2005. It turned its first profit in 2012, peaking at HK$322 million in 2014.
The drop in Mainland China tourists is deemed the primary culprit. According to Bloomberg, the slowing Chinese economy, a weakened RMB relative to the Hong Kong dollar and political unrest in the city have lessened its appeal.
Mainland tourists accounted for 41 per cent of the theme park's guests, with locals and international customers comprising 39 and 20 per cent.
Hong Kong Disneyland Managing Director Andrew Kam also cited competition from other destinations as another factor, reports Business Standard. "Tourists now have more choices," he said, adding "because many countries have relaxed their visa requirements.
Disney is opening its second park in Shanghai this coming June. Thrice the size of Hong Kong Disneyland, it will charge relatively similar ticket prices, which some speculate will hurt the Hong Kong park's attendance even more. Kam however has said that there is enough regional demand for both parks to be profitable, reports South China Morning Post.
New attractions, based on the recently acquired franchise properties Star Wars and Iron Man are currently in the works at the Hong Kong park. A new stage production, Mickey and the Wondrous Book, premiered in November of 2015.
Photo by HK Arun on wikipedia.com