Hong Kong Disneyland lost US$270 million in the year-ending September 2022, while revenue increased 31 percent.
Photo from CFP
By LI Rujia
Hong Kong Disneyland Resort continues to face substantial difficulties as revealed in its financial report for the year ending in September 2022.
In the year, Hong Kong Disneyland lost HK$ 2.1 billion (US$270 million, 1.9 billion yuan), 12 percent less than the theme park burned off the previous year. Revenue increased 31 percent to HK$2.2 billion, so it’s not all bad news.
Disneyland’s growth was largely driven by local visitors. Admissions increased by 22 percent to 3.4 million with a rise in local guests and "Magic Access" (annual pass) membership, up 22 percent.
The resort's hotels saw a 3 percent rise in occupancy, reaching 24 percent. Average per capita spending also experienced modest growth of 11 percent.
Hong Kong Disneyland has been dealt a difficult hand by the pandemic, forced to close for nearly three and a half months and operate on a five-day-per-week schedule. To support the operation, the Walt Disney Company increased the park’s credit facility from HK$2.1 billion to HK$2.7 billion and deferred royalty payments.
Looking ahead, Hong Kong Disneyland plans a "Frozen" area later this year. the Hollywood Hotel is also set to reopen in mid-July and to operate the park six or seven days per week from next month.
Since its opening in 2005, Hong Kong Disneyland has faced financial challenges, reporting losses for eight years since 2015. But over the course of 17 years, the resort has contributed significantly to the local economy, generating approximately HK$16 billion in revenue, equivalent to 0.27 percent of local GDP, creating approximately 277,000 jobs