Date
25 March 2019
Hong Kong Disneyland expects its prospects to improve further after it managed to narrow its losses in the financial year ended September. Photo: HKEJ
Hong Kong Disneyland expects its prospects to improve further after it managed to narrow its losses in the financial year ended September. Photo: HKEJ

HK Disneyland trims losses as visitor numbers improve

The Hong Kong Disneyland Resort remained in the red for the fourth straight year, but it managed to reduce the losses considerably on the back of an improvement in visitor numbers and enhanced guest spending.

According to figures released on Monday, the theme park recorded a net loss of HK$54 million (US$6.92 million) for the financial year ended September, significantly lower than the HK$345 million loss it posted in the previous year.

Revenue rose 18 percent from a year earlier to HK$6 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) went up by 48 percent to HK$1.4 billion, both record highs.

The resort attributed the improved performance to improved occupancy at the resort hotels, rise in park visitor numbers and increased guest spending, the Hong Kong Economic Journal reports.

According to the company, the theme park drew attendance of 6.7 million people in the twelve months to September 2018, an increase of 8 percent over the previous fiscal year and marking a new high since 2015.

Among the visitors, Hong Kong people accounted for 40 percent, while mainlanders made up 34 percent and the remaining 26 percent came from international markets.

Visitors from Japan, South Korea and the Philippines were up 44, 34 and 12 percent, respectively, in number compared to the previous year.

The resort’s managing director, Stephanie Young, said the company will aggressively develop more markets to seek new sources of visitors.

Data showed a 6 percent increase in per capita spending of visitors to the park last year, and the resort saw its hotel occupancy rise by six percentage points to 75 percent.

Young pointed out that although the resort’s performance had improved in the past two years and the revenue and EBITDA had grown, it remains uncertain whether it can turn profitable this fiscal year.

The park, in which the Hong Kong government holds a majority 53 percent stake through a joint venture with The Walt Disney Company, currently has no plan to adjust the ticket prices.

Claiming that the cross-border Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge have helped bring more mainland visitors — whose number climbed double digits during the Lunar New Year holidays earlier this month and made the resort’s hotels fully occupied — Young said she expects the two new transport links and the theme park’s planned additional attractions will help improve the company’s business further.

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TL/JC/RC

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