HK To End Disney's Option For Penny's Bay

The government is ending an option for the Hong Kong Disneyland to buy a piece of land next to it in Penny's Bay.

The option to purchase, for the second phase of the development of Hong Kong Disneyland, was agreed 20 years ago, and will expire on Thursday.

The government said the theme park will now focus on expanding within existing resort area.

The Penny's Bay area has been lying idle for years and government had rejected calls to use that area for temporary housing for those waiting for public housing, saying it was earmarked for development for activities compatible with that of the theme park's.

But as Hong Kong experienced a third wave of coronavirus cases, a temporary quarantine centre was erected there to face the situation.

In a statement, the Commerce and Economic Development Bureau said it won’t extend the agreement entered with Disney, due to the current economic conditions.

It said it's prudent for the theme park to focus on developing the existing resort area in the coming few years, adding that the government will continue supporting its current expansion plans despite the global tourism downturn.

In response, Walt Disney says it's "extremely disappointed" with the government's decision, adding it had stayed the course on its commitment to investing in Hong Kong Disneyland in the past 15 years.

But the company stressed it will continue investing in the theme park's current expansion plan.