Hong Kong Disneyland Reports Record HK$2.7bn Net Loss

Hong Kong Disneyland on Monday reported a record net loss of HK$2.7 billion for the last fiscal year, with the park placing the blame on frequent shut downs and dwindling tourist numbers as a result of the coronavirus pandemic.

But the theme park said it has no plans to seek funding from the Hong Kong government, nor does it have any plans to raise ticket prices or fire staff.

Hong Kong Disneyland Resort’s managing director Michael Moriarty said the park was closed for seven months during the last fiscal year, with mainland and overseas visitors also put off by travel and entry requirements at the border aimed at curbing the spread of the Covid-19.

Revenue dropped by 76 percent to HK$1.4 billion, with attendance dropping to a record low of 1.7 million.

Moriarty said although more local residents visited the park, it had been "far from enough" to compensate for the drop in attendance by tourists.

“It’s hard to imagine a more unprecedented time where the world has been on lock-down as a result of the pandemic with arrivals into Hong Kong down 82 percent and our park being shut down,” Moriarty said.

“I think it’s easy to see why it would be this low.”

He said the park’s future performance would be heavily dependent on whether it can stay open, and when border restrictions can be lifted.

But, he added, no additional funding will be needed from the government.

“The Disney Company has committed a HK$2.1 billion revolver facility. Right now, with that, with the cost saving measures that we’ve had in place… we do not have any plans of asking Legco for funding beyond the Walt Disney revolver,” he said.

He said the resort also has no plans to increase the prices of tickets or lay off staff.