Falling attendances leads to losses at Hong Kong Disneyland

Falling attendances and rising costs have led the Hong Kong Disneyland Resort to record a HK$148 million (US$19 million) loss for the fiscal year ended 3rd October 2015.

Now celebrating its 10th anniversary, the 2015 loss was the theme park’s first in four years having posted a profit of HK$332 (US$42 million) in the previous year.

Revenue fell by 6% on year to HK$5.11 billion (US$656 million) as attendance fell by 9% to 6.8 million compared with 7.5 million in 2014.

The hotel occupancy rate also dropped to 79% compared with 93% in 2014.

Costs and expenses made up of mainly labour, operating and support costs, costs of sales, and marketing and sales expenses increased by 2%, HK$94 million (US$12 million), to HK$4.3 billion (US$552 million).

Hong Kong Disneyland officials said the fall in attendances was impacted by the slowdown in the local tourism and leisure market – a phenomena experienced by attractions across Hong Kong which is experiencing a decline in visitors from mainland China.

Hong Kong’s theme parks have also been impacted by the anticipated opening on the Shanghai Disney Resort in June this year.

On a brighter note, Hong Kong Disneyland Resort reported improved per capita visitor spending and spending per room by guests and attendance by a record number of local visitors “as a result of a series of promotions and special offers.”

Locals accounted for 39% of the visitor total, while mainlanders made up 41%. International visitors made up 20%, the same as in 2014.

Earnings before interest, taxes, depreciation and amortisation was HK$805 million (US$103 million).

HK Disneyland said it will introduce a new themed area based on Marvel’s Iron Man franchise this year while a new 750-room resort-style hotel, Disney Explorers Lodge, is set to open in 2017.

Earlier this month, Hong Kong theme park Ocean Park announced that its visitor numbers dipped by 14% in 2015, slipping by over a million visits from 7.8 million visits.

Hong Kong Disneyland Resort is owned by Hongkong International Theme Parks, jointly owned by The Walt Disney Company (48%) and the Government of Hong Kong (52%).

Image: A young visitor meets Disney character Buzz Lightyear at Hong Kong Disneyland.

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