Hong Kong Disneyland announces record profits, plans for third hotel

Having reported healthy profits for a second consecutive year, after years of losses, Hong Kong Disneyland has announced record profits along with plans to build a third hotel to help cater to rising numbers of visitors.

Co-owned by Disney and the Hong Kong Government, Hong Kong Disneyland more than doubled its profit to KK$ 242 million (US$31 million) in the year to September, with revenue climbing 15% to HK$4.9 billion on the back of a 10% rise in visitor numbers to a record high of 7.4 million.

Located on Lantau Island, the park had struggled after opening in 2005, with its poor performance blamed on its small size. However, it became profitable in 2012 thanks to new attractions, including the park's Mystic Manor, that drew more visitors, especially from mainland China.

On the back of its improved figures, a statement announced plans to build a 750-room resort-hotel. The new hotel, expected to cost HK$4.3 billion (US$550 million) will open in 2017 raising total room capacity at the resort by three-quarters to 1,750.

Explaining the expansion, Park Managing Director Andrew Kam stated "expansion plans are in place to sustain the momentum of growth and capture increasing demand especially in the light of growing tourism in the region."

The park is also building a new attraction based on the Iron Man movie franchise, which is scheduled to open in late 2016.

The new projects will help Hong Kong Disneyland, the smallest of Disney's theme parks stay competitive with the new Disneyland Shanghai, which is set to open in 2015.

However, while performance at Hong Kong Disneyland is improving, massive growth in visitor numbers to Hong Kong and its attractions is leading to concerns that guest experiences are being affected by overcrowding.

Local media recently reported that, even before the Lunar New Year holiday, guests had to wait for more than an hour for popular rides and attractions at Hong Kong Disneyland. 

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