Hong Kong Government halts agreement for expansion of Lantau Island Disneyland

The Walt Disney Company has lost the option to expand Hong Kong Disneyland after the Hong Kong Government decided not to renew an agreement to develop an adjacent plot of land on Lantau Island.

The Hong Kong Government said in a statement on Wednesday that it would not extend the option in light of the current economic conditions amid COVID-19. The option to buy the land, that would have allowed for expansion in the future, was agreed in 2000 and expired yesterday (24th September).

Hong Kong Disneyland is owned by Hong Kong International Theme Parks Ltd (HKITP), of which the local government owns 53% and Walt Disney Co owns 47%.

Reports suggest that Disney lost its rights to develop the 60-hectare site because it couldn’t commit to a near-term expansion.

Announcing the move, a spokesperson for Hong Kong’s Commerce and Economic Development Bureau stated “HKITP’s strategic direction is to focus on the ongoing multi-expansion plan featuring a series of new attractions that will continue to position Hong Kong Disneyland as a premier tourism destination in the region, and help capture business opportunities upon the gradual recovery of tourism.

“The Government considers it prudent for HKITP to focus on the development and expansion of the existing resort in the coming few years, rather than geographic expansion into the site.”

A Disney representative said that it would keep investing in the resort, advising that the US company is “extremely disappointed with the Hong Kong Government’s decision not to extend the phase two land expansion option”.

The South China Morning Post has reported Hong Kong Government sources as saying that the land would be used as a COVID-19 quarantine facility for the next few years.

Hong Kong Disneyland has also announced that it will reopen with health and safety measures as of today, after closing again in response to COVID-19 in July.

Disney has also reopened parks in Tokyo, Shanghai and France.

Lower image shows the vacant plot next to Hong Kong Disneyland at Penny’s Bay (at right) which the theme park has now surrendered the right to develop.