Ocean Park Hong Kong posts deficit of US$234 million

Ocean Park Hong Kong has posted a deficit of US$234 million in its latest financial year, even as revenue jumped by almost 40% against the previous 12 months.

South China Morning Post is reporting that the Ocean Park Corporation has attributed much of the blame for its latest financial performance on a US $218 million one-off impairment loss on property, plant and equipment and right-of-use assets, and about US$65million in depreciation and other losses.

“The impairment losses, however, were only for book provision and had no impact on the corporation’s cash flow,” the park said, adding its bank balance and cash exceeded HK$1.31 billion as of June.

According to the corporation and as noted in the SCMP, attendance figures also remained flat, at about 1.4 million, despite the launch of Water World in September last year. The site, which was expected to open in 2017, had attracted 200,000 visitors by the end of the financial year.

Chief Executive Ivan Wong Chi-Fai advised “The fiscal year 2021-22 was particularly challenging because of macroeconomic uncertainty, unfavourable geopolitical development, and the lack of inbound tourism due to Covid-19 restrictions.”

The park was shut for nearly a third of the 12 months covered in the report due to pandemic-control restrictions.

Wong added “Despite the difficult operating environment … the park is on track with its transformation into a resort destination grounded in nature, conservation and education and complemented by adventure and leisure to enhance the visitor experience. We are confident of moving towards sustainable growth.”

Timothy Chui Ting-pong, executive director of the Hong Kong Tourism Association, said Ocean Park was suffering along with the rest of the industry and added “as a key component of the local tourism, Ocean Park would inevitably experience the same ups and downs as other trades in the tourism sector, like aviation and hotels.

“The theme park is still a favourite destination for many tourists. If the government can ease its COVID restrictions sooner to help revive the tourism sector, the park’s business should be able to turn much better quickly.”