Hong Kong Disneyland records loss for second year in a row, as mainland visitor numbers dwindle

HONG KONG — Hong Kong Disneyland has announced a loss for 2016, its second loss-making year in a row, losing HK$171 million (S$31 million) on fewer visitors from the mainland.

Visitor numbers at the Lantau Island park dropped more than 10 per cent to 6.1 million last year according to the results, which cover the financial year to October 2016.

Mainland tourists only accounted for 36 per cent of total visitors, down from 41 per cent in 2015.

The theme park has posted losses in 8 of the 11 years since it opened, according to its financial filings, only recording profits at the peak of the city’s tourism boom from 2012 to 2014.

Last year, the park lost HK$148 million, with visitor numbers at 6.8 million.

“Tourism has been difficult in the region,” Mr Samuel Lau Wing-kee, the park’s new managing director, said.

“But visitor numbers and occupancy at Disneyland hotels improved in the second half of the financial year from the first half.”

The number of mainland visitors dropped 21 per cent to 2.19 million last year, which Mr Lau blamed on the mainland economic downturn and the Hong Kong dollar’s strength against the yuan.

Last year the Chinese economy grew at its slowest rate in 26 years, at 6.7 per cent.

The Hong Kong home of Mickey Mouse is also expected to face stiff long-term competition in the region, especially from Shanghai Disneyland, three times bigger than its Hong Kong cousin, which opened in June. Analysts have said the new park would divert some Disney fans in northern China away from the Hong Kong park.

But Mr Lau stopped short of attributing the mainland visitor decline to the new competitor, saying: “China’s market is big enough to accommodate two Disneylands.”

Disneyland is now seeking approval from the Legislative Council for a HK$5.8 billion cash injection for its six-year, HK$10.9 ­billion expansion, featuring attractions based on the hit film Frozen and Marvel superhero films.

Visitor numbers to Hong Kong overall slumped 4.5 per cent last year, the worst figures since 2003, when the city was hit by Sars.

Professor Brian King, associate dean at Polytechnic University’s school of hotel and tourism management, said the main cause of the decline was the drop in mainland visitor numbers.

He said: “Though the decline reflects the overall Hong Kong destination performance and similar disappointment at Ocean Park, the number will be a concern to management.

“Disney would however take comfort from (growth in international visitor numbers), with locals now accounting for 39 per cent (of visitors).” SOUTH CHINA MORNING POST