Hong Kong Disneyland sinks deeper into the red

International visitor numbers hit record high of 1.6 million

Hong Kong Disneyland’s (HKDL) loss-making streak continues after it netted a loss of HK$345 million (US$44.1 million) in FY2017, double that of FY2016.

The park attributes the loss to rising costs associated with the launch of Iron Man Experience and Disney Explorers Lodge, as well as depreciation associated with the park expansion project.

International visitor numbers hit record high of 1.6 million

There were some positive numbers for HKDL despite the deficit. For the fiscal year that ended on September 30, 2017, the park generated revenues of HK$5.1 billion, representing an eight per cent increase from the prior year. EBITDA were up 28 per cent, reaching HK$914 million.

HKDL says a contributing factor is the record high per capita spending – marking eight consecutive years of spending growth – driven by the launch of new attractions and entertainment offerings, including the new Iron Man Experience, Disney Parks’ first Marvel-themed ride, and Disney Explorers Lodge, the resort’s third hotel.

The park further attributes revenue gains to an increase in room nights sold at the resort hotels, cost management efforts and sales and marketing strategies.

At the resort hotels, room nights sold increased by 16 per cent. Given the additional inventory created by Disney Explorers Lodge however, occupancy was down to 70 per cent from approximately 80 per cent over the last two years.

The park also saw a record number of international visitors last fiscal year, after international attendance increased five per cent to reach approximately 1.6 million.

Overall, HKDL welcomed 6.2 million guests, up three per cent from the prior year.

The growth trend continued into 1Q2018 with a double-digit increase in guests, which the park attributed to limited-time offerings during the quarter including Halloween and Christmas events.

With a slew of attractions and events scheduled for the year, HKDL expects to see continued growth in attendance.

Following Chinese New Year and its inaugural night market, the park will debut the ‘We Love Mickey!’ Main Street Projection show in mid-March, and the Karibuni Marketplace at Adventureland on March 30. The bazaar will feature textiles and crafts, games, food and Disney characters including Moana, Nick and Judy from Zootopia, Jasmine, Pocahontas and Marvel’s Black Panther.

And in May, a new entertainment venue in Adventureland will open with a stage show titled Moana: A Homecoming Celebration, marking the first completed project under the latest phase of expansion. The park will also launch a new Disney‧Pixar-themed Water Play Street Party! along Main Street, U.S.A. where characters from Disney‧Pixar productions such as The Incredibles and Toy Story will join more than 30 performers for the summer celebration.

Sponsored Post