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Disney increases investment in HK$10.9bn Hong Kong expansion following taxpayer complaints
POSTED 11 Apr 2017 . BY Tom Anstey
Disney has addressed disgruntled taxpayers’ unhappiness over “unequal financing” in Hong Kong by injecting a further HK$350m (US$45m, €42.4m, £36.2m) into the company’s six-year, HK$10.9bn (US$1.4bn, €1.3bn, £1.1bn) facelift of its park, with the operator also promising to waive part of its management fees for the next two years.

The struggling Disneyland Hong Kong is being upgraded with Frozen and Marvel zones in an attempt to make the theme park profitable again, but with more than half the bill going to taxpayers, officials planned to veto the development unless the government could negotiate a better deal with Disney.

Addressing the issue, Disney has agreed to fund the development on a 50:50 basis with the previously agreed deal matching the shareholding structure of which the government owns 53.47 per cent of the park. In addition to the cash injection, the management fees, which range between 0 and 8 per cent of earnings will be waived for both 2018 and 2019, says Disney.

Despite the operator having already added more than US$600m (€565m, £484.5m) in new rides and attractions over the past few years, Hong Kong Disneyland failed to break even in 2016, with the park recording losses of US$22m (€20.7m, £17.6m) and a decline in visitor numbers from 6.8 million to 6.1 million. Of the 11 years the park has operated, it has recorded losses in eight of those years.

As part of the development plan, a new Marvel-themed ride will debut in 2018, as will a new complex based on Disney’s latest release Moana. The castle - currently Disney’s smallest at 77-feet-tall (23.4 metres) will be “supersized” to compete with Disney’s existing properties.

The entire themed Frozen area – to debut in 2020 – is a first for Disney parks, with the brand’s largest presence currently at its Epcot park in Orlando following its debut in June. A recreation of Arendelle, the new area at the park will feature a lake, ice mountain, two rides, shops and restaurants.

Subject to approval, construction on the six-year expansion will begin in 2018, with work scheduled to be completed by 2023.
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Jobs . News . Products . Magazine
NEWS
Disney increases investment in HK$10.9bn Hong Kong expansion following taxpayer complaints
POSTED 11 Apr 2017 . BY Tom Anstey
Disney has addressed disgruntled taxpayers’ unhappiness over “unequal financing” in Hong Kong by injecting a further HK$350m (US$45m, €42.4m, £36.2m) into the company’s six-year, HK$10.9bn (US$1.4bn, €1.3bn, £1.1bn) facelift of its park, with the operator also promising to waive part of its management fees for the next two years.

The struggling Disneyland Hong Kong is being upgraded with Frozen and Marvel zones in an attempt to make the theme park profitable again, but with more than half the bill going to taxpayers, officials planned to veto the development unless the government could negotiate a better deal with Disney.

Addressing the issue, Disney has agreed to fund the development on a 50:50 basis with the previously agreed deal matching the shareholding structure of which the government owns 53.47 per cent of the park. In addition to the cash injection, the management fees, which range between 0 and 8 per cent of earnings will be waived for both 2018 and 2019, says Disney.

Despite the operator having already added more than US$600m (€565m, £484.5m) in new rides and attractions over the past few years, Hong Kong Disneyland failed to break even in 2016, with the park recording losses of US$22m (€20.7m, £17.6m) and a decline in visitor numbers from 6.8 million to 6.1 million. Of the 11 years the park has operated, it has recorded losses in eight of those years.

As part of the development plan, a new Marvel-themed ride will debut in 2018, as will a new complex based on Disney’s latest release Moana. The castle - currently Disney’s smallest at 77-feet-tall (23.4 metres) will be “supersized” to compete with Disney’s existing properties.

The entire themed Frozen area – to debut in 2020 – is a first for Disney parks, with the brand’s largest presence currently at its Epcot park in Orlando following its debut in June. A recreation of Arendelle, the new area at the park will feature a lake, ice mountain, two rides, shops and restaurants.

Subject to approval, construction on the six-year expansion will begin in 2018, with work scheduled to be completed by 2023.
RELATED STORIES
Frozen and Marvel attractions coming to Hong Kong Disneyland as part of US$1.4bn expansion


Disney will plough US$1.4bn (€1.3bn, £1.1bn) into upgrading its Hong Kong attraction with Frozen and Marvel zones in an attempt to make the theme park profitable again.
Wanda hires former Hong Kong Disneyland head to run theme park division


As Disney and Wanda’s public war for dominance across China continues to rage on, Wanda chair Wang Jianlin has reportedly hired former Disney executive Andrew Kam to lead its charge into the theme park sector.
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Merlin reveals plans for Lego Movie World at California resort
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CATALOGUE GALLERY
 

+ More catalogues  
DIRECTORY
+ More directory  
DIARY

16-19 Sep 2019

IAAPA Expo Europe 2019

Paris Expo Porte de Versailles, Paris, France
21-24 Sep 2019

ASTC 2019 Annual Conference

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+ More diary  
 


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