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  • News HKDL Eyes A Good Year

    Five years after opening, Hong Kong Disneyland is expected to record one of its best years, with higher attendance and greater profitability.
    Buoyed by an upsurge in mainland and overseas visitors and their increased spending, the theme park has probably welcomed far more visitors than the 4.57 million reported a year ago, park insiders said.



    They said internal studies showed fears that Shanghai's World Expo would hurt attendance figures were unfounded.

    Profitability, as measured by ebitda - earnings before interest, taxes, depreciation and amortisation - would also swing back to the black after a HK$70 million loss last year, they said. But after deducting depreciation, amortisation and other finance costs, the park will continue to record a loss.

    The improving results bode well for Disney and the government, which own the park under a joint venture. Positive ebitda, which is equal to revenues less costs and expenses, means Disney can resume collecting its management fees, which are now linked to the park's performance.

    Last year, the formula for its base management fee was changed from 2 per cent of gross revenue to 6.5 per cent of ebitda, or HK$65 for every HK$1,000 of earnings. Disney is also entitled to a variable management fee of up to 8 per cent of ebitda. In an attempt to shore up the park's finances, Disney agreed to forgo its management fees in 2007-08 and 2008-09. The park makes money from selling tickets, food, merchandise and other goods and services. Disney can still benefit handsomely from a loss-making park as long as people spend on food and merchandise, the source from which it derives most of its royalties.

    The government, which is the majority shareholder, is desperate to show that the public's investment in the venture is paying dividends. A HK$3.63 billion expansion to add three new themed areas and more attractions is under way. Toy Story Land is on schedule to open at the end of next year and preliminary infrastructure work to develop the new areas, like building power substations, has started.

    "Over the past five years, we have had more than 20 million guests," managing director Andrew Kam Min-ho said. There had also been an 18-percentage-point increase in the occupancy rate at the park's two hotels.

    Fifth anniversary celebrations next year would feature temporary and permanent attractions that were new to the region and the world.

    Since the park opened in 2005, the number of visitors has see-sawed, reaching about 5.21 million in the first year, then dropping to 4.17 million before rebounding to about 4.45 million in 2007-08 and 4.57 million in 2008-09.

    Disney's financial year runs from October to September.

    Last year's summer attendance, especially from the mainland, suffered because of fears of human swine flu. Hong Kong Tourism Board data show the number of visitors to the city was up 38.9 per cent year on year in May, 43.5 per cent in June and 31.9 per cent in July. The number of mainland visitors rose by 46.8 per cent in May, 54.5 per cent in June and 40.4 per cent in July.

    Between April and June, there was a 35 per cent rise in the number of visitors to the park year on year, mostly from the mainland and overseas, said Jay Rasulo, the Walt Disney Company's senior executive vice-president and chief financial officer.
    Source:http://www.scmp.com/portal/site/SCMP...ng+Kong&s=News

  • #2
    Last edited by TimmyTimmyTimmy; 09-06-2010, 04:27 AM.

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    • #3
      Re: HKDL Eyes A Good Year

      Wasn't the original attendance goal set at 5.6 million a year. We need to remember Hong Kong Disneyland has a smaller buisness structure to other themeparks. The fact it has managed to grow the business during what are tough economic times is a huge achievement for a park that has not offered any new attractions since Its a Small World. Clearly word of mouth and the fantastic events offered though out much of the year are starting to bring people to this park. The fact the park has suffered a loss for the last couple of years, but have managed to keep the standards high is great. And further makes Disneyland Paris and its Management team look poor when you see the extensive cutbacks and losses its had this year.
      Follow me on Twitter http://www.twitter.com/malin1804

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      • #4
        Re: HKDL Eyes A Good Year

        Other then TSPL this park is headed in the right direction. They can hopefully flesh out Mystic Point and Grizzly Gulch in future.

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        • #5
          Re: HKDL Eyes A Good Year

          Originally posted by Malin View Post
          and the fantastic events offered though out much of the year are starting to bring people to this park.
          I think this is it. I think this is what has helped the survive all these years (since 2006), Halloween and Christmas events that look kick-*** and get great reviews.

          Lets hope they are smart enough to keep those going when the new attractions open.

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          • #6
            Re: HKDL Eyes A Good Year

            If there's anything that brings ALL of HK's Ocean Park loving teens in one place in October, its Disney's halloween. Late at night around 11 ish the park is PACKED with teens and the atmosphere is much like Ocean Park's but amplified with good theming. Every Halloween attraction has a wait time of more than 2 hours (and with Alien Invasion last year-3 HOURS!) and the other attractions have at least a one hour wait. The park is just so congested day/night during halloween, TDLFAN will be lucky to be there and witness first hand how immensely popular this event is.

            Its also heavily advertised in HK. Last year it was all over the MTR stations and Pearl TV as well as on buses, magazines, Circle K, 7-11, and newspapers.

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            • #7
              Re: HKDL Eyes A Good Year

              Originally posted by Malin View Post
              Wasn't the original attendance goal set at 5.6 million a year. We need to remember Hong Kong Disneyland has a smaller buisness structure to other themeparks. The fact it has managed to grow the business during what are tough economic times is a huge achievement for a park that has not offered any new attractions since Its a Small World. Clearly word of mouth and the fantastic events offered though out much of the year are starting to bring people to this park. The fact the park has suffered a loss for the last couple of years, but have managed to keep the standards high is great. And further makes Disneyland Paris and its Management team look poor when you see the extensive cutbacks and losses its had this year.
              Last edited by TimmyTimmyTimmy; 09-06-2010, 12:02 PM.

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              • #8
                Re: HKDL Eyes A Good Year

                I will going toi HKDL is a few moments.. and will report later on today's visit. lovely sunny day in HK today. (Look for me at TDR tomorrow evening)

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                • #9
                  Re: HKDL Eyes A Good Year

                  Well according to the original figures 5 million was the orginal attendance target. And that it would go up 10 million once the full build out of the park was complete. I think going by the size, the 5 million projected attendance is right. Its not like the park in current form would be able to handle a number to much above that figure. Going by its lack of attractions.

                  I think up to now the Panda has done a good job of holding its own against Disney. Ocean Park is much more difficult to get too than Disneyland. Although when you look at the size difference between both parks. I think Disney is coming out on top. If it had a park the size of Ocean and the same about of attractions. It would be doing much bigger numbers.

                  New themeparks are on their way in Asia and soon China will have it second Disneyland. Word of mouth should be that Disneyland has the best shows and rides. The park will after the expansion still be lacking in some very important Disneyland elements.
                  I admit Disney will have to keep an eye out on the competition in the upcoming years. Although the newest themepark to open in Asia, Universal Studios Singapore has been a bit of a disaster with tech problems on most of the big attractions. In fact I'm not sure if Madagascar has even opened yet.
                  Follow me on Twitter http://www.twitter.com/malin1804

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                  • #10
                    Re: HKDL Eyes A Good Year

                    Originally posted by Malin View Post
                    If it had a park the size of Ocean and the same about of attractions. It would be doing much bigger numbers.
                    The size of Ocean Park is only used as advertisement to compete with Disneyland's small size. The majority of Ocean Park has long trails to get to ONE attraction or a group of attractions clustered together, e.g imagine if you had to walk 10 mins to fantasyland with just NO shops, scenery, toilets, or restaurants on the way!

                    IF Ocean Park was built in Disney fashion, it would be much smaller since Disney's layout has the attractions closer together with food and shops to complement your walk from one attraction to the other. The chinese sadly do not get this hence Disney also counts a statue(s) as an "attraction" in HK.

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                    • #11
                      Re: HKDL Eyes A Good Year

                      Even with the unique design layout. It still has more attractions, that fill in a bigger space than what Hong Kong Disneyland offers. Although I do agree that the winding paths and position all help to create bigger wide open space's that do help to make the park seem bigger.

                      Personally from my enjoyment Disneyland is a much easier and more enjoyable experience to visit on foot. If Disney were the ones building Ocean Park, there would of never picked that location in the first place. But I do believe when you compare both parks on the number of attractions and the space. Hong Kong Disneyland is competing very well against Ocean Park. Of course the balance may tilt more towards Ocean Park when this expansion is finally finished. I'm not convinced Toy Story Land will end up having that much appeal against the master plans for Ocean Park which we have known about for quite a while.
                      Follow me on Twitter http://www.twitter.com/malin1804

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