Disney denied

Hong Kong Disneyland's plan to expand into 60 hectares of land at Penny's Bay has been quashed.

The government announced yesterday that the land plot next to the theme park will no longer be reserved for its further expansion due to economic conditions.

It means Disneyland can only plan new facilities within the 126 hectares of land it was allocated.

Under the agreement signed in 2000, the joint venture between the government and Walt Disney Company was granted the option to purchase the site at Penny's Bay for the park's possible phase two expansion.

The option will expire today if it is not extended on agreement by the government and Disney.

"Hongkong International Theme Parks Limited's strategic direction is to focus on the ongoing multi-year expansion plan featuring a series of new attractions that will continue to position Hong Kong Disneyland Resort as a premier tourism destination in the region, and help capture business opportunities upon the gradual recovery of tourism," a spokesman for the Commerce and Economic Development Bureau said.

"The government considers it prudent for HKITP to focus on the development and expansion of the existing resort in the coming few years, rather than geographic expansion into the site."

Walt Disney Company said it was extremely disappointed with the government's decision.

"Over the past 15 years, the Walt Disney Company has stayed the course on its commitment to investment in Hong Kong Disneyland Resort and the economic growth of tourism in Hong Kong, and will continue investing in the current expansion plan," a spokesman of the company said.

"However, we are extremely disappointed with the Hong Kong government's decision not to extend the phase two land expansion option."

Tourism sector lawmaker Yiu Si-wing said it was reasonable for the government to take back the land for other purposes.

"I don't see Hong Kong Disneyland having a plan for the phase two expansion," he said.

Yiu said the park has no problem for its short to medium term development as the government has contributed HK$10.9 billion in its phase one expansion for new facilities in the future.

"If there's no Shanghai Disneyland, I think it's reasonable to reserve the land for phase two expansion," he said.

"But I believe the Walt Disney Company would put more effort into Shanghai Disneyland as it has higher returns and income."

The government did not explain its development plan for the land in yesterday's announcement.

Democratic Party lawmaker Andrew Wan Siu-kin welcomed the government's decision but said it is a late awakening. He said the government should develop the land with Penny's Bay, Sunny Bay and Tung Chung, where the 60-hectare land plot can build 20,000 to 40,000 residential units.

The plot is to the east of the theme park on Lantau Island and has been left vacant for two decades.

In 2018, a plan to build a European design flower-themed Kaleido Park on the site, between Hong Kong-based event organizer Alan Fang Yan-kit and Dutch floriculture expert Ibo Gulsen, and the garden fell through due to limitations like lack of power, water and other infrastructure facilities.

The land is now used to provide 3,500 quarantine units by the end of the year.

Suggestions were made to build transitional housing on the land but restrictions imposed by the Deed of Restrictive Covenant signed between the government and the HKITP exclude residential use. Structures built on the land cannot be taller than 20 meters.

Civic Party lawmaker Jeremy Tam Man-ho said the land can be used for building recreational and sports facilities like outdoor archery ranges and cricket grounds.

Hong Kong Disneyland recorded a net loss of HK$105 million for the fiscal year ending September 30, 2019. The theme park has remained in the red for five consecutive years. The government holds 52 percent of shares in the park and the Disney company holds 48 percent.

Editorial: It's do-or-die for HK's theme parks