Disneyland's Penny's Bay site expansion no longer an option

The option for Hong Kong Disneyland Resort to physically expand by purchasing the nearby 60-hectare Penny Bay's site, will not be extended, the government said in a statement today.

Hongkong International Theme Parks should instead focus on the development and expansion of the existing resort in the coming few years, rather than geographic expansion into the site, the Commerce and Economic Development Bureau said.

The option will expire after tomorrow, if it is not extended on agreement by the government and The Walt Disney Company, the bureau said.

Following the government's decision, the right of HKITP to purchase the site will not be extended, the bureau said. Under the deed signed in 2000, the joint-venture company between the government and the Walt Disney Company, was granted the option to purchase the site for Disneyland's possible expansion.

For the fiscal year ending September, 2019, Disneyland reported a a net loss of HK$105 million amid a challening environment in the fourth quarter.

Annual attendance dropped by 4 percent to 6.5 million. Hotel occupancy stood at 74 percent. During the year, Hong Kong residents accounted for 41 percent of the visitors.

Disneyland is preparing to celebrate its 15th anniversary later this year with the launch of The Castle of Magical Dreams.

Hong Kong Disneyland has contributed HK$108.5 billion for Hong Kong's economy, equivalent to 0.33 per cent of the gross domestic product, since opening in 2005, the government statement said.

As of the end of fiscal 2017, the Hong Kong government holds 53 percent in the company and The Walt Disney Company holds 47 percent. There are 11 directors on the board.