Magic kingdom keeps losing its touch

Hong Kong Disneyland suffered a net loss of HK$105 million - almost double from the last financial year and the fifth consecutive year the theme park has been in the red.

The park enjoyed “a solid first nine months” in the fiscal year ended September 30, with an 11 percent year-on-year increase in revenue and 5 percent growth in attendance, Hong Kong Disneyland Resort’s managing director Stephanie Young said in a teleconference.

But the social unrest, which began in June, significantly affected the fourth quarter key summer travel period, leading to a net loss for the year.

The park posted revenues of HK$6 billion for the year, similar to the previous fiscal year, but earnings before interest, taxes, depreciation and amortization dropped 17 percent to HK$1.1 billion. Full-year attendance also dropped 4 percent to 6.5 million people.

Around 41 percent of visitors were locals, while mainlanders and foreigners accounted for 33 percent and 26 percent respectively. There was a double-digit growth in the markets of Japan, South Korea and Thailand.

“The position we find ourselves in is unfortunate ... it's important to remain vigilant and optimistic to weather the storm and come out of it stronger,” Young said.

The results have not included the impact of the coronavirus pandemic, which forced the theme park to close since January 26.

“There is no question that will have an impact on our business, so obviously, there is a lot of uncertainty with this year,” she said.

She did not go into specifics on how the outbreak would impact on the loss figure, but said the park has a good business foundation and is well positioned for the future.

The government is building quarantine units on government land at Penny's Bay near the park, but Young said the facility will not affect park operations.

“It will be strictly separated from our operation with 24/7 police surveillance and medical staff. The transportation will be separated from the facility for the staff and quarantined individuals,” she said.

Young said the Castle of Magical Dreams will be unveiled this year, as well as a new Frozen-themed area to be opened later, she said.

The park currently has about 5,500 full time staff and 2,400 part timers but it has no plan to retrench or cut salaries.

Young said the park has stepped up hygiene measures, including putting hand sanitizers at all entrances and more frequent cleaning.