Hong Kong Disneyland reports HK$ 2.4 billion net loss amid closure

Hong Kong Disneyland incurred a loss of HK$2.4 billion for the fiscal year ending last September, 12 percent less than the previous financial year, thanks to doubling of local attendance.

But it still marked the seventh consecutive year of the Lantau park being in the red.

The ongoing travel restriction imposed under the Covid-19 pandemic brought inbound tourism into Hong Kong to a halt, leading to the park not operating for about 40 percent of the 2021 financial year’s calendar days.

To ensure liquidity for operations, the park drew from the revolving loan facility funded by the Walt Disney Company, which shares ownership of the park with the Hong Kong government.

“HKDL made deliberate efforts to preserve jobs in the 2021 financial year,” said Michael Moriarty, managing director at Hong Kong Disneyland Resort.

Local attendance for the resort rebounded, growing 117 percent year-on-year, while annual pass memberships increased by 55 percent.

New shows will launch later this year to attract visitors, while the park continues to assess its business and review strategies for expansion.

The park has been struggling to stay afloat in recent years. It saw a drop in visitations during the 2019 protests, and the slump persisted when the government closed its borders and implemented social distancing regulations.

Authorities forced the park to shut its doors on January 7 this year while the city battles the fifth wave of the coronavirus epidemic.