Ocean Park in contract-out lifeline bid

Ocean Park could soon be transformed with the addition of a 42-hectare retail, dining and entertainment area.

That comes with the park management seeking HK$2.79 billion of government funding to stay afloat.

The funding would help it become a diversified destination, unlike in the past with it being "only pandas and roller coasters," park chairman Lau Ming-wai said yesterday. "Ocean Park will no longer be a theme park," he said. "You could call it a resort or a destination."

Visitors would be given free entry to eat and shop at the park's downhill area and its waterfront, with open markets and children's play area.

"The initiative only applies to the lower park," Lau said. "We would retain existing animal and education-related facilities. We would continue to operate those."

The new retail, dining and entertainment zone would be outsourced to a private developer under a long-term concession, and the park could receive an upfront payment and share rental income. The developer would be responsible for the costs and possible losses.

And the income generated from the zone would support Ocean Park's conservation and education work.

Plans also call for admission facilities to be moved to the cable car station and the Ocean Express station. Visitors would pay to go to the uphill area by scanning QR codes or wearing an electronic bracelet.

Operations of most rides in the uphill area would also be outsourced with individual charging for attractions. But an envisaged fee structure has not been revealed.

Some older attractions are also in line to be abandoned due to high maintenance costs. Instead, there would be a new adventure zone for activities like Xraycer and the zipline.

Other health-focused activities like glamping, trekking, meditation and yoga could also take place in the uphill area.

Short-term rides like the AIA carnival at the Central Harbourfront could also be featured, Lau said.

Ocean Park will continue to manage animal facilities and the Water Park, tentatively to open in August. Two piers are proposed: one in the downhill area at Deep Water Bay, the other next to the Water Park. Lau said he is confident the new operation model can provide more flexibility while reducing the operating costs and risks.

He said the existing model is not attractive enough as citizens will visit the park once every one or two years. "Except for the education and conservation facilities, all new facilities would be operated by different partners from outside," he said.

He did not reveal which developers might run the retail, dining and entertainment zone, but said: "The lower park is large and can provide different market segments."

Commissioner of Tourism Joe Wong Chi-cho noted there was a proposal to inject HK$280 million of government funding into the park every year in the four years from 2022, totaling HK$1.12 billion.

Another one-off injection of HK$1.67 billion will compensate for its forced closure during the Covid-19 pandemic over the past year.

It will also allow the park to repay government loans by 2059.

"Ocean Park is a public statutory body and it is delivering a whole range of services," Wong said, "so the reason we try to lighten the loan burden of Ocean Park is really for them to better deliver all these services."

Asked when the park could be financially sustainable, Secretary for Commerce and Economic Development Edward Yau Tang-wah confined himself to saying the park was self-financing most of the time in the past 43 years. "If we can reduce its debts, it can help them to revive their operation as soon as possible," Yau said.

He also said a new operation model could keep the park running and save jobs.

"The reform or the rejuvenation would bring multiple revenue sources into the park instead of counting on tickets."

Tourism sector lawmaker Yiu Si-wing believed the Legislative Council Finance Committee has no reason to oppose the big proposals, but the park and the administration would still need to explain clearly the purpose of the funding.

Yiu also believed that the free access of the downhill area could attract people to enter the park for leisure and shopping.

Southern District Council chairman Lo Kin-hei said: "I'm not sure whether it can be financially self-sustaining," but it was going in the right direction.