Magic returns as Disneyland logs first profit in nine years

Cheng Wong

Hong Kong Disneyland Resort has reported a net profit of HK$838 million for fiscal year 2024 after welcoming 7.7 million visitors, marking its first profit in nine years.

The impressive turnaround is attributed to a significant rebound in both mainland and international visitors, alongside strong support from local patrons.

The park noted that the growth in non-local attendance has outpaced the overall increase in Hong Kong's visitor arrivals for the second consecutive year, with per capita guest spending rising by 28 percent.

"This success has allowed HKDL to accelerate loan repayments and invest in new guest experiences, including celebrations for its 20th anniversary and a new Pixar entertainment offering, entirely funded by the resort," according to its report.

HKDL also announced a new Castle Stage Show - the largest parade in its history - and a special edition of the Momentous Nighttime Spectacular set to launch in June to commemorate the anniversary.

The net profit represents a year-on-year improvement of HK$1.2 billion, marking the strongest business performance in the park's history, with record highs in net profit, revenue, attendance, and earnings before interest, taxes, depreciation and amortization.

EBITDA rose by HK$1.4 billion to HK$2.3 billion, while revenue surged by 54 percent year-on-year, reaching HK$8.8 billion. During the fiscal year, the park employed around 9,000 staff, maintaining its status as one of the largest employers in Hong Kong's tourism and family entertainment sector.

Salaries were increased by 3.6 percent to 5 percent, and bonuses were distributed, ranging from 1.8 to 2.4 months' pay.

Billy Mak Sui-choi, associate professor in the Department of Accountancy, Economics, and Finance at Baptist University, said the completion of major developments - such as Kai Tak Sports Park - could draw more visitors and encourage them to extend their stays, enhancing synergy with other attractions.

Lawmaker Edward Leung Hei said that given Disneyland's current profitability and the government's deficit, the resort should refrain from seeking additional investments and focus on independently developing its phase two.

But he cautioned that the park faces internal and external challenges, particularly competition from Shanghai Disneyland and other attractions in the Greater Bay Area. Leung advised that during profitable periods, the park should invest in experiential activities to enhance its competitiveness, including leveraging its bay location to expand water activities.

cheng.wong@singtaonewscorp.com