It's do-or-die for HK's theme parks

Just as Hong Kong Disneyland is set to reopen after a two-month forced closure following the spike in Covid-19 cases, the government's announcement of the de-facto repossession of a site from Disney was most untimely. But it was necessary.

The decision is bound to cast a long shadow over the future of Hong Kong Disneyland, effectively preempting any further expansion.

The agreement for the Hong Kong-US joint venture to purchase the adjacent plot expires today.

It's apparent that the administration waited until the last minute to reach the decision. And the impact on the theme park is obvious.

It nevertheless reveals a new line of thinking within the government that is struggling with an enormous mountain of problems.

Right now, every last ounce of its resources counts.

After leaving the site under the sun for so many years, it's time to give the Penny's Bay plot next to Disneyland a new lease of life to contribute to the public interest.

It may well still be government policy for Disneyland to play a major role in the city's economy - but clearly not as much as before.

The statement from Edward Yau Tang-wah's Commerce and Economic Development Bureau telling Hong Kong Disneyland to concentrate on existing development plans was unpleasant - a sign of government displeasure at the performance of the theme park so far.

Despite its open pledge of full support, the administration is uncertain whether the theme park can thrive under its current business model.

What will be put up at the Penny's Bay site after a quarantine site for treating close contacts of coronavirus patients is no longer needed?

It doesn't really matter, as long as the repossession means the administration has an additional piece of land at its disposal.

Ocean Park is at a similar crossroads. Despite emergency funding to save it from collapse, the crisis is far from over for the theme park that occupies a large strip of land in the Southern District from Wong Chuk Hang to Nam Long Shan.

The multi-billion-dollar capital injection allowed Ocean Park to repay its debts and keep operating for a year.

Then what?

In light of its tough stance on Disneyland, the government will unlikely agree to giving Ocean Park further grants and loans at the end of the current lifeline.

It means its management must come up with a business model that can support its long-term survival.

The fact that Ocean Park is inviting local talents to join a brainstorming exercise can only be the beginning.

If it is to stay alive, it must transform itself into something unique. Better still, the new Ocean Park should not compete with Disneyland. Instead, the two should collaborate to provide something fresh and exciting for Hong Kong.

If Disneyland is about entertainment, Ocean Park should be about conservation.

The coronavirus pandemic has disrupted normal life so extensively that it is vital the two rivals create a new kind of synergy.