Hong Kong Disneyland saw HK$2.1 billion net loss in 2022 amid 6 month closure
Hong Kong Free Press
Hong Kong Disneyland, which was closed for a total of six months amid the Covid-19 pandemic last year, has announced that losses in 2022 were down 12 per cent to HK$2.1 billion compared to the previous fiscal year.
It marks the eighth consecutive year that the Lantau amusement park is the red. Nevertheless, its business strategy during the pandemic bolstered the number of local visitors and annual pass visitors by 22 per cent, according to its 2022 annual report released on Monday.
As the city reopened to international travellers this year, the number of mainland visitors during the Lunar New Year holiday returned to the 2019 level, Michael Moriarty, the managing director of Hong Kong Disneyland, said at a Monday press conference.
Moriarty said the park has no plans to increase ticket pricing or request funds from its shareholders, including the Hong Kong government.
The theme park is owned by the government and The Walt Disney Company.
Local business strategy
The theme park was forced to focus on attracting local guests as inbound tourism for both mainland and international arrivals was halted in 2020, Moriarty said, adding that the park has not laid off any cast members in recent years.
Over the last fiscal year, hotel occupancy rose and guests were also found to be spending more in the theme park by 11 per cent, according to the annual report.
The launch of Lina Bell plush toys, a character from the Duffy & Friends franchise, saw record-breaking sales as 10,000 toys were sold with six hours, showing “how Disney fandom continues to grow,” Moriarty said.
“During Covid, we spent our time and resources wisely, enabling the accelerated recovery we are enjoying right now. Covid has been a huge setback for the industry, but we are turning the corner and are on the right path forward,” the managing director said.
Recovery in 2023
As travel restrictions and anti-pandemic measures were lifted at the beginning of 2023, park attendees from Southeast Asia – including the Philippines, Singapore, and Thailand, as well as visitors from the mainland during long holidays – had returned to 2019 levels, or better, Moriarty told the press.
“And when you look at the arrivals into Hong Kong and our attendance, our penetration of those arrivals is even better than fiscal 2019,” he said, adding that per capita spending was strong over the Easter and Labour Day holiday periods as guests were looking to buy more premium products.
The attendance of local visitors during Lunar New Year was also at a record high, despite more Hongkongers travelling abroad, the managing director said, adding that they will seek to cater for all market segments during the recovery.
The theme park, which is currently only opening five days a week, will increase its opening days to between six and seven days from next month. It will hire about 1,000 staff as the first Frozen-themed area will be unveiled in November.
Support HKFP | Code of Ethics | Error/typo? | Contact Us | Newsletter | Transparency & Annual Report | Apps
Support press freedom & help us surpass 1,000 monthly Patrons: 100% independent, governed by an ethics code & not-for-profit, Hong Kong Free Press is #PressingOn with impartial, award-winning, frontline coverage.
