HONG KONG — Hong Kong Disneyland Resort has reported a record loss of 2.66 billion Hong Kong dollars ($342 million) for fiscal 2020, its sixth consecutive year in the red.
Michael Moriarty, who took the post of managing director in December, told reporters that the theme park has no plans to lay off staff or seek additional funding from the government, which owns 53% of Hong Kong Disneyland through a joint venture with Walt Disney Co. The partners plan to press on with a HK$10.9 billion expansion to add new attractions, he said.
The park has received more than HK$300 million from the Hong Kong government’s employment support program, making it one of the biggest beneficiaries of the subsidies. Walt Disney also extended a HK$2.1 billion revolving loan to the park.
“While last year presented challenges for our entire community, I’m proud of how we were able to react nimbly, adjust our operations and identify innovative ways to generate revenue while preserving jobs,” Moriarty said.
The managing director said he is optimistic about the future of the resort and the return of visitors from nearby Chinese cities as pandemic quarantine controls are relaxed.
The theme park’s revenue plunged 76% to HK$1.4 billion in the financial year ended Sept. 30 amid the tourism slump caused by COVID-19 as well as the social unrest in the city earlier in the period. It posted a loss before interest, taxes, depreciation and amortization of HK$1.5 billion.
Hong Kong Disneyland is operating at a reduced capacity with social distancing measures in place. Visitation to the park, which was closed for 60% of the past fiscal year, hit an all-time low of 1.7 million, down 73% from a year before.
But measuring only by the number of days in operation, visits by locals were 15% higher than a year before, in part due to brisk sales of annual memberships that accounted for three-quarters of visits. This growth has since accelerated, with local visitations per operating day up a further 46% in the six months to March 31.
The park’s financial result “does not reflect its future potential,” Moriarty said, given the “unprecedented situation the entire world is facing.” But citing economic conditions, the Hong Kong government last year ceased reserving a site adjacent to the park for further expansion.
Since Hong Kong Disneyland’s launch in 2005, the park has earned a net profit only three times — during a run from 2012 to 2014. Yet management says the park plays an important role in the city’s economy, tourism and job market, contributing 0.31% to local gross domestic product over the past 15 years.
