HK Dis­ney­land suf­fers first loss in 5 years due to com­pe­ti­tion

The Pak Banker - - BUSINESS -

Hong Kong Dis­ney­land Re­sort has recorded its first an­nual loss since 2011. Its lat­est fi­nan­cial re­port shows it fell HK$148 mil­lion ($19 mil­lion) into the red for the fis­cal year end­ing Oc­to­ber last year.

Rev­enue also fell 6.4 per­cent to HK$5.11 bil­lion, the park's first year-on-year de­cline in in­come since 2009. It made a profit of HK$332 mil­lion in 2014. An­drew Kam, its man­ag­ing di­rec­tor, blamed the fig­ures on in­creased costs and grow­ing com­pe­ti­tion from other des­ti­na­tions. "Tourists now have more choices," he said, "be­cause many coun­tries have re­laxed their visa re­quire­ments.

"Cur­rency rates in some coun­tries have de­pre­ci­ated re­mark­ably over the past two years and air­lines are of­fer­ing more in­ter­na­tional routes at com­pet­i­tive prices." Hong Kong Dis­ney­land's to­tal at­ten­dances fell to 6.8 mil­lion in the year, a 9.3 per­cent fall, while the fig­ures also re­vealed a dra­matic 23 per­cent drop in num­bers from the main­land, which now ac­counts for 41 per­cent of to­tal vis­i­tors com­pared with a half dur­ing its peak.

Kam ad­mit­ted it had been "a chal­leng­ing year", but said the com­pany had al­ready adopted a new strat­egy to at­tract a more di­verse mix of guests, par­tic­u­larly from Asian mar­kets in­clud­ing In­dia, Thai­land, Sin­ga­pore, and In­done­sia.

Of­fi­cials from Hong Kong Dis­ney­land at­tended 16 ma­jor ex­pos in the Asian mar­kets over the past year to pro­mote the site, he said. There has also been a con­cerned so­cial-me­dia cam­paign, in­clud­ing one us­ing Face­book in the Philip­pines, which has at­tracted about 400,000 fol­low­ers. In the main­land, Kam said its mar­ket­ing fo­cus will be cities and ar­eas linked by high speed rail, af­ter the open­ing of the GuangzhouShen­zhen-Hong Kong ex­press line in the fu­ture.

The num­ber of lo­cal Hong Kong vis­i­tors to the site ac­tu­ally set a record in 2015, ac­count­ing for 39 per­cent of the to­tal, a 14 per­cent in­crease on the pre­vi­ous year. But Kam ad­mit­ted the city is a rel­a­tively small mar­ket and ex­pected the fig­ure to re­main sta­ble this year.

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