Whatever arguments, Disneyland remains more than just a business
of the proposed capital injection into Hong Kong Disneyland have failed to produce any credible argument, other than using it as an opportunity to renew their attack on the government.
The government’s proposal to increase its investment in Hong Kong Disneyland, in which it has a majority 53-percent stake, is a business decision with ramifications that extend beyond the theme park’s outlook.
Nearly a decade after its opening, the park is facing stiff challenges from falling tourist arrivals, especially from the Chinese mainland and the opening of Shanghai Disneyland. For the first time in recent years, the park posted a loss of HK$148 million for 2015, in contrast to a gain of HK$332 million the year before.
The number of visitors to Hong Kong Disneyland fell 9 percent to 6.8 million last year from 7.5 million in 2014, while the increase in average per visitor spending slowed to 3 percent from 11 percent. The fall in visitor numbers was attributed to the steep decline in mainland tourists who accounted for 41 percent of the total in 2015, compared with 48 percent the year earlier, while the share of local visitors rose to 39 percent from 32 percent.
In face of the challenges, the park’s management has proposed investing a total of $1.4 billion in new attractions over the next few years to entice visi- tors. The government’s share of the proposed expenditure is estimated at about $750 million. In an earlier statement, the company said there would be new attractions added almost every year from 2018 to 2023.
Opponents of the proposed capital injection have failed to produce any credible argument other than using it as an opportunity to renew their attack on the government for throwing money into a project they have always insisted as being an unfair deal that’s overwhelmingly in favor of Disney. The government’s expenditure on the infrastructure far exceeded the payment for its share in the park.
Whatever the arguments, it’s necessary to consider the contributions Hong Kong Disneyland has made in lifting the number of tourists, who have supported the rapid expansion of the retail industry — one of the city’s largest employers. The decline in tourism in the past year is more the reason why Hong Kong needs to improve its facilities, including the various tourist attractions.
Besides being a tourist draw, Hong Kong Disneyland offers a convenient and welcome escape for many local families from the drudgery of daily life in such an overcrowded environment. As such, Disneyland is more than just a business.