Hong Kong Disneyland Bounces Back

On a recent investors earnings call, Christine M. McCarthy, Walt Disney Co.’s chief financial officer and senior executive VP, said that opening costs of Shanghai Disneyland had contributed to a decline at the group’s international parks division. “But we saw improved results at Hong Kong Disneyland,” she said. While Robert A. Iger, chairman and chief executive officer, also added that “actually Hong Kong has strengthened.”

2015 wasn’t a great year for the park, losing US $19.1 million and having almost a 10% drop in attendance. The park saw its first loss and has had to cut over 100 employees.

Many tourism experts have stated that Hong Kong Disneyland is too small and needs some redevelopment as the resort in Shanghai is three times the size, however Hong Kong Disneyland is set to open a new Iron Man attraction and Explorer’s Lodge soon.

While visitors from mainland China to the park have reduced by 41%, as they head to Shanghai, it is expected that the resort will start concentrating on promoting in southern China provinces “These parts of China have 200 million to 300 million population,” Yiu said.

Joseph Tung, executive director of the Travel Industry Council of Hong Kong, said “Shanghai Disneyland will mainly attract tourists from eastern China. But Hong Kong is still attractive to international tourists,” Tung said.

It’s expected that the resort will start trying to attract visitors from the U.S., and The Philippines, and also start targeting India visitors.

Our Take:

It isn’t too surprising to hear that many Chinese visitors have been drawn to the newest park in the country, with such a large population, there are plenty of guests to operate both locations. Hong Kong offers a unique experience, it is a great city to visit and targeting international tourists on a long break in the city does make the most sense.