appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Albert Cheng

Hong Kong has gone through two chaotic years, roiled first by social unrest and then a global pandemic. The city’s economy is at a standstill, not just for private businesses but also public corporations like Ocean Park.
Due to poor management, among other reasons, Ocean Park has been suffering losses for consecutive years. Its troubles have been compounded by the park’s temporary closure during the Covid-19 outbreak. The park’s operation was suspended for 237 days last year. The latest closure started on December 2 with no end date set.
Last year, the Legislative Council granted a HK$5.4 billion bailout for the park to help make it profitable again. But the amount, a chunk of which went towards paying off commercial loans and related financial costs, won’t be enough to cover the park’s operational costs.
Two weeks ago, the park unveiled its plan to ask for another HK$2.8 billion of government financial assistance in support of its marine conservation and education efforts for the next four years. The government will also seek Legco approval to waive the park’s interest payments of its two previous loans.


Clearly, Ocean Park’s current business model is not sustainable. To turn the situation around, the secretary for commerce and economic development has put forward a plan. The lower park area will no longer charge an entrance fee, and will be reassigned for retail and entertainment purposes. The businesses will be outsourced to vendors.
Under the revamp, the cable cars, aquarium and other animal exhibits would be retained. Rides would not need to charge a uniform fee. New attractions will be added, including Water World, that is scheduled to open this summer.
The government’s plan is to help Ocean Park through the rough period and make the transition to a sustainable business model. The strategy has its pros and cons.
First, Ocean Park is a financially independent non-profit organisation. It sits on land provided free by the Hong Kong government. It was initially funded by the Hong Kong Jockey Club for marine conservation and education, as well as an amusement park for the general public.
However, under management by the Ocean Park Corporation, it has now turned into a tourism spot that competes with Hong Kong Disneyland. The initial purpose of marine education and conservation has been undermined, or even forgotten.


It is a good idea to revamp the park’s business model by opening the lower park area to the public for free. But outsourcing retail and entertainment businesses to private companies will take the park further from its primary mission as a non-profit organisation.
To make better use of public resources, all the facilities in the lowland area, mainly animal exhibits and marine conservation areas, should be operated by the Leisure and Cultural Services Department.
The government has also proposed to demolish some rides in the upper park area, and develop the vacated land into an adventure-themed zone. That would stir up more competition between Ocean Park and Disneyland.
Fate of Disneyland, Ocean Park hangs on Hong Kong’s tourism future
However, a good idea need not go to waste. The government could consider implementing the plan on the land adjacent to Disneyland, which is reserved for its future expansion. Killing two birds with one stone, this would enhance Disneyland’s competitiveness as an amusement park, as well as reduce costs by outsourcing rides and adventure facilities to private operators.
The vacated headland at Ocean Park could be used for residential development. The profit from land sales could contribute to a foundation set up to support the daily operation of the park, as well as marine education and conservation.
It is the elephant in the room that the clock is ticking for Ocean Park Corporation. The two previous chairmen, Philip Chen Nan-lok and Allan Zeman, did a good job in developing the park in the early stages but, since then, the park has become a losing proposition and done far too little on marine education and conservation.
If Ocean Park is to get back on track and fulfil its initial mission, the government should take on the management role, and stop letting businessmen run the show.
Albert Cheng King-hon is a political commentator


Hong Kong hopes to begin Victoria Park Tennis Centre redevelopment by 2030

Technician, 63, dies after being found injured and unconscious at Ocean Park

What deals and discounts are on offer for Hong Kong’s July 1 celebrations?

Human activity linked to 4 of 29 whale and dolphin deaths in Hong Kong waters

Ocean Park

Hong Kong’s troubled Ocean Park: time to let the government run the show

Ocean Park in Aberdeen, Hong Kong, is currently closed due to Covid-19. The theme park hopes a revamp of its business model will help it stay afloat. Photo: Winson Wong

Ocean Park visitor numbers predicted to plummet even if billions of dollars are spent bailing it out, official figures show

Government figures show that visitor numbers at Ocean Park are expected to fall over the next decade. Photo: Winson Wong

Ocean Park must show its will to survive

Ocean Park has plans for a drastic overhaul of its business model. Winson Wong

How Ocean Park can rebrand itself as the face of new Hong Kong

Brick Hill not only offers family-friendly hiking routes, but also a prospective eco-tourism site. Ocean Park must continue to open up the lush and vast terrain on which it is situated. Photo: Nora Tam

Hong Kong economy suffers biggest annual contraction on record, shrinking 6.1 per cent as coronavirus hammers tourism, local spending

Hong Kong is expected to see signs of an economic turnaround but only in the later part of the year. Photo: Sun Yeung

Financial Secretary Paul Chan Mo-po gestures with his hands as he speaks to reporters during an interview at the Central Government Offices, Tamar. 11JUN20 SCMP / Nora Tam

Opinion

News

Hong Kong

Coronavirus

Economic Impact

Analysis & Opinion


It is a good idea to revamp the park’s business model by opening the lower area to the public for free
But outsourcing retail and entertainment businesses to private companies will take the park further from its primary mission as a non-profit organisation



It is a good idea to revamp the park’s business model by opening the lower area to the public for free. But outsourcing retail and entertainment businesses to private companies will take the park further from its primary mission as a non-profit organisation.


Coronavirus pandemic

Tourism

Hong Kong economy

Coronavirus pandemic: All stories

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


Column