Editorial | Hong Kong Disneyland has no room for complacency despite record results
Roller-coaster ride by attraction to its first profit in a decade buoyed by tourism recovery gives cautious grounds for optimism
The sparks of Disney magic have never burned brighter with the Hong Kong theme park posting a net profit of HK$838 million (US$108 million), an all-time high since opening in 2005. While the strong comeback bodes well for the tourism recovery, a lot more needs to be done if the city is to stay ahead in an increasingly competitive global environment.
Riding on a healthy rebound in arrivals following the prolonged pandemic, the attraction on Lantau Island received a record 7.7 million visitors last year, up from 6.4 million the year before. About 38 per cent of them were from the mainland and 22 per cent came from overseas.
The non-local attendance growth outpaced that from the city for the second consecutive year, while per capita guest spending also grew by 28 per cent, according to Hong Kong Disneyland Resort.
Revenue for the financial year ending September 2024 jumped by 54 per cent to HK$8.8 billion and its earnings before interest, taxes, depreciation and amortisation (Ebitda) more than doubled to HK$2.3 billion from HK$924 million in the same period in 2023.
“The strongest business performance in the resort’s history” resulted in a record profit of HK$838 million, which was the first profit in a decade.
The turnaround has answered questions from sceptics on whether the government, which has a 52 per cent stake in the park, has made a sound business investment. The stronger cash flow means the attraction is able to repay loans to the government and The Walt Disney Company according to terms.