Poor Attendance Gives Hong Kong Disneyland Financial Woes

Poor visitor numbers at its Hong Kong theme park may force Disney to seek refinancing of its share of the joint-venture project with the Hong Kong government. If it does, plans to build a new theme park in Shanghai will be postponed.

Lower than estimated figures at its Hong Kong Disneyland may force the Walt Disney Company to seek refinancing of its 43 percent owned theme park, Disney admitted in a filing to US Securities and Exchange Commission. A company statement said lower revenue at its Hong Kong theme park is primarily due to “lower attendance and guest spending.”

Added Walt Disney Parks and Resorts chairman Jay Rasulo, “Hong Kong Disneyland is developing a little more slowly than we expected.” In its original proposal, Disney projected 10 million visitors annually by 2020.

The theme park, which opened in September 2005, is yet to reach four million visitors in its second year of operations, far lower than the 5.2 million reached during its first year, according to South China Morning Post.

The small size, lack of sufficient attractions and rides to occupy visitors for a whole day have contributed to the problems facing Hong Kong Disneyland, South China Morning Post reported.

Hong Kong Disneyland averages 11,000 visitors daily and is still well short of its 34,000 capacity. Disney said it still has to tap visitors from mainland China.