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Following is a question by the Hon Tam Heung-man and a reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (May 23):
Question:
About the financial position of the Hong Kong Disneyland ("the park"), a joint venture between the Government and The Walt Disney Company ("Walt Disney") of the United States, will the Government inform this Council:
(a) of the projected and actual financial figures of the park, including attendance, revenue generated from patronage and shops as well as the profit and loss situation, since its opening in September 2005;
(b) as a revolving credit facility of a sum of about USD300 million for the park has to be reviewed in September this year in accordance with the park's financial performance, of the progress of the discussions between the Government and Walt Disney about the future financing arrangement for the park, the financing options being considered as well as whether it has been confirmed that there is no need for injection of public funds; and
(c) whether the Government has discussed expediting the expansion plan of the park or taking other measures to improve the financial position of the park with Walt Disney; if it has, of the details; if not, the reasons for that?
Reply:
Madam President,
Hong Kong Disneyland (Disneyland) is a long-term investment and an important component of our tourism infrastructure. It helps develop Hong Kong into the premier destination for family tourists in the region. Between 2004 and 2006, the number of family tourists has increased by 10%, whereas the number of tourists aged below 16 has increased by 35% over the same period.
Regarding the financial position of the park, while the Government and The Walt Disney Company (TWDC) invest jointly in the park, the Government, being TWDC's investment partner, has to respect its mode of operation under commercial principles so that its interests will not be compromised as a result of the disclosure of commercially sensitive information, including attendance, revenue generated from patronage and shops as well as the profit and loss situation, etc. As an international commercial centre, we must respect the right of a business organisation to protect its commercially sensitive information.
Since its opening in September 2005, the park's management has been improving its marketing strategy, enhancing operational efficiency and strengthening cooperation with the travel trade, having regard to demand in Hong Kong and the Mainland as well as its operational experience. In fact, Disneyland exchanges from time to time market data with the travel trade and the Hong Kong Tourism Board. It has launched with them joint promotions focusing on the Mainland market, including placing more television, on-line and local advertisements, in order to reach more source markets, especially to potential visitors in Southern China. Disneyland also launches promotion offers to attract visitors, e.g., through the special hotel and Annual Pass packages launched during the New Year and the travel package offered jointly with Cathay Pacific and Dragonair, etc.
On expansion, both the Government and TWDC agree that there is a need to continue to add new attractions and facilities to the park in order to attract more visitors. The scope and pace of expansion will take into account market demand and feedback. The three new attractions launched last summer, including Autopia, UFO Zone and Stitch Encounter, are well received by the visitors. In 2007 and 2008, Disneyland will open three more new attractions, including the Disney's classic "it's a small world". All these new facilities do not require additional investment from the Government. We understand that the public and tourists expect more new attractions and facilities in Disneyland which will help attract more local and overseas visitors, particularly family tourists. Disneyland will spare no effort to achieve this goal.
Ends/Wednesday, May 23, 2007
Issued at HKT 14:50
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