The Walt Disney theme park resort in Hong Kong which lost money amid declining attendance last year, will get $1.4 billion in enhancements as part of a colossal six-year growth plan.
The $1.4 billion expansion plan is part of Disney’s commitment to the long-term success of Hong Kong Disneyland as a top international tourist destination. The expansion will help attract a diverse audience of all ages.
As part of the expansion, Hong Kong Disneyland will be transforming the Castle and Hub areas to highlight new daytime and nighttime spectaculars and entertainment experiences, adding new Frozen- and Marvel-themed lands and introducing a new entertainment venue, Moana’s Village Festival in Adventureland.
The expansion highlights Disney’s belief in Hong Kong Disneyland as a potential profit machine — not just as a theme park but as a creator of demand in China and Southeast Asia for the company’s movies, toys, clothes, video games, books, cruise vacations and TV programs.
But the scope of the enhancements also reflects the difficult spot in which Hong Kong Disneyland finds itself. Despite more than $600 million in added attractions in recent years, including three new themed areas and a nighttime parade, the park lost about $20 million last year, according to financial filings.
Walt Disney Parks and Resorts chairman Bob Chapek said in a statement that, they are more excited than ever about the future of Hong Kong Disneyland. This proposed expansion brings the best of The Walt Disney Company to this wonderful tourist destination, giving guests an experience only Disney can deliver and infusing some of Disney’s most beloved characters and stories into this unique destination.
Funding for the expansion will come through cash equity injections from Hong Kong Disneyland’s shareholders, which include The Walt Disney Company (47 percent ownership stake) and the Hong Kong Government (53 percent ownership stake.) In total, the Hong Kong Government will pay $750 million and Disney will pay $650 million.
