Record year for Hong Kong Disneyland; new hotel to add 750 rooms

Tuesday, 25 February 2014 00:00 -     - {{hitsCtrl.values.hits}}

Hong Kong Disneyland (HKDL) has, for the fourth consecutive year, reported  record revenue, attendance, hotel occupancy and guest spending for the 2013 fiscal year. In total, the HKDL Resort generated HK$4,896 million in revenue, up 15% from the previous year, while net profit more than doubled to HK$242 million. HKDL has also unveiled plans to build a new hotel at the resort, which will add another 750 hotel rooms to its existing inventory. The new hotel is slated to open by early 2017, pending all necessary project approvals. Other new initiatives in the pipeline include a brand new nighttime spectacular called “Disney Paint the Night” in 2014, 10th anniversary celebration offerings in 2015 and a new themed area based on Marvel’s Iron Man franchise in late 2016. Andrew Kam, Managing Director of HKDL, said, “The HKDL Resort enjoyed a successful fiscal year in 2013. We are pleased to be able to contribute to the Hong Kong tourism sector, and look forward to another year of growth and improvement that continues to meet our high standards.” The resort broke previous attendance records, reaching an all-time high of 7.4 million guests. Steady growth was registered across the three main sources of guests from the local community, mainland China and international markets, with the latter two accounting for about two-thirds of total guests. Overall hotel occupancy was at a new high of 94% for fiscal 2013, while guest spending broke records with a 6% year-on-year increase. The successful opening of Mystic Point in May of 2013 marked the completion of the 2009 expansion, which has increased the park’s total size by about one-fourth and brought the total number of attractions and entertainment offerings to over 100. “HKDL is an integral component in supporting Hong Kong’s position as one of the world’s top cities for leisure tourists and business visitors. Expansion plans are in place to sustain the momentum of growth and capture increasing demand especially in the light of growing tourism taking place in the region,” said Kam. He added that plans for the new 750-room hotel have been submitted to the Legislative Council for approval. The new hotel will increase the total number of hotel rooms in the resort by 75% to 1,750. The new hotel’s total investment of $4.263 billion will be funded by a combination of operating cash of HKDL, cash equity injection from The Walt Disney Company (TWDC), along with a partial conversion of the existing Hong Kong Special Administrative Region Government (HKSARG) term loan to equity on a dollar-for-dollar basis, and new term loans from TWDC and the HKSARG. In fiscal 2013, additional spending in Hong Kong by HKDL visitors generated HK$11.6 billion of value added to Hong Kong, which is equivalent to around 0.58% of Hong Kong’s GDP. A total of 33,200 jobs (in terms of man-years) were created, primarily benefiting frontline workers as well as the travel and hospitality industry. Construction of the new hotel will create additional job opportunities and another 600-700 full-time equivalent jobs in HKDL after the new hotel commences operation.