Hong Kong Disney Has Reopened Despite Dispute Over Land For Expansion
Hong Kong Disneyland officially reopened to visitors yesterday despite and ongoing dispute over land Disney was planning on using for an upcoming theme park expansion. As we previously reported here MickeyBlog, Hong Kong Disneyland Resort lost an option to expand the theme park when local authorities decided that they would not be renewing an agreement with the company to develop on an adjacent site. This has raised concerns among insiders regarding the future of the theme park.
Hong Kong Disneyland has been closed for most of 2020 after the city of Hong Kong seems to be on the tail end of a third wave of COVID-19 infections. Due to economic uncertainty and the impact that conditions are having on the park, the Hong Kong government said that they would not extend the option for Disney to purchase a 60-hectare patch of land adjacent to its theme park.
In an official statement The Walt Disney Company said, “We are extremely disappointed with the Hong Kong government’s decision not to extend the Phase 2 land expansion option.” The went on to tell the Nikkei Asian Review that the company would continue investing in its current expansion plans on its existing land site.
Photo: https://gbcode.rthk.hk/
The Hong Kong government is facing pressure from the community to set aside the land for residential housing. Property prices are skyrocketing in the city and many local residents feel that this was part of the catalyst for the protests that erupted in the city the end of 2019. This is in keeping with Frank Chan, Hong Kong’s secretary of transport and housing who said earlier this year that Disney needs to consider its corporate and social responsibility in regards to the land and its use. Lawmaker Yiu Si-Wing told Nikkei, “We don’t see Disney having a near-term plan to commit in the expansion. And Hong Kong is facing an extreme shortage of land,” he said.
Since Hong Kong Disneyland first opened back in 2005, recording a net profit at the theme parks has been rare. It only happened three times from 2012- 2014. Because of the social unrest in 2019 it doubles its losses of about $13.5 million and we can only expect that to be worse due to the COVID-19 shutdown.
Image Credit: Disney Magical Kingdom Blog
As we previously reported here at MickeyBlog, the park is currently allowed to operate at 50% capacity and health and social distancing measures have been put into place that are similar to what we’re seeing in other Disney parks. With only 41% of visitors to the park being Hong Kong residents, travel restrictions have had a massive impact on profit.
Disneyland had previously outlined plans to add at least one new attraction to Hong Kong Disney through 2023 with a cost of over HK $10.9 billion according to a paper submitted to the city’s legislature back in June. The resort, located next to the city’s airport is owned jointly through Disney and the Hong Kong government which goes under the umbrella of Hong Kong International Theme Parks. The government has a 53% stake in the company.
Hong Kong Disneyland
Image Credit: Disney
A spokesperson for Hong Kong’s Commerce and Economic Development Bureau said, “HKITP’s strategic direction is to focus on the ongoing multi-expansion plan featuring a series of new attractions that will continue to position Hong Kong Disneyland as a premier tourism destination in the region,” the spokesperson said. “The government continues to fully support the existing expansion plan for the resort despite the prevailing worldwide tourism downturn.”
Hong Kong Disneyland first closed in January, during the early days of the pandemic. It reopened in June, after the city’s COVID-19 infection levels fell, but closed again in July as cases spiked. This is a story that we’ll continue to follow closely here at MickeyBlog. Readers are encouraged to keep checking in with us for further news and updates!
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