Hong Kong Disneyland Bounces Back Strong From the COVID-19 Pandemic
During the height of the COVID-19 pandemic, many people wondered whether Disney Parks and, more specifically, the international Disney Parks, would ever recover.
Photo: Rutgers
Looking back now, those fears were clearly unfounded. Not only did Disney experience an influx of tourism dollars when the COVID-19 restrictions were lifted, in a phenomenon that came to be known as “revenge travel,” but by and large, the parks were able to return to business as usual.
Hong Kong Disneyland Delivers Strong Results
The last example of Disney’s post-COVID resurgence comes from Hong Kong Disneyland, which revealed today that it had a wildly successful 2023. In the fiscal year that stretched from October 2022 to September 2022, the park, which is a joint venture between Hong Kong and Disney, saw revenue climb by 156% to $731 million. Attendance meanwhile rose to 6.4 million, up 87%.
Photo: Disney
Additionally, according to a Variety report, earnings before interest, taxation, and depreciation (EBITDA) tripled during that span to $118 million, while net losses fell 83% to $45.6 million.
Hong Kong Disneyland Image Credit: Disney
According to operators, the park has been profitable since the summer of 2023, and the strong trends continued following the end of the fiscal year. In fact, in the January-March 2024 quarter, Hong Kong Disneyland delivered record revenue and net earnings.
Disney Will Now Earn A Fee
Because Hong Kong Disneyland was profitable, Disney can now charge a management fee. The base fee is set at 6.55% of EBITDA.
Photo: Disney
Additionally, according to the Variety report, park operators said that Hong Kong Disneyland was able to fully pay back the revolver credit facility, which was funded by a subsidiary of The Walt Disney Company in December 2023. The park has not had to draw on it since.
After navigating its way through the COVID-19 pandemic, Hong Kong Disneyland looks to be back on solid footing. This year, the World of Frozen opened, which park officials say has accelerated growth momentum.
Photo: Disney
With the pandemic in the rear-view mirror and a new land to draw new guests to the park, Hong Kong Disneyland looks to be on solid footing moving forward.
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