Disney's Hong Kong Resort Stays In The Black
Some good news for The House of Mouse overseas.
The Walt Disney (NYSE: DIS) venture in Hong Kong reported its second straight profitable year – as well as a fourth consecutive year of record revenue – and also announced plans to build a new, 750-room hotel at the theme park.
On Monday, Hong Kong Disneyland (HKDL) said its net profit more than doubled in fiscal 2013 to $31.2 million (HK $242 million). Revenue rose 15 percent (compared to a year earlier) to around $630 million (HK 4.9 billion) – with attendance records reaching an all-time high of 7.4 million guests.
“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,” Andrew Kam, the resort's managaing director, said in a press release. "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.”
The theme park says about two-thirds of its guests are currently coming from mainland China and international markets. Hong Kong Disneyland reportedly struggled for years after its opening in 2005, but the addition of new attractions and amenities finally made it profitable in 2012.
The Associated Press says HKDL, 52 percent of which is owned by the Hong Kong government, is the smallest of Disney's theme parks. However an expansion project, completed in 2013, significantly increased the resort's size.
HKDL will also have to contend with competition from another Disney enterprise in the near future. The company is planning to open its first resort in mainland China, in Shanghai, at the end of next year.
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