HK Fincl Secy To Meet Disney Execs On HK Disneyland Expansion
29 April 2009

Photos by law_derek from a Hong Kong photography forum :

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HONG KONG (Dow Jones)--Hong Kong Financial Secretary John Tsang plans to meet with executives at Walt Disney Co. (DIS) in Los Angeles Friday to discuss Hong Kong Disneyland's expansion plans, the government said Wednesday.

The planned high-level meeting between the two theme-park shareholders follows Disney's announcement last month that it would put the already-delayed expansion of the Hong Kong park on hold after failing to agree with the city's government on a cash injection.

Disney and the Hong Kong government have been in discussions over financing a second phase of Hong Kong Disneyland, which has been criticized for its small size and lack of major attractions since its 2005 opening.

Hong Kong Disneyland, which is 54%-owned by the government, is the smallest of Disney's theme parks; the company also has parks in the U.S., Japan and France.

At stake in the talks is the government's desire to keep its controlling stake in the theme park, given Disney's willingness to inject capital into the joint venture to fund the expansion.

Citing unnamed sources, the Hong Kong Economic Times reported Thursday that the government is open to reducing its stake in the park in return for Disney funding that would help expedite the expansion program.

The report said a likely option would be that Disney invests HK$7 billion for the expansion, cutting the government's stake to 51%.

Disney said earlier the expansion plans being negotiated involve increasing Disneyland's themed areas by a third of its current size.

Disney "driving a hard bargain" with Hong Kong

HONG KONG, April 30 (Reuters) - Hong Kong's top financial official will meet Walt Disney Co. management in Los Angeles later this week to discuss the stalled expansion of the struggling Hong Kong theme park.

Disney and the Hong Kong government have been embroiled in protracted discussions over financing for a second phase of the world's smallest Disneyland which could cost a reported HK$3 billion ($387 million).

Opened in 2005, Hong Kong Disneyland has been criticised for being far too small to attract repeat visitors despite its proximity to mainland China. Visitor number projections failed to reach initial bullish predictions, and the Chinese tourist market has since been hit by the economic slump.

Disney meanwhile has signed a framework agreement with authorities in Shanghai to build a park there.

The meeting between Hong Kong Financial Secretary John Tsang and Disney on Friday in Los Angeles follows Disney's decision last month to put the expansion on hold.

The involvement of such a senior Hong Kong official underscores the importance the government sets on getting negotiations back on track.

"We hope we can maintain positive engagement with Disney on the matter, but it's hard to predict whether there'll be a breakthrough after the meeting," said a government source cited in a report by the South China Morning Post.

In March, Disney said it would put the expansion plans on ice and fire about 30 staff dubbed "Imagineers" who had helpled conceptualise and plan the Hong Kong expansion.

"Disney wants the (Hong Kong) government to put in some of the (financing) loan, but the government can't do it. It's a very sensitive issue," a well-placed source close to officials involved in the talks told Reuters.

"Disney's trying to drive a hard bargain (with Hong Kong) and Shanghai's an ace in the hole."

Talks in US on Disney expansion
30 April 2009
South China Morning Post

Financial Secretary John Tsang Chun-wah will discuss expansion of Hong Kong Disneyland with Walt Disney management in Los Angeles tomorrow.

The talks will be the highest-level meeting between the Hong Kong government and the US entertainment giant since 30 staff lost their jobs at Walt Disney Imagineering's Hong Kong-based team last month. They were mainly responsible for master planning, designing and developing theme parks. Disney said it acted after being told by the government there was no timetable for the Hong Kong theme park's expansion.

A government source said: "We hope we can maintain positive engagement with Disney on the matter, but it's hard to predict whether there will be a breakthrough after the meeting."

It is understood the two parties started the talks a year ago, although Disney said the negotiations had been going on for two years. The government owns 57 per cent of the theme park, with Disney holding the rest. Disney representatives presented a scale model of the expansion site to the government in Hong Kong in March last year.

In November, Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan reviewed the expansion plans with Disney management while in Los Angeles.

A spokeswoman for the Commerce and Economic Development Department said the government was in discussions with Disney on the expansion plan and capital realignment of the local joint venture.

"We are striving to reach a deal which is in line with the overall interests of Hong Kong," she said.

In Los Angeles, Mr Tsang will also attend a business lunch hosted by the Hong Kong Trade Development Council and Hong Kong Tourism Board.

He will leave on Sunday for Vancouver and is due to return to Hong Kong next Thursday.

Disneyland looks really nice in the pics but...
Long live Ocean Park!

HK Disneyland expansion talks going well
Published: 2009/05/04

LOS ANGELES: A top Hong Kong government official is pleased with the progress in talks with the Walt Disney Co on expanding the underperforming Hong Kong Disneyland, and a deal could be reached soon, his spokesman said on Saturday.

Hong Kong Financial secretary John Tsang met with Disney executives including theme parks chairman Jay Rasulo and parks chief financial officer Jim Hunt on Friday in Los Angeles.

Disney and Hong Kong, which are partners in the park, have held protracted talks over financing for a second phase of construction, which could cost HK$3 billion (HK$100 = RM45.89).

“We had discussions with the Disney management ... yesterday. We are happy with the progress achieved at the negotiations,” spokesman Patrick Wong said in an email. — Reuters

A bit more detailed article on the progress :

Finance chief claims progress in talks on Disneyland revamp
3 May 2009
South China Morning Post

High-level talks between the Hong Kong government and representatives of the Walt Disney management yesterday resulted in "substantial progress" on the theme park, according to the finance chief.

Financial Secretary John Tsang Chun-wah, on a visit to the United States, met Jay Rasulo, chairman of Walt Disney Parks and Resorts, in Los Angeles.

After the talks, Mr Tsang said: "I am happy to note that substantial progress has been made in the negotiations. While a number of issues remain to be sorted out, both sides are committed to bringing the discussions to a successful conclusion in the near future."

The breakthrough on the Hong Kong theme park follows months of uncertainty regarding its expansion.

While sources had revealed that negotiations had begun, 30 Disney employees who were responsible for master planning, designing and developing theme parks lost their jobs last month.

Talks over a Shanghai Disney were also reported as being close to completion earlier this year.

Before the trip, a government source was uncertain as to whether a breakthrough would be achieved. Yesterday, no further details were forthcoming from the Los Angeles talks although a spokesman for the financial secretary said: "We had very good discussions today."

Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan said details on the expansion of Disneyland would be announced soon after Mr Tsang returned on Thursday. "The Hong Kong government has kept negotiating with Disneyland in the past few months on the expansion of Disneyland," she said, noting that major breakthroughs had been made in the talks. "We want to find out the way to increase the attractiveness of the park and we have reached a consensus on the expansion."

Last month, informed sources said new "lands" and rides had been agreed on, including rides based on wilderness and adventure themes. A roller coaster would pass through mine shafts, tunnels and a wilderness area complete with audio effects and animatronic (robotic) animals.

However, how construction of the rides would be financed, by whom, and whether it would be necessary to restructure the current shareholding had yet to be resolved. The Hong Kong government owns 57 per cent of the theme park, while Disney holds the remaining shares.

While in Los Angeles, Mr Tsang also met prominent businessmen to exchange views on the current global financial crisis and spoke of Hong Kong's role as an international financial centre.

Disneyland looks really nice in the pics but...
Long live Ocean Park!

:banana::banana:
Real animals are better than the fake one??

:banana::banana:
Real animals are better than the fake one??

lol I suppose so, although I really miss the orca at ocean park...

By the way, does anybody notice that on google maps, Disneyland disappears as you zoom out?

lol I suppose so, although I really miss the orca at ocean park...

By the way, does anybody notice that on google maps, Disneyland disappears as you zoom out?

I miss the orca, too.
But for the good of an orca, the pool in OP is just way too small for an orca, I would rather OP doesn't have one.

I notice the Google magic, too. That level 5 or 6 zoom of HK is at least 10 years old. Penny Bay wasn't there, and so does Container Terminal 9 on Tsing Yi as well.

Disney close to investing more capital in HK - source

HONG KONG/LOS ANGELES, May 8 (Reuters) - The Walt Disney Co is close to agreeing to invest more capital in Hong Kong Disneyland and allow the island's government convert its loans to equity to maintain its majority share of the theme park, a source involved in their talks said.

If Disney and Hong Kong's government, which now owns 57 percent of the underperforming and much-maligned resort, can close a deal, it could pave the way for an expansion that is estimated to cost HK$3 billion ($387 million) and boost flagging attendance at the nearly four-year-old park.

The Hong Kong government put up the bulk of the estimated total investment of $3.6 billion to develop and build the 310-acre (126 hectare) resort at Penny's Bay.

The source, who declined to be identified because the negotiations have not been made public, told Reuters however that Hong Kong's government will not budge on two points: the need to retain equity control of the project, and a refusal to put up any more cash for the park.

"The Hong Kong government might reduce its holdings, but still retain a majority shareholding. That's the bottomline," said the source.

Top Disney executives met with Financial Secretary John Tsang in Los Angeles last week, triggering speculation that the two partners were close to hammering out an agreement after years of back-and-forth over China's first Disney themepark.

Hong Kong officials and Disney executives have said their recent talks had broken fresh ground and they would announce details soon.

Disney spokeswoman Tasia Fillippatos had no comment, saying the No. 1 U.S. entertainment company is "not going to negotiate the deal through the press."

Critics say the Hong Kong site is too small to attract the repeat visits that have made Disney's other parks profitable.

Attendance has failed to reach initial bullish projections, despite the park's proximity to mainland China, and the Chinese tourist market has since been hit by the economic crisis.

The proposed expansion plans would enlarge the park's existing area by around a third, a source told Reuters and feature three new "lands" to complement the four existing ones.

Disney has also signed a framework agreement with authorities in Shanghai to build a park there.

Sources say that the Hong Kong government isn't willing to surrender its controlling stake given pressure from the Hong Kong public, and especially the city's legislators who have final say on whether to approve the deal.

... already sounds like a disappointment to me. A third is like nothing... and that spokeswoman...

I'll probably not visit Disneyland HK in the near future...

I'm disappointed too. By expansion I thought they're building a second park, with separate entrance and admission, but it sounds like they're just adding extra "lands" :-( Disneyland sucks.

only a third? it's pointless. that's like three more rides? maybe four?
without a new park, i still can't see it'll be anymore attractive.
i would rather go to OP.

in orlando, there is one part of the resort known as "downtown disney" where is open to the public with restaurants, bars, cinemas, shops, and other entertainment but still in disney theme. if we can one of this "downtown disney" in hong kong, i think it'll attract a lot more people to go to disney. it doesn't necessary bring people to the theme park, but still draws people to disney and capture the money some other ways.

in orlando, there is one part of the resort known as "downtown disney" where is open to the public with restaurants, bars, cinemas, shops, and other entertainment but still in disney theme. if we can one of this "downtown disney" in hong kong, i think it'll attract a lot more people to go to disney. it doesn't necessary bring people to the theme park, but still draws people to disney and capture the money some other ways.

True, but then nobody would enter the park lol

Expansion deal reached on Hong Kong Disneyland -source

HONG KONG, June 25 (Reuters) - Hong Kong has reached a deal with the Walt Disney Co to expand the local Disney theme park, seen as necessary to bolster the park's long-term prospects against a Shanghai rival, a government source said on Thursday.

The agreement is expected to be announced by June 30, with details of the deal to be laid out to local legislators in a special meeting next Tuesday.

The government source, who asked not to be named, said the meeting's agenda would include the Disneyland deal and that a media report on the imminent announcement "was largely accurate".

The Hong Kong Economic Times on Thursday reported that the deal was expected to be worth HK$7 billion ($903.3 million) of which HK$4 billion would be used for expansion.

But a Disney spokeswoman in the United States told Reuters that discussions were ongoing and that there was "no" deal yet.

The size of Hong Kong Disneyland, the smallest of Disney's magic kingdoms, is expected to almost double, with construction to begin within a year, pending approval from the city's legislative council in July, the newspaper reported.

The Hong Kong government, which owns 57 percent of the underperforming resort, desperately needs the expansion to boost flagging attendance, with a much larger rival Disneyland expected to be built in Shanghai in 2014 that could draw much visitor traffic from the burgeoning mainland China market.

"At this stage, we have to support the expansion, otherwise it will be very difficult to compete with Shanghai in five to six years time," said legislator Fred Li of the Democratic Party, who said his party backed the expansion as long as Disney boosted its financial transparency in future on attendance figures.

Hong Kong's Financial Secretary John Tsang travelled to Los Angeles in May, where he met senior Disney executives. The trip is seen to have paved the way for the breakthrough after Disney earlier said it would stall any expansion amid the credit crunch.

The Walt Disney Co earlier indicated it would likely invest more capital in Hong Kong Disneyland and allow the Hong Kong government to convert its loans to equity to maintain its majority share of the theme park, a source involved in their talks told Reuters earlier.

With the addition of more than 30 new attractions, play and entertainment experiences, Hong Kong Disneyland’s total number of rides and attractions will increase by almost 50 percent and top one hundred. When completed, the expansion will increase HKDL’s physical footprint by approximately 23 percent; broaden the park’s appeal by adding more experiences for young adults; and place increased focus on universally-understood stories. Using Guest feedback as a guide, these three new themed areas will create memorable guest experiences, drive strong word of mouth and repeat visitation, and offer many unique only-available-in-Hong-Kong attractions that feature Disney’s immersive storytelling and innovative technology.

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Grizzly Trail
Grizzly Gulch, Frontier Gold-Mining Town

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The path along Grizzly Trail offers high-spirited frontier fun in an abandoned mining town called Grizzly Gulch, set amidst mountains and woods. The town was founded August 8, 1888 – the luckiest day of the luckiest month of the luckiest year – by prospectors looking to discover gold. Bears have now started causing havoc at the Big Grizzly Mountain Mining Company.

Key Technology and Creative Elements
• Guests visiting Grizzly Gulch are part of the action, experiencing hands-on water features, massive geysers and various leaking structures in the abandoned town.
• Life-size Audio-Animatronic® bears set the story in motion on Big Grizzly Mountain Coaster, an adventure aboard a runaway mine train through town. Guests careen backward down an incline that propels them through twists and turns, before a launch sequence “blasts” the mine train out of the mountain.
• A Wild West stagecoach, an old time Jail House, and the world’s largest nugget of gold provide fun photo opportunities.
• Guests can relax with a Wild West refreshment at the old Saloon or shop for mining supplies and souvenirs at the Bear Necessities merchandise stand.

Mystic Point

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Mystic Point is the site of mysterious forces and supernatural events in the heart of a dense, uncharted rain forest.

In Mystic Manor, home to an eccentric world traveler and adventurer and his collection of exotic international artifacts, strange things are afoot as an enchanted music box releases its magical powers, thanks to a mischievous monkey.

Key Technology and Creative Elements
• Inside Mystic Manor, a trackless ride system enables vehicles to move “freely” about the attraction as the story unfolds. Audio-Animatronic® figures and special visual and audio effects help tell the story of mystical phenomena.
• Within Mystic Point lies a beautiful garden full of relics and mythological figures, where guests discover a hidden world of illusions and mysteries that trick the eye.
• Guests can dine at the Adventurer’s Club amid a vast collection of unusual artifacts from around the world or purchase exclusive curiosities and collectibles at the Archive Shop.

Toy Story© Land
Disney·Pixar-themed Play Area for Kids of All Ages

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Andy, the young boy from the Disney·Pixar Toy Story films, has left his toys unattended in this immersive and highly themed environment, based on one of Disney·Pixar’s most popular film series. While Andy is away, the toys come to life and play...and Guests are invited to join!

Key Technology and Creative Elements
• Oversized outdoor rides and photo opportunities allow Guests to experience the different perceptions of scale, and shrink to the size of a toy.
• One attraction includes a shuttle coaster which propels Guests along a U-shaped style track.
• A drop-style parachute attraction lets Guests join a “training mission,” plunging from a 25m tall tower.
• Guests will enjoy fun, immersive and interactive environments with life-size toys.
• A themed food kiosk provides a barrel of fun snacks and refreshments and Guests can shop for Toy Story inspired collectibles at the merchandise location.

Source: Micechat (http://micechat.com/forums/hong-kong-disneyland-resort/118897-hkdl-expansion-concept-art.html)

Looks interesting!!! :banana:

Finally something solid is going... but expanding by only not even 25% with three more "lands," it is rather disappointing.

I was hoping for a more aggressive scheme.

The Big Grizzly Mountain Coaster is like a mix of Expedition Everest and Big Thunder Mountain. Many of the attractions are like the existing parks attractions. I was hoping for something unique attraction wise. But the lands are different than the other ones, especially "Mystic Point".

Disney to expand HK theme park
Published: 2009/07/01

HONG KONG: US entertainment giant Disney and the Hong Kong government yesterday reached a long-awaited agreement to expand the southern Chinese city’s beleaguered Disneyland amusement park.

The deal — which will see Disney invest HK$6.2 billion (HK$100 = RM45.45) in the joint venture — will fund 30 new attractions at the park over the next five years, the government said in a statement. — AFP

> http://www.btimes.com.my/Current_News/BTIMES/articles/20090701003552/Article/

Walt Disney Co. to boost its Hong Kong park with $465 million expansion plan
30 June 2009

HONG KONG (AP) - The Walt Disney Co. and Hong Kong have reached a deal to expand the territory's Disneyland at a cost of about $465 million in hopes of boosting the theme park's fortunes, officials announced Tuesday.

The deal will see the American entertainment giant invest new capital -- some 3.5 billion Hong Kong dollars ($450 million) -- to pay construction and operation costs during the building phases.

In the works for two years, the expansion plan is part of an effort to turn around a park criticized for failing to meet attendance targets, being too small and lacking high-profile rides. Hong Kong is also under pressure to increase the theme park's appeal to compete with a proposed Disneyland in Shanghai, which could open in the coming years, and would siphon off Chinese tourists.

"The expansion will be a catalyst to the park's long-term development and bring benefits to not just the local tourism industry but also the entire economy," Rita Lau, Hong Kong's commerce and economic development secretary, told reporters.

The park is a joint venture between Walt Disney and the Hong Kong government. The expansion will add three new theme areas as well a 30 new attractions, enlarging the park's size by nearly a quarter over the next five years.

Beyond the new investment, Burbank, California-based media Disney will convert into equity about $350 million in loans to the venture and maintain a credit facility of about $40 million.

"Disney is making a substantial investment in this important project," Leslie Goodman, a Disney vice president, said in a statement.

Hong Kong, which shouldered much of the $3.5 billion original construction cost, will not add any new capital. But the territory will convert a large portion of its loan to the park into equity. In all, Hong Kong's total stake is expected to decline from about 57 percent to 52 percent.

The park opened in 2005 to great fanfare, only to miss its targets for attendance in the first two years. However, traffic in its third year grew by 8 percent, according to figures provided by the Hong Kong government.

Sustaining that growth could prove all the more difficult with the allure of a Shanghai Disneyland. Disney Chief Executive Bob Iger said last month the company is awaiting word from China's central government about the proposal.

Likely anticipating a Shanghai park, Hong Kong secured as part of the expansion proposal two new areas, called "Grizzly Trail" and "Mystic Point," that will be unique among Disneylands worldwide when they open. The third area, "Toy Story Land," will be exclusive in Asia.

Disney to pump $452 mln new funds into HK theme park

HONG KONG, June 30 (Reuters) - Hong Kong said on Tuesday the Walt Disney Co will invest $452 million to expand its Hong Kong theme park, seen as necessary to bolster the park's long-term prospects against a planned rival park in Shanghai.

Hong Kong Chief Executive Donald Tsang said Hong Kong would not invest more capital in the joint venture but would convert a substantial part of its loan to the project into equity. He added Disney's capital investment would be about HK$3.5 billion.

Disney will also convert the entire balance of its outstanding HK$2.76 billion loan to the theme park to equity.

"In total this means that the Walt Disney Company will invest about HK$6.2 billion new capital in demonstration of the company's confidence in Hong Kong Disneyland," said Rita Lau, Hong Kong's Secretary for Commerce and Economic Development.

After Disney's new investment and the government's debt to equity swap, Hong Kong will see its stake in the underperforming park fall to 52 percent from 57 percent in the theme park's first major expansion since its opening to great fanfare in 2005.

Since then however, the park's performance has been sluggish, with attendance figures falling short of initial targets.

The government's outstanding loan to the theme park is about HK$6.89 billion. After the conversion, this balance will not drop below HK$1 billion, the government said in a statement.

It said the expansion, with a mix of thrill rides, would "broaden the park's appeal" and act as a "catalyst" in improving the park's operating and financial performance.

"If there is no expansion, the attraction of the theme park will fall over time," government economist Helen Chan said at a briefing to announce details of the long-awaited expansion.

SHANGHAI RIVAL

The Hong Kong government desperately needs the expansion to boost flagging attendance, with a much larger rival Disneyland expected to be built in Shanghai in 2014 that could draw much visitor traffic from the burgeoning mainland China market.

"We're only increasing it (the size) by some 20 percent but the Shanghai Disneyland is going to be ten times the size of Hong Kong Disneyland, how are we going to compete with them," said lawmaker Emily Lau during a briefing on the plan.

But officials, who must still lobby lawmakers to green-light the deal in a legislative session on July 10, stressed the park's unique attractions would bolster the park's current reported attendance of about 4.5 million annually, to between 5.2-8.4 million visitors by 2015 when the expansion is done.

"We often talk about uniqueness and exclusiveness and therefore it's not just about the size," said Hong Kong official Lau.

"We're not competing on the basis of size, we are competing on the basis of these attractions," Lau added.

The park is currently the smallest 'Magic Kingdom' globally.

The expansion, which will cost HK$3.63 billion, will include 30 new attractions and three new theme areas -- two unique to any Disneyland -- and will see the total area of Hong Kong Disneyland increase by 23 percent over five years.

The total net economic benefit of the expanded theme park over 40 years would range from HK$64.7 billion to HK$117.3 billion, the government said, with the theme park having already added 0.2 percent to the city's annual GDP since opening.

Hong Kong's Financial Secretary John Tsang travelled to Los Angeles in May, where he met senior Disney executives. The trip is seen to have paved the way for the breakthrough after Disney earlier said it would stall any expansion amid the credit crunch.

As part of the deal, Disney promised to boost transparency by disclosing its annual visitor figures and financial performance.

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well at least it's expanding. I read on singtao that with the expansion it's gonna be "roughly" the same size as the one in LA.

the detail of the expansion plan is exactly the same as what they suggested before, so i'm not surprised by the result. what shocked me is that it will take 5 years to complete the whole expansion. it is very disappointing that the empty space right next to the disneyland, that is reserved for the future expansion, will remain empty for at least another 5 years, i hope they will begin the "phase 2" right after this one, and they better come up with something new, i hope they wont copy the entire DisneySea from Tokyo!

Finally something solid is going... but expanding by only not even 25% with three more "lands," it is rather disappointing.

I was hoping for a more aggressive scheme.

And back in May we thought it would be a third... now it's not even a fourth...

Plans look alright to me though... but as caelus pointed out... why does it take 5 years to build?

Details on Disney or no deal, say legislators
5 July 2009
South China Morning Post

The government has urged legislators to fast track approval of Hong Kong Disneyland's expansion plan because of the global economic crisis.

But lawmakers say they cannot support the deal without details of the park's performance.

Secretary of Commerce and Economic Development Rita Lau Ng Wai-lan warned lawmakers at a panel meeting yesterday that the economic climate could threaten the plan.

"We want to grab time to confirm it, and then realise the deal," Mrs Lau said.

But legislators continued to criticise the government for disclosing too little information about the park's financial situation. Some said the Finance Committee should postpone discussing the matter at its meeting on Friday so the government could provide more data.

"You [the government] can't tell when the park will generate profit. You also can't tell when it will offer [to pay] interest," the Democratic Party's Emily Lau Wai-hing said.

Democratic Alliance for the Betterment and Progress of Hong Kong legislator Starry Lee Wai-king also said it was "disappointing and frustrating" that the information provided to the council was so limited.

Democrat Fred Li Wah-ming asked whether the government had considered instead selling its stake in the theme park because of its poor performance.

But Rita Lau questioned the possibility of finding investors considering the joint venture's financial situation.

"Although the operation of the company was not ideal in the last three years, the park has generated {hellip} HK$10.3 billion in actual economic benefit, so again we hope lawmakers see this project as one to promote Hong Kong's economy," she said.

On Tuesday, the government revealed the long-awaited expansion plan. It will cost HK$3.63 billion, towards which Disney will contribute HK$3.5 billion.

More than 30 new rides will be added by 2014.

To maintain its majority stake, the government will convert some HK$5.9 billion of existing debt to equity; its new shareholding will be about 52 per cent.

Disney's stake will rise to about 48 per cent.

迪士尼勁蝕冇人願買本文重點
2009年07月05日(日)
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香港迪士尼樂園擴建計劃爭論不休。不同黨派的立法會議員昨日齊炮轟迪士尼公布的財務數據太少，難以在周五的財務委員會上表決擴建計劃的融資安排，有議員更批評迪士尼猶如爛橙，作為納稅人應該要知「係咪爛到入心」，亦有議員要求當局索性撤走資金及出售所有股份，以免跌進無底深潭。商務及經濟發展局局長劉吳惠蘭坦言以迪士尼現時的財政狀況未必會有人願意購買政府持有的迪士尼股份，意味迪士尼每年的虧蝕相當嚴重。

劉吳惠蘭坦言以迪士尼現時的財政狀況，未必會有人願意購買政府持有的迪士尼股份。
另外，有民間團體揶揄政府明知壞帳一盤仍硬要「落疊」，明顯是肉在砧板上，凸顯政府管治能力差勁。

立法會經濟發展事務委員會昨日舉行特別會議，討論迪士尼擴建計劃。各黨派的議員都一面倒批評迪士尼欠缺透明度，開幕三年不曾公布賺或蝕，亦未曾公布過去幾年的入場人數，令議員難以決定是否支持政府的擴建計劃融資安排。

拒公開實際賺蝕
民主黨的李華明炮轟迪士尼過去三年表現與原來預期南轅北轍，又不願公開實際賺蝕，建議當局倒不如索性考慮撤走資金及出售所有股份，以免再跌入無底深潭。

議員陳偉業更指政府一味盲目支持「搵笨樂園」，認為根本「唔應該隨便再揼錢落去」，又指迪士尼猶如爛橙，作為納稅人應該要知「係咪爛到入心」，不能倉卒通過擴建的融資方案。

自由黨方剛及民建聯陳鑑林雖然表明原則上支持擴建的融資方案，但亦不忘批評政府已沒有選擇餘地，又質疑當局以商業秘密為由拒絕透露迪士尼財務情況的做法，促請政府日後要加強糾正。

劉吳惠蘭則指受保密條款限制，不能披露敏感財務數據，包括營業損益，但雙方已同意由○八至○九年度開始，迪士尼會公布入場數字、收支、資產及負債表等主要數據，相信有助增加透明度。

至於會否考慮撤走資金及出售所有股份，劉吳惠蘭表示，以「目前咁嘅情況，迪士尼或任何投資者都知公司有幾多價值，（迪士尼）會唔會買你呢？」意味迪士尼每年的虧蝕相當嚴重。但她聲言若議員否決擴建的融資方案，重新開始談判或有變數，包括擔心迪士尼不再注資。

政府肉在砧板上
107動力召集人何民傑指港府明知迪士尼是壞帳一盤，仍不肯認衰、為臉子硬要港人再「落疊」，對政府管治能力感到失望。

嶺南大學公共政策研究中心主任何濼生亦形容港府猶如肉在砧板上，「洗濕咗個頭好難搞」，現在離場就等如輸清光，由於港府再投資涉及公帑，迪士尼必須提供更多資料，如蝕錢狀況，讓議員考慮是否支持。

此外，多名泛民議員雖然在會上都要求押後一星期召開財委會表決，以便政府提供更多數據，但是委員會主席林健鋒指議員在上次的會議已經同意交財委會，否決有關建議。

Expansion plan draws mixed reactions
1 July 2009
China Daily - Hong Kong Edition

HONG KONG: Disneyland's HK$3.63 billion expansion plan drew mixed reactions yesterday among members of the Legislative Council.

Lawmaker Abraham Shek Lai-him was fully supportive of the expansion: "If we didn't have Disneyland, we would lose many tourists," said Shek.

He said it took other theme parks like Ocean Park a lot of years to take off, so investing in the theme park is a wise decision.

Hong Kong Inbound Travel Association chairman Paul Leung said: "We welcome Disney's expansion. We can expect more tourists to visit Hong Kong. No doubt our theme park appears to be a bit small as compared to Disneylands abroad, but with more attractions, it will be a success." He believes the expansion will entice tourists to stay longer in the city.

Hong Kong Association of Travel Agents chairman Michael Wu said Disney's expansion will not dramatically increase the number of visitors to the city, but it nevertheless helps maintain the competitiveness of the city's tourism sector.

Some legislators, however, seemed concerned about the viability of the ambitious project.

Emily Lau Wai-hing pointed out Hong Kong will face stiff competition from other theme parks in the region. She said: "A 23 percent expansion of the park is not that much. Shanghai's Disneyland will be 10 times bigger than our park, how can we compete with them?"

Ronny Tong Ka-wah agreed with Lau: "Singapore has Universal Studios, Shanghai will have another Disneyland. We are dealing with a lot of competition in the region. There is a saying: Don't throw good money after bad. The project might not draw as many tourists to the city as we expect."

"The success of the park rests on its appeal and uniqueness, not its size," responded Secretary for Commerce and Economic Development Rita Lau.

To guarantee that Hong Kong Disneyland remains unique, Lau said Disney has promised it will not recreate two of new attractions elsewhere. They will be truly one-of-a-kind.

"Is Disneyland pushing for the expansion, because without it, the theme park will fall over time?" questioned Lee Wing-tat.

Commissioner for Tourism Margaret Fong explained: "We have looked at and studied Disney's attractions abroad, like in United States and France. The attractions in the proposal are the most suitable for Hong Kong and they target young adults."

Hong Kong votes for $468 mln Disneyland expansion
10 July 2009

HONG KONG, (Reuters) - Hong Kong lawmakers approved a government plan on Friday to spend HK$3.63 billion ($468 million) expanding the city's Disneyland theme park and boosting the smallest of Disney's five resorts.

With attendance falling short of targets, the government has been seeking ways to boost the number of visitors in the long term, given the threat from a rival Disney theme park planned for Shanghai.

Hong Kong will convert a significant amount of its HK$6.89 billion outstanding loan to the park into equity, while Walt Disney will invest HK$3.5 billion to help finance the construction cost and also convert its outstanding HK$2.76 billion loan to the theme park into equity.

After Disney's new investment and Hong Kong's debt-to-equity swap, Hong Kong's stake in the park will fall to 52 percent from 57 percent.

In a joint statement, Disney and the Hong Kong SAR Government applauded the Legislative Council's vote on the plan to build three new themed areas at the park by 2014.

Financial Secretary John Tsang said the park already "has brought substantial economic benefits to Hong Kong."

With its new features, the park "will rise up to the keen competition in the region on the tourism front, attracting more family visitors from around the world," Tsang said.

Jay Rasulo, chairman of Disney Parks & Resorts, said the company was "eager to begin work" on the expansion.

"This substantial investment represents our continued commitment to and confidence in Hong Kong Disneyland and solidifies our partnership with the Hong Kong government helping assure the resort's long-term success," Rasulo said.

The three new themed "lands" will be called "Grizzly Trail," "Mystic Point" and "Toy Story Land."

Reclaimed land may not be used
11 July 2009
SCMP

Despite the expansion of Hong Kong Disneyland, approved by lawmakers yesterday, 60 hectares of reclaimed land could be left unused until 2029.

The 5.1 hectare extension will take the park to 27.5 hectares - less than a quarter of the 125.4 hectares set aside for Phase 1 of the park.

And the theme park operator since 1999 has a 20-year option to buy a further 60 hectares known as Phase 2, with the possibility of extending the option for a further 10 years.

Corporate governance activist David Webb called for the agreement to be scrapped, saying Disney was never likely to make enough money to be able to exercise the option.

Legislator Audrey Eu Yuet-mee aired similar views saying it was "almost a crime" to have the land tied up for so long.

On his website, Mr Webb noted that while Phase 2 was owned by the government, Hong Kong International Theme Parks - the joint venture between the government and The Walt Disney Company that runs the park - has a 20-year option to buy it at the reclamation cost of HK$2.8 billion plus inflation.

The option can automatically be extended for five years and conditionally for a further five if park attendance is more than 8 million but less than 10 million, meaning it could have priority until 2029.

"One can only assume, in the absence of published accounts, that the park generates just enough cash to cover its operating expenses but not to finance any expansion," Mr Webb wrote.

"Given the looming competition from Shanghai Disneyland ... it seems unlikely that Hong Kong Disneyland would ever be able to justify, on financial grounds, exercising the option to purchase and build out Phase 2. So we face the prospect of watching 60 hectares of public land sit empty for 20 years, or be subject to low-rent, short-term projects like golf driving ranges."

At the Legislative Council's finance committee, Civic Party leader Ms Eu stressed how valuable land was in Hong Kong. "To find land for schools and hospitals is already a painful search."

Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan said Disneyland still had first right of refusal over the land, but was in the process of discussing whether it could be used for other purposes on a short-term lease.

Afterwards, Ms Eu said the government still did not seem to know what to do with the land in Phase 2.

"It's almost a crime to have that land tied up," she said. "So far, it's all just promises up in the air, and the government has not been good at keeping promises."

Lashing for limit on Disney deal talks
16 July 2009
The Standard

The 10-day limit lawmakers were given to discuss the HK$3.63 billion Disneyland expansion deal was yesterday described as being ``terrible and undesirable.'' Finance Committee chairwoman Miriam Lau Kin-yee said: ``In fact the administration knew of the short time available [for members to make a decision], so maybe that was a deliberate move.''

Most committee members ended up supporting the deal, but only after expressing their frustration.

Lau, addressing the Legislative Council, described the Disneyland project as ``particularly disturbing.''

The amount of time lawmakers were given to discuss and think through the deal was undesirable and prohibited them from having in-depth discussions.

She also said that although funding was approved in the end, even members who voted in favor felt unhappy about the situation.

Some were also upset that Disneyland did not sent a representative to answer committee questions.

``It was a very frustrating exercise,'' Lau said.

Relations between the administration and Legco members have become stagnant, she said, and principal officials often fail to show up and send civil servant representatives in their place.

Wrapping up the year's performance, Lau confirmed the committee has approved projects worth HK$188.8 billion, more than double the amount of the previous year.

``During the current legislative session, the committee held 31 meetings, examined and approved 67 individual financial proposal items, including those to implement a number of major infrastructure projects such as the Hong Kong- Zhuhai-Macau Bridge, the West Island Line, and the Central-Wan Chai Bypass,'' she added.

``The public works and infrastructure projects approved this year amounted to more than HK$126 billion.''

:banana::banana:

Staff sacked by Disney asked to come back
17 July 2009
SCMP

Former Walt Disney creative designers - including 30 who were sacked four months ago after Hong Kong Disneyland expansion talks stalled - are being recruited to rejoin the theme park now that expansion plans have been approved.

Letters were sent out on Monday to all former "imagineers" who had worked on the park since it opened almost four years ago, including those who were laid off in March. They have been asked to submit their resumes by next Friday if they want to rejoin.

Sources familiar with the situation said that while all the imagineers were previously paid by parent corporation The Walt Disney Company, based in Burbank, California, some would now be paid by Hong Kong Disneyland.

The move, which came just three days after the Legislative Council approved the park's expansion, has raised suspicions that at least some of the dismissals were a tactical move to put pressure on the government.

In March, Disney halted all creative and design work related to expanding the theme park and laid off more than 30 imagineers. The drastic job cuts reduced the size of the Hong Kong-based imagineering team to a skeleton crew of only about 10 staff.

Events have left some of the sacked staff feeling used and doubtful about whether they want to return.

"I'm still thinking about it," one of the former imagineers said.

Disney expert Dennis Speigel, president of Cincinnati, Ohio-based consultancy International Theme Park Services, said he believed the dismissals were partly tactical and partly to help Disney trim overheads during the economic downturn.

"To some degree, it was calculated," Mr Speigel said. "When the imagineers were laid off, it sent a signal over the bow of the government that it had to do something."

The government has a 57 per cent equity stake in the joint venture that runs the Hong Kong park, with Disney holding the rest.

Under a new structure that is part of the expansion deal, the government will retain about 52 per cent while Disney's stake will rise to 48 per cent.

Imagineers are responsible for planning, creative development, design, engineering, production, project management, and research and development of Disney's theme parks.

Given the highly specialised nature of their work, many former imagineers are expected to take up Disney's offer, although some are understood to have found other jobs already.

As much of the design work for the expansion's three new themed "lands" had already been completed, the locally based imagineering team would focus mainly on managing and co-ordinating construction, overseeing show quality and handling architecture and other projects, the sources said.

"We have begun approaching the former imagineers, and re-employment will be considered according to the newly approved expansion plan," a Hong Kong Disneyland official said.

Expatriate pay packages, which usually feature full housing allowances and other benefits, will be included in the HK$3.63 billion estimated cost of the expansion plan.

The Walt Disney Company is paying almost HK$3.5 billion of the expansion's HK$3.63 billion cost. The company has budgeted about HK$162 million for project and construction management expenses, including the cost of hiring imagineers.

Analysis: Brand Health Check - Mickey must put his Hong Kong house in order
30 July 2009
Media Asia

HONG KONG: Disneyland is in search of fresh ideas. The theme park, Disney's second in the region, opened up a creative pitch this month as it seeks to reverse four years of underwhelming gate receipts and critical mauling.

After two years of negotiation, the park's two shareholders, the Hong Kong Government and Walt Disney, have agreed to invest USdollars 465 million to expand over the next five years. The Government hopes the plan, which will add another 30 attractions and three themed 'lands', will answer critics' complaints of overcrowding and boring rides, and increase visitor numbers by 60 per cent by 2014.

Under the new arrangement, Disney will fund most of the improvements, and will convert hundreds of millions of dollars of existing loans into equity.

Hong Kong Disneyland opened to great fanfare in September 2005, bringing in about five million visitors within its first year, according to Euromonitor International. But problems began when the attraction was hit by a string of controversies. These included a long-running feud with unions over working conditions, several food poisoning scares and an overbooking mix-up that provoked a near-riot by customers who were denied entry. As a result, the park was forced to reshuffle its management team within just a few months of opening. Last year, the attraction appointed a new managing director, Andrew Kam, who had previously worked for Coca-Cola.

But Disneyland has failed to keep up with local rival Ocean Park, which attracts a larger number of visitors and has a lower ticket price. And it will also face growing competition for its core mainland Chinese customer base when the USdollars 3.6 billion Shanghai Disneyland opens in 2014. Even after its expansion, Hong Kong Disneyland will remain the smallest Disneyland in the world.

As agencies prepare for the creative pitch, what marketing strategies should they be advising to help Hong Kong Disneyland boost its performance?

FACT BOX

- Visitor numbers failed to meet the target 5.6 million in the first year and suffered a 20 per cent decline in numbers in the second Visitors rose eight per cent from 2007 to 2008 to 4.5 million but remain below expectations.

- Earlier this year, Disneyland raised its admission prices for Hong Kong residents from HKdollars 295 to HKdollars 350 for adults.

- In June, Disney announced it would invest USdollars 448 million in the expansion of the park and swap its outstanding loans, totalling USdollars 353 million, into additional equity in a joint venture company, Hong Kong International Theme Parks. The Hong Kong Government will retain majority ownership.

DIAGNOSIS 1

As visitors poured into Hong Kong Disneyland in its opening months in 2005, many wondered: 'Where's the rest of it?' The park's somewhat disappointing foray into the Hong Kong and mainland markets can be explained almost exclusively by its modest scale.

In a fervent rush to establish its presence, Disney unveiled a small 'beta' version of the park. Word spread that Mickey Mouse's Hong Kong home is small, crowded, and unimpressive. Attendance figures fell short of expectations in the first year, and declined in the second year Meanwhile, Ocean Park - Hong Kong's answer to a home-grown theme park experience - was enjoying record visitor levels after a facelift.

But few brands can engage consumers the way Disney can. Hong Kong Disneyland is still a solid and entertaining product. The executives simply did not manage expectations effectively when they unveiled the park.

So, is expansion the answer to the park's woes? Only if the lessons from its opening are taken to heart and all efforts are exhausted to ensure that the addition of three new themed areas is all that is needed to convey the entire Disneyland experience.

- Howard Ho, senior consultant, Horwath Hotel, Tourism & Leisure

DIAGNOSIS 2

The brand challenge is to deal with Disney first, and then Disneyland. The secret to Disneyland's appeal is the promise of being able to feel the Disney experience first-hand. It isn't the promise of going on a ride. But it only works if people understand and want to experience Disney.

The agency and client have to figure out if the Disney brand is being conveyed and understood correctly - the promise of happiness and a chance to rediscover the kid inside each of us. Hong Kong Disneyland needs to ask itself what activities and exposure by the Disney brand are influencing perceptions and what the Disney dream represents to Asians.

I suspect Hong Kong Disneyland is working from a disadvantage. In Asia, brand perceptions may be driven more by merchandising than storytelling. But an emotional vein must be tapped to drive differentiation without the benefit of years of brand-building.

This calls for consumer learning, co-ordination of messages across all touchpoints and a focus on an emotional promise that competitors cannot match. Ultimately Disneyland should be asking itself this: do we want to offer people a chance to go on a ride? Or a chance to fulfil a dream?

- Jaime Prieto, regional managing director, Y&R Brands

Disneyland to submit plans for more attractions this month
14 August 2009
South China Morning Post

Detailed building plans for more rides and attractions at Hong Kong Disneyland will be submitted to the government for approval this month, paving the way for construction work on expanding the theme park to start by late December, people briefed on the matter say.

After the plans receive official approval, the infrastructure work will be tendered out.

Several recently sacked Disney "imagineers", or creative staff, have already been rehired and have started work. More than 30 imagineers were expected to be hired as part of the expansion, those who had been briefed said. If everything goes smoothly, construction work will start by the end of the year.

The government, which holds 57 per cent of the equity in the theme park joint venture with The Walt Disney Company, is keen to demonstrate how the HK$3.63 billion expansion will benefit the community. During construction, the project will create more than 3,000 jobs and, on completion, 600 more permanent staff will be hired.

Board members of Hong Kong Disneyland met yesterday and will meet again in about three months' time.

The expansion will add three new themed areas, for a total of seven "lands", and see the area of the theme park increase by about 23 per cent. The new lands are Grizzly Trail, Mystic Point and Toy Story, which is based on the animated film.

Up to the end of May, more than 17 million people had visited the theme park since it opened in September 2005, but summer attendance this year had suffered, those who had been briefed said.

The expansion deal is seen as the best possible option for the government as there is no need for more taxpayer funds. Taxpayers shouldered about HK$23 billion of the HK$27 billion development cost, yet the government only acquired a 57 per cent stake. Disney invested just HK$2.45 billion for a 43 per cent share.

To facilitate the expansion, Disney will inject new funds while the government will use previous loans to the theme park to buy more of its shares. According to details provided by the government to the Legislative Council last month, the changes to the shareholding structure will take place in phases starting from Disneyland's 2008-09 financial year, which ends on September 30.

The government will convert more than HK$2.97 billion of its loans to shares, while Disney will convert its HK$2.76 billion loan to shares and inject HK$212 million in capital.

The changes will lower the government's stake to 53.43 per cent and increase Disney's holding to 46.56 per cent. By 2011-12, annual incremental changes will leave the government with 52.19 per cent and Disney with 47.81 per cent.

Disneyland needs to be more than just different
17 August 2009
South China Morning Post

Hong Kong's government went to extraordinary lengths to become the first city in China to have a Disneyland. The Walt Disney Corporation was won over through being offered attractive and generous financing terms. But hosting the theme park is no guarantee of turning a profit, as lower-than-expected visitor numbers have proven. Worse, as far as authorities are concerned, fears of competition have been confirmed with the steady release of information about plans for a Disneyland in Shanghai.

There has been no formal announcement of what Shanghai Disneyland will look like. Attractions, entrance fees and even size can only be guessed at. A city tourism official has said it could be 10 times as big as Hong Kong's version. Given the challenges our park faces in recouping investment and operating costs, every insight into the project is being scrutinised.

The Shanghai official said we need not worry: China was big enough to host three Disneylands. The only competition would be the distance needed to travel to the parks and the cost involved. Residents from mainland provinces close to Hong Kong would naturally gravitate to the one nearest to them. The official's thinking would be sound were it not for the simple fact that even with the whole of the country as a catchment area and favourable tourism policies, our Disneyland is not doing as well as had been expected.

Just how poorly it is performing cannot be properly gauged. Disneyland has always refused to disclose full visitor figures and profit-and-loss details - despite the people of Hong Kong being the biggest shareholder. The government has won a pledge from the company to be more transparent. The announcement in June that the park would be enlarged with the creation of three new theme areas, two of them exclusive to Hong Kong, are among measures aimed at boosting visitor numbers.

Tourism ranks among Hong Kong's three biggest industries. The majority of visitors are from the mainland; they mostly come here to shop. Disneyland was seen as a magnet to boost numbers. But it will only be a draw if it has a reputation for being worth visiting.

Our Disneyland is the world's smallest and expansion is vital to its success. But being bigger will not in itself boost attendance. If it is to shrug off the tag of "boring" that is increasingly being attached to it, the park must have attractions that are found nowhere else. This is especially so in light of rival theme parks beyond the Disney brand being developed in Singapore and elsewhere, and the globalised world increasing tourists' expectations.

"Being different" is a sound motto for Hong Kong Disneyland, but it also has to be embraced by our tourism officials. They must know that tourists are increasingly sophisticated and demanding. Copycat ideas are not enough to satisfy their expectations, nor will they garner return visits or the word-of-mouth recommendations so vital to increasing volume. New attractions would do well to have a Hong Kong or Chinese theme, and our officials should help encourage such thinking. The government has locked us into Disneyland and it has no choice other than to make it profitable. The expansion plans are moving in the right direction. Concern about the impact of a Disney theme park in Shanghai is justified.

Just as with Hong Kong tourism in general, competition has to be tackled head-on by making our attraction as different, appealing and affordable as possible. Above all else, it has to be reflective of where it is located - Hong Kong, China.

Alien invasion to give Disney a - Halloween howl
27 August 2009
The Standard

Ghouls and mean spirits aren't the only otherworldly elements you'll find at Disneyland over the next two months _ the aliens are coming for the annual Haunted Halloween bash.

Two of last year's three haunted houses are coming back and, with a new third attraction - which will make use of Disney's strength in storytelling and Hollywood-style production - the theme park believes it will pull in the crowds.

``We have recorded double-digit growth in attendances at the past two Halloween events.

``This year's event is the largest so far. We hope visitors will have a lot of fun in the attractions, which will be equipped with top-notch technology and special effects,'' Disney marketing director Frederick Chan Kwok-yu said.

Alien Invasion will be set up in Tomorrowland, where thrill seekers will be able to explore a spaceship.

Two other haunted houses - Main Street Haunted Hotel and Demon Jungle - along with the Glow in the Park Halloween Parade and a scary version of the Space Mountain ride will return.

Inbound Tour Operators Association chairman Simon Hau Suk-kei said many visitors are young adults and have probably gone to previous Halloween events.

He said adding ``freshness'' to the attractions is important.

``Bringing back old stuff is not the biggest problem, but the park ought to modify these attractions so visitors will get new sensations,'' Hau said.

The 44-day Halloween special will start a week early this year, on September 18, and end on October 31.

Night tickets are available for adults and children at HK$258 and HK$228 for Fridays, Saturdays and some Thursdays.

By 二少...易笑 from dchome :

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^^ so.....empty

I love Disneyland. One more reason to visit Hong Kong :laugh: :)

yeah! i love disneyland!! that the reason why I born in Hong Kong! ~_^

Hong Kong Disneyland Resort seriously lacks attractions. One can finish almost all of the rides in one day.

I hope it gets more visitors so that it can be feasibly expanded to rival the parks in Los Angeles, Tokyo, and Paris.

Second-best attendance predicted for Disney
12 September 2009
SCMP

Attendance at Hong Kong Disneyland this year is expected to edge up slightly to about 4.5 million, its second-highest so far, despite the global downturn and swine flu fears, according to sources familiar with the theme park's operation.

Since the park opened four years ago, the number of visitors has see-sawed, reaching about 5.2 million in the first year, then dropping to 4.17 million before rebounding to 4.48 million in 2007-08.

From last October to May, 3.13 million people visited. But summer attendance, especially from the mainland, suffered because of fears of human swine flu.

"Attendance will probably be flat or up a little compared with last year," the sources said. "Even though we're still making a loss, we managed to improve our finances."

Disney's financial period runs from October to September.

At rival Ocean Park, attendance fell about 5 per cent this year compared with last - from 5.03 million to about 4.78 million - but it was still the third-best year in its history.

According to the Hong Kong Tourism Board, the number of visitors to the city fell 13.4 per cent year on year in May, 15 per cent in June and 12.2 per cent in July. The number of mainland visitors was down 9.6 per cent in May, 11.6 per cent in June and 13.7 per cent in July.

Details about Hong Kong Disneyland's performance, including attendance, revenue, and costs and expenses, will be announced annually from the current financial year under a deal with the government to add more attractions. However, the figures must first be filed with the US Securities and Exchange Commission, meaning they will not be publicly disclosed until about five or six months later.

Expanding the Disney park is essential to boost attendance and the bottom line. Disney is especially keen to improve the return on its investment, since the amount of management fees it can collect is now linked to the park's performance.

Under the expansion deal negotiated with the government, the formula for its base management fee was changed from 2 per cent of gross revenue to 6.5 per cent of earnings before interest, taxes, depreciation, and amortisation, or ebitda.

The changes are significant. In the park's second year, for example, total revenue reached HK$2.36 billion, allowing Disney to collect a base management fee of 2 per cent, or about HK$47.28 million. Had the new formula been in place then, Disney would have received nothing, as ebitda amounted to a deficit of HK$272 million.

After deducting depreciation and interest expenses, the theme park recorded a net loss of more than HK$1.51 billion in the second year of operation, according to confidential documents.

Revenue is derived from selling tickets, food, merchandise and other goods and services. Disney can still benefit handsomely from a loss-making park as long as people spend money on food and merchandise, which is the revenue source it derives most of its royalties from.

In the third and fourth years of operations, Disney agreed to waive its management fees and defer royalties in a bid to shore up finances. Although the park will have to resume paying these fees from next month, the sources said the deferred royalties may not need to be paid if certain conditions are not met.

A HK$3.63 billion expansion will add three new themed areas, for a total of seven "lands", and see the area of the park increase by about 23 per cent. To facilitate the expansion, Disney will inject new funds while the government will use previous loans to the park to buy more of its shares.

The changes will lower the government's stake from 57 per cent to 53.43 per cent and increase Disney's holding from 43 per cent to 46.56 per cent by the end of this month.

Magic Kingdom ready to let good times roll
6 October 2009
The Standard

National Day Golden Week saw crowds at Disneyland up by between 7 percent and 9 percent on last year.

Park chiefs also said the occupancy rate at its two hotels was 90 percent.

The Lantau theme park's managing director, Andrew Kam Min- ho, said he is confident the market will remain buoyant even after the holiday, which ends on Thursday.

He said resources plowed in during the financial downturn have yielded returns, adding that attendances in general have not been too badly affected.

Fears over a human swine flu (H1N1) pandemic did hit the tourism industry from May to July but the numbers began to catch up in August.

He expects _ all things being equal _ the situation to return to pre-crisis levels by next year.

Kam said mainland tourists were less affected by the global economic downturn than visitors from Southeast Asia, but the drop in air ticket prices helped stimulate travel.

He added that Disney's HK$3.63 billion expansion project will begin by the end of this year.

In July, the theme park raised admission fees for Hong Kong residents from HK$295 to HK$350 for adults, and from HK$210 to HK$250 for children. Tourists have been charged these prices since February.

The surge in Golden Week holidaymakers also benefited related industries.

Cathay Pacific chief executive Tony Tyler said the traffic figures in the past week have been the best so far this year, with the number of passengers flying first class improving too.

But he said overall revenue is still low and that it is too early to say whether the industry has recovered.

Kwun Tong shopping mall APM has seen a good return on its enhanced promotion campaign.

As of Sunday, the number of visitors and business turnover reached 1.3 million and HK$35 million, respectively, representing an increase of 16 and 13 percent on last year.

By kinlait from dchome :

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^^ The whole thing is about Ocean Park, not Disney. Wrong location?

^^ The whole thing is about Ocean Park. Wrong location?

70pc of competitors are in the red, say industry insiders
5 November 2009
SCMP

Disney is going to Shanghai but, with 2,500 theme parks across the mainland, one might assume the world-famous brand will face stiff competition. Not so: 70 per cent of the parks are in the red, industry insiders say.

According to a survey by the Horizon Group, a strategic research and consultancy firm, about 150 billion yuan (HK$170.5 billion) has been invested in the 2,500 theme parks, but only about 10 per cent are making a profit.

Theme park closings make front-page news on the mainland all too often. In August, Guangzhou's Shijie Daguan (World Park) shut its gates with a deficit after being in business for nearly 15 years.

In 2007, Hangzhou Future World shut down with 260 million yuan in lost investments. In 2000, Shanghai's 400-million-yuan-invested Universal Park closed after only four years.

The most ephemeral one is the Froebelland Park in Wujiang , 70 kilometres west of Shanghai, involving an investment of 1 billion yuan. It shut down in 1999, less than one year after it opened.

Professor Dong Guanzhi of Jinan University released a research report on mainland theme parks, the first of its kind, after his team conducted interviews on hundreds of them. The common theme: they could not attract enough attendance to keep running.

"For example, a theme park with 1 billion yuan of investment needs to sell at least 5,000 tickets a day to repay its loans and pay employees' salaries and other maintenance fees," Dong said.

Investors in Froebelland Park, for example, optimistically hired 3,000 employees in anticipation of at least 15,000 visitors per day. Actually, it attracted fewer than 150 people one day. Dong said theme parks were still luxury goods to most Chinese people. "Most mainland theme parks charge 100 or 200 yuan for one ticket. That's far beyond what people can afford," he said. "Not to mention trying to have frequent visitors."

The history of failures has not stopped new capital from trying to enter the mainland theme park market, however.

Billions of yuan are still going into new parks in Guangzhou, Shenzhen, Hubei and Shandong , among other places, with the encouragement of local governments.

"Local governments are always wooing big theme parks and treating the parks as the officials' political achievement, with a slogan to create jobs and tourism income," Dong said. "Under the excuse of developing theme parks, developers can easily get support and land from local authorities."

But developers don't want just theme parks. Their final aims are to build resort destinations comprising theme parks, hotels, golf courses and real estate, especially villas.

The

But despite the shaky history, the mainland continues its theme park optimism. According to this year's edition of

China's Tourism Green Book, the mainland will enter a new era of park development from next year. While more international theme parks will enter the Chinese market, it says, domestic theme parks will also grow. Copyright (c) 2009. South China Morning Post Publishers Ltd. All rights reserved.

Beijing Business Today quoted an unidentified industry insider as saying: "A theme park developer doesn't really lose money even if its theme park goes into the red ... local governments ask only small land-transfer fees ... the developers make great money when they build projects on commercial property around the theme park and sell them out. Even if a theme park shuts down, its developer can still sell the land and get the money back."

Stop building castles in the air
12 November 2009
The Standard

Once upon a time there was a land of rolling plains and infinite skies, of happy Caucasian couples and beautiful blue eyes, of marble columns and navy pies ...

I guess my poor attempt at poetry wouldn't render any romantic imagery, but I think you get the picture.

No, it's not Disneyland princesses and their lovely princes, but a similar wonderland by the name of Lake Silver.

It is also known as the humongous chunk of cement that landed like a UFO next to our school, jammed half the phone reception networks and lit up the sky above our roof, making what used to be dazzling stars in the night sky look like scattered dandruff.

The two-minute commercial for this development was the subject of a recent complaint to the Broadcasting Authority which ruled it ``misleading.''

I watched it on the internet again and, as I surfed estate building commercials, I noticed to my amusement their common theme _ happy couples in ball gowns, splendid sea views, grand classical orchestral tunes.

I thought how much more far-fetched can these advertisements possibly be?

They are, in some ways, imposing on us their definition of success and in quietly shaping our value system: materialism is the root of happiness; if you have a house, a wife/husband, two kids and a decent view from your balcony, you're a success.

But then it also works the other way round. Advertisements are a reflection of what we want.

Yes, and it bothers me to think that it is not these companies imposing their values on us; we are projecting our values onto them by perceiving success as wealth with a Western air. Think about it, have you ever seen an estate commercial accompanied by pipa music?

It is our thirst for more, our refusal to settle for reality, that keeps us from being happy, nothing more, nothing less.

And here, one of my favourite quotes, by Leo Tolstoy, comes to mind: If you want to be happy, be.

So maybe it's time to stop building castles in the air. I'm not bashing dreams and squashing happiness. I'm just suggesting that maybe we can find them at a more realistic altitude. Maybe it's not that bad to live in a huge chunk of cement _ more than 90 percent of us do and find happiness therein. At least it's a realistic dream.

Student Gloria Yu lives life with passion and writes about it with hope.

Disney seeks to consolidate reputation in China
19 November 2009
Media

The entertainment giant will use a new theme park to build on an already strong brand.

Not content with just the one Disneyland in Greater China, The Walt Disney Company has finally reached an agreement with the Chinese Government to develop a new theme park attraction in the Pudong district of Shanghai. Disneyland Shanghai will cost US$3.7 billion to build and is scheduled to open in 2014.

The news signals a remarkable comeback by Disney, whose characters first appeared in China in the 1930s but, for obvious reasons, struggled to make any headway for much of the latter half of the 20th century. In the 1980s the brand was expelled from China altogether.

After that setback, Disney operated out of Hong Kong, says David Wolf, CEO of Wolf Group Asia, and made "slow, but important progress" in importing products into China. "In 1996, Disney started working with a small US company to produce a Mickey Mouse radio show on China National Radio," he says.

Since then it has grown in status to become one of the strongest foreign brands in China. "It has one of the highest brand loyalty and brand equity levels we have seen among foreign brands, along with Apple and KFC," says Ben Cavender, senior analyst at China Market Research Group. "Both children and parents love the brand and think that it provides great edutainment."

The entertainment company has managed to expand into areas such as education, with the launch of the Disney English-language teaching programme in Shanghai in 2008. The opening of a Disneyland, then, should be a good opportunity to consolidate this status.

Compared with the Hong Kong attraction, Shanghai Disneyland promises to be more squarely aimed at a Chinese audience. Unlike Hong Kong, Chinese consumers will not need a visa to visit the Shanghai attraction. And the huge number of people living within a few hours' drive of the park bodes well for ticket sales.

Hong Kong Disneyland faced a number of challenges in its early days, including criticism of its small size. Cavender says Disney has learned from the challenges it faced in Hong Kong. "Disney has already announced that Disney Shanghai will be the largest in the world. That is a great first step, as Chinese like things big."

Edmund Ng, business director of Greater China at brand specialist consultancy Cowan, also advises that a different strategy is needed to target mainland consumers. "Imposing the traditional Disney framework will not work. Chinese audiences are different, and these differences must be acknowledged. The planned theme park in Shanghai looks to address specific needs of the China market and has the potential to be a big hit. The park should also help increase demand for other Disney-themed products and services such as Disney English and Disney-branded clothing and paraphernalia."

Unlike its experience in many markets, Disney has only limited (legal) distribution of its media content to reinforce its brand. It does not own channels in China and the amount of content that can be imported from the US is heavily restricted. It has built some relationships and collaborations with local partners to develop and air movies, and has allocated a budget to China to grow its local movie production in the future.

Wolf says the future of Disney in China is based on three factors. "We're not going to see a Disney Channel in China any time soon, but Disney's desire to replicate its identity in China in a locally appropriate fashion is based on characters, media and experiences. This doesn't have to be in the form of animation. The brand needs to look at how it's going to get mileage out of its global characters and how to adapt its stories to China to include content and Chinese characters."

Is a small start for Disney just a big ploy?
25 November 2009
SCMP

How big Shanghai Disneyland will ultimately become remains a pressing question, after Beijing announced that only 116 hectares had been reserved for the city's long-coveted theme park.

The announcement raised eyebrows, as the space represents only a quarter of the 4 sq km, or 400 hectares, reported when Shanghai unveiled its plan for the mega project three weeks ago.

So officially, Shanghai Disneyland will be smaller than its Hong Kong rival, which covers 126 hectares. But as time goes by, Shanghai could become the biggest.

Two Shanghai government officials with the knowledge of the matter said that the statement by the National Development and Reform Commission referred only to the first phase of construction, and that there would be future expansion.

Admitting that details of the project had yet to be finalised, one Pudong district government official said that the Shanghai park would definitely outgrow its Hong Kong counterpart.

It may boil down to tactics that the mainland is adopting to nurture the growth of its own Magic Kingdom.

First, the central government and Shanghai municipality have yet to allay concerns of a bitter rivalry between Shanghai and Hong Kong as they up the ante to vie for tourists.

It is a middle road that Shanghai appears to be taking, to steady Hong Kong nerves and demonstrate effusive goodwill after Li Bincheng, a division director of the city's tourism administration, made upbeat remarks in August that the densely populated China market could sustain even three Disney theme parks.

It is believed that Shanghai's park, set to open in 2014, will eventually cover 10 sq km, after second- and third-phase expansions.

A Shanghai-based political analyst, who asked not to be identified, said: "It's another game of politics. Beijing definitely has its reasons to understate the size of the first phase."

Second, Beijing has to play down fears of an invasion of Western culture, after a group of scholars and government officials lodged complaints that the landing of Mickey Mouse would give full play to the United States' entertainment industry in China, denting the growth of homegrown companies and eroding the country's cultural heritage.

Analysts said the mainland was taking a go-slow approach to build Shanghai Disneyland, as it considered the potential damage to the domestic entertainment sector.

It was reported that the Ministry of Culture objected to the building of the park last year when the central government reviewed Shanghai's proposal for the multibillion-yuan project.

Third, Shanghai has stepped up efforts to cool the red-hot property market amid frenzied land and home purchases, as the news of the park heightened people's expectations of soaring property prices.

On November 4, when Shanghai officially announced its plan to build a Disney theme park, a parcel of land three kilometres from the Disney site was sold at 14,024 yuan (HK$15,935) per square metre in an auction, nearly quadruple what land authorities had targeted.

A wild price gain for Disneyland-related stocks has also panicked officials, with the Shanghai government and the China Securities Regulatory Commission fearing a boom-to-bust cycle when profit-taking sets in.

The Jielong Industry Group, which owns a parcel of land near the Disney site, now trades at more than 500 times its earnings for last year. The average price-to-earnings multiple among Shanghai-listed firms stood at 28 yesterday.

And the Shanghai government could go it alone by expanding the construction site without Beijing's approval.

An economist close to the city government said: "It wouldn't be a surprise if Shanghai took a bold step to unilaterally expand the size of the park, since there remain policy loopholes for the city to take advantage of.

"The city government would say the expanded space is for the related projects such as hotels and commercial buildings."

Hong Kong Disneyland says no plan for further expansion
30 November 2009
Agence France Presse

Hong Kong's Disneyland on Monday dismissed a report that it is mulling a further expansion in a bid to compete with a planned new park in Shanghai.

The Hong Kong Economic Times cited an unnamed source as saying that Disneyland is considering a further enlargement, after it announced a deal in July to expand the venue by almost one quarter.

But a Disneyland spokeswoman said there was no such plan.

"The current position is to implement the extension plan as agreed in July with the development of the three themed areas in phases. There has been no discussion on further expansion," she told AFP.

Under the deal announced in July, Disney would invest 6.2 billion Hong Kong dollars (795 million US) to build 30 new attractions over the next five years.

The government will retain control of the park with a 52 percent ownership stake.

Since its opening in 2005, Hong Kong Disneyland has been desperate to boost the number and quality of its attractions at the three billion US dollar venue as it struggles to attract visitors.

But the park's future became more uncertain after China announced earlier this month that it had given the green light for Disney to build its long-awaited theme park on the Chinese mainland in Shanghai.

There were concerns that both mainland Chinese and overseas tourists would shun the Hong Kong park when the Shanghai venue opens in 2014.

The first phase of construction for Shanghai Disneyland will cover only 116 hectares (1.2 square kilometres), making it smaller than the 126-hectare Hong Kong park and one of the smallest of Disney's franchises.

China big enough to support Disneylands in Shanghai and Hong Kong, top executive says
13 December 2009

HONG KONG (AP) - China is big enough to support two Disneyland resorts, a top executive said Sunday, amid concerns the company's new Shanghai park would draw visitors away from its one in Hong Kong.

Bill Ernest, president of The Walt Disney Co.'s parks in Asia, noted that in the U.S., where the population is about a quarter of the size of China's, there are already two major resorts -- in Orlando, Fla., and in Anaheim, Calif.

"We think there's plenty of room," Ernest said at a groundbreaking ceremony for a long-awaited expansion of Hong Kong's Disneyland. "We think there's plenty of business there that supports both parks."

China's planning agency approved plans for a Disney theme park in Shanghai last month, part of a government push to develop China's biggest city into a global services center and tourist destination.

The Shanghai park has been estimated to cost $3.5 billion, though Ernest said it was too early in negotiations with the government to give any details about the resort's price tag, attractions or capital structure.

The addition of three new theme areas in Hong Kong's park will enlarge the resort by nearly a quarter over the next five years.

The $465 million expansion, announced in July, was considered a long-overdue move to lure more young adults and other visitors by addressing complaints the park was too small.

It opened in 2005 to great fanfare only to suffer disappointing attendance its first two years. However, visitor numbers in its third year grew by 8 percent, the Hong Kong government says.

Likely anticipating a Shanghai park, Hong Kong secured as part of the expansion two new areas, featuring "frontier town" and "rain forest" themes that will be unique among Disneylands worldwide when they open. The third area, based on the hit Disney-Pixar "Toy Story" films, will be exclusive in Asia.

The park is a joint venture between Hong Kong's government, which is separate from mainland China's, and the American entertainment giant, based in Burbank, Calif.

Theme Park Developers Turn Their Attention to Asia, Where Business Is Growing
26 December 2009
The New York Times

SINGAPORE -- The global downturn put some United States theme parks into bankruptcy and upended grand plans for new ones in the Middle East. But in Asia, a development boomlet is under way as operators race to open parks and add attractions to draw in the region's growing middle class.

A Universal Studios park is set to open early next year in Singapore at Resorts World at Sentosa, a sprawling development that includes a casino. Over the border in Malaysia, ground has just been broken on the first Legoland in Asia, scheduled to open in 2012.

In Hong Kong, the roughly $750 million redevelopment of Ocean Park is to be completed in 2013, while Hong Kong Disneyland Resort recently began a $465 million expansion project that is to add three areas by 2014. And last month, Disney finally won approval from the Chinese government to build a theme park in Shanghai; it is expected to open in five to six years.

''Even with the economic hardship the world has been feeling, there is still stability in this part of the world, and people are still looking to do things that are out of the ordinary,'' said Tom Mehrmann, chief executive of Ocean Park in Hong Kong.

Overall attendance at the world's top 25 theme parks has declined over the last couple of years, according to a report by Economic Research Associates, a consulting firm, and the Themed Entertainment Association, an international industry association. But visits to the 10 most-visited Asia-Pacific parks have continued to increase, albeit at a slow pace. With this upward trend expected to accelerate, developers are focusing on the region.

The industry anticipates solid growth in Asia, even though over the last six years, the number of what Mr. Mehrmann called world-class parks in the region has risen to more than 35, from about 15. ''What it says is that the market is growing, the middle class is growing, discretionary time and money is growing,'' he said.

Ocean Park had a record 5.03 million visitors in the fiscal year that ended in June 2008 and registered a small drop to 4.8 million in its fiscal 2009. But Mr. Mehrmann said that attendance had started to rebound in August.

Recent signals from big industry players point to a bleak near-term picture worldwide. Revenue at Walt Disney's parks and resorts dropped 7 percent, to $10.6 billion, in the fiscal year ended in September. Universal Studios' theme parks, which General Electric sold along with NBC Universal to Comcast, have also been struggling this year, though according to G.E., the company has been able to offset the attendance declines partly with cost-cutting.

Meanwhile, Six Flags, which owns 20 amusement parks, mainly in the United States, filed for bankruptcy protection in June, burdened by high debt and declining attendance. It is now working on a restructuring plan with creditors. Dubailand, which was to include Paramount, Marvel and DreamWorks Animation theme parks among others, is now only a distant dream.

But some investors see opportunities in the downturn. Apollo Global Management said last week that it would acquire the theme park operator Cedar Fair in a deal worth about $2.4 billion, including assumed debt. Cedar Fair's properties include Cedar Point in Ohio, Canada's Wonderland near Toronto, Dorney Park in Pennsylvania and Knott's Berry Farm and Great America in Southern California. Cedar Fair said that attendance had dropped by 1.2 million visitors during the first three quarters.

The deal follows an agreement in October by the Blackstone Group to buy Anheuser-Busch Inbev's 10 theme parks in the United States for $2.7 billion, including the SeaWorld parks in Orlando and San Diego and Busch Gardens in Tampa, Fla., three of the most-visited theme parks in the world. Blackstone already has a majority stake in the Merlin Entertainment Group -- which owns Legoland, among other parks -- and the Anheuser-Busch assets will make the private equity firm the second-largest company in the theme park business, after Disney.

John Ussher, general manager of Legoland development at Merlin, said that his company wanted to introduce the brand across the globe. ''We've had a good year, we've weathered the storm well throughout our parks in Europe and the United States,'' he said, while declining to provide attendance numbers. ''We feel very strongly about the potential of the new park in Malaysia. The region has terrific potential.''

The company is also working on a Dubai Legoland, although Mr. Ussher said the project had been delayed and the new expected opening date was 2015. He said Legoland was also looking for sites in South Korea and Japan and would be interested in developing a park in China.

The arrival of new competitors in Asia has put pressure on existing players in the region. Ocean Park opened two major new attractions this year: Amazing Asian Animals, an exhibit spanning 270,000 square feet, and Ocean Express, a 0.8-mile train ride that simulates traveling in a submarine. Next year the park will open Aqua City, an ocean-themed area with a new aquarium complex.

Mr. Mehrmann said the redevelopment and expansion of his park were essential to keeping it relevant, especially as China added a string of regional theme parks. Chinese news media recently reported that an ''Andersen's Fairy Park,'' based on the fairy tales of Hans Christian Andersen, would open in Shanghai to coincide with the 2010 World Expo.

Japan, with its aging population and stagnating economy, may be one exception to the relatively rosy outlook for Asian theme parks. Attendance at most Japanese parks was flat or down in 2008, with the exception of Tokyo Disneyland and Tokyo Disney Sea, according to the research report. Admissions at Universal Studios Japan in Osaka decreased by 5.8 percent, to 8.1 million, during the year that ended in March. USJ, the operator of the park, was sold for $1.12 billion to a consortium led by Goldman Sachs Group this year.

Gabriel Chan, an Asia gambling research analyst at Credit Suisse, said he doubted the new theme parks would cannibalize one another, as they all had differences in terms of rides. For example Universal Studios Singapore will have the world's only ''Madagascar'' attraction, and will also bring to life the first ''Far Far Away'' castle based on the Shrek movie franchise.

One exception, Mr. Chan said, could be Hong Kong Disneyland. The Shanghai Disney park, he said could be a threat to Disney's Hong Kong property, ''given the fact that a lot of Disney's Hong Kong visitors are mainland Chinese.''

The battle of the amusement parks
10 January 2010
The Jakarta Post

With their roller coasters, costumed characters and cotton candy, amusement parks never fail to put a grin on visitors' faces. We compare a few of the favorites in the region.

Universal Studios, Osaka

Long before Universal Studios had any plans to open a park in Singapore in the first quarter of this year, this park in Japan was a top entertainment destination for families. It's easy to see why because the movie-themed park has rides and attractions for people of all ages.

Our favorite ride, hands down, was "The Amazing Adventures of Spiderman", which incorporates 4D technology into a rollercoaster ride. Expect eye-popping images flying at you with tactile effects such as feeling the heat of an explosion or the spray of water on your face, which creates an almost-real experience.

"Back to the Future: The Ride" offers a similar concept with the added element of time travel.

"Hollywood Dream - The Ride" is another rollercoaster ride with a twist. Built-in speakers in the headrest allow for a choice of music selection (Michael Jackson, J-Pop, and The Beatles to name a few) as you go off the rails, so to speak. The ride is not as scary as it appears from down below, with just a mild dose of adrenalin.

Don't miss "JAWS", which puts visitors on a boat ride in a man-made river where dangerous creatures leap out of the water to give them a good shock. Go at early dusk, when the darkening sky adds much creepiness to the atmosphere. Follow it with "Backdraft", set on a blazing factory site. This is as close as you can get to being a firefighter, witnessing explosions and an inferno taking center stage.

The downside of Universal Studios Osaka is that shows on screen, such as "Shrek's 4D Adventure" and "Terminator 2: 3D" are dubbed in Japanese. Skip "Terminator 2: 3D" as the ride will get you lost in (no) translation with its overly long Japanese introduction. However, if you have spare time, "the Shrek show" is still worth watching despite the language barrier. The kids will have a blast with the 4D effects.

Before leaving the park, make a stop at the WaterWorld stunt show. More thrilling than the actual film and at only a mere fraction of its running time, the audience will be served with water action scenes, flying jet skis, fireballs and more importantly, a drenching down for those in the front rows. Plus you won't have to put up with Kevin Costner's stiff acting this time. Log on to www.usj.co.jp for ticket fares, opening hours, etc.

Disneyland, Hong Kong

It's every child's fantasy to visit Disneyland at least once in his or her life, and since the opening of Disneyland Hong Kong in 2005, that dream has been closer than ever. Little ones will love the idea of having their favorite Disney characters from the small screens come to life. Take a leisurely stroll through the park and let the kids mingle with Mickey and co.

In particular, we will never stop recommending "Space Mountain" to any Disneyland newbie. The rollercoaster ride is better than many others as it catapults riders at a high speed into "space", full of stars, comets and planets. An adrenalin booster at the start that becomes a fascinating space ride, it's one Disneyland landmark not to be missed.

Those who have been to Disneyland Paris, Tokyo or Orlando will see the Hong Kong branch is missing some of the all-time favorites such as "Peter Pan's Flight" and "Pirates of the Caribbean". And too bad, Disneyland Hong Kong also pales in comparison with other theme parks in terms of heart-stopping rides.

Clearly, the park is aimed at families with children. What Disneyland Hong Kong lacks in thrill-seeking rides, it makes up for in a variety of entertainment for the little ones. Head to Fantasy Land and let the kids run wild on "Mad Hatter's Tea Cups", "Dumbo the Flying Elephant", "The Many Adventures of Winnie the Pooh", and "Cinderella Carousel" for the best day of their lives. We also loved "Festival of The Lion King", a feast-for-the-eyes stage show that's fun for all family members.

Those who like to have a complete Disney-vaganza for the whole family can stay at the Hong Kong Disneyland Hotel with goodies like free park admission or the Disney Princesses dress up event. The website park.hongkongdisneyland.com has all the details.

Warner Bros Movie World, Gold Coast

Tourists go to the Gold Coast in Queensland, Australia, for either the beach or the theme parks. Or you can have both by making time for Movie World in between the strolls along white sandy beaches.

Movie World, endorsed by Warner Bros, has many amusing rides that draw their inspiration from summer blockbusters. There are at least three big roller coasters in the park, "Scooby-Doo Spooky Coaster", "Lethal Weapon - The Ride" and "Superman Escape". The latter is the park's most talked about roller coaster that accelerates from 0 to 100 km/h in under two seconds. Visitors are given a chance to act as MRT passengers in a fatal incident who desperately need to be saved by Superman himself. From indoor to outdoor, the "MRT" takes you on a journey of non-stop drops, turns, hills and twists.

Another superhero from the big screen, Batman, is also saving people under his wing when he launches to the sky in "Batwing Spaceshot". In this high-octane event, riders are propelled up to the sky (61 meters high to be exact) at 64 km/h speed. Raise your hands in the air and let the blood rush to your head.

For toddlers familiar with Looney Tunes characters, "Kids WB Fun Zone" is the place to be. They'll easily shriek with joy with "Tweety and Silvester Cages", "Road Runner Roller Coaster" and "Looney Tunes River Ride".

Right next door to Movie World, kids and adults alike can have a jolly splashing time at the Wet`n'Wild Water world, a water park with plenty of attractions to go wild about. What's even better is that it's summertime in Australia now until March. Check movieworld.myfun.com.au for special offers on combo tickets and more.

Opinion : We must work together
17 January 2010
South China Morning Post

I accept that Shanghai's Disneyland will pose a threat to Hong Kong and the government should find ways to deal with this problem.

The government should encourage the creation of more tourist spots.

We need to attract more visitors to come to our buildings which are of historical importance. Many people are more interested in looking round older buildings. We all have a duty to support our city and I would like to see a more united front on the part of Hongkongers.

So often I hear citizens saying that we have to accept we will lose out to increased competition from the mainland. We should not be so negative.

If we work together and support our city, I believe it can remain competitive.

Jonathan Mak Ka-long, Sha Tin

SCED speaks on Hong Kong Disneyland financial performance
Tuesday, January 19, 2010
Government Press Release

Following is the transcript (English portion) of remarks by the Secretary for Commerce and Economic Development, Mrs Rita Lau, to the media before the meeting of the Legislative Council Panel on Commerce and Industry this afternoon (January 19):

Secretary for Commerce and Economic Development: This report of the financial performance is published in accordance with the agreement reached between The Walt Disney Company and the Hong Kong Government as part of the expansion plan. We note obviously as a shareholder the performance as delivered by the theme park company is certainly falling short of our general expectation. I wish to point out, however, that the theme park is a long-term investment, which forms part of the tourism infrastructure of Hong Kong. In expressing our concern on the performance of the theme park, we also wish to point out that since its opening in 2005, it has received over 19 million visitors and has contributed quite significantly to the Hong Kong economy.

Nevertheless, we remain concerned and we will continue to monitor the performance and operation of the theme park. And it is very important for the management to control costs to improve the company's efficiency and operation with a view to boosting its performance.

Next week, we will have the opportunity to brief members of the Legislative Council (Economic Development) Panel, and we certainly hope that the company management will be able to share with members its business plan for the coming year and its promotional strategy with a view to boosting the park's performance, as well as its general business.

All-revealing Disney gets an earful
The Standard
Wednesday, January 20, 2010

Hong Kong Disneyland has opened its books to reveal a loss of HK$1.3 billion.

The figure, for the fiscal year up to last October, compared with a HK$1.6 billion loss in the previous 12 months.

The attraction - going public since first opening in 2005 - saw 4.6 million visitors, an increase of 2 percent on the 4.5 million in 2008.

Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan said the government - as the largest shareholder - is dissatisfied with the financial performance and will continue to keep close watch on the theme park's cost controls and efficiency.

But Lau then sounded more conciliatory: "The park is a long-term investment, and it takes a longer time for return - just like many large-scale projects."

Lawmakers will be discussing Disneyland next week and they are sure to focus on the fact that the multibillion- dollar attraction, in which taxpayers hold a stake of close to 53 percent and the Walt Disney Co the rest, appears a long way from breaking even.

Disneyland, in fact, appears to be set for a lot more red ink until a major expansion of facilities is completed four years from now.

Legco economic development panel member Fred Li Wah-ming gave a hint of things to come when he complained the park had failed to reveal full details of expenses and income.

Li said it also needs to explain why it continues to fall short of its targeted annual attendance of 5.6 million.

Disneyland managing director Andrew Kam Min-ho sought
to put a positive spin on the overall performance, saying a HK$70 million loss before interest payments and taxes, depreciation and amortization was less than 3 percent of revenue, while costs and expenses were reduced by 4.3 percent to HK$2.6 billion.

The outbreak of human swine flu (H1N1) and the financial crisis were cited as putting the brakes on attendances last year.

Mainlanders and local residents increased by 2 percent and 1 percent respectively to 36 percent and 41 percent of all visitors, but international patronage fell.

So did visitor spending, by 1 percent, along with hotel occupancy, down from 78 percent to 70 percent.

Total attendance since opening up to last December stood at 19 million.

Kam said the HK$3.6 billion park expansion project involving three themed areas will be completed by 2014, increasing total size by 23 percent.

He hopes the attraction will be able to break even after the expansion.

Raymond So Wai-man, of the Chinese University's department of finance, said Disneyland has reduced losses by cutting costs.

So is optimistic the park may break even in three to four years, but doubts a surplus may be generated in the foreseeable future.

Disney hopes Guangdong passes will work magic
The Standard
Tuesday, January 26, 2010

Hong Kong Disneyland is considering issuing annual passes to Shenzhen and Guangzhou residents to build up a base of loyal customers.

At yesterday's meeting of the Legislative Council's economic development panel, a theme park executive said Disney is hoping more mainland customers will return.

According to its fiscal report released last week, 36 percent of park visitors came from the mainland in 2009, an increase of 2 percent on the previous year.

Hong Kong Disneyland managing director Andrew Kam Min-ho said the park will focus its promotions on the mainland by classifying 24 cities in three target groups.

It will also establish its fourth mainland office in Chengdu in March.

"In the future, we will concentrate more on Guangdong residents, the largest mainland market to our park. Seeing the opportunities derived from CEPA [Closer Economic Partnership Arrangement] and loosened visa policies, we hope to attract more tourists from Guangzhou and Shenzhen," Kam said.

"That is why we are considering issuing annual passes for Shenzhen and Guangzhou residents hoping for more frequent returns to Hong Kong."

The park will attract young adults as well as families through special events, such as Lunar New Year celebrations to mark the Year of the Tiger.

In this year's working plan, Kam said the park will work on increasing attendances and occupancy of its two hotels, while implementing cost controls.

When asked by Democratic Party lawmaker Albert Ho Chun-yan if there is any cooperation with other local attractions, Kam replied Disney is discussing the bundling of tourist packages with cable cars operation Ngong Ping 360.

Lawmakers also asked how the park will tackle its loss of around HK$2.8 billion over the past two years.

Kam said Disney hopes to break even as soon as possible with new attractions opening after expansion in 2014.

Secretary for Commerce and Economic Development Rita Lau Ng Wai-lan said the government, which is Disneyland's largest shareholder, will keep monitoring the operation that is a long-term investment.

The government will sell its stake when the operation stabilizes.

Disneyland's problems can be fixed, says park veteran
25 January 2010
SCMP

Hong Kong Disneyland's net losses of HK$4.4 billion in the past three years is at "the high end of the scale", but could be corrected by reinvestment and increased market penetration, a theme park veteran says.

"By the third year a park should be profitable," Darrell Metzger, the International Association of Theme Parks and Attractions' immediate past chairman said in an interview.

Metzger worked in the Disney resorts in California and Tokyo for 10 years before running Ocean Park from 1991 to 1995. He also managed Sentosa Island Resort in Singapore for nearly seven years from 2001.

Based on information revealed by Disneyland last week and a confidential document, which was seen by the South China Morning Post earlier, the theme park's HK$4.4 billion in losses does not include its first year when its loss was believed to be HK$1 billion or more.

"Substantial losses for three years would indicate a more fundamental problem," Metzger said.

He said Hong Kong Disneyland had found it difficult to "steal" loyal clients from Ocean Park and had to rely on broadening the market.

One area Disney had to look at was its hotel occupancy rate, which dropped to 70 per cent last year because of the prevalence of human swine flu.

By comparison, Disney hotels in Orlando and Tokyo usually had occupancy rates of between 80 per cent and 90 per cent.

Metzger said Disney themed hotels required a higher occupancy rate because they had the added costs of providing entertainment such as appearances by Disney characters, which was more expensive than any five-star competitor would dare to spend.

Hong Kong Disneyland last year attracted 4.6 million guests, with each visitor spending an average of HK$552.

Raymond So Wai-man, associate professor of finance at Chinese University, estimated that the park could break even if it boosted either the attendance figure or average spending figure by 50 per cent to HK$828 per capita spending or 6.9 million guests.

"Obviously, it's impossible to achieve that in a year," So said. "Under the most optimistic scenario, the number of guests will surge to 6.9 million visitors by 2014 if the attendance increases by 10 per cent year on year from now on."

Disneyland's management has forecast that it will break even after 2014 when a HK$3.63 billion expansion is completed.

Metzger agrees with this projection, saying the theme park "will be approaching break-even or mild profits in the next five years". Now based in California, he said the challenge to increasing attendance was in luring more visitors during non-peak dates, which required a solid and consistent marketing and sales strategy.

Metzger expects Disneyland to be a must-see Hong Kong attraction for tourists in 10 years.

He believed the park helped enrich Hong Kong as a tourist destination and was "characteristically ahead of the curve" with Singapore opening Universal Studios this month and South Korea in 2014, as well as Shanghai Disneyland opening in several years.

Legislators will discuss Disneyland's performance at today's meeting of the economic development panel.

Disneyland's problems can be fixed, says park veteran
25 January 2010
SCMP

Hong Kong Disneyland's net losses of HK$4.4 billion in the past three years is at "the high end of the scale", but could be corrected by reinvestment and increased market penetration, a theme park veteran says.

"By the third year a park should be profitable," Darrell Metzger, the International Association of Theme Parks and Attractions' immediate past chairman said in an interview.

Metzger worked in the Disney resorts in California and Tokyo for 10 years before running Ocean Park from 1991 to 1995. He also managed Sentosa Island Resort in Singapore for nearly seven years from 2001.

Based on information revealed by Disneyland last week and a confidential document, which was seen by the South China Morning Post earlier, the theme park's HK$4.4 billion in losses does not include its first year when its loss was believed to be HK$1 billion or more.

"Substantial losses for three years would indicate a more fundamental problem," Metzger said.

He said Hong Kong Disneyland had found it difficult to "steal" loyal clients from Ocean Park and had to rely on broadening the market.

One area Disney had to look at was its hotel occupancy rate, which dropped to 70 per cent last year because of the prevalence of human swine flu.

By comparison, Disney hotels in Orlando and Tokyo usually had occupancy rates of between 80 per cent and 90 per cent.

Metzger said Disney themed hotels required a higher occupancy rate because they had the added costs of providing entertainment such as appearances by Disney characters, which was more expensive than any five-star competitor would dare to spend.

Hong Kong Disneyland last year attracted 4.6 million guests, with each visitor spending an average of HK$552.

Raymond So Wai-man, associate professor of finance at Chinese University, estimated that the park could break even if it boosted either the attendance figure or average spending figure by 50 per cent to HK$828 per capita spending or 6.9 million guests.

"Obviously, it's impossible to achieve that in a year," So said. "Under the most optimistic scenario, the number of guests will surge to 6.9 million visitors by 2014 if the attendance increases by 10 per cent year on year from now on."

Disneyland's management has forecast that it will break even after 2014 when a HK$3.63 billion expansion is completed.

Metzger agrees with this projection, saying the theme park "will be approaching break-even or mild profits in the next five years". Now based in California, he said the challenge to increasing attendance was in luring more visitors during non-peak dates, which required a solid and consistent marketing and sales strategy.

Metzger expects Disneyland to be a must-see Hong Kong attraction for tourists in 10 years.

He believed the park helped enrich Hong Kong as a tourist destination and was "characteristically ahead of the curve" with Singapore opening Universal Studios this month and South Korea in 2014, as well as Shanghai Disneyland opening in several years.

Legislators will discuss Disneyland's performance at today's meeting of the economic development panel.

Tiger traffic set to test borders
8 February 2010
The Standard

Almost nine million people are expected to pass through border control points during the Lunar New Year holiday period _ a rise of about 10 percent on last year.

The government expects about 3.16 million people _ an average of about 263,000 daily _ to pass through the Lo Wu control point during the 12 days from February 11 to 22.

The Immigration Department said Lo Wu will be the busiest for inbound traffic on February 16, the third day of the Year of the Tiger, with about 191,000 arrivals.

Outbound traffic will be heavy on Friday, with 183,000 leaving Hong Kong.

The Lok Ma Chau control point will also be packed with travelers.

Officials say two-way traffic should reach about 1.33 million people, or a daily average of 111,000.

Immigration officials say they are ready for the holiday rush, with extra officers and security staff assigned to various checkpoints.

To monitor the situation, the department, police, Customs and Excise and the MTR Corp will set up a joint command center at the Lo Wu control point.

Lunar New Year fairs across the territory run from today to Lunar New Year Day on February 14 and are expected to be packed.

Hong Kong Disneyland managing director Andrew Kam Min-ho said attendance at the park has climbed in the past two weeks because the mainland school holidays started earlier than last year.

Meanwhile, the Hong Kong Observatory has forecast that temperatures will drop to 15 degrees Celsius on Friday.

The outlook is cloudy and rainy for the weekend.

The drop in temperature is due to a northeast monsoon, which will hit the southern China region on Friday and Saturday, according to senior scientific officer Ma Wai-man.

Asian parks draw fewer visitors but HK Disneyland bucks trend
27 April 2010
SCMP

Major theme parks in Asia were hit harder by the financial downturn than their counterparts in America and Europe. A global survey found that total attendance in Asia dropped 3.5 per cent to 65.5 million last year, compared to a 1.3 per cent fall in the Americas and no change in Europe.

Like most leisure travel, theme park holidays are discretionary purchases that consumers are likely to cut back on in lean times.

In Asia, the economic downturn and fears about the spread of human swine flu led many visitors, including mainlanders, to stay home last year, hurting the attendance of every major theme park in the region except Hong Kong Disneyland and Lotte World in Seoul, according to data compiled by the Themed Entertainment Association and the consultancy, AECOM Economics.

Hong Kong Disneyland recorded attendance growth of about 2 per cent to some 4.6 million last year, making it the 16th most visited theme park in the world, up two places. Local rival Ocean Park suffered a 4.6 per cent drop but still managed to attract 4.8 million visitors, ranking it number 14 in the world, up one spot from the previous year's list.

Both parks are embarking on ambitious expansion plans to add more attractions, a move they say is essential to boosting attendance and the bottom line.

Disney's Magic Kingdom in Florida again topped the rankings. Worldwide, Disney parks dominated the top eight spots on the list with Universal Studios Japan coming in at number nine with 8 million visitors, down 3.6 per cent.

The theme park that enjoyed the biggest improvement last year was De Efteling in the Netherlands, up one-quarter to 4 million visitors. Islands of Adventure at Universal Orlando in Florida saw the biggest drop, with attendance down 13.8 per cent to 4.5 million visitors.

The figures in the report are based on the calendar year. Ocean Park's financial year ends on June 30 while Hong Kong Disneyland's ends on September 30. AECOM uses various sources for its numbers.

"Most operators in Asia were cautiously optimistic for the 2009 season, and that caution was justified. The season turned out to be challenging due to the global financial crisis, outbreak of H1N1 and poor weather conditions in some markets in Asia," Christian Aaen, AECOM's regional director in Asia, said.

"Still, new parks opened in China and key markets in Asia have a significant development pipeline compared to anywhere else in the world." The opening of Universal Studios Singapore this year marked the beginning of a decade in which Asia would dominate in terms of growth for the industry, he said.

Hong Kong Dinsey land is Crap
best dinesy lands in the world
1 Los Angeles
2 Orlando
3 Paris
4 Tokyo
5 Hong Kong

I found this in Wikipedia and I know Wikipedia is not a credible source, but at least it gives you an idea of what they are doing. Here are their plan:

The park is planning to introduce a 5-year expansion plan in the near future. This will include construction of new themed lands in the area beyond the current railroad track in Adventureland and Fantasyland, which the total land area is about 5 hectares.
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Disneyland pins hopes on a busy summer to push it into profit
10 June 2010
SCMP

Hong Kong Disneyland is banking on a busy summer to take it into profit after many visitors stayed away last year because of fears of human swine flu, managing director Andrew Kam Min-ho said.

Merchandise sales have improved, while spending on food has been stable at the theme park, which celebrates its fifth anniversary in September, he said in Shanghai.

But uncertainty about the impact of the World Expo in Shanghai on the number of visitors to Hong Kong during the peak summer period remains a key concern, park insiders say.

Last year Disneyland was profitable until near the end of its financial period, at which point many suppliers were paid, the insiders said. Overall for the year, Ebitda - or earnings before interest, taxes, depreciation, and amortisation - saw a loss of HK$70 million. There are hopes of breaking even or profit this year.

Positive Ebitda is needed for Disney in the United States to earn its management fee from the park, at 6.5 per cent of Ebitda. Its financial year runs from October to September.

The need to rebuild park finances means shifting marketing strategies from one-off promotions to doing more long-term community outreach. Design staff at US-based Walt Disney Imagineering, for example, have expressed interest in helping design an interactive youth centre at the Hong Kong branch of the Savannah College of Art and Design, Kam said. Disney staff will volunteer their time for free.

Kam was coy about the theme park's fifth anniversary plans but said a temporary attraction or structure would be erected.

Toy Story Land would be completed late next year or early 2012, Kam said, then new attractions yearly. This attraction, Grizzly Gulch and Mystic Point would increase the park's size by about five hectares to 27.5 hectares. Seven or eight hectares had also been set aside for more attractions, the insiders said.

The expansion will increase the number of people the park can accommodate at any one time from the current 37,000. By size alone, the five-hectare increase would raise capacity to almost 50,000. With the expansion, Disneyland hopes it will go from being a park that people can visit in a day to a "1.5-day park", they said.

Land is available for up to three more hotels. Depending on demand, one or two more hotels, or about 1,000 rooms, can fit between the Disneyland and Hollywood hotels, and one by the park's pier.

Hong Kong Dinsey land is Crap
best dinesy lands in the world
1 Los Angeles
2 Orlando
3 Paris
4 Tokyo
5 Hong Kong

The fact that you rank Paris above Tokyo, and LA as one of the Disney locations, doesn't give you much credit.

IMO,

1. Orlando
2. SoCal
3. Tokyo
4. Paris
5. Hong Kong

Theme is upbeat as Disneyland eyes a good year
More visitors with looser purse strings augur well for pre-tax profit
6 September 2010
South China Morning Post

Five years after opening, Hong Kong Disneyland is expected to record one of its best years, with higher attendance and greater profitability.

Buoyed by an upsurge in mainland and overseas visitors and their increased spending, the theme park has probably welcomed far more visitors than the 4.57 million reported a year ago, park insiders said.

They said internal studies showed fears that Shanghai's World Expo would hurt attendance figures were unfounded.

Profitability, as measured by ebitda - earnings before interest, taxes, depreciation and amortisation - would also swing back to the black after a HK$70 million loss last year, they said. But after deducting depreciation, amortisation and other finance costs, the park will continue to record a loss.

The improving results bode well for Disney and the government, which own the park under a joint venture. Positive ebitda, which is equal to revenues less costs and expenses, means Disney can resume collecting its management fees, which are now linked to the park's performance.

Last year, the formula for its base management fee was changed from 2 per cent of gross revenue to 6.5 per cent of ebitda, or HK$65 for every HK$1,000 of earnings. Disney is also entitled to a variable management fee of up to 8 per cent of ebitda. In an attempt to shore up the park's finances, Disney agreed to forgo its management fees in 2007-08 and 2008-09. The park makes money from selling tickets, food, merchandise and other goods and services. Disney can still benefit handsomely from a loss-making park as long as people spend on food and merchandise, the source from which it derives most of its royalties.

The government, which is the majority shareholder, is desperate to show that the public's investment in the venture is paying dividends. A HK$3.63 billion expansion to add three new themed areas and more attractions is under way. Toy Story Land is on schedule to open at the end of next year and preliminary infrastructure work to develop the new areas, like building power substations, has started.

"Over the past five years, we have had more than 20 million guests," managing director Andrew Kam Min-ho said. There had also been an 18-percentage-point increase in the occupancy rate at the park's two hotels.

Fifth anniversary celebrations next year would feature temporary and permanent attractions that were new to the region and the world.

Since the park opened in 2005, the number of visitors has see-sawed, reaching about 5.21 million in the first year, then dropping to 4.17 million before rebounding to about 4.45 million in 2007-08 and 4.57 million in 2008-09.

Disney's financial year runs from October to September.

Last year's summer attendance, especially from the mainland, suffered because of fears of human swine flu. Hong Kong Tourism Board data show the number of visitors to the city was up 38.9 per cent year on year in May, 43.5 per cent in June and 31.9 per cent in July. The number of mainland visitors rose by 46.8 per cent in May, 54.5 per cent in June and 40.4 per cent in July.

Between April and June, there was a 35 per cent rise in the number of visitors to the park year on year, mostly from the mainland and overseas, said Jay Rasulo, the Walt Disney Company's senior executive vice-president and chief financial officer.

Disneyland turns five with magic million
The Standard
Monday, September 13, 2010

Hong Kong Disneyland turned five yesterday with more than 4,000 people gathering on Main Street USA for a photo-taking event to mark the milestone.

The resort also announced that the Walt Disney Company will donate HK$1 million to a scholarship fund for 100 students taking up hotel and tourism, and design at the Vocational Training Council.

Andrew Kam Min-ho, managing director of Hong Kong Disneyland Resort, said the scholarship fund "will be instrumental in inspiring students to dream, create and make a difference in the world."

The theme park is committed to nurturing talent in order to contribute to the establishment of Hong Kong as a key tourism and creativity center, Kam added.

Carrie Willis, executive director of the Vocational Training Council, said: "We look forward to working closer with Hong Kong Disneyland on many levels to nurture our next generation."

Among the visitors yesterday was Dallas Lam, 15, who has been to the park more than 500 times. "My parents always encourage me to visit the park so that I can get a break from my schoolwork," Lam said.

Meanwhile, a survey of 1,000 residents found that two-thirds have visited the park since its opening in 2005. On average, they have been about three times.

Space Mountain is rated the best attraction, followed by the fireworks display and parade.

can't believe it has been over a decade since Tung announced the development. time flies.

Time flies, but there were 2 financial crises in a decade ... scary.

Lantau draws urge tourist roads
19 October 2010
The Standard

Three major attractions on Lantau _ AsiaWorld- Expo, Ngong Ping 360 and Hong Kong Disneyland _ have called for an upgrade of the island's road system to improve its standing as a tourist destination. Li Yun-tai, managing director of Ngong Ping 360, said at the Lantau Tourism Forum yesterday that more than 10 major attraction sites on Lantau are accessible by public transport within an hour of Tung Chung.

``However, it takes much longer for tour buses to travel directly between tourist sites because a number of major pathways on Lantau are private roads restricted to residents,'' he said.

James Tien Pei-chun, chairman of the Tourism Board, said one in four travelers to Hong Kong visit Lantau Island, double the number in 2005.

``Lantau is gifted with spectacular scenery and a rich cultural heritage, as well as world-class trade show facilities. We should foster closer partnerships for the sustainable tourism growth of the city's biggest island,'' he said.

Ngong Ping 360, Noah's Ark and Hong Kong Disneyland have launched a joint-attraction ticket offer for the first time in which visitors to any one place receive a 10 percent discount when purchasing one-day admission tickets for any of the other two attractions during November.

Michael Wu Siu-ying, chairman of the Travel Industry Council, said he hopes tourism on Lantau will be further boosted after construction of the Hong Kong-Zhuhai-Macau Bridge, which is due for completion in 2015.

Chau Chuen-heung, a local resident and 10-year district councillor on Lantau, said she supports measures to boost tourism on the island because it would create more job opportunities for residents who cannot afford high transport fees for commuting to work in urban areas.

In 2004, a concept plan for Lantau was drawn up by Financial Secretary Henry Tang Ying-yen to provide an overall planning framework for the island's future development. New attractions including a boutique heritage hotel in Tai O, windsurfing facilities in Mui Wo and mountain bike tracks will be built on Lantau in the next two years.

Meanwhile, Tien said 27 million people visited Hong Kong as of October 10, up 23 percent over last year. Tourists stay in the territory for 3.4 days on average and Tien expects a 20 percent increase in the annual number of visitors by year-end.

Woody and pals make their way to HK
13 November 2010
SCMP

The city's loss-making, government-owned theme park yesterday gave a clearer picture of new attractions that will, hopefully, put the place on a sound financial footing.

Toy Story's Slinky Dog is coming to town to bolster the expansion plan of the five-year-old Hong Kong Disneyland. The dog, in the form of an amusement ride in the new Toy Story Land, was already on a ship heading to the city, park chiefs said.

Almost a year after the resort kick-started a HK$3.63 billion plan to add three new themed areas, one of the three - Toy Story Land - is 15 per cent complete. It was scheduled to open at the end of next year, managing director Andrew Kam Min-ho said.

The section will feature three attractions: a whirling roller coaster called Slinky Dog Spin in which the toy dog chases his own tail, a Toy Soldier Parachute Drop where visitors plunge from a 25-metre tower, and a ride on a U-shaped race track.

A bus ride through the construction site revealed that no new Disney characters had arrived yet. Foundations of the infrastructure and some of the rides have been laid, while those rides manufactured overseas are to arrive in the coming weeks.

A huge figure of Woody - the main character in the Toy Story series - and his companions, all tens of metres tall, would be in place, director Ian Price of The Walt Disney Imagineering Hong Kong said. The human-toy relationship would be reversed: in the face of the giant figures, visitors would appear like toys, Price said.

The other two themed areas - mining town Grizzly Gulch and centre of mysterious forces Mystic Point - are due to be completed in 2014. At Grizzly Gulch, visitors take a mining train through the town and come face to face with an explosion. The train would then travel downhill and backwards, Price said, with sights such as fountains along the way.

Workers have dug trenches six metres deep for building the train tunnels. In comparison, the Mystic Point site was quite bare - construction work was just starting, he said.

Shanghai Disneyland is set to be up and running by the time its Hong Kong counterpart completes its expansion in 2014. Nevertheless, Kam has high hopes for the local resort.

"Two attractions in Hong Kong are exclusive around the world," he said, referring to Grizzly Gulch and Mystic Point. "Another [Toy Story Land] is exclusive in Asia." The other Toy Story Land is in Paris.

China was also big enough to host two Disneyland resorts, he said. "One is in the Pearl River Delta and another is in the Yangtze River Delta. They are quite far away from each other and attract different customers."

Hong Kong Disneyland marked its fifth anniversary in September this year, but major celebrations would not be held until January, when a parade was scheduled.

The rising yuan was not a big problem for the park, he said, but the city's many infrastructure projects were pushing up demand for construction materials including cement and steel. Costs in other areas would be cut so that the expansion budget would not be exceeded. The park had no plans to raise entry fees, he said.

Profitability, as measured by ebitda - earnings before interest, taxes, depreciation and amortisation - was expected to swing back to the black this year after a HK$70 million loss a year ago, park insiders said.

Official video on the expansion progression:
-kX3zeAhtyc

^^ I love that mini model at the end of the clip :)

They are some big plans and its definately a big construction site.

Looking good HK:)

http://farm6.static.flickr.com/5289/5258013514_740ec78e82_b.jpg
Taken by ナギ (nagi)

http://farm6.static.flickr.com/5207/5251963239_d49874dc86_b.jpg
Taken by Allenjone

Disneyland out to work Indian magic
The Standard
Tuesday, December 14, 2010

Hong Kong Disneyland aims to tap the Indian tourist market to boost numbers following an 80 percent increase in visitors from that country.

Disney's vice president of sales and distribution marketing Aliana Ho Chan Mei-hung said the growth of visitors from India is the strongest among overseas tourists who make up about two- thirds of total visitors.

It surpassed the 33 percent growth in visitors from the mainland and the 30 percent increase from Taiwan during its fiscal year ending in September.

"India is the most important emerging market for us. We are impressed with the soaring growth. Part of the reason is the increased flights to Hong Kong by two carriers based in India," Ho said. "In addition, Indian travelers have high purchasing power and usually come with a big family group, with more than half of the park visitors staying in our Disney-themed hotels during their visits."

She added restaurants in the resort now offer curry buffets and Indian cuisine with a thick and heavy flavor to suit their tastes.

The figures on visitors' flow and revenue from different regions will be revealed in its annual business report to be released next month, according to Ho.

The park had 4.8 million visitors last year, a 2 percent increase over 2008.

Marking its fifth anniversary in September, the resort has also launched year-long anniversary celebrations and embarked on a new drive to drum up business from the fast-growing outbound travel market.

About 5,000 students from local schools, 80 percent of whom came from kindergartens, attended the park's graduation days during the year.

Students, in Mickey "Mortar Board" graduation hats, received certificates from Mickey in graduation gown and their principals, featured as Grand Marshals, led parades.

Ho also said her department held talks with travel agencies in 12 regional cities, including Osaka, Shanghai and Manila, on package offers in the coming year.

The first phase of expansion in the 126-hectare park, Toy Story Land, will open by the end of next year.

HK Disneyland "cautiously optimistic" about 2011
16 December 2010
Channel NewsAsia

HONG KONG: Hong Kong Disneyland said it is "cautiously optimistic" about the park's prospects in 2011, as it gears up to celebrate its fifth anniversary.

To mark the park's anniversary, Hong Kong Disneyland will launch new year-long attractions, including a brand new parade, and a transformation of Sleeping Beauty Castle. Tinker Bell will also be making her Hong Kong debut.

The theme park said it is "cautiously optimistic" about 2011.

Andrew Kam, Managing Director of the Hong Kong Disneyland Resort, said: "We believe that the fundamental economy in the region is strong. And that will enable the development of tourism. And also another factor is that the Hong Kong dollar relatively speaking, is depreciating relative to other currencies in the region.

"That also stimulates tourism into Hong Kong. So if these factors remain in place, we believe that next year the outlook for our business should be well on track to be good."

However, Disney executives were tight-lipped on how it performed this past financial year, as it will release its report card in January.

The world's smallest Disneyland, the park has been criticized for it's limited attractions-with a lacklustre turnout since its opening. As the majority shareholder, Hong Kong's government is under pressure to show the public the investment was worth it.

In a bid to boost attendance, the park has secured approval for a nearly half-a-billion dollar expansion to add 3 new themed lands by 2014.

Since its opening, Hong Kong Disneyland has attracted over 20 million visitors, though numbers have see-sawed over the past five years. However, with a new land set to open at the end of next year, it is hoping for brighter prospects in 2011.

Hong Kong's Disneyland reports smaller loss in 2010 as more visitors arrive, spend more
18 January 2011

HONG KONG (AP) - Hong Kong's Disneyland theme park failed to turn a profit again last year but said Tuesday its loss narrowed thanks to higher visitor numbers.

The park reported that it lost $718 million Hong Kong dollars ($92.3 million) in 2010. It lost HK$1.315 billion in 2009.

The number of visitors to the park rose 13 percent last year to 5.2 million and each guest spent an average 7 percent more than the year before.

Hong Kong Disneyland opened in 2005 and is a joint venture between The Walt Disney Co. and Hong Kong government, which owns a majority stake. The park did not release attendance figures or disclose how well it performed until 2009.

Set on 126 hectares on Lantau Island, Hong Kong Disneyland is the smallest of the company's theme parks.

Managing Director Andrew Kam said three new attractions slated to open over the next three years would help the park turn a profit, but did not give a date for when he expected that to happen.

The first new attraction, based on the "Toy Story" series of movies, is set to open this year. Two others, "Grizzly Gulch" and "Mystic Mountain" will open in phases through 2014.

"We believe that with the completion of our new attractions, the park will continue to attract more tourists and hence we foresee that the park will turn to profitability fairly soon," Kam told reporters.

Kam said he's not worried about potential rivalry from a Disney theme park planned for Shanghai, which he did not expect to open for another five or six years. The Shanghai park received formal approval from China's economic planning agency in November.

Figures show the park is growing in popularity with visitors from outside of Hong Kong, especially from mainland China. They accounted for the bulk of total visitors in 2010 at 42 percent, up from 36 percent in 2009. Other international visitors edged up to 25 percent from 23 percent in 2009 while local visitors fell to 33 percent from 41 percent.

Kam said Hong Kong's status as a popular destination in Asia will help boost the park's visitor numbers.

We've lost trust in the big number projections
22 January 2011
South China Morning Post

The numbers for Disneyland are finally looking up. Visitor figures rose a respectable 13 per cent last year to 5.2 million, 100,000 more than rival attraction Ocean Park. Earnings before deductions for the first time ended in the black, although net revenue was still deep in negative territory. When, or if, the theme park breaks even remains guesswork, but there is at least a better feeling now about a project that the government brazenly oversold when foisting it on us.

At the heart of its efforts to convince were projections made when work began in 1999. They were glowing and optimistic, telling us that the HK$23 billion that would be taken from the public purse to build Disneyland in partnership with Walt Disney Company would be the soundest of investments. Returns of 10 per cent would start flowing from the first year of operation in 2005, based on 5.2 million visitors, later adjusted up to 5.6 million. Attendance would grow annually by 4.7 per cent for 16 years, eventually levelling off at 10.5 million. Over 40 years, we would reap HK$148 billion from the first phase alone.

They are impressive numbers, but ones that have turned out to be vastly exaggerated. Losses so far amount to more than HK$5 billion and attendance figures are 25 per cent down on original estimates. A lack of transparency meant that until an agreement between Disney and the government a year ago, we did not have an idea what was happening with a project in which we are 57 per cent shareholders - and that is despite putting up 80 per cent of the cost.

The possibility of profits is looking better with the latest figures, and perhaps more so with three new themed areas opening between the end of this year and 2014. But the launch of Shanghai Disneyland in three years could put paid to that. There is reason for scepticism. Since Hong Kong Disneyland was announced, our government has a record of getting projections wrong. The HK$35 billion Airport Express carries 29,000 passengers a day, one-third less than original estimates. All manner of bullish figures were thrown about over the Mandatory Provident Fund but, a decade after its launch, most of us have little to show for our contributions.

The worst miscalculation surely has to be the budget. In 2007-08, a surplus of HK$25.4 billion was forecast, which by the end of the financial year had jumped to HK$123.6 billion. It is happening again for 2010-11, with the anticipated deficit of HK$25.2 billion being far removed from the HK$70 billion surplus that accountancy firms say is in the offing.

Projections are a tricky business. They are based on a belief that trends will continue, even though they rarely do. Shocks and surprises abound, as we found during Sars and the global financial crisis. Regardless, many of our best and brightest are in the civil service. We should expect a smaller gap between predictions and reality, especially with those that are made year-on-year.

Some projections, such as those by the Census and Statistics Department, are reasonably accurate. But we have lost trust in those put forward by authorities to justify big infrastructure projects, like the HK$65.2 billion rail line to suburban Guangzhou and the bridge to Zhuhai and Macau. Both were pushed through with limited public debate and consultation. Such was the case with Disneyland.

Projections are essential for policy forecasting and planning. Getting them wildly wrong could be perceived as poor management, not understanding needs or favouring vested interests. If the government has proposals that dip deep into public funds, the public should be heavily involved in determining their worth.

Now you can be officially madly in love with a Disney marriage proposal certificate
12 February 2011
South China Morning Post

Nothing, they say, is certain except death and taxes. Now add to the list the success rate of marriage proposals at Hong Kong Disneyland - a remarkable 100 per cent, or so it's claimed.

The number of proposals made there is rising faster than our property prices, having almost tripled in one year from 86 proposals in 2009 to 216 last year.

So, what's so special about this magical kingdom?

Nervous suitors are not alone when it comes to popping that all-important question. They can ease their worries in the knowledge that plenty of assistance is at hand.

"In recent years, more and more people want to propose in the romantic setting of Disney Resort and are enlisting our help," says guest service manager Kenneth Lai.

Disney offers tailor-made services to help guests make their dreams come true. Planning and rehearsals are done weeks in advance and you can even invite Mickey and Minnie as guests of honour.

Once the proposal has been accepted, the happy couple will be "certified" to be officially madly in love by being given a "Disney Marriage Proposal Certificate".

But as that fine-print investment advice always says: "Past performance is no guarantee of future results."

Crowd 'control' pays off
The Standard
Monday, February 14, 2011

Disneyland attracted a near-record high of more than 30,000 visitors a day over the Lunar New Year holiday thanks to a deliberate strategy of aiming for visitor comfort.

"We can accommodate up to 36,000 visitors a day and still comply with government safety rules," Andrew Kam Min-ho, managing director of Hong Kong Disneyland, told The Standard. "However, out of consideration for the quality of guest experiences, we won't reach the full capacity."

In 2006, the park hosted the largest number of visitors during a new year that turned into chaos.

Visitors queued for hours for attractions, and Disneyland was forced to turn away hundreds of people and reimburse their tickets.

Recalling that time, Kam said: "Recently, we had only 200 people fewer than the record high we had five years ago." But he did not reveal the exact figure.

Rival Ocean Park, which recently opened its Aqua City aquarium complex, also received more than 30,000 visitors a day over the Lunar New Year. The park was forced to stop selling tickets in the mornings for the February 5-7 period.

At Disneyland, a survey shows each visitor on average spends six hours in the park, visiting six attractions or games on normal days. Visitors spend 30 minutes more in the park on peak days.

"A crowded feeling and very long queues are what we want to avoid," said Kam. "We hope visitors have more or less the same experience on both peak days and normal days."

Kam revealed his "industry engineering" tactics in managing people flow in the park.

First, annual pass holders are prohibited from visiting during the Lunar New Year as most are locals who may well travel outside the SAR.

Second, since about half of the visitors are mainlanders who travel under the individual visit scheme, which the park cannot control, it collaborates with travel agencies by assigning visiting times for groups.

Third, visitors are asked to fill up all the spaces on amusement rides. There are also more attractions to divide people's attention so they do not throng at the same place.

For instance, a new parade that can draw 16,000 watchers has been launched. And acrobats and games between staff and visitors - like holding a cardboard picture frame for picture taking - can draw 100 watchers.

Meanwhile, to keep staff smiling, all park workers get pay rises of 1-5 percent this month. They also collect a bonus of 30 percent of monthly salary. The park employs 400 staff for its two hotels, 1,000 performers, 2,000 frontline employees and 1,000 people in head office.

Operational costs reached HK$2.79 billion in 2010, only 7 percent more than HK$2.61 billion in 2009.

Kam is confident the business can break even in 2014. It continued to record a net loss last year, though the amount narrowed to HK$720 million from HK$1.3 billion.

A record 5.2 million visitors were welcomed last year, up 13 percent, and the two hotels in the park have an occupancy rate of 99 percent.

It really looks nice, I Like It

What's new at HK Disneyland
13 February 2011
Philippine Daily Inquirer

When a famous theme park turns five, there's nothing to do but just party

IT'S THE middle of winter in Hong Kong at the moment, but the weather is just right to enjoy the sights, sounds and rides of a much-loved theme park, Hong Kong Disneyland.

Being five years old, it is the youngest yet one of the fastest-growing of the Disney theme parks. Having attracted 25 million visitors, and the Philippines being one of the Top 5 nations who visit the park every year, it is no surprise we Filipinos play a huge part in making Hong Kong Disneyland a very big success.

Quoting a famous line from Walt Disney, “Disneyland will never be completed. It will always be growing and adding new things; new ways of having fun and sharing the many exciting adventures which may be experienced here in the company of friends and family.” Perhaps with the help of a little bit of pixie dust Hong Kong Disneyland has added a number of new attractions and things to see and will be introducing more in years to come.

Tinkerbell's Castle

“Celebration in the Air” is the theme for the park's fifth-year celebration and it also marks Tinker Bell's introduction to the park. Every evening, guests will be treated with a dazzling illumination show lighting up the iconic Disneyland Castle.

Flights of Fantasy Parade

The Disney theme parks are known for having such great detail on everything, from the buildings, to the rides and also the parades. Their new Flights of Fantasy parade is another showcase of Disney's expert craftsmanship. The float designs are like moving canvases which depict your favorite Disney movies, plus the performers are hoisted 40 feet up in the air for jaw-dropping stunts.

Toy Story Land

Another thing to look forward to in Hong Kong Disneyland is the opening of new attractions like Toy Story Land, which will open by late 2011. Guests will get to enjoy exploring life-size toys, a drop-style parachute attraction plunging from a 25-meter-tall tower, and a shuttle coaster.

Two additional areas will also be built which will only be unique in Hong Kong Disneyland: Mystic Point and Grizzly Gulch, set to be finished by 2014.

The shopping

For the “older” kids who want to buy Disney stuff with a touch of designer, explore the new Center Street Boutique, filled with graphic shirts, designer bags, sequined clutches—giving that whole “Mickey cool.”

Hong Kong Disneyland To Complete Expansion Plan Ahead Of Schedule
8 April 2011

HONG KONG - (Dow Jones) - Hong Kong Disneyland will complete the first phase of its expansion plan in 2013, one year ahead of schedule, and is considering further enlarging the theme park, the theme park's Managing Director said Friday.

"The next round of site expansion is necessary," Andrew Kam told reporters on a conference call, adding it has sufficient land for further expansion. He said he hasn't started discussions with the government about the next round of expansion.

Walt Disney Co. (DIS) and its Chinese government-owned business partners broke ground at Shanghai Disneyland Friday morning. Kam said he doesn't foresee competition with Shanghai Disneyland, as the two theme parks have their own characteristics.

"We have no much overlapping market with Shanghai Disneyland," Kam said, as China is a growing market with a huge population that is large enough to accommodate more than one Disney resort.

Hong Kong Disneyland, which is 53%-owned by the Hong Kong government and 47%-owned by Walt Disney Co., has suffered from weak attendance and net losses since it opened in September 2005.

Critics have pointed to its size--it is the smallest of Disney's theme parks--and a lack of attractions that appeal to its key target market of mainland Chinese tourists, who are often unfamiliar with Disney stories and characters.

In hopes of boosting attendance, the Hong Kong government and Walt Disney Co. reached an agreement in 2009 to expand Hong Kong Disneyland by adding three new themed lands to a total of seven by the end of an expansion project in 2014.

Market 'big enough for both of us'
9 April 2011
SCMP

The China market is big enough for two Disneylands, the local theme park's chief said yesterday.

As Shanghai started work on its own Disneyland, the managing director of Hong Kong Disneyland Resort, Andrew Kam Min-ho, said the two parks would attract tourists from different parts of the country. Both would benefit from a boom in the region's travel industry.

"Asia, including China, is a growing market with a population of several billion, large enough to welcome more than one Disney resort," he said.

Shanghai Disneyland will target those who live in the Yangtze River Delta area, while Hong Kong's visitors came from southern China and Southeast Asia, Kam said. "Not many" people from the Yangtze River Delta visited the HK park, he said, while refusing to give exact figures.

As to whether there would be a drop in numbers from overlapping markets, Kam said it would depend on the overall attractiveness of Hong Kong and Shanghai as tourist destinations.

The local park, which has yet to break even, aims to attract more visitors with an expansion. Three new attractions will be added by the end of 2013. Toy Story Land will open before Christmas, while Mystic Point and the Grizzly Gulch mining town with roller coaster will open in 2012 and 2013.

The two parks will have different attractions and Kam said he hoped tourists would go to both of them.

HK Disneyland last year welcomed 5.2 million guests, an increase of 13 per cent from 2009. But it still suffered a loss of HK$720 million. The mainland was the biggest source of visitors - providing 42 per cent of the total.

The government has a 53 per cent stake, with the Walt Disney Company owning the rest.

Hong Kong Association of Travel Agents chairman Paul Leung Yiu-lam said Hong Kong would stay competitive with its other attractions.

"Disneyland is not the only reason tourists come to Hong Kong," he said. "Shopping is still their number one priority. There is also Ocean Park, whose tickets are cheaper."

Tourism sector lawmaker Paul Tse Wai-chun said Hong Kong still trumped Shanghai in terms of people's ability to speak both English and Chinese. This made it appeal to Southeast Asian visitors, he said.

Disney fails to dispel costs hex
The Standard
Friday, July 08, 2011

Admission fees to Hong Kong Disneyland are expected to rise by 10 percent from August 1, with a formal announcement expected as early as today.

A source said the new prices will first apply to non-locals buying tickets on the spot. SAR residents will be spared until the end of this year. Group tickets booked by tour operators will also not be affected immediately.

One-day tickets for adults will rise from HK$350 to a level slightly below HK$400.

The park last increased the prices of annual passes by up to 40 percent in March.

The source said despite price increases for some types of tickets, the park will be offering sweeteners though details have not been released.

The theme park, the source said, has long maintained contact with stakeholders including tour agencies, which found the increase "acceptable."

A Disneyland spokesman said yesterday he had no news on the price hike plan.

The park's net loss fell 45 percent to HK$718 million for the year to October 2. It was HK$1.31 billion in 2009 and HK$1.57 billion in 2008.

It will add three themed areas by mid-2014, enlarging the size of the park by about 23 percent. Toy Story Land, the first, is slated to open year-end. The others are Grizzly Gulch and Mystic Point.

Hong Kong Kisneyland, with that empty area to the east, is going to easily reach its maximum buildout area. The land to the east is owned by some other entity or is the reclaimed land is specifically for the Hong Kong Disneyland?

I believe the entire reclamation is for Disneyland. The space on the other side of the entrance is for a future 2nd disney park, like CA Adventure in SoCal, or DisneySea in Tokyo.

Believe the whole reclamation is for future expansions of the park. I don't recall anyone else planning to build other things there.

Story of 1,000 more Disneyland jobs
The Standard
Friday, September 09, 2011

Hong Kong Disneyland is recruiting 1,000 staff for its biggest expansion since it opened in 2005, and this includes Asia's first Toy Story Land, which is scheduled to open in November.

"In addition to increasing our physical footprint by 23 percent, the new projects will increase overall park attractions, entertainment facilities and shows to more than 100," park managing director Andrew Kam Min-ho said.

With the new attraction, daily visitor arrivals are expected to rise from 38,000 to 40,000.

Visitors to Toy Story Land will feel dwarfed by the oversized characters of Slinky Dog, Toy Soldier Parachute Drop and RC Racer - characters from the movie Toy Story.

Kam said the whole expansion includes the development of three new theme areas and costs are within estimates. He declined to say how much but earlier reports put the figure at HK$3.6 billion.

The park has no plans to raise admission fees, currently HK$399, before two other areas - Grizzly Gulch and Mystic Point - are completed.

Kam does not see the planned Disneyland in Shanghai, which is expected to open in 2016, as a rival.

He believes the park on Lantau Island will remain a favorite with locals and mainlanders alike.

It saw its net loss narrow to HK$718 million last year, compared to HK$1.32 billion in 2009.

^^I found Ocean Park to be more fun. Besides, everyone I've talked to who've visited both Ocean Park and Hong Kong Disneyland agreed with me.

Time for Disney game changer
The Standard
Wednesday, November 23, 2011

Hong Kong Disneyland Resort invited guests from all walks of life to experience Toy Story Land ahead of the official opening of the themed area last week.

Managing director Andrew Kam Min-ho was on the job during the trial run, which helped get staff up to speed and iron out any kinks.

Other parts of the theme park were also bustling with visitors, and the lineup for games seemed to be longer than usual.

It has been said that Hong Kong Disneyland is somewhat cramped and smaller than most Disney theme parks in other parts of the world.

Nevertheless, the mere fact that visitor numbers have soared should be justification enough for an expansion of the theme park.

Toy Story Land, based on the Disney-Pixar film series, has only three attractions, which led some people to question why its management had not held back the opening until more facilities or even more thrilling adventures come onstream for a "grander" debut.

But seeing how packed the park is, it is clearly wiser to start new facilities as soon as they are ready.

During protracted negotiations with Disney on the terms of the Hong Kong setup, the government had insisted on being the majority shareholder.

An agreement was subsequently reached under which certain parts of the shareholder's loan, to be provided by Hong Kong, were converted to shares.

Such an arrangement lowered interest costs and let park construction move ahead without further delays, which could have damaged business prospects as well
as reputation.

The compromise has proven to be a sensible move by both parties.

After all, in a fast-growing market, it is always wiser to get the cake first, so to speak, than to engage in endless haggling over how to split it. Siu Sai-wo is chief editor of Sing Tao Daily

This one is exciting! This is wonderful to those people who are young at heart. I'm a big fan of Toy Story and I've heard that there will be a Toy Story land and two areas unique to Hong Kong Disneyland.

Toy-rific fun begins at Disney
The Standard
Friday, November 18, 2011

Kids waiting for the film Toy Story 4 have the next best thing: Toy Story Land.

It opens today at Disneyland, which now boasts more than 100 attractions, entertainment facilities and shows.

And with Christmas just around the corner, the park is also presenting a whimsical celebration called Santa Mickey's Toy-rific Street Party from today until January 2.

Toy Story Land has six attractions - Giant Slinky Dog Spin, RC Racer, Toy Soldier Parachute Drop, Toy Soldier Boot Camp, Barrel of Fun and Cubot.

I visited this place in September 2010 and had a good time. It turned out better than I thought it would be and it's the only Disney park I've been too.

With the new expansions, how much time (on average) do you think is needed to complete everything at HK Disneyland?

Or does the whole experience now require two days (i.e. like the Disney theme parks in America)?

P.S.
Personally, I was hoping that it can be done in a whole day (i.e. I personally find it a hassle to come back the following day).

I spent a day there and until the expansion is complete, there aren't enough attractions to merit more than several hours in the park.

With the new expansions, how much time (on average) do you think is needed to complete everything at HK Disneyland?

Or does the whole experience now require two days (i.e. like the Disney theme parks in America)?

P.S.
Personally, I was hoping that it can be done in a whole day (i.e. I personally find it a hassle to come back the following day).

It only added three more rides. You can still finish in one day.

Disney wishes more hotels
The Standard
Tuesday, January 10, 2012

Hong Kong Disneyland has made a big wish - it's asked the government for four more hotels.

Disneyland's proposal includes building one large hotel and three smaller vacation-style hotels to be connected by a mini-tram system, sources told Sing Tao Daily, a sister newspaper of The Standard.

The park, which the sources said saw a record 5.9 million visitors last year - also aims to build an artificial lake.

If the new plans seem too massive for the government, which owns 57 percent of the park, Disneyland is willing to compromise, saying all four hotels do not have to be built at the same time, the sources said.

Disneyland managing director Andrew Kam Min-ho had earlier said the park wanted to build one large and one small hotel. A government source said Disneyland submitted different proposals including the feasibility of expanding within the existing area.

But the source noted that everything is tentative and nothing has been confirmed. It is understood Disneyland wants to expand its rides first before building the hotels.

Disneyland will officially reveal its 2011 performance results this afternoon.

A record 5.9 million people visited the park last year, up more than 10 percent from the 5.2 million in 2010.

Earnings last year before interest, taxes, depreciation and amortization has been estimated at HK$400 million to HK$500 million, up from HK$220 million in 2010.

The park's net loss narrowed from HK$718 million in 2009 to HK$200 million in 2010.

Currently, new attractions are being added to Hong Kong Disneyland.

The first - Toy Story Land - opened at the end of last year.

Visitors to this attraction feel dwarfed by the oversized characters of Slinky Dog, Toy Soldier Parachute Drop and RC Racer - characters from the movie Toy Story.

Grizzly Gulch will be completed this year and Mystic Point next year.

The expansion will increase the park's area by 23 percent, taking its total offerings - including rides, entertainment facilities and shows - to more than 100.

From last August, Disneyland raised the adult admission fee from HK$350 to HK$399, and admission charges for children from HK$250 to HK$285.

In September, the park announced the recruitment of 1,000 staff, the largest intake since opening its doors in 2005.

Earlier reports put the figure of the park's entire expansion cost at HK$3.6 billion.

Park needs to be less Mickey Mouse
The Standard
Wednesday, January 11, 2012

Hong Kong Disneyland opened with a flourish in September 2005.

But it seemed to quickly lose its appeal in the first few years, and Disney veteran Dave Vermeulen had to relinquish the managing director's post to Coca-Cola man Andrew Kam Min-ho in 2008.

Yesterday, Kam delivered his third report card. It's the best one so far. Although the theme park is still in a deficit position, after taking into account all expenses - including interest and depreciation - it had an operating profit of HK$506 million.

So its financial health appears to be steadily improving. However, the burning question is whether Kam can continue to maintain the trend to steer the Disneyland ship into the magical port of sustained profitability.

Kam inherited an under-performing operation three years ago. While it would be relatively easier to start afresh from a low threshold, the more serious challenge lies ahead in maintaining growth. A total of 5.94 million people visited the park in Penny's Bay in the past year. But is that a reason for rejoicing? It was the expected target five years ago.

The 2011 results still lag far behind what they should be as per the original plan prior to the 2005 launch.

Nevertheless, maybe Kam still deserves kudos for doing what his predecessor had been unable to achieve - especially in view of the global financial crisis and swine flu outbreak that greeted his 2008 arrival.

But Kam will have to prove to shareholders - including the government - he can keep the magic working. Results for the fiscal year ended September 30 have boosted public expectations for improvement this year.

Expansion may be the key, but it alone can't solve the problem. There are five Disney theme parks globally - two in the United States, and one in Japan, France and here. When Shanghai Disneyland becomes operational in 2016, the number will increase to six.

Yet, Hong Kong is the smallest of all. Even after the three new theme zones are completed, the SAR park will still be no match for its sisters in terms of size.

There isn't yet a timetable - at least as far as the public is aware - for the local attraction to meet the target of 11 million visitors annually, as spelled out in the agreement between the government and Walt Disney.

This certainly can't be achieved in a fortnight, but it would be nice to know when. The local park performed poorly in the first few years because it inflexibly clung to American tastes. The formula may have worked elsewhere, but failed here.

Innovation is needed to expand the attractions to young adults who, having grown up, may find the old ones, er, too Mickey Mouse. Those who know Kam may be tempted to say the non- American chief has many ideas in mind. But can he give the SAR theme park a distinct identity to make it special - despite its status as the smallest in the Disney family?

it would be great if you are able to post some picture of hong kong disneyland :)

it would be great if you are able to post some picture of hong kong disneyland :)

My set but they're quite dated : http://www.globalphotos.org/hk-disney.htm

Disney has designs on creative types
The Standard
Monday, April 30, 2012

Hong Kong is poised to become the world's next creative hot spot because of its strategic location and a booming design industry, Disney executives say.

In addition, local graduates have an enormous potential for creativity and an edge over foreigners when it comes to offering unique perspectives.

Walt Disney Hong Kong director of creative development and show quality standards Theron Skees said that "2012 is the year for design in Hong Kong."

He added: "We'll soon see some world-class talents emerging from this city, as there's now a growing public acceptance for design and creative jobs as a long-term career option, and local students are really going into it full steam."

Skees was speaking at the launch of the Disney ImagiNations Hong Kong design competition, which aims to inspire young creative talent and identify budding "Imagineers" for the world's largest entertainment company.

The term "Imagineering" was adopted by Disney to describe the blending of imagination and engineering as embodied by its employees.

It is the creative force behind the company and covers a broad range of skills with more than 140 different job titles under its banner, including illustrators, architects, show writers and graphic designers.

Traditionally, culture and entertainment products flowed mainly from West to East. But, according to Disney Imagineer Kelly Willis, this flow will soon be reversed, with local creative types perfectly placed to capitalize.

"The creative focus will be on East Asia in the next decade with integrated resorts, casinos and theme parks sprouting out in cities like Singapore and Shanghai," he said. "As a key gateway to [China] and being at the crossroads of Asia, Hong Kong can develop into a well-established design hub."

Skees said strong government support is the driving force for the rapidly expanding sector, with agencies such as Create Hong Kong providing millions of dollars annually to foster the greater appreciation and adoption of design.

On a visit to Wuhan to promote local creative products and industries last week, Secretary for Commerce and Economic Development Gregory So Kam-leung said the government will continue its strong support for one of the SAR's six pillar industries, and hopes for fruitful collaboration with the mainland.

That support is also the reason why parents now are giving approval to their children to pursue careers in design and innovation over more established professions, Willis said.

The US-based firm is also looking to hire more local graduates to give Asian visitors a more authentic Disney experience and make them feel at home.

Skees dismissed the common refrain that Hongkongers lack creativity due to an education system that places overwhelming emphasis on rote-learning.