Hong Kong May Stall Disneyland Expansion
AP
Posted: 2007-10-03 05:38:17
HONG KONG (AP) - Hong Kong Disneyland is unlikely to receive more money from the local government to fund new attractions because of disappointing attendance at the theme park since it opened two years ago, a local newspaper reported Wednesday.
A spokeswoman for the park, a joint venture between The Walt Disney Co. and the Hong Kong government, said it is still discussing financing options with the government.
Hong Kong's Apple Daily newspaper reported Wednesday the local government, instead of providing fresh cash, is inclined to give the park more land, or sell down its stake in Hong Kong Disneyland for cash to reinvest in the park. All land in Hong Kong is technically owned by the government and leased to commercial developers on long-term contracts.
The government believes the Hong Kong public will not support fresh spending on the park because of its unsatisfactory results, the paper said.
Hong Kong's Commerce and Economic Development Bureau had no immediate comment on the report.
Hong Kong Disneyland spokeswoman Glendy Chu said Disney and the government are "engaged in discussions regarding financing options aimed at advancing the long-term financial and development of Hong Kong Disneyland."
She declined further comment.
Hong Kong Disneyland has been under scrutiny because it is a major government investment. The Hong Kong government owns a 57 percent stake in the park, shouldering most of the US$3.5 billion (euro2.5 billion) construction cost.
The park drew 5.2 million guests in its first year - 400,000 short of its target of 5.6 million. Park officials have been secretive about second-year numbers, but local media reports estimated up to 4.8 million visited the park its second year.
Disney's earnings results showed Hong Kong Disneyland's operating income dropped in both the first and second quarters this year, curtailing overall growth for its park and resorts division.
Copyright 2007 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.
10/03/07 05:37 EDT
AP
Posted: 2007-10-03 05:38:17
HONG KONG (AP) - Hong Kong Disneyland is unlikely to receive more money from the local government to fund new attractions because of disappointing attendance at the theme park since it opened two years ago, a local newspaper reported Wednesday.
A spokeswoman for the park, a joint venture between The Walt Disney Co. and the Hong Kong government, said it is still discussing financing options with the government.
Hong Kong's Apple Daily newspaper reported Wednesday the local government, instead of providing fresh cash, is inclined to give the park more land, or sell down its stake in Hong Kong Disneyland for cash to reinvest in the park. All land in Hong Kong is technically owned by the government and leased to commercial developers on long-term contracts.
The government believes the Hong Kong public will not support fresh spending on the park because of its unsatisfactory results, the paper said.
Hong Kong's Commerce and Economic Development Bureau had no immediate comment on the report.
Hong Kong Disneyland spokeswoman Glendy Chu said Disney and the government are "engaged in discussions regarding financing options aimed at advancing the long-term financial and development of Hong Kong Disneyland."
She declined further comment.
Hong Kong Disneyland has been under scrutiny because it is a major government investment. The Hong Kong government owns a 57 percent stake in the park, shouldering most of the US$3.5 billion (euro2.5 billion) construction cost.
The park drew 5.2 million guests in its first year - 400,000 short of its target of 5.6 million. Park officials have been secretive about second-year numbers, but local media reports estimated up to 4.8 million visited the park its second year.
Disney's earnings results showed Hong Kong Disneyland's operating income dropped in both the first and second quarters this year, curtailing overall growth for its park and resorts division.
Copyright 2007 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.
10/03/07 05:37 EDT
