Hong Kong Disneyland Reports A Net Loss of $270 Million for the Fiscal Year 2022
Hong Kong Disneyland Resort announced its financial performance for the 2022 fiscal year on May 15th. For the fiscal year ending September 30, 2022, the resort reported a net loss of HKD 2.1 billion (about USD 270 million), which narrowed by 12% compared to the previous year and marked two consecutive years of narrowing losses.
The financial report shows that despite the continuous difficulties faced by the tourism industry and operating environment, Hong Kong Disneyland’s total guest attendance during the period increased by 22% year-on-year to 3.4 million, driven by local guests.
The number of local visitors and the membership count for annual passes have both reached a new historical high, with a growth rate of 22% compared to the previous fiscal year.
The overall occupancy rate of hotels in the resort area increased by three percentage points to 24% in 2022. The Disney Hollywood Hotel suspended operations due to renovation plans, and the annual hotel utilization rate was 78%. Per capita spending at the park and per room tourist spending increased by 11% and 7%, respectively.
The fiscal year 2022 is the third consecutive fiscal year that Hong Kong Disneyland has faced significant business challenges due to the pandemic. Due to related measures, Hong Kong Disneyland was forced to close for nearly three and a half months, which is longer than the previous fiscal year. Adopting a five-day operating model per week, the park’s total operating period is only about six months.
SEE ALSO: Shanghai Disneyland Reopens at 20% Capacity,Requiring Compulsory Facial Masks and Social Distancing
Hong Kong Disneyland announced that the world’s first and largest Frozen-themed area will open later this year. In addition, Disney Hollywood Hotel will reopen in mid-July with a new look for its lobby and two restaurants.
Hong Kong Disneyland will also adjust its operating model according to market conditions and operate six or seven days a week starting from mid-June.
Hong Kong Disneyland opened in 2005 and has been losing money for eight consecutive years since 2015. Over the past 17 years of operation, the resort has brought approximately HKD 116.1 billion (USD 14.8 billion) in revenue to Hong Kong’s economy, equivalent to 0.27% of its gross domestic product (GDP). It has created a total of 277,200 jobs.
