Hong Kong Disneyland posts 2016 loss on tourism softness

Hong Kong Disneyland posts 2016 loss on tourism softness

HONG KONG - The Associated Press
Hong Kong Disneyland posted a wider annual loss on Monday as attendance by mainland Chinese tourists dropped amid a softer tourism market.

The park said it lost 171 million Hong Kong dollars ($22 million) on revenue of HK$4.8 billion for its most recent financial year, which ended Oct. 3.
Some 6.1 million people visited the park last year. That's down from the previous year, when it drew 6.8 million people and lost HK$148 million.

Visitors from mainland China, a key market for the resort, accounted for 36 percent of total attendance in 2016, down from 41 percent the year before.

Resort owners The Walt Disney Co. and the Hong Kong government, which has a 53 percent stake, last year announced a $1.4 billion expansion for the park, which has been criticized for being too small and having too few big-ticket rides.

The expansion project, scheduled to begin next year, will add new themed areas based on the movie "Frozen" and Marvel superhero characters and an attraction based on the film "Moana" as well as renovations to the park's castle. However, Disney's board and Hong Kong lawmakers need to approve its funding.

Hong Kong is also working to improve its competitiveness as an Asian tourism destination following last year's launch of Shanghai Disneyland, which raised concerns that it would siphon off mainland visitors.