Hong Kong Disneyland records first profit after 9 years thanks to tourists

Hong Kong Disneyland Resort (HKDL) has recorded a historic net profit of HK$838 million after nine years of losses, representing a year-on-year improvement of HK $1.2 billion. The turnaround is credited to a considerable increase in both domestic and foreign tourists, total attendance achieved an all-time high of 7.7 million.

This marks the highest net profit, EBITDA, revenue and attendance since its opening in 2005, as well as the first net earnings following a nine-year deficit. EBITDA rose by HK$1.4 billion to HK$2.3 billion, while revenue increased by 54% year on year to HK$8.8 billion. Per capita guest expenditure increased by 28%.

Over the past year, HKDL saw attendance from all segments – local, mainland China and other markets – surpassing pre-pandemic levels in 2018 while its inbound visitation growth continues to outpace the market for the second consecutive year, with record high other markets’ visitation in financial year 2024.

The additional spending in Hong Kong by all HKDL’s visitors was HK$21.6 billion in financial year 2024. Taking into account both the direct and indirect value-added generated from the additional spending, HKDL brought about HK$12.4 billion of value-added to Hong Kong in financial year 2024, equivalent to around 0.42% of Hong Kong’s GDP and created approximately 22,000 jobs, benefiting Hong Kong’s overall economy.

The huge revenue improvement can also be attributed to the park's extensive campaigns tailored for various markets, including a livestream for the opening of World of Frozen, proactive engagement on social media platforms such as Xiaohongshu and Douyin, magic access offerings targeting Shenzhen residents, and more. The resort also collaborated with the Hong Kong Tourism Board, travel trade, media, key opinion leaders (KOLs) and relevant authorities from various regions, to reinforce Hong Kong’s reputation as a premier tourism destination.

The opening of the world’s first and largest Frozen-themed land, World of Frozen, in November 2023 marked a significant milestone for the resort, drawing worldwide attention, according to the release. Apart from the new popular rides, the unique interactive experience “Playhouse in the Woods” and specially designed merchandise and F&B offerings elevated the guest experience even further.

Meanwhile, the robust company performance has greatly boosted cash flows, resulting in a 28% rise in cash and cash equivalents. As it enters its 20th year, this has enabled HKDL to expedite debt repayment and engage in new guest experiences, such as the 20th anniversary celebration and a Pixar entertainment offering, which will be totally sponsored by HKDL.

Michael Moriarty, managing director of HKDL, said, "HKDL delivered our strongest business performance in the resort’s history. Achieving this level of success when market conditions were challenging is a true testament to the dedication of our cast and the connection our guests have to Disney. I’m thrilled to announce we will be kicking off HKDL 20th anniversary celebrations in June 2025, as we continue to bring new experiences to life.”

“Hong Kong Disneyland Resort continues to be optimistic about its long-term potential,” Moriarty said. “As the resort marks its 20th anniversary in 2025, an extensive array of celebratory offerings will be launched to fuel excitement and help stimulate visitation.”

He continued, “Included in our 20th anniversary celebration will be a brand-new Castle Stage Show, largest ever parade, “Friendtastic!” Parade, and a special edition of 'Momentous'. Debuting in June, these all-new offerings are sure to enchant guests and fans with uniquely Disney storytelling. The year-long anniversary campaign will launch in local, Mainland China and overseas markets, inviting audiences around the world to immerse themselves in this special celebration at HKDL.”

“This is truly good news and it seems that Disney has been performing quite well in maintaining their uniqueness as an attraction among all the international visitors in Hong Kong," the Vocational Training Council’s programme director Dennis Wong told RTHK’s Hong Kong Today programme.

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The news has surprised many Hongkongers and industry players as the park had failed to make a profit for nine consecutive years due to the covid restrictions during the pandemic. It only operated for 190 days between October 2021 and September 2022.

The city's former culture and tourism minister Kevin Yeung urged lawmakers to have faith in Hong Kong Disneyland due to its positive impact on local community and youth development, despite lawmakers urge the city to stop subsidising the loss-making theme park.

Yeung said Hong Kong Disneyland’s financial situation had improved in recent years with net loss narrowed to HK$2.1 billion in 2022, a 12% drop from the year before. Residents helped keep the park afloat during the pandemic by lifting turnout to 3.4 million in the 2021-22 financial year, an increase of 22% from the previous one, while revenue rose 31% to HK$2.2 billion.

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