HK Disney announces US$1.4 billion expansion plan

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Hong Kong Disneyland is to undergo a 1.4 billion US dollar expansion in a bid to lure tourists back to the theme park, which lost 19 million US dollars last year and suffered a 9.3 percent drop in visitors.

The Walt Disney Company and the Hong Kong government announced the investment in the wake of the park's first loss in four years and large-scale layoffs.

The Hong Kong government owns a 53 percent stake in the theme park – currently the smallest Disney resort in the world - and will throw 750 million US dollars into the development project, while Disney will contribute approximately 650 million US dollars for the expansion from 2018 to 2023.

Hong Kong Disneyland releases its expansion plan on November 22, 2016. Photo: Disney

The six-year construction project will include themed areas based on the movie “Frozen” and “Marvel” superhero characters, which will help differentiate the Hong Kong resort from other Disney parks around the world.

Hong Kong Disneyland has lost its allure for many Mickey Mouse fans following the opening of the massive Shanghai Disney Resort this June, and will also face competition fighting for Chinese mainland visitors from Dalian Wanda which plans to spend billions of US dollars to launch at least 20 tourism parks in China.

An artist rendering of the planned “Frozen” themed area, a first for any Disney resort. Photo: Disney

“Shanghai (Disneyland) actually helps increase the brand of Disney in Asia and Hong Kong is unique, we differentiate our parks differently. We have more of an international flavor. If you go out to the park today, we have guests from all over the different parts of the world, speaking different languages, and so we're very unique in that way,” said Samuel Lau, Managing Director of Hong Kong Disneyland.

“I think we need to quickly, you know, double up to make sure that we invest in tourism in the long run,” Lau added. “Some of these projects will take time to build and create, and now is the time to grow, the park, the assets, so that we have an attractive offering when the market takes off.”

The expansion map. Image: Disney

The expansion is expected to add around five billion US dollars of economic benefit and create about 5,000 jobs for Hong Kong, according to Gregory So, Hong Kong Commerce and Economic Development Secretary.