Disney’s option to purchase a plot of land adjacent to Hong Kong Disneyland is about to expire and will not be extended by the local government, according to Reuters.
What’s Happening:
- The Walt Disney Company had a twenty-year option to purchase land adjacent to the location of Hong Kong Disneyland that expires on September 25th of this year.
- Disney had not yet made a decision to use the land, which was earmarked for a second phase expansion of the resort, and amidst public protests and changing local leadership, their option to develop the land will not be extended.
- Hong Kong Disneyland is not solely owned by Disney, with Hong Kong International Theme Parks Ltd., a government controlled agency, owning 52% of the resort.
- Despite not using the adjacent land, Disney has expanded the Hong Kong Disneyland Resort over the years, investing HK$3.63 billion (US$465 million) with additions like Toy Story Land, Mystic Manor, two Marvel attractions, and the recently completed castle upgrade.
- A Frozen attraction was also announced for the park.
- When Hong Kong Disneyland opened in 2005, it was hoped that the theme park would help boost tourism following a huge slowdown in 2003 with the outbreak of SARS.
- Hong Kong Disneyland has largely been an unprofitable venture for Disney, losing money until 2012 and only remaining profitable through 2015, when it dropped again.
- The government’s website states that they will focus on the development and expansion of the existing resort rather than a geographic expansion.
- Local activists have asked for public housing to be built on the adjacent land, which was most recently used as a quarantine center for the pandemic while the park was closed.
- Hong Kong Disneyland Park will reopen for a second time on September 25th after closing again in mid-July, reportedly due to an increase in coronavirus cases but also as protests against the Chinese government ramped up.
- In a statement, a Disney representative expressed their disappointment with the Hong Kong government’s decision while reaffirming their commitment to investing in the resort in the future.
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