| HONG KONG
HONG KONG Nov 22 Walt Disney will
expand its loss-making Hong Kong Disneyland theme park with a
$1.4 billion investment to try to attract more visitors, the
U.S. entertainment company and its local government partner said
Hong Kong Disneyland, the firm's smallest park, has been hit
by weak local retail and tourism markets and suffered its first
loss in four years in 2015. It cut an unspecified number of jobs
earlier this year.
The Hong Kong resort also faces competition from other theme
park operators fighting for mainland Chinese visitors, including
Dalian Wanda, which plans to spend billions of dollars to launch
at least 20 tourism parks in China.
The Hong Kong government, which owns a 53 percent stake in
the theme park, will chip in $750 million, while Disney will pay
approximately $650 million for the expansion running from 2018
The Hong Kong resort will add Frozen and Marvel themed areas
-- attractions that it hopes can help differentiate it from
other parks around the world, including a Shanghai Disneyland
opened in June this year.
Disney said this month that attendance had declined at its
parks in Hong Kong, Paris and California during the most recent
quarter, while four million people visited Shanghai Disneyland
in its first four months.
Hong Kong's retail and tourism industries have been ailing.
The city saw a 6.1 percent decrease in the number of tourists in
the first nine months this year, including a bigger drop from
mainland China, according to official tourist board data.
"Everybody knows tourism in the region, especially in Hong
Kong, has been challenging, so it's not just Hong Kong
Disneyland," Samuel Lau, managing director of Hong Kong
Disneyland said at a press conference announcing the plan.
"We need to quickly double up to make sure we invest in
tourism in the long run. Some of these projects will take time
to build and create, and now is the time."
Disney said the expansion will create 3,500 jobs and
eventually bring another 600 jobs within the park.
Hong Kong Disneyland employed more than 5,300 full time and
2,500 part time staff, making it one of Hong Kong's largest
employers, according to its Annual Business Review for fiscal
(Reporting by Venus Wu; Editing by Adam Jourdan and Keith Weir)