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Hong Kong Disneyland Cuts Losses, Repays Loan to Disney

Hong Kong Disneyland Theme Park Financial Performance Review

The Hong Kong Disneyland theme park released a financial statement nearly nine months after the end of the year, pointing to significant improvements in its financial performance for the year ended September 2023. The involvement of the Walt Disney Company and the Government of Hong Kong in this park was characterized by substantial losses, significantly reduced due to impressive growth in revenue as well as customer turnout.

From October 2022 to September 2023, Hong Kong Disneyland’s revenue multiplied by an outstanding 156% amounting to HK$5.7 billion ($731 million). This remarkable increase in earnings resulted from increased customer attendance. Total visits made during this period jumped by 87%, leading to a cumulative attendance of 6.4m people. The number of visiting tourists saw an increase which is important for general financial performance of the park.

Improvements on EBITDA and Net Losses

Significant development that emerges from income statement has been revealed as well in regards to earnings before interest, tax, depreciation and amortization (EBITDA) Basing on what appeared in the financial documents; EBITDA tripled over the year rising up to HK$924 m ($118 m approximately). Such a tremendous rise in EBITDA reflects improved efficiency and profit making capacity at the park, moreover, it managed to reduce its net loss significantly. Net losses declined by an impressive 83%, showing HK$356 million ($45.6 million approximately), this decrease demonstrates that resort management had done a good job controlling costs and optimizing their own finance statements.

To sum up, several financial aspects have improved significantly according to Hong Kong Disneyland’s fiscal report for September ending years ago. The park’s revenue more than doubled, driven by a significant increase in attendance. In addition, EBITDA has grown three times, while net losses slumped sharply. All these positive financial results highlight successful strategies implemented, following operational improvements over the past year. The joint venture between the Government of Hong Kong and Walt Disney Company has proved a success in terms of driving park growth and ensuring its financial stability.

Profitability & Ongoing Performance

The operators of Hong Kong Disneyland have announced that it has been making money from the summer of 2023. This trend is still continuing after the end of the fiscal year with impressive results. In fact, revenue, EBITDA as well as net earnings had recorded peak levels for Q1 2024 covering January-March, though specific figures are not disclosed.

The substantial improvement in EBITDA has important implications for the park’s operations. According to local media reports, this enhancement in earnings allows Disney to charge a management fee, the base management fee is set at 6.5% of EBITDA. Additionally, there is a variable management fee that can range from zero to 8%, depending on performance, this agreement shows how far reaching in finance this resort actually has become.

Repayment under Revolver Credit Facility

In a remarkable development highlighted by park administrators, Hong Kong Disneyland had completely paid back its revolver credit facility which was financed by one subsidiary belonging to The Walt Disney Company. After completing its redemption in December 2023 ,the said credit facility was no longer needed since then till now, this shows that it is financially healthier and self-reliant than before if not more so with some new evidence.

Hong Kong Disneyland has shown incredible financial progress and operational achievements. Since September 2023, the park has been making money and it achieved record-breaking financial results for the first quarter of 2024. This progress also resulted in Disney’s management fee structure being implemented, which is another indicator that the park has grown financially. Additionally, repayment of the revolver credit facility completely implies increased financial strength and reduced dependence on external financing by the Park. Consequently, these combined developments indicate a bright future ahead for Hong Kong Disneyland.

Financial Turnaround at Hong Kong Disneyland

“We are back and have turned the corner financially,” announced Michael Moriarty, managing director of park, on Tuesday. He described some of the difficulties faced by the park during COVID-19 pandemic. Its measures during this period included some of the harshest anti-disease controls in the world that led to almost closed borders for a long time compared to other regions. These strategies adversely affected tourism resources in this city severely, as such, Hong Kong’s major carrier will only fully recover towards Q1 2025.

These were in turn caused by stringent Covid-19 controls and extended restrictions created by it, leading to huge losses suffered by the company as a result of decrease in number of visitors due to complete closing off from outside world. Consequently Aviation industries were unable to recover since overall damage occurred within tourist resources citywide. The first quarter of 2025 is projected as full recovery date for Hong Kong major airline that attract tourists into its territories

As soon as Hong Kong reopened its doors to inbound tourists, Hong Kong Disneyland has started reaping the fruits of business and inbound tourism strategies. There was a steady financial recovery following the implementation of these parks’ strategic initiatives. In a press statement, this is how the park attracted visitors back effectively via these strategies, this was critical in Asian amusement park’s fiscal turnaround.

More rapid Rise for 2024

The introduction of “World of Frozen” attraction played a major role in speeding up the growth momentum of the park in 2024. This accounted for the highest number of attendants and revenue at any given period due to which huge crowds flocked to see it at this theme park. The popularity of “World of Frozen” demonstrated that Disneyland is able to innovate and provide new experiences that appeal to a wide range audience.

Hong Kong Disneyland has navigated successfully through COVID-19 pandemic challenges, and strict local lockdowns. It is now past the point where it is no longer losing money again despite tourism being severely affected for long as well as leading airline in city slowly recovering . The revival of inbound tourism coupled with business strategies adopted by Hong Kong Disneyland triggered financial revival since then till now. As far as 2024 went, ‘World Frozen’ show helped speed up growth even further, highlighting again how resilient and adaptive this park could be when situations changed.

Over the last five years, Hong Kong Disney Land had been expanding its infrastructure with new installations that would enhance visitor engagement level. In the year 2019, Ant-Man & The Wasp: Nano Battle! became an instant favorite among guests who loved an action-packed ride. In addition to introducing Castle Of Magical Dreams which captivated many people due to its fascinating design two years ago and launching Follow Your Dreams daytime castle show, the park also introduced a captivating program for all ages in 2021. The next show featured last year was Momentous Nighttime Spectacular which was a great evening occasion with mind- blowing music and colorful visuals. Finally in 2023, World of Frozen as an immersive attraction increased attendance swiftly at the park.

Rebound in Non-Local Attendance

The lifting of travel restrictions represented a significant turning point for Hong Kong Disneyland as non-local attendances rebounded robustly. In fact this recovery went beyond the scope of local Hong Kong market, which means that it is highly attractive to international visitors. Due to this key market’s revival, by the end of reporting period, number of Mainland China tourists exceeded levels observed during FY17/18.

At the end of September 2023, cumulative visits at Hong Kong Disney Land stood at over 98 million visitors as an important milestone. Such an achievement demonstrates its continuous reliance on popularity and continuous inflow of guests every year within such large numbers. New facilities’ expansions and bounce back from overseas tourists played crucial role towards attaining impressive figures such as these ones.


To conclude, strategic infrastructure developments of Hong Kong Disneyland for the past five years have considerably improved the park’s offerings and visitors’ experience. The success of this park has been influenced by investment in attractions such as Ant-Man and The Wasp: Nano Battle!, Castle of Magical Dreams, Follow Your Dreams, Momentous Nighttime Spectacular and World of Frozen. The lockdowns were lifted which saw an upturn in non-local visitors particularly from Mainland China and Southeast Asia, making it possible to achieve a total attendance milestone exceeding 98 million people by September 2023. These milestones therefore depict how resilient the park is, its well thought out strategies and continuous ability to be attractive to international tourists.

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