Hong Kong Disneyland last year recorded its best results since opening in 2005, with record high attendance, hotel occupancy and tourist spending.

Net losses for the company also were cut drastically by 67 percent to HK$237 million. The company disclosed on Tuesday in its report for the financial year ending October 1. Earnings before interest, taxes, depreciation and amortization more than doubled to HK$506 million.

The park will award pay increases to its employees in 2012. It will also hire 600 new staff (divided equally between full time and part time) but it has no plan to increase ticket prices.

Jeffrey Lam, chairman of the Legislative Council Panel on Economic Development, noted the park achieved better results than in the previous fiscal year. If the trend continues, he believes Disneyland could turn a profit in 2012. Lam noted that mainland tourists will continue to provide a robust customer base. He also said it is right to build new hotels to accommodate the increase in the number of attractions and overnight visitors.

Professor Raymond So, dean of Heng Seng Management College's business school, gave the business results a passing mark. He expressed the view that it is appropriate to continue investing in new attractions to keep customers coming back.

Announcing the 2011 results, Hong Kong Disneyland Managing Director Andrew Kam said that visitor attendance grew 13 percent to 5.94 million. Tourists from the mainland accounted for 45 percent of the total. Another 31 percent were locals. The remainder came from other markets including Singapore, Taiwan, India, Malaysia and the Philippines.

During the same period, hotel occupancy rose to 91 percent, while guest spending also grew 10 percent. Total revenues increased 20 percent to HK$3.63 billion.

"We are pleased with the performance in 2011, as it puts us on solid ground for future profitability," Kam said. He declined to predict when the company expected to be operating in the black, saying tersely "the sooner the better".

As to reports that the company will build two more hotels, Kam said two sites have been reserved. Management is carrying out studies and will submit proposals to the shareholders, including the Hong Kong government, at the right time.

Kam added that the park for the first time recorded profits before tax in September, and so there is no need to raise funds from shareholders for the expansion.

The opening of Toy Story Land last November, an attraction which is exclusive in Asia, brought significant growth in attendance and in Magic Access annual pass holders, he said. The opening of the world-exclusive Grizzly Gulch in summer 2012 and Mystic Point next year is expected to accelerate the momentum of growth.

joseph@chinadailyhk.com

China Daily

(HK Edition 01/11/2012 page1)