Hong Kong May Assist Disney Financially
December 21, 2007
Hong Kong is considering giving more funds to the city's Disneyland theme park even though lawmakers fear it would be a waste, a senior official said Wednesday.
Currently, the Hong Kong government owns 57 percent of the park and Disney owns the other 43 percent. The two are in talks regarding its future financing.
"The government will carefully consider the merits and demerits of various financing options, including the possibility of government injection," said Frederick Ma, Hong Kong's Secretary for Commerce and Economic Development.
The park needs to expand outside financing or step up its own investment to see improved results according ton analysts.
"As regards long-term financial arrangements, the government will take into account a number of factors, including economic benefits to Hong Kong ... operational efficiency and financial prospects of the park," Ma told the city's legislators.
Hong Kong Disneyland, which opened in 2005, saw poor attendance this year with around 4 million visitors. That is about a 20 percent decrease from the first year.
More on the story: Reuters.