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OpinionHong Kong Opinion
Ken Ip
Opinion
Ken Ip

What Hong Kong tourism can learn from Disneyland’s magical turnaround

The theme park drew more visitors despite higher prices. Hong Kong must ditch copycat strategies and double down on its unique identity

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A man wearing a Minnie Mouse accessory on his head is among visitors to Hong Kong Disneyland Resort on February 25. Photo: Elson Li
Ken Ip
Dr Ken Ip is an assistant professor specialising in business innovation and entrepreneurship at Saint Francis University, Hong Kong.
It’s not often that a business turnaround stuns the public, but the recent announcement from Hong Kong Disneyland Resort is nothing short of extraordinary. After nearly a decade of losses, the theme park has reported a record net profit and all-time high visitor numbers.

How did it turn its fortunes around? What seems magical was a carefully crafted strategy of investing in Disney’s intellectual property (IP) – such as with the launch of World of Frozen – and a bold move towards higher pricing. This formula not only boosted attendance but enhanced revenue – showing that in the current climate, it is high-end tourism, not budget travel, that holds the key to success.

For its last financial year, Hong Kong Disneyland posted a record revenue of HK$8.8 billion (US$1.13 billion), a surge of 54 per cent year on year. Its net profit of HK$838 million was an astonishing turnaround from the previous year’s net loss of HK$356 million.

More visited and spent more at the park – there were a record-breaking 7.7 million visitors, up 21 per cent, while per capita spending grew by 28 per cent. The hotel utilisation rate climbed from 77 per cent to 88 per cent.

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