Ocean Park sees record HK$241.1 million deficit, announces 13.8pc entrance fee rise
Chairman blames poor performance on sharp drop in mainland china visitors
Hong Kong’s Ocean Park has recorded its first deficit since Sars hit the city in 2003 on a sharp drop in mainland China visitors, and announced a 13.8 per cent fee rise.
The HK$241.1 million deficit was the largest since the park ceased to be a Hong Kong Jockey Club subsidiary in 1987, as visitor numbers to the park were down 18.8 per cent to 6 million and revenue shrank 17.8 per cent to HK$1.61 billion in the fiscal year ended June 30. The deficit stood in contrast with a HK$45.2 million surplus the previous fiscal year.
The park said entrance fees would be raised 13.8 per cent to HK$438 for adults and HK$219 for children from January 1.
“We are not immune to the industry-wide problem of having fewer mainland tourists,” Ocean Park chairman Leo Kung Lin-cheng said on Wednesday. “Any turnaround will depend on mainland visitors, whom I don’t think will come back in droves in the coming year.”
Any turnaround will depend on mainland visitors, whom I don’t think will come back in droves in the coming year
He added that a strong Hong Kong dollar against the yuan and other currencies, the mainland’s economic downturn, and competition from other regional destinations cooled tourists’ desire to visit the city.
Kung promised there would be “no layoffs” and “no pay cuts” for about 2,000 full-time staff. A decision on pay rises was due next month, he said.
Despite the poor performance, the park was financially sound with a reserve totalling about HK$2 billion, he said.
Tourism lawmaker Yiu Si-wing said Ocean Park was in a “more difficult situation” than loss-making rival Hong Kong Disneyland on Lantau because the park relied more on mainland tour groups and the number of tour groups to Hong Kong was nearly halved to about 200 groups a day this year from about 400 groups a day last year.
“In terms of competition, Hong Kong Disneyland largely competes with its counterpart in Shanghai,” Yiu said. “But Ocean Park competes not only with Disneyland theme parks but also Chimelong Ocean Kingdom in Zhuhaiand other theme parks in Guangdong province.”
Kung said mainland and overseas tourists accounted for 60 per cent of Ocean Park’s visitors last year and that tour groups accounted for about 40 per cent of this figure, or roughly 3.6 million people. By contrast, Hong Kong visitors last year numbered 2.4 million.
To improve its performance, the park will create sources of income by launching a new entertainment and dining area at its entrance before February, according to Ocean Park executive director of sales and marketing Vivian Lee Ling-fung.
Kung said the park would also beef up efforts to lure visitors from regional markets such as India, South Korea, Indonesia and Taiwan.
“Their spending power is much higher,” he said.
He added Ocean Park would be repositioned as a resort when two five-star hotels – a Marriott and a Fullerton – and an all-weather water-theme park opened over the next three years.
