Tuesday, 27 February 2018

Whopping Disney Bills

How about making more money for Hong Kong, Mickey and Minnie?
It was mind boggling to read that yet again Disneyland has posted a whopping HK$345 million loss for 2017 due to park expansion and asset depreciation, despite revenue of HK$5.1 billion, the second best figure since the park opened in 2005.

The number of visitors to the park also rose by 100,000 last year to 6.2 million.

We want to ask the Hong Kong government why it owns 53 percent of the theme park's shares and why we, the taxpayers, have to shell out to pay for Disney to manage it.

Imagine if this theme park was turned into housing...
Disney charges a fee set at 6.5 percent of the park's earnings before interest, tax, depreciation and amortization. So the amount earned was HK$914 million, so the management fee is calculated at HK$59 million.

Also keep in mind the resort's American parent company also charges the park's owners royalties.

Why are we stuck with such a massive bill -- and a loss to boot?

There have been calls to scrap the theme park -- it's the smallest of all the Disneylands -- and replace the area with housing. There's already a dedicated train to connect the area so why not?

Makes good sense to me. We need to get our priorities right, and Hong Kong ain't the happiest place on earth. So why keep pretending?


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