Disney will add new attractions in expansion of Hong Kong park

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(China Daily/Agencies)
Updated: 2009-11-09 07:47

Falling gov't stake

"In total, this means that Walt Disney Co will invest about HK$6.2 billion of new capital to demonstrate the company's confidence in Hong Kong Disneyland," said Rita Lau, Hong Kong's secretary for commerce and economic development.

After Disney's new investment and the government's debt-to-equity swap, Hong Kong will see its stake in the park fall to 52 percent from 57 percent.

This is the theme park's first major expansion since the park opened to great fanfare in 2005.

Since then, however, the park's performance has been sluggish, with attendance falling short of initial targets.

The government's outstanding loan to the theme park is about HK$6.89 billion. After the conversion, this balance will not drop below HK$1 billion, the government said in a statement.

According to the statement, the expansion, with its mix of new thrill rides, will "broaden the park's appeal" and act as a "catalyst" to improve the park's operating and financial performance.

Changes at HQ

From its US headquarters in Burbank, California, Walt Disney Co said Ed Grier resigned last month as president of the Disneyland Resort in Anaheim, California, after 28 years with the company. The resignation took many in the company by surprise.

Grier wasn't much of a public leader, rarely being seen in the parks. But under his watch, Disneyland has prospered the past three years, with Disneyland Park winning the Theme Park Insider Award as the world's best theme park in 2009 and 2008.

Disneyland hasn't named a replacement.

The departure of 54-year-old Grier comes eight months after Disney reorganized the division that generates 30 percent of its revenue by cutting jobs to cope with the US recession.

The company owns resorts in the United States, holds stakes in venues in France and Hong Kong and licenses its operations in Japan.

"My decision to retire from the Walt Disney Co was not an easy decision," Grier said in a separate memo that also was e-mailed to Bloomberg. "I have had a long and rewarding career with the Walt Disney Co, and am excited to explore what's next."

He said he would work on a business venture with his sons.

Grier started with Disney theme parks 28 years ago, beginning his career as an auditor at the Walt Disney World Resort before taking roles at operations in Tokyo and Paris.

The Disneyland resort was the company's first theme park, opening in July 1955 on 85 acres in Anaheim. It has since grown to 510 acres and includes Disney's California Adventure Park.

The company posted a 19 percent drop in theme park operating income in the third quarter. Profit for the fourth quarter will be announced Nov 12.

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