Ocean Park profits plunge to less than half of last year's record high
Slower ticket sales and increased spending on staff, shows and advertising reduced Ocean Park's full-year profits to HK$98.6 million, less than half of the record HK$204.7 million surplus last fiscal year, according to its financial statements.
Battered by the global economic downturn, which has hurt household spending and international travel, Ocean Park also faced swine flu fears, adverse weather and visa restrictions on mainland visitors, who accounted for almost half of its 4.8 million visitors in 2008-09.
The park's fiscal year runs from July 1 to June 30.
'Looking forward, we have wonderful opportunities for growth, in terms of spare land for further development, and our proven ability to build traffic from many geographic and demographic markets,' chairman Allan Zeman said.
Financial statements show ticket sales dropped to HK$649.8 million from HK$681.9 million last fiscal year, while income from merchandise was HK$86.1 million, down from HK$88.9 million. But business at Ocean Park's restaurants and food stores improved from HK$115.5 million to HK$118.7 million.
Total staff salaries rose to HK$342.3 million from HK$323.3 million, and advertising and promotion expenses climbed HK$8.3 million to HK$54.1 million. There were slight increases in expenditure on repairs and maintenance, utilities, animal care, and shows and exhibitions, while the amount of donations shrank more than 30 per cent to HK$7.5 million.
In early October, admission prices rose, with adults paying HK$250, up from HK$208, and children paying HK$125, up from HK$103.
Ocean Park is charging visitors more to help pay off loans and interest relating to its HK$5.55 billion redevelopment project. Three loans need to be repaid, starting in 2011 with a commercial loan of more than HK$2.77 billion and ending in 2031 with a HK$1.39 billion government loan at 5 per cent interest a year. From 2012, when the redevelopment is expected to be completed, annual loan-related payments were estimated to total about HK$300 million.
Ocean Park is embarking on an ambitious plan that will more than double the number of attractions from the present 35 by 2012. Most will be rides for families and exhibits. So far, a new Amazing Asian Animals exhibit has opened and a tunnel train system, Ocean Express, has begun shuttling visitors between the park's lowland and headland areas.
The park forecasts 5.8 million visitors a year by 2012-13.
Splashing out
Ocean Park's ambitious redevelopment to double its number of attractions from 35 is being financed by loans and, in HK dollars, will cost: $5.55b
