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Hongkongers will have to pay HK$5.45 billion for major expansion of Disneyland

Approval of government’s controversial funding application comes despite demands by lawmakers for a fairer deal with Walt Disney Company

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The partnership between Disney and the Hong Kong government has long been seen as unequal as the entertainment giant receives millions of dollars in royalties and management fees even as the park keeps losing money. Photo: Xinhua

Taxpayers will have to foot a HK$5.45 billion bill for a major expansion of Hong Kong’s loss-making Disneyland theme park, after the government – the biggest shareholder – was unable to negotiate a better deal under a “take it or leave it” ultimatum.

Lawmakers across the political spectrum had been demanding a fairer deal, complaining that the city’s contribution to finance half of Disneyland’s six-year facelift should be subject to better shareholding, financing and management arrangements with the entertainment giant, but on Tuesday the Legislative Council’s finance committee approved the funding by 30 to 24 votes.
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Despite filibustering efforts by opposition pan-democrats, the committee’s pro-establishment majority succeeded in getting the government’s funding application passed, ending five months of bickering and lobbying.

“I am delighted that the finance committee approved the expansion plan,” commerce minister Greg So Kam-leung said. “We have gone through a lot of analysis. We have also pushed very hard in the negotiation. We believe that this package is really the best package that we can achieve.”

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After sticking to its guns throughout, Disney issued a statement saying it was “grateful” to secure Legco support.

The HK$10.9 billion expansion project, half of which will be covered by Disney itself, is due to start next year and will feature themed zones based on the blockbuster, Frozen, and Marvel superhero films, as well as a transformation of the Sleeping Beauty Castle.

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