Hong Kong’s troubled Ocean Park saved as lawmakers approve HK$5.4 billion relief fund
- After hours of debate, 32 legislators support lifeline for the home-grown theme park in Aberdeen amid threats of possible liquidation in June
- Park still faces a bumpy ride as the coronavirus pandemic has brought the city’s tourism industry to a standstill
After hours of debate, 32 legislators gave the nod to a lifeline for the home-grown theme park in Aberdeen amid fears of possible liquidation in June. Twenty lawmakers voted “no” and two abstained.
But the park still faces a bumpy ride to pick up business as the coronavirus pandemic has brought the city’s tourism industry to a standstill.
Officials were expected to come up with an initial plan on the resort’s future by the end of this year. Politicians suggested some of the theme park’s land be used for commercial purposes to drive new sources of revenue for supporting its operations.
“We can’t see the tourism industry having recovering significantly in a year’s time,” tourism lawmaker Yiu Si-wing said.
“Keeping the park running as a traditional attraction will not help much,” Yiu said, adding the government should take a greater role in the business.
The government first floated a HK$10.6 billion bailout plan in January – before the coronavirus crisis – and roughly halved its funding request this month because the resort faced a pressing financial situation during the Covid-19 epidemic.
Hong Kong lawmakers fail to decide on Ocean Park bailout
It has been closed since January 26, shortly after the city confirmed its first infections.
The park thanked the legislature for approving the funding and promised to deploy the money prudently.
Pro-establishment lawmaker Tony Tse Wai-chuen suggested some of the park’s land could create business benefits and the money could support its other functions.
On Friday, the government told the legislature that the park spent on average around HK$280 million on conservation and education per annum over the past five years, amounting to about 20.5 per cent of its yearly operating expenses.
During the same period, the business invested roughly HK$120 million on amusement rides on average each year – about 8.5 per cent of its yearly operating costs.
It added the park’s main expenditure over the past five years was salaries. The average annual amount was around HK$690 million, about half of its operational cost.
Some opposition lawmakers were not happy with budget overruns for a project in Tai Shue Wan, which included a water park. By early 2020, construction expenses stood at HK$3.86 billion, far above the original budget of HK$2.29 billion.
Eddie Chu Hoi-dick said: “In 2013, [the government] said it would not come to the legislature for funding again.”
Civic Party lawmaker Jeremy Tam Man-ho had asked about the interest rate on its commercial loans, but the park’s deputy chairman Lau Ming-wai said it could not disclose the details publicly.