The Hong Kong Special Administrative Region government has finally given the green light to a future expansion of Hong Kong Disneyland Resort (HKDL), reversing its stern rejection during the pandemic-stricken year of 2020, after the resort published its first debt-free annual results last week.
HKDL recorded a net profit of HK$536 million ($68.4 million) in fiscal year 2025, setting several records. Besides clearing its outstanding loan, the park’s total attendance for the year reached 7.5 million, with average spending per guest rising 2 percent year-on-year.
The park is a unique attraction in Hong Kong and makes a substantial contribution to the local economy. With a robust business performance over the past 20 years, it has contributed a total of HK$167.5 billion in added value to the city and created more than 340,000 jobs, Secretary for Culture, Sports and Tourism Rosanna Law Shuk-pui said at the Panel on Economic Development on Tuesday.
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Authorities have full confidence in HKDL’s business performance and its potential growth. Therefore, they will consider the park’s next phase of expansion, Law said.
According to a subscription right agreement signed between the HKSAR government and HKDL in 2000, a plot of land of approximately 60 hectares in Penny's Bay — equivalent to 3.2 Victoria Parks — was reserved for the second phase of the park’s expansion.
The subscription right was valid for 20 years and could be renewed twice for five years each time, extending no later than 2030.
In 2020, HKDL had not put forward a concrete second-phase development plan, and given that COVID-19 froze the local tourism industry, the HKSAR government decided in September that year not to extend the subscription right, citing " the current economic situation”.
“The park’s transition to debt-free status is a milestone that justifies the government’s disciplined fiscal approach since 2020. The primary risk is now regional competition, specifically from larger parks in Shanghai and Beijing,” said Ken Ip, associate director of the Innovative Incubation Centre at Saint Francis University in Tseung Kwan O.
Law said if HKDL maintains its outstanding performance, the plot would still be used for the park’s expansion.
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“The SAR government’s current support is best viewed as a shift from 'investor' to 'strategic partner’, ensuring the park remains a self-sustaining asset that adds value to Hong Kong’s tourism without further public financial burden,” said Ip, also chairman of the Asia MarTech Society.
In addition to its outstanding performance, HKDL now features highlights such as "Frozen" and Marvel-themed areas, and previously announced Pixar-themed and Marvel-themed experiences.
Former CEO of Shangri-La International Giovanni Angelini, who was among the first in the hospitality industry to propose the resort’s expansion, told China Daily that the profitable turnaround is “proof that there is potential to grow and a valid justification to enlarge the facilities and not be inferior to the Shanghai and Tokyo parks”.
As a 126-hectare Disneyland in the world, HKDL’s overall density and diversity of attractions lag far behind its competitors, an analyst said.
Legoland Shenzhen Resort opened in 2025, Shanghai Disney Resort continues to expand, and Tokyo Disney Resort is also constantly increasing its hardware investment.
To surpass its competitors, analysis indicates that further expansion is an option for the park to close the gap.
China Daily reached out to Hong Kong Disneyland Resort for details of the potential second-phase development plan but received no response.
Contact the writer at thor_wu@chinadailyhk.com
