Daily Management Review

Hong Kong protests hit Disney theme parks profits


Disney said the "circumstances" prevailing in Hong Kong had a negative impact on the company's theme parks, CNBC reports.

Loren Javier
Loren Javier
The profit growth of Disneyland Paris and Shanghai Disney Resorts was offset by deterioration in the results of the Hong Kong Disneyland Resort, the company said.

"The circumstances in Hong Kong have resulted in a significant reduction in the flow of tourists from China and other parts of Asia based on the trends that we observed in the IV quarter and what we still see in the I quarter," said Disney CFO Christine McCarthy.

"We expect Hong Kong Disneyland's operating profit to fall by about $ 80 million in the first quarter," she added.

Hong Kong's fleet operating profit was down $ 55 million in fiscal quarter IV

Since early June, mass demonstrations have continued in Hong Kong because of the extradition bill, which has grown into wider anti-government protests. Although Hong Kong authorities have officially withdrawn the extradition bill, the situation in the city remains tense.

During the protests, tourism, retail and hotel business in Hong Kong were particularly affected. The number of tourists visiting the city in September fell by 34.2% in annual terms, the Hong Kong Tourism Board said.

source: cnbc.com