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The opening of Shanghai Disney Resort next spring will have minimal impact on the one in Hong Kong, as the two theme parks target tourists from different regions, said industry expert on Monday.

Hong Kong Disneyland Resort (HKDL) on Lantau Island - 52 percent owned by the SAR government while the Walt Disney Company owns the rest - has just posted a 36 percent increase in net profit to HK$332 million for the last fiscal year. The company attributed the performance to record high revenue from ticket sales and guest spending since its opening in 2005.

Total income amounted to HK$5.47 billion, up 12 percent a year earlier. Attendance rose 1 percent to 7.5 million, of which 48 percent were from the mainland and 20 percent from other regions. The rest were local visitors.

"Shanghai Disneyland will mostly draw tourists from the Yangtze River Delta, while the one in Hong Kong targets visitors from the southern part of the mainland as well as those from the Southeast Asia, such as Thailand and Indonesia," said Yiu Si-wing, a lawmaker representing the tourism sector.

But he warned possible loss of attraction if HKDL - the smallest Disneyland in the world - failed to put more resources into development.

"The SAR government is now negotiating with HKDL on the development of the second phase of the resort, and the third hotel of HKDL is scheduled to open in 2017. I believe these projects will attract more attention," Yiu added.

HKDL's managing director Andrew Kam also expressed confidence in the face of the potential competition from Shanghai, explaining that tourists are prone to go to attractions that are closed to them.

"Hong Kong Disneyland has its own markets, and we have different client sources as well," he said. Kam also suggested the introduction of new programs to lure visitors. He said that these programs, including the resort's coming 10th anniversary celebration, Iron Man Experience and the opening of the third hotel, Disney Explorers Lodge, should help push the visitor number to a new high while attracting return visitors.

The only 1 percent increase in attendance represented the slowest growth in at least five years. In the past few years the resort mostly achieved double-digit annual growth in guest numbers. Mainland visitors grew 4 percent on a yearly basis in 2014, while a 2 percent increase in visitors from other regions was recorded.

"In 2013 we launched the 'Mystic Point' program, which has helped attract more visitors. Although the increase was slower in 2014, we believe it's just back to a steady and normal growth level," Kam explained, adding that the success of the Walt Disney Company's animated musical comedy Frozen in 2013 has also led to the boom in sales of the movie's spin-off products last year.

But Yiu said the slowdown in attendance increase could be the result of less overnight arrivals.

"We have seen less high-end business visitors from the mainland in recent years, but the number of visitors from the Pearl River Delta has remained steady," he said.

HKDL also post an 11 percent increase in the per capita guest spending in 2014, or 5 percentage points higher than the rate of increase in 2013.

agnes@chinadailyhk.com

The steady increase in the number of visitors from the Pearl River Delta will shield Hong Kong Disneyland against potential threat from Shanghai. Dale de la Rey / Bloomberg

(HK Edition 02/10/2015 page7)