Hong Kong Disney seems to be facing the worst.

This Disneyland in Hong Kong has been losing money for three years so far，In contrast, the proportion of mainland tourists in the customer base continues to decline，The most important thing is that even after excluding depreciation, amortization, interest, taxes and other expenses，Hong Kong Disney’s real profit data is still unsatisfactory，And that means something is wrong。

Hong Kong Disney Map Image source: Internet

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February 20，As usual, Hong Kong Disney released the approximate revenue data for fiscal year 2017，Hong Kong Disney suffered a loss of 3 that year.HKD 4.5 billion，This is the third consecutive year of losses。Hong Kong Disney suffered losses of 1 in 2015 and 2016 respectively.HK$4.8 billion and 1.HKD 7.1 billion。

It is not difficult to find out by comparing the three-year loss data，2017 was the biggest loss year for this theme park in three years。Hong Kong Disney believes that when explaining the reasons for the expansion of losses，The new attraction Iron Man Flight Tour and the new hotel were completed last year，Resulting in increased depreciation 188bet app and operating expenses。

There are not many options available to Hong Kong Disneyland.A better option would be to reduce operating costs、Stop investment and expansion、Admit that Shanghai Disney is better than me。

To be fair，Short-term losses of several years are not a fatal heel for a theme park。Theme parks like Disneyland are asset-heavy investment projects，In its income statement, the depreciation and amortization expenses of assets often become larger upfront costs，This is also the main reason why newly built theme parks have suffered continuous losses in the past few years。

But if a theme park has strong operational capabilities，You can achieve overall net profit within a few years with strong revenue。The operational capabilities will test the success or failure of a theme park，The ebitda rate (profit rate before interest, taxes, and amortization) is a key indicator that reflects the operating capabilities of a theme park，The income after excluding depreciation, amortization, interest and tax directly tests the level of operation。

Look further，Hong Kong Disney’s ebitda rate is not only lower than that of Mainland China’s Huaqiang Fantawild，Also lower than several other Disney parks。A set of data display for 2008，Ten years ago, Orlando Disney’s ebitda rate reached 33.4%，Tokyo Disney 24.3%，Even French Disney, 188bet sports betting app download which has always had poor profit performance, reached 18.9%，All higher than Hong Kong Disneyland。

To put it simply，Hong Kong Disney did have a big problem in its actual operation，The failure to effectively control expenses should be the main reason。Generally speaking，The proportion of expenses in the theme park industry has always accounted for the majority of all costs，This includes salary expenses、Advertising expenses、Mainly the cost of water and electricity usage。

The exact cost data of Hong Kong Disneyland is currently unavailable，However, from the above low ebitda rate, we can roughly infer the labor costs in Hong Kong Disney operations、Advertising expenses、Energy costs are key indicators that drive down its income。

The number of full-time employees at Hong Kong Disneyland has been between 5,300-5,000 in the past three years，The number of part-time employees is between 2500-2000，In the past three years，The total number of employees reached 7,800 at its peak。For comparison，The number of full-time and part-time employees at Shanghai Disney was about 10,000 in 2017。It’s worth noting，The minimum wage standard in Shanghai in 2017 is RMB 2,300，The minimum monthly wage in Hong Kong has at least doubled over the same period。The annual employee salary cost of Hong Kong Disney is twice that of Shanghai Disney，However, Hong Kong Disney’s overall revenue is difficult to match that of Shanghai.

Disneyland announced layoffs of nearly a hundred employees，Management mainly of logistics volunteers. Image source: April 16, 2016 Hong Kong "Ta Kung Pao" (before Shanghai Disney opens)

Of course, judging from the industry attributes of theme parks，The marginal cost of labor will decrease as the scale of the park expands。But one problem here is，When the park 188bet app expands，Need to have sufficient passenger flow and cash income，And this is where Hong Kong Disney’s trouble lies.

Mainland tourists decreased by nearly 700,000 in three years。With the opening of Shanghai Disneyland，The number of mainland tourists visiting Hong Kong Disneyland shows a significant downward trend，Reduced by 680,000 passengers in three years，This is in contrast to Hong Kong Disney’s previous judgment that the number of customers will not decrease。

The decline was most obvious in 2016, the year Shanghai Disney opened。

Aerial photography before the opening of Shanghai Disney. Picture source: Tencent Real Estate

Judging from the source of customer base，Mainland tourists、Hong Kong local tourists、International tourists are the entire source of Hong Kong Disney’s customer base。After the opening of Shanghai Disneyland，The number of mainland tourists at Hong Kong Disneyland decreases，Attracting more local and international tourists from Hong Kong to make up for the lost mainland tourists is the general trend。

Adjustment of operating methods can be divided into three main directions:

First, accommodation discount，For example, Hong Kong locals can stay in hotels at half price during a specific period，Half-price stay at the newly opened Discovery Hotel, etc.。

The second is to increase festival activities，For example, this year’s Spring Festival, Hong Kong Disneyland held a New Year’s Market 188bet Online Sports Betting and Casino with various Hong Kong food stalls in the park for the first time，This kind of festival with the nature of a traditional Chinese temple fair is extremely rare in the history of Disneyland。

The third is to add new projects，In 2017, Hong Kong Disneyland’s Iron Man Park and Explorer Hotel have opened。

Nevertheless，However, the actual operating data of Zhihui Statistics is not significant。

Let’s talk based on the data of the three years 2015-2017。

At this point, many people have to ask,Where is the way out for Hong Kong Disney?

The traditional theme park form is no longer able to meet the demand for consumer upgrades，Mode is lighter，More frequent，IP is attractive enough，This is a new consumption trend，It also contains great consumption potential。

Smaller investment scale、IP implementation is more accurate for passenger flow、Faster cost recovery，This will be the future development direction of large theme park operating companies。

Zhihui will combine the latest cases and real operating data，Explain in detail the way forward for Hong Kong Disney in the next article，Please pay attention。