Hong Kong’s Ocean Park posts HK$118.5 million surplus after years of deficits

The company on Wednesday said its Ocean Park and Water World welcomed 2.4 million visitors during the 12-month period that ended on June 30, a 45 per cent increase over the previous financial year.

Revenue surged by 54 per cent, year-on-year, increasing from HK$545.1 million to HK$839.1 million, with revenue per capita rising by 6 per cent.

Ocean Park chairman Paulo Pong Kin-yee attributed the improved business performance to the reopening of the city’s borders and the company’s creative strategies.

“Our ceaseless efforts in actualising entrepreneurial ideas, curating meaningful visitor experiences [and] revamping our operating model … are paying off, especially with an improvement in market sentiment after Hong Kong reopened its borders during the financial year,” he said.

“The road ahead will remain challenging due to volatile global economic conditions and intense competition in the tourism market. We will continue to play to our strengths as we move forward on the path to long-term sustainability under the future strategy for Ocean Park.”

Performance across the park’s various business areas was positive. Income from admissions rose by 57 per cent, from merchandise by 55 per cent and from catering by 39 per cent, while other in-park spending jumped by 63 per cent.

Bank balance and cash totalled HK$1.68 billion after increasing by 28 per cent.

The park on the south of Hong Kong Island opened in 1977 and underwent a major redevelopment between 2005 and 2012 that increased the number of attractions from 35 to more than 80, which along with more than 7,000 animals, helped boost attendance to a high of 7.7 million that financial year.

Hong Kong cut tourism sector funding, despite HK$784 million grant to Ocean Park

But business worsened in the following years, with the company’s annual deficit reaching HK$200 million before easing to HK$31.8 million in 2020-21, when the government provided a HK$5.4 billion bailout.

The emergency funding provided a cushion for management to devise a survival plan and allow payment of HK$3 billion in commercial debt. Nevertheless, the park still racked up nearly HK$1.82 billion in losses in 2021-22.

More than 30 million visitors to visit Hong Kong this year: Tourism Board

At the start of this year, Hong Kong dropped the last of Covid-19 travel restrictions that had been in place for three years. The city received more than 30 million visitors between January and November.

At the start of this year, Hong Kong dropped the last of Covid-19 travel restrictions that had been in place for three years, and arrival numbers slowly recovered. The city received more than 30 million visitors between January and November, but the number dipped from 3.45 million in October to 3.28 million in November, a 5 per cent decline.