In a rare move that signals a dramatic financial turnaround, one of Disney’s most troubled theme park resorts has announced plans to eliminate its debts by the end of next year. The update marks a pivotal moment not only for the park’s future but also for Disney’s global strategy, which has faced mounting pressures over the past two decades.
The path to profitability hasn’t been easy. Years of underperformance and pandemic closures pushed several Disney parks to the brink. One resort in particular became a symbol of those struggles.
A Company No Stranger to Setbacks
While millions of guests visit Disney’s theme parks every year, the company has experienced its fair share of financial concerns over the years. For example, in the early days of Disneyland Paris, the theme park fell short of expectations. Mounting debt and low park attendance led to years of restructuring and bailouts.
In more recent years, the COVID-19 pandemic dealt a massive blow to Disney’s theme park division. Parks around the world were forced to shut down for extended periods, slashing revenue and halting development. Several projects were delayed or canceled altogether, including some previously greenlit expansions at Walt Disney World, such as the Mary Poppins ride and the Spaceship Earth renovation slated for EPCOT.
Natural disasters have added further strain, particularly in Florida. Hurricanes Irma, Ian, and others forced multi-day closures at Walt Disney World. These interruptions have cost Disney hundreds of millions in lost revenue over the years, with recovery efforts often extending long after the storms pass.
Disney’s Troubled Theme Park Reaches a Turning Point
Hong Kong Disneyland has arguably experienced some of the most significant struggles. From its 2005 opening, attendance repeatedly missed targets in terms of both visitors and revenue. The theme park – which is significantly smaller than most Disney castle parks – operated at a net loss every year from opening until 2012.
While Hong Kong Disneyland turned its first annual net profit at the end of the fiscal year in September 2012, it continued to operate at an increasing loss from 2015 to 2023. The COVID-19 pandemic, of course, played a large part in these more recent struggles. Hong Kong Disneyland Resort closed and reopened multiple times across 2020, 2021, and 2022, with revenue collapsing accordingly.
Fortunately, Hong Kong Disneyland has returned to a profit in 2024. The number of mainland tourists has also soared. The park has seen a series of big investments in recent years to boost attendance, such as the debut of the Castle of Magical Dreams and the opening of the World of Frozen, Disney’s first Frozen land.
Opened in 2023, this includes a version of the Frozen Ever After attraction first opened at Walt Disney World Resort. It also features the only version of Wandering Oaken’s Sliding Sleighs – a family roller coaster infamous for its exceptionally short runtime – found at any Disney theme park.
As the Disney park continues its 20th anniversary celebration – and combat a string of tropical storms – it’s confirmed that its financial situation has improved to the point that it expects to clear all debts by the end of 2025.
After previously revealing in its 2024 business review that it had repaid 40% of its loans, Hong Kong Disneyland is now set to fully pay off its debts to both the SAR Government (the Government of the Hong Kong Special Administrative Region) and The Walt Disney Company.
“We’re going to be debt-free and our cash balance is continuing to grow, which is going to afford us the opportunity to invest in new expansion through the joint venture, with no need for additional cash injections from either shareholder,” said managing director Michael Moriarty (via RTHK). “We’re going to take a look at all of those things as we continue to grow and do it prudently and do it in a way that’s going to provide consistent year-over-year growth.”
What Comes Next At Hong Kong Disneyland?
The announcement comes as Hong Kong Disneyland gears up to add two major additions. A new Pixar-themed entertainment experience is on the way, along with a Marvel-based thrill ride centered around Spider-Man.
This drop-tower attraction is expected to echo the format of Tower of Terror and will join Iron Man Experience and Ant-Man and The Wasp: Nano Battle! in the park’s Tomorrowland area. To prepare, the Disneyland Railroad recently closed temporarily.
Moriarty called both projects “game-changers” and offered a status update on the Marvel development.
“The Marvel expansion is going to be very, very exciting,” he said. “The creative is almost complete and we are working with the studios at Marvel to make it even more special for Hong Kong.”
The park’s expansion reflects Disney’s wider Marvel strategy. In California, Disneyland Resort is building two major Marvel rides: Avengers: Infinity Defense and Stark Flight Lab. The latter will feature Robert Downey Jr. reprising his role as Tony Stark—a timely return ahead of his reappearance in Avengers: Doomsday (2026) as Doctor Doom.
With profitability finally in sight, new attractions on the way, and the promise of more to come, Hong Kong Disneyland may be on the verge of rewriting its legacy.
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