Hong Kong’s Ocean Park slipped into a deficit of HK$71.6 million (US$9.2 million) for the financial year ending June 30 from a HK$118.5 million surplus a year ago, despite strong growth in post-Covid revenue and visitor numbers.
An insider said on Thursday that the loss was partly because of the lack of a HK$570 million government grant, which was provided the previous financial year.
The park, home to the city’s six giant pandas, would press on with growth targets while capitalising on the bears’ presence, he added.
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“The park is actively seizing the opportunities brought by the six giant pandas, by creatively launching a series of online and in-person activities and designing merchandise, culinary offerings as well as travel products related to pandas,” the source said.
“We aim to attract visitors through panda tourism to increase park attendance and revenue.”
Hong Kong has been swept by fanfare over the pandas since the summer when the park’s 19-year-old Ying Ying and male Le Le became parents of twin cubs in August. This was followed by Beijing’s gift of five-year-old An An and Ke Ke, who arrived in the city in September.
Male An An and female Ke Ke are due to meet the public for the first time on December 8, followed by the twin cubs as early as February next year.
During the coming Christmas and Lunar New Year, the park will feature a giant panda theme, offering installations for selfies, large inflatable sculptures, immersive experiences and incorporating various art tech elements, according to the source.
He added the park also actively collaborated with the government, the Hong Kong Tourism Board and various sectors of society to prepare a series of promotional activities centred on the giant pandas.
“The park actively assists and participates in district-wide panda-themed events ... aiming to drive the citywide panda craze, increase park attendance and revenue, and promote the development of panda tourism in Hong Kong,” the source said.
In the 2023-24 financial year, the theme park said it welcomed 33 per cent more visitors at 3.14 million compared with the same period last year.
Revenue jumped 41 per cent year on year to HK$1.18 billion in 2023-24, primarily driven by 54 per cent growth in admission income to HK$659.9 million.
Other sources of revenue of the park showed strong growth, with merchandise income leaping 27 per cent to HK$143 million, catering income up 32 per cent to HK$220 million from a year earlier.
Visitors from India, mainland China and the Philippines showed significant year-on-year growth of 4.1 times, 3.5 times and 2.2 times, respectively, during the period.
A source said the park posted a surplus of HK$118.5 million in the previous year mainly due to government grants.
“It was only after deducting government subsidies and educational grants of nearly HK$850 million that the operating costs saw a significant decrease last year,” the insider said. “We don’t have the HK$570 million grant this year.”
In the financial year 2022-23, the government provided a total subsidy of about HK$850 million to the park, including around HK$570 million approved by the Legislative Council and HK$280 million for a four-year conservation and education grant.
In 2023-24, authorities only funded HK$280 million to support the park’s continued conservation and educational initiatives.
Operating costs increased 17 per cent year on year to HK$1.48 billion in 2023-24, of which conservation expenses accounted for nearly 30 per cent at HK$437.6 million
As of the end of June 30, the park’s cash resources stood at HK$1.66 billion.
Excluding government subsidies and depreciation, the park’s net operating loss had narrowed for three consecutive years, contracted by 30 per cent to HK$2.9 billion.
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