Hong Kong approves Disneyland extension worth $1.4bn

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Hong Kong approves Disneyland extension worth $1.4bn
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The Finance Committee of Hong Kong Legislative Council has approved a project for the expansion of Disneyland amusement park worth 10.9 billion Hong Kong dollars ($1.4 billion).

The costs will be shared equally between the budget and Walt Disney company, The Variety reports. In November last year, the administration of Hong Kong, jointly with Walt Disney, unveiled a plan to expand Hong Kong Disneyland, however then MPs questioned the necessity of such expenditure from the regional budget.

Last year, Hong Kong Disneyland turned out to be unprofitable, and members of the Legislative Council were angered by the fact that Walt Disney continued to receive payments for the park’s management. Their stance was softened when Walt Disney offered to share the expansion costs equally and abandon a variable portion of management fees for two financial years.

As a result, the share of the Hong Kong government in the park will be reduced from 53% to 52% and the share of Walt Disney, respectively, will increase to 48%.