Hong Kong Disneyland posts first profit since opening

Hong Kong’s struggling Disneyland has posted its first profit since opening seven years ago thanks to an increase in mainland Chinese visitors, a report said on Friday, as it considers opening new hotels.

The news will come as a welcome relief for the resort, which has battled below-forecast visitor numbers since opening in 2005, while doubts about its future have swirled since China gave permission for a park in Shanghai.

The report, which cited an unnamed person familiar with the park’s financial situation, gave no details.

A Disney spokesman declined to confirm the report when contacted, saying the park’s financial report will be released early next year.

A deal to open Hong Kong Disneyland, which is majority owned by the Hong Kong government, was signed in 1999 as part of a plan to boost the city’s economy as it reeled from the Asian financial crisis.

However, it has been desperate to ramp up the number and quality of its attractions as it tries to lure more big-spending visitors from the mainland, while it has also embarked on a huge public-relations campaign.

Walt Disney Company has also boosted distribution of its television shows across the country, while it also runs nearly 24 hours of weekly programming, the said.