Ocean Park announced its financial results for the 2015/16 fiscal year ending June 30, 2016. The park welcomed approximately 6 million visitors for the year due to difficult economic conditions in Hong Kong, generated revenue of business of HK$1,614.8 million and recorded a deficit. of HK$241.1 million. Ocean Park also announced a new fee structure that will take effect in early 2017.
“The 2015/16 financial year was challenging for the tourism and retail sectors in Hong Kong and Ocean Park was not immune,” said Leo Kung, Chairman of Ocean Park. “The number of inbound tourists to Hong Kong has plummeted due to a combination of factors. These include increased competition from other regional destinations, the strengthening of the Hong Kong dollar against the renminbi and other currencies, and slowing economic growth in China, which has affected flow of visitors from the mainland to the city. Due to this reduction in tourist arrivals to Hong Kong from the mainland, Ocean Park saw an 18.8% drop in visitor numbers to around 6 million in the 2015/16 financial year. With increasing competition, we must provide the best possible experience for our customers and further improve our facilities to attract visitors. This includes the development of two hotels (the Hong Kong Ocean Park Marriot Hotel and the Fullerton Hotel @ Ocean Park) and the new all-weather Ocean Park Water World.
A difficult climate cushioned by local support and new markets
Despite adverse external conditions that affected Ocean Park’s performance, the difficult financial results were cushioned by strong local support and growth in key regional markets, including India, Indonesia and the Philippines, all of which recorded double-digit year-on-year increases. presence.
However, due to the launch of several attractions in recent years, such as Thrill Mountain and the Rainforest in 2011, Old Hong Kong and Polar Adventure in 2012, Hong Kong Jockey Club Sichuan Treasures in 2013, Shark Mystique in 2014, and Adventures in Australia in 2015, operational costs increased significantly. In addition to this, Ocean Park has also seen a significant drop in visitor numbers over the past fiscal year. As a result, the park recorded a deficit of HK$241.1 million.
New rate structure effective January 1, 2017
The prices of the SmartFun Annual Pass remain unchanged
To ensure financial viability, Ocean Park announced a new pricing structure for 2017. Responding to this issue, Kung said, “Ocean Park must maintain financial viability as we are rocked by ever-increasing operational expenses, increased investment in facilities to continually improve the customer experience and our ongoing debt service obligations. As a self-funded social enterprise, our pricing must be sustainable to support the development of the park so that it does not become a burden on Hong Kong taxpayers.
The new fare structure will come into effect on January 1, 2017, day admission tickets for adults and children (ages 3-11) will be HK$438 and HK$219 respectively, with a grace period of two months until February 28, 2017 for local residents. . After the new fee structure, admission prices will still stand out as one of the lowest in the region compared to theme parks of a similar scale. The current SmartFun Annual Pass prices will remain unchanged.
Optimistic for the future
The launch of the MTR South Island (East) line and Ocean Park station on December 28, 2016 will provide faster and easier access to the park and will likely facilitate increased visitation by local and Fully Independent (FIT) travelers , which will increase future income. . The imminent opening of two hotels, the Hong Kong Ocean Park Marriott Hotel and the Fullerton Hotel @ Ocean Park, will allow the park to extend the length of stay for its customers, thus increasing the attractiveness of Ocean Park. The two hotels will also offer a new venue for Meetings, Incentives, Conventions and Exhibitions (MICE) event organizers from around the world, which will be easily accessible thanks to the new MTR link to the park.
In addition to the opening of two hotels in the park in the near future, Ocean Park will also attract more guests by enhancing its portfolio of parks with the addition of the new year-round Ocean Park Water World water park, which will remain open late offering nighttime attractions to the local community and international tourists. Additionally, the park will focus more on improving the customer experience. In addition to developing new attractions, last year Ocean Park launched free in-park Wi-Fi, an enhanced mobile app and PFlow, the first-ever theme park-developed guest flow management tool. locally in Asia.
Together, these new developments will be an integral part of Ocean Park’s continued transformation into an international resort destination offering multiple parks and hotel accommodations.
40e Birthday and community care programs
On the occasion of the 40th anniversary of Ocean Parke anniversary in 2017, the “Making Memories” photo contest was launched to celebrate the positive relationship between Hong Kong residents and the park over the past 40 years. Members of the public are encouraged to submit a photo from a previous trip to Ocean Park that reminds them of a great time spent with friends and family. 4,000 tickets to Ocean Park will be given away to local residents who enter the photo contest.
Other than that, Ocean Park continues to maintain the largest portfolio of community care programs among comparable theme parks globally, such as:
Free admission all year round for local residents aged 3 or under, as well as those aged 65 or over.
Free admission all year round for holders of a ‘Registration Card for the Disabled’ and half-price admission for an accompanying person;
Individuals and family members receiving assistance from the Comprehensive Social Security Assistance Scheme (CSSA) can enjoy a special entrance fee of HK$20 when purchasing tickets at the entrance main of Ocean Park;
Free admission for Hong Kong residents on their birthday.
To promote social inclusion, Ocean Park invites thousands of people with disabilities each year to visit the park for free with their friends and family. On the International Day of Persons with Disabilities (IDDP) in November 2015, Ocean Park invited 8,000 people with disabilities and their friends and families to enjoy a day at the park twice. Next year, it will also partner with the Chinachem Group to ensure that 10,000 people from low-income families visit the park for free between January and June 2017. Free transport and meals will also be provided to all participants. .
In fiscal year 2015/16, more than 454,000 Hong Kong residents benefited from free or generously reduced admission to Ocean Park, generating a benefit equivalent to over HK$153 million for the community. . Last year, Ocean Park also offered 49,000 students, from kindergarten to high school, the opportunity to participate in some 1,900 lessons in 40 different programs offered by Ocean Park Academy in Hong Kong. Since 1992, more than 840,000 local students have benefited from Ocean Park’s educational programs.
True to its core values, Ocean Park is also committed to our education and conservation programs. In the last financial year, Ocean Park donated HK$12.1 million to the Ocean Park Conservation Foundation, Hong Kong, which has supported 51 projects in 9 countries and involved 22 animal species in Asia.
Regarding 2017, Leo Kung said, “While Ocean Park remains optimistic about the future, as a self-funded social enterprise, the park must continue its cautious approach to managing its finances despite healthy reserves. which have been formed. In fact, these reserves helped us to cover this year’s shortfall. In 2017, as we celebrated our 40e anniversary, we will continue to improve our facilities and provide the best possible experience for our customers.