Hong Kong Disneyland Faces $275 Million Hit If Protests Keep Up

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Hong Kong Disneyland

Disney expects the park's income to fall by $80 million in its next quarter, and if the ongoing unrest continues it could see a $275 million decline for the year.

Disney on Thursday told investors that the protests in Hong Kong have led to a “significant decrease” in tourism in the region, forcing the company to significantly revise its projections for Hong Kong Disneyland.

Disney CFO Christine McCarthy told analysts on a quarterly earnings call that the company expects Hong Kong Disneyland income to fall by $80 million in its next quarter, and if the ongoing unrest continues, the park could see a $275 million decline for the year.

Hong Kong Disneyland income fell by $55 million in the last quarter as the protests escalated.

The pro-democracy protests in Hong Kong began in the spring and became much larger over the summer. The demonstrations started in protest of a proposed bill that would have allowed Hong Kong residents and visitors to be extradited to mainland China for trial. The controversial bill was withdrawn last month, but the government has held firm on other pro-democracy demands from protestors.

Disney’s Shanghai and Paris parks saw growth in the quarter, offset by the declines at Hong Kong Disneyland.

In the U.S., Disney World results were comparable to the same quarter a year ago, despite Hurricane Dorian impacting the park. "We still feel very good about the demand for our domestic park product," McCarthy told analysts, noting that booked rates were up 5 percent compared to last year.