Disney’s Hong Kong Park Expansion Plans Put on Hold

The Walt Disney Co. (Burbank, Calif.) has stopped the already-delayed expansion plans at its Hong Kong theme park after failing to agree to a deal with the city's government. According to the Associated Press, Disney’s decision was made after negotiations failed to agree on how to improve the attractions at the troubled Hong Kong Disneyland, or HKDL.

“After two years of Disney investment in creative and design work and extensive negotiations with our partner, the Hong Kong government, we have not yet reached a final agreement to expand HKDL,” says Leslie Goodman, Disney's executive vp, worldwide public affairs. “The uncertainty of the outcome requires us to immediately suspend all creative and design work on the project.”

The decision involves the layoff of 30 Hong Kong-based “Imagineers,” who plan, design and engineer the company's theme parks. But, a spokesman for the Hong Kong Commerce and Economic Development Bureau says it was puzzled by the company's decision and that layoffs will not be conducive to the previous discussions.

The spokeswoman says the government, which owns 57% of the park, was still in discussions over the expansion plans and hoped to reach an agreement “as soon as possible.”

Goodman says Disney is still committed to the long-term success of the Hong Kong park. The $3 billion venue opened in 2005 but has failed to meet visitor expectations while being troubled by feuds with staff unions over working conditions, several food poisoning scares and a ticket mix-up that provoked a near-riot with customers.

Last year, Andrew Kam, who previously worked for Coca-Cola Co. in China, appointed new managing director.