The request was made as part of a government bid to obtain approval for a HK$5.8 billion funding application for a six-year expansion project at the park.

“The royalty rate charged by the Walt Disney Company on Disney resorts outside the United States is largely the same at 5 to 10 per cent of revenues,” according to a Legislative Council paper submitted by the government.

Tourism Commissioner Cathy Chu Man-ling told members of Legco’s economic development panel on Monday that the terms the city got were not “inferior” to those for Disney resorts elsewhere.

More from the South China Morning Post:
‘Unequal’ Disney deal leaving Hongkongers to foot the bill
Disneyland on roller-coaster ride amid expansion plans
Why is Beijing declaring war on stock market ‘crocodiles’?

According to a report by Reuters in 2015, about 10 per cent of annual revenue from Paris Disneyland’s operator is taken up by such fees, while the figure for Tokyo Disneyland was 7 per cent.

Simon Lee Siu-po, assistant dean of undergraduate studies at Chinese University’s business school, said the amount was “reasonable”, but the government could have been in a stronger position when negotiating the deal in the first place.

However, some lawmakers were not convinced. They passed a non-binding motion put forward by Michael Tien Puk-sun, a pro-establishment member who threatened to veto the park’s funding application if better terms were not guaranteed.

Source

NO COMMENTS