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.
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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.