Hong Kong Disney sends billions of dollars back to US
Posted: Tue Feb 28, 2017 1:33 pm
City wants a new deal: Hong Kong Disney sends billions of dollars back to US parent company while reporting losses
The government – the biggest shareholder in Hong Kong Disneyland – has been urged to renegotiate what critics call an "unfair treaty" with Walt Disney after it was revealed for the first time that the theme park needs to pay between 5 and 10 per cent of its revenue to its American parent as royalties every year.
This means the Lantau-based park could have paid between HK$1.68 and HK$3.37 billion to the California-based conglomerate since it started releasing financial figures in 2009, the Post has calculated – despite recording losses in eight of its 11 years.
The government – the biggest shareholder in Hong Kong Disneyland – has been urged to renegotiate what critics call an "unfair treaty" with Walt Disney after it was revealed for the first time that the theme park needs to pay between 5 and 10 per cent of its revenue to its American parent as royalties every year.
This means the Lantau-based park could have paid between HK$1.68 and HK$3.37 billion to the California-based conglomerate since it started releasing financial figures in 2009, the Post has calculated – despite recording losses in eight of its 11 years.