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HONG KONG (China Daily / ANN): The Hong Kong government said on Monday (May 11) that it is preparing a revised bailout plan to inject HK $ 5.4 billion into Ocean Park with liquidity problems, amid Growing concerns that the city’s iconic marine life theme park will cease operations from June.
The park, which opened in southern Hong Kong Island in 1977, had already requested a cash injection of HK $ 10.64 billion from the SAR government in January for long-term development.
The coronavirus outbreak has brought “unprecedented” financial and operational challenges shortly after the plan was presented to the Legislative Council’s Finance Committee in late February, said Secretary of Commerce and Economic Development Edward Yau Tang-wah.
“The park has been closed for more than three and a half months. During the period, it had zero visitors and reported zero income, “said Yau.
“We also see great difficulties ahead, even when the park reopens in the future. The entire tourist landscape, both locally and globally, will undergo major changes, “he added.
Leo Kung Lin-cheng, chairman of the park board, said he has lost around HK $ 700 million in the past three months, with expenses of around HK $ 140 million per month and loss of income of HK $ 200 million.
Yau said the new funds will serve two purposes. One is to ensure that the park survives the next 12 months, while redefining its strategic plans. The other is to help you withdraw HK $ 3 billion in commercial debt.
The government has also proposed to defer payments on the park’s two government loans in the amount of HK $ 3.6 billion.
Lawmakers are expected to review the revised plan on Friday. Yau said it is the first time that Ocean Park has requested government funds. In the past 40 years, the park has always been able to finance itself.
If the park cannot obtain these funds before the end of June, it may close. This will be a fatal blow to his 40-year-old reputation and successful brand. It could also mean the loss of 2,000 full-time jobs, he added.
The park’s financial position had worsened in recent years. He cautioned that his cash flow deficit is expected to exceed HK $ 600 million in fiscal year 2019-20. It reported a deficit of HK $ 557.3 million for 2018-19, doubling its deficit of HK $ 236.5 million for the previous year. – China Daily / Asia News Network
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