December 21, 2007: 09:23 AM EST
HONG KONG (AP)--Local legislators criticized the poor performance of Hong Kong Disneyland, with one suggesting Friday the government should consider abandoning its joint venture with The Walt Disney Co. (DIS).
A Hong Kong official said at a hearing the park was a long-term investment, while the park's managing director said attendance figures were beginning to improve and that Disney will likely expand the park to draw more visitors.
The Hong Kong government, which holds a majority stake in the park, said Monday that visitor numbers tumbled to 4 million in its second year from 5.2 million a year earlier.
The park, which opened in September 2005, has been heavily criticized for being too small and lacking the high-profile rides of its sister parks in Tokyo, Paris and the U.S.
It faces increased competition from Ocean Park, a local marine-based adventure park. There have also been reports of a possible Disney theme park in Shanghai. Ocean Park opened in 1977 but has recently added a jellyfish house, five annual events such as a Halloween celebration and upgraded its food outlets.
Legislators expressed frustration about Hong Kong Disneyland's poor progress.
Opposition legislator Fred Li noted the Hong Kong government footed most of the park's US$3.5 billion construction cost and demanded Disney invest more in the project. The government owns 57% of Hong Kong Disneyland, with Disney owning the rest.
"In the future, you should pay for the lobster and we should only pay for the soup or the sauce," Li told Hong Kong Disneyland Managing Director Bill Ernest, who attended Friday's hearing.
Another opposition lawmaker, Mandy Tam, asked if the government would consider pulling out of the project altogether.
"Under what circumstances will you decide to terminate your agreement with the company (Disney)?" she said.
Secretary for Commerce and Economic Development Frederick Ma said the park should be given time to reach its potential.
"It's true the return for the first two years was not satisfactory. As shareholders, we have reflected our discontent to the management. But we do understand very well this is a long-term investment," he said.
Ernest said Disney expects to invest in the park's expansion and that the company was discussing expansion plans with the government.
The park also announced Wednesday it will add the classic Disney ride "It's a Small World" and four new shows next year.
Ernest said attendance has shown signs of recovery, with visitor numbers for the last quarter this year already up from the fourth quarter of 2006.
Ma said the government hasn't decided whether to invest more in the park.
"It's about public money, so we have to be very careful," he said.
