The government intends to inject 5.42 billion into the Ocean Park or liquidate next month

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Written by: Liang Huanmin, Ouyang Dehao

2020-05-11 13:55

At the beginning of the year, Ocean Park submitted a development plan to the government, seeking funding of 10.64 billion yuan to build seven major parks and to overcome financial difficulties. However, the estimate at that time was not affected by the epidemic and the park would be temporarily closed. The government formally submitted a capital injection plan to the Finance Committee of the Legislative Council, recommending an allocation of RMB 5,425,564 million to fund the operation of the Ocean Park for one year before completing the review. The government will also provide additional funds of RMB 13.23 million to allow the government to conduct a re-examination, find a way for the "rebirth" of the Ocean Park and revise the loan terms of the Ocean Park Redevelopment Project and the Ocean Park Dashu Bay Development Project loan, so that the loan Repayments will only begin in September 2021.

The Secretary for Commerce and Economic Development Qiu Tenghua will announce proposals for a new funding plan to support Ocean Park at 2pm today (11th). Ocean Park Board Chairman Kong Lingcheng and Vice Chairman Liu Mingwei will also attend. "Hong Kong 01" live broadcast.

The Secretary for Commerce and Economic Development Qiu Tenghua will announce proposals for a new funding plan to support Ocean Park at 2 pm today (11th). (Profile picture)

The government pointed out that the epidemic has brought tremendous impact and challenges to Ocean Park Corporation, which has further deteriorated the operating situation, "deeply in financial difficulties and on the verge of bankruptcy", and may face the crisis of liquidation in June 2020. The authorities pointed out that it is necessary to formulate a direction for the "rebirth" of the Ocean Park, and it is necessary to take financial measures to temporarily subsidize its operations and save the Ocean Park.

Qiu Tenghua tuned that this appropriation is very different from the development plan proposed by Ocean Park at the beginning of this year, because this is a "Salvation Operation" to allow the park to continue to operate and repay commercial loans to avoid liquidation by banks. However, after it can be reopened in the future, the number of visitors and income must be different from the past. The allocation of 5.4 billion shows that it can continue to operate in the next 12 months, mainly to "endure difficult times."

Government: The new positioning plan can no longer achieve long-term financial stability

According to documents submitted by the government to the Legislative Council, the new positioning plan submitted by Ocean Park in January has commercial viability because of the new situation after the outbreak. According to the latest estimates from Ocean Park, the new positioning plan may only allow it to remain in operation until fiscal year 2037-38. In other words, Ocean Park cannot achieve long-term financial stability through a new positioning plan as previously expected.

The government also pointed out that the global epidemic has a "catastrophic impact" on the tourism industry and the aviation industry. It also makes everyone pay attention to social distance. It is expected that the attractions and facilities of the theme park and the mode of operation may need to be fundamentally changed. The positioning plan is no longer a "prudential plan", but should be re-started to re-set the way for the Ocean Park.

The authorities also emphasized that the impact of the winding-up of Ocean Park Company is widespread and profound because it may "permanently lose the entire ocean park we love today." Ocean Park currently employs 2,000 employees, and the disappearance of the post will have an impact on the Hong Kong economy. As of the end of February 2020, the number of animals kept in Ocean Park exceeded 7,500. Since Hong Kong does not have other animal institutions with the capacity or resources to take care of so many animals, such as the closure of Ocean Park, "the well-being of these animals will be damaged." .

As for the work of re-examining the future direction of Ocean Park, the main coverage and methods adopted will be significantly different from Ocean Park ’s earlier relocation plan. The authorities said that they will re-examine the different areas of the park with an "open mind", especially its funding sources, structure and legal status, as well as the statutory functions of the Ocean Park Corporation.

Review team submits plan or reapplies for funding within six months

In addition, the re-examination will be undertaken by the Ocean Park Review Team (hereinafter referred to as the "Review Team") for a period of 1 year. The review team is a newly established time-limited cross-cutting special task force under the Tourism Commission under the Commerce and Economic Development Bureau. It will hire professional support as needed to study issues such as financing models, operating structure, planning and engineering feasibility. The review team is expected to complete the re-examination process and formulate a preliminary plan within six months, at the end of 2020, and will make recommendations to the relevant authorities for the remainder of the year, including seeking the necessary funding approval.

Li Shengzong pointed out last Friday (8th) that the park has lost more than 1 million visitors in the past 100 days since the fight against the epidemic. It is still using the previous unpaid leave of staff and salary reduction measures for senior management to reduce costs. The insufficient Ocean Park lamented that the current situation "may not be until September."

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