Future plan: The Government is in discussions with Walt Disney Company on Hong Kong Disneyland's expansion and financial arrangements to cater for its long-term needs.

Secretary for Commerce & Economic Development Frederick Ma has urged Hong Kong Disneyland to improve its performance, adding various funding options - including the possibility of a Government injection - will be considered when discussing the park's financial arrangements with Walt Disney Company.

Replying to lawmaker Fred Li's query at the Legislative Council meeting today, Mr Ma said the park's performance in its first two years of operation was unsatisfactory. As the park's majority shareholder, the Government says the park should improve its performance.

"It is essential that the park management should critically review the operation of the park with a view to enhancing its operational efficiency and revamping its marketing and promotion strategies. The Government has expressed its concern and impressed upon the management to pay serious attention to the key issues and strengthen its cooperation with the local travel trade to improve the performance of the park," he added.

To cater for the park's long-term operational and development needs, the Government and Walt Disney Company are in discussions on the park's expansion and financial arrangements.

Gov't injection considered

Mr Ma said the merits and demerits of financing options, including the possibility of Government injection, will be considered, adding preliminary feasibility assessments will be conducted.

"The discussion is still at an initial stage and no agreement has yet been reached. As regards long-term financial arrangements, the Government will take into account a number of factors, including economic benefits to Hong Kong, appeal of the new attractions to local residents and visitors, operational efficiency and financial prospect of the park, and the development of other large-scale tourist attractions in the region, and so on," he added.

Mr Ma said the Government will explore adding new provisions to the project agreement. The park's operation will be monitored to ensure proper use of public resources, and lawmakers will be updated on the park's operation.