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Opinion | Hong Kong’s troubled Ocean Park: time to let the government run the show
- It is a good idea to revamp the park’s business model by opening the lower area to the public for free
- But outsourcing retail and entertainment businesses to private companies will take the park further from its primary mission as a non-profit organisation
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Hong Kong has gone through two chaotic years, roiled first by social unrest and then a global pandemic. The city’s economy is at a standstill, not just for private businesses but also public corporations like Ocean Park.
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Due to poor management, among other reasons, Ocean Park has been suffering losses for consecutive years. Its troubles have been compounded by the park’s temporary closure during the Covid-19 outbreak. The park’s operation was suspended for 237 days last year. The latest closure started on December 2 with no end date set.
Last year, the Legislative Council granted a HK$5.4 billion bailout for the park to help make it profitable again. But the amount, a chunk of which went towards paying off commercial loans and related financial costs, won’t be enough to cover the park’s operational costs.
Two weeks ago, the park unveiled its plan to ask for another HK$2.8 billion of government financial assistance in support of its marine conservation and education efforts for the next four years. The government will also seek Legco approval to waive the park’s interest payments of its two previous loans.
Clearly, Ocean Park’s current business model is not sustainable. To turn the situation around, the secretary for commerce and economic development has put forward a plan. The lower park area will no longer charge an entrance fee, and will be reassigned for retail and entertainment purposes. The businesses will be outsourced to vendors.
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