First large-scale lay-offs at Hong Kong Disneyland strike fear in city’s tourism industry
Theme park managers put sackings at ‘below 100’, but tourism insiders call for an explanation and worry that the whole sector faces ‘massive’ job losses
Hong Kong Disneyland fired an unknown number of staff, including some managers, on Friday, with the theme park only saying the figure was “below 100”.
This would mark Disneyland’s first large-scale sackings since it opened in 2005, and came just after the park reported a loss of HK$148 million for last year.
The park’s first descent into the red in five years was followed by the sudden departure of its long-time managing director Andrew Kam last month, which was never fully explained, and raises questions about its future with competition in the form of the Shanghai Disney Resort, due to open in June this year.
Disneyland was tight-lipped, only saying the decision was an “operational adjustment” to pave the way for future development while delivering services “in the most efficient way possible”.
The Post has learned that back-office staff were targeted for termination – including restaurant and hotel management as well as security. Frontline workers were not affected.
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All the employees being fired were informed and made to pack up and leave on Friday. Disneyland said they would get better compensation than the statutory amounts.
Ellen Cheng Lai-yee, the head of Hong Kong Disneyland’s cast members union, said this was the first major staff-cutting exercise after several dismissals in the past over employees’ poor performance.
“We will request a dialogue with the park on behalf of those laid-off workers,” Cheng said, adding that a proper reason must be provided.
The Hong Kong government holds 53 per cent of shares in the park, which employs more than 5,300 full-time and 2,500 part-time staff. It has brought about HK$9.3 billion of business to Hong Kong, equivalent to 0.42 per cent of the city’s overall GDP, according to its annual report last year.
“It was meant to be an employment project,” Labour Party lawmaker Lee Cheuk-yan said.
The veteran unionist said currently employed staff were also worried now, as they feared the opening of Shanghai Disney, which is three times bigger, would result in more lay-offs on the Hong Kong side.
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Total visitor numbers to the Lantau-based park were down 9.3 per cent to 6.8 million last year, compared with a year ago, as 23 per cent fewer mainland tourists visited.
Lee accused the government of shirking its responsibility to Hong Kong taxpayers, while leaving all the business decisions to its American partner, Walt Disney.
The government said the park was run by its own management company, which had informed the government about the lay-off plan in advance. “The management company has the responsibility to take relevant actions according to its business condition and operational needs,” it said.
“This is just the beginning of massive lay-offs,” said Joseph Tung Yao-chung, executive director of the Travel Industry Council.
He added that the persisting tourism downturn amid dwindling mainland visitor numbers had started threatening local employment.
