HK Disneyland to get $655m

HONG KONG - THE Hong Kong government on Tuesday said Walt Disney Co will invest HK$3.5 billion (S$655 million) more to expand its Hong Kong theme park, seen as necessary to bolster the park's long-term prospects against a rival park in Shanghai.

Hong Kong Chief Executive Donald Tsang said the Hong Kong government would not invest more capital in the joint venture but would convert debt into capital.

The Hong Kong government, which owns 57 percent of the underperforming resort, desperately needs the expansion to boost flagging attendance, with a much larger rival Disneyland expected to be built in Shanghai in 2014 that could draw much visitor traffic from the burgeoning mainland China market. -- THOMSON REUTERS