Hong Kong Disneyland achieved three breakthroughs this fiscal year compared to the previous year:

- 1.3 million increase in park attendance

- HK$3 billion increase in revenue

- HK$1.2 billion increase in profit

It is worth noting that the average spending per tourist jumped from HK$891 in fiscal year 2023 to HK$1143 in fiscal year 2024, exceeding HK$1,000 for the first time.

By calculating the variable cost rate (difference in expenses ÷ difference in revenue = 61.5%), we divide the total expenses into variable expenses and fixed expenses.

※ Expense Breakdown Calculation:

- Variable expenses = Total expenses × Variable cost rate

- Fixed expenses = Total expenses - Variable expenses

※ Break-even point calculation:

- Marginal profit = Revenue - Variable expenses

- Marginal profit rate = Marginal profit ÷ Revenue

- Break-even point sales = Fixed expenses ÷ Marginal profit rate

※ After calculation and comparison of 2023 and 2024 data:

- 2023 break-even point: HK$6.7 billion

- 2024 break-even point: HK$6.9 billion

Due to increased depreciation of the new park, the 2024 figure naturally increased.

※ Conversion to number of park visitors:

- Based on 2023 ticket price (average spending HK$891): 7.55 million visitors were needed in 2023 to reach the break-even point; 7.76 million visitors were needed in 2024 to reach the break-even point.

- Based on 2024 ticket price (average spending HK$1143): Only 6.05 million annual visitors are needed to break even.

If calculated based on the 2023 ticket price, the increased fixed costs due to depreciation from the new park resulted in a 210,000 increase in the number of visitors needed to break even in 2024, equivalent to attracting an additional 575 visitors per day. However, thanks to the increase in ticket prices, the actual number of visitors needed to break even has decreased.

Considering that 80% of the HK$10.9 billion investment in the new park is buildings (30-year depreciation) and 20% is equipment (10-year depreciation), with a residual value rate of 10% each, the first-year depreciation amounted to HK$1.1 billion. After adjustment:

- The revised variable cost rate is 26.2%

- The revised break-even points for fiscal years 2023 and 2024 are HK$6.2 billion and HK$6.4 billion respectively

The final calculation shows that the comprehensive break-even point, including depreciation, is HK$7.75 billion. Based on the new ticket price, 6.78 million visitors are needed to achieve profitability, which is more optimized than the 6.95 million visitors required in 2023.

With the opening of the new park, the increase in demand for high-spending tourists due to ticket price increases and the operation of new hotels, despite the increase in fixed costs, the number of tourists needed for Hong Kong Disneyland to break even is lower than in 2023 (6.95 million visitors).

If this trend continues, Hong Kong Disneyland's large-scale investment can be considered a huge success—the break-even point has been lowered, and profits have increased simultaneously.

① Ticket Price Benchmarking:

- Tokyo Disneyland (TDR) highest single-day adult ticket price: 10,900 JPY

- Hong Kong Disneyland (HKDL) highest single-day adult ticket price: HK$939 (≈18,040 JPY)

⇒ Hong Kong-Japan price conversion factor: 165.5% (18,040 ÷ 10,900)

② Investment Efficiency Comparison Model:

③ Key Findings:

After price adjustment, the average customer acquisition cost for both parks is in the range of 63,000-65,000 JPY. This reveals the investment law of contemporary top IP large-scale theme parks—for facilities with a customer flow of 5 million, the average development cost has risen to the range of 60,000-70,000 JPY, showing exponential growth compared to the average customer acquisition cost of 10,000 JPY at the opening of Tokyo Disneyland in 1983.

This case study confirms the survival rules for leading theme parks: Enhance pricing power by creating immersive IP scenes and offset heavy asset investment with high-value-added services. Compared to medium-sized parks with a customer flow of 2 million, these flagship projects, while requiring high investment, can still build a sustainable profit model through brand premium and experience upgrades. The future competition in the theme entertainment industry may evolve into an ultimate contest of "content creation + asset operation" dual capabilities.

Admittedly, this discussion focuses on companies like Disney and Universal Studios "Building a massive entertainment facility with significant investment" Perhaps some may think that for small and medium-sized amusement parks that cannot reach such passenger flow and revenue scale, these experiences are like castles in the air. In fact, the operational wisdom contained therein is like panning for gold in the sand, worthy of careful consideration by amusement park operators of all sizes.

Before strategizing, build a data foundation.

Even with limited operating scale, an independent verification system should be built when initiating investment decisions—this is the golden insight that this empirical study provides to small and medium-sized amusement parks. This exploration mainly condenses three core meanings:

First, Relying on two consecutive periods of revenue and profit data, the critical coordinates of break-even point can be accurately determined;

Second, By deducting the depreciation expense of the current year from the operating costs after investment, and reassessing the composition of variable costs and fixed costs, the break-even point composed of turnover and passenger flow can be derived;

Third, Using the scale of new customer groups as a measure, the efficiency scale of "investment amount ÷ new customer base" can be calculated.

For amusement park projects that have already been implemented, this methodology is like a mirror, clearly reflecting the investment effectiveness. For planners of amusement park projects under preparation, they can follow this context:

① Use depreciation expenses to deduce the increase in fixed costs

→ Calculate the revenue growth curve required to achieve operational balance

② Integrate the expected fluctuation in unit price

→ Deconstruct the passenger flow growth target

→ Verify the reality of the return on investment

At present, prudent verification has become the moat for profit retention. Controlling expenses to avoid risks, allowing every investment to unleash its maximum value—this is not only operational wisdom, but also the law of survival that transcends cycles. Only by mastering the ability to make independent judgments can one be able to confidently navigate the ups and downs of the business world.