Tuesday, November 08, 2005

Micky Fails to Perform Magic

Hong Kong Disneyland will slash HK $ 50 off ticket prices for locals according to a story in South China Morning Post (8 November), read the story here (subscription required). The company denies that the move is an act to boost attendance.

Indeed, ever since the opening of the amusement park in mid-September, daily attendance at the park has seldom reached its maximum capacity at 30,000 according to various news reports. And visitors from China have not turned up in large numbers as expected.

It is of course perfectly OK if HK Disneyland is a private concern. Afterall, in the business world, failure is far more common than success.

But HK Disneyland is NOT a private concern but a STATE-OWNED enterprise (HK government owns 57% of the concern), and that is why there is a problem. For it is not the shareholders who will shoulder the loss of the company, but taxpayers like you and me!

Unlike the market place where investors/shareholders buy into a company after rational calculations of all the risks and benefits involved, no one, absolutely no one at the government has asked me whether I want a piece of the HK Disneyland. Instead, stupid government officials who know squad about business risks make that decision for us taxpayers. Sad!

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