DIS Walt Disney Co

By Micah Maidenberg and Andrew Dowell 

Walt Disney Co. said it would again close down the Hong Kong Disneyland park as the government there moves to clamp down on coronavirus cases, a fresh setback for a property the entertainment giant had reopened just last month.

"As required by the government and health authorities in line with prevention efforts taking place across Hong Kong, Hong Kong Disneyland park will temporarily close from July 15," a Disney spokeswoman said Monday. Hotels at the property will remain open with adjusted service levels, she added.

Carrie Lam, Hong Kong's chief executive, said at a press conference that the facility and a local theme park would both have to close under new regulations because they are entertainment venues.

The decision is a setback for Disney, which has been reopening its parks with limited capacities, increased cleaning and other measures meant to assure guests they can safely visit.

Disney's challenges in Hong Kong demonstrate the issues that businesses are facing in trying to operate amid ongoing fears about the pandemic while navigating government rules that can vary from one jurisdiction to another.

In January, Disney closed the Hong Kong park as the coronavirus was spreading in China and elsewhere, describing the shutdown as a precautionary measure meant to protect the health and safety of customers and staff.

The park reopened last month, with enhanced health and safety measures. The company said then it would increase the frequency of cleaning and limit the number of people allowed in to help visitors comply with social-distancing rules. Guests also had to book trips to the facility ahead of time.

Disney owns a 47% stake in the Hong Kong property, with a government entity for the region holding the remaining portion, the company said in its annual report covering its fiscal year that ended in late September of last year.

The park sits on 310 acres on an island near the Hong Kong International Airport and offers seven themed areas, including Main Street USA and Toy Story Land, the report says.

The company's main two parks at Walt Disney World Resort in Orlando, Magic Kingdom and Animal Kingdom, reopened last week with significantly reduced capacity.

Disney is looking to resume operations at the attraction as the coronavirus spreads in Florida, with a record of more than 15,000 new cases reported in the state on Sunday.

Disney had pulled back on plans to reopen its Disneyland property in Southern California around the same time as Disney World. Employees at the California park protested the plan, worried about safety, and the state government there said guidelines for reopening theme parks wouldn't be ready for the property to be reopened as planned.

The Shanghai Disneyland property, meanwhile, is only open to guests who make advanced reservations, with a limited number of tickets available each day, according to a July 13 statement on the website for that park.

The company's park's business is a major part of its business and one the pandemic has hit hard.

In May, Disney said revenue for its quarter that ended March 28 for its unit that includes parks fell 10% from the year earlier to $5.54 billion and operating income dropped 58% to $639 million.

Write to Micah Maidenberg at micah.maidenberg@wsj.com and Andrew Dowell at andrew.dowell@wsj.com

(END) Dow Jones Newswires

July 13, 2020 12:00 ET (16:00 GMT)

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