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Red is a Good Color on Anything Except a Balance Sheet

Writer's picture: Paul PeiPaul Pei



Joining Ocean Park Hong Kong in 2000 was filled with anticipation, anxiety, and worries. On the other hand, it was also filled with happiness, excitement, enthusiasm, and a sense of enormous challenge. When the CEO approached me, I was honored and flattered, but I was a hotelier for over 30 years and knew little about theme parks except for having enjoyed them as a guest. The CEO, also a hotelier, knew me well as we had worked together in various hotels for over 20 years. After meeting some of the other executives at Ocean Park, I accepted quickly without any hesitation, much of it because I wanted to support the CEO. After accepting and so quickly, I realized that I did not know much about the background of the Park, nothing about its SWOT, and nothing about its financial status.


What did I get myself into?


Shortly after relocating to Hong Kong and arriving at the park, I learned about its current financial position. It was in the red and had been in the red for the past 4 consecutive years. I learned very early in my career that red is a good color on anything except a balance sheet. In one of our early meetings, I mentioned to the CEO that he had not informed me of the financial peril that faced the Park. He said “if I told you, you would not have come.” I would still have joined but probably should have asked some questions earlier.


Nevertheless, I took it as a challenge.


The Park was operating in the red and it was anticipating the arrival of the new Hong Kong Disneyland in 2005, perhaps the greatest and most successful marketing machine ever created. They invented the theme park business and were the best in the field, with an abundance of muscle that was envied by all its competitors. Perhaps that was one of the reasons to join Ocean Park and have an opportunity to compete with the best. What a daunting and frightening thought, but what an immense challenge. One has no time to be scared when faced with a foe of this magnitude, it was surely going to be a David versus Goliath story.


Shortly after arrival on property, I had to attend a meeting in Central and hailed a taxi at the entrance of the Park. Upon stepping into the taxi, the driver noticed my lanyard with my name tag around my neck. He politely asked if I worked at Ocean Park, to which I sat up straight and replied with a resounding and proud “yes.” He then sarcastically said, “Where are you going to work next week?”


What did he know that I did not know?


Not surprisingly, most of the people in Hong Kong had already accepted the notion that with the arrival of Mickey Mouse, Ocean Park surely could not survive and would be fading quickly into the sunset. That was a very memorable taxi ride into town. Ocean Park never faded, and as a matter of fact, enjoyed some of its best years after Disneyland arrived in Hong Kong.


So, what then!?

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