"Attendance trends have been especially good at both our Paris and Hong Kong locations, each of which grew their attendance by double-digit percentages," Disney chief financial officer Tom Staggs said about the company's fiscal second-quarter results, which cover January through March.

In a filing to the US securities regulator, Disney said losses decreased at Hong Kong Disneyland during the quarter. It marked the second consecutive quarter where the park's attendance increased while losses declined.

"The government ... has urged park management to enhance its operational efficiency, revamp its marketing and promotion strategies, as well as strengthen its cooperation with the local travel trade to ensure a continued improvement in its performance," a spokeswoman for the Tourism Commission said. Hong Kong Disneyland is still in discussions with Disney and the SAR government about getting more funding. If no agreement is reached before September 30, the park will have to make alternative arrangements for its funding needs, Disney said.

"If the shareholders do not reach agreement prior to the September 30, 2008 maturity date of the commercial term loan and revolving credit facility, Hong Kong Disneyland would be required to make alternative arrangements to meet its financial and development needs," the entertainment company said.

The Tourism Commission spokeswoman said talks are ongoing.