Question

8. Consecutive losses of Ocean Park since 2016 and steadily losing visitors expose the park to the risk of forced closure in June if without the rescue money from the government.  Basing on the economic concepts/theories that you have learnt in the course and the information given here, explain why it has to close?

Answer 1

As I am not sure what your course has taught, let me make it very simple for you to understand why the park needs to close. Let's take a gander at some of them:

• It's year 2020, that is 4 years of extreme losses for the ocean park. We need to take into account the stakeholders apart from the senior administration: the workers in the park. These people have tirelessly worked to maintain the park, and ensure that the organisms living in the park are taken care of. Because of consistent losses, ocean park administration face a tough situation in issuing out there paychecks. This has caused permanent layoffs for a lot of workers and are affected extensively. Closing this means that the workers no longer need to rely on the park and they move on with finding other similar jobs.
• Secondly the ocean life associated is affected. Due to the persistent financial hardship, the park management won't be able to provide the right amenities to the ocean life, may it be food, natural habitat, etc. At tough times like these, the Management just overlooks these priorities and view the opportunity costs at every stage. In simple, the ocean life is on stake.
• Assuming that the rescue money from government is utilized, we don't have any assurance that this crisis won't happen with Ocean park in the future. The rescue money will be used primarily to pay their employees and clear off the debts surmounted over the past 4 years, thus leaving out few money in hand. All these scenarios need to be considered.

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