Appeal of Tourist Destinations – Activity 1
When Walt Disney Parks and Resorts were planning their next big theme park in
the late 1990s, they chose to expand the Disney 'empire' into an entirely new part
of the world: China. Hong Kong Disneyland opened in September 2005. It is
expected to attract over five million visitors in its first year of operation. Over a 40
year period, the park is expected to generate an estimated $19 billion in
revenues.
But China remains a Communist state - indeed, the Chinese government owns a
controlling stake in Hong Kong Disneyland. And although it is growing at a rapid
rate, the Chinese economy is in the early stage of development. Can Disney rely
on sufficient numbers of Chinese visitors to make the park a commercial
success?
Image: The grand opening of Hong Kong Disneyland, September 12th 2005. Will
the park be a commercial success? Title: Grand Opening Of Disneyland In Hong
Kong. Copyright: Getty Images, available from Education Image Gallery
The appeal of Disney to Chinese visitors
Disney has assessed the Chinese economy as able to support leisure spending
by sufficient numbers of customers. It's important that there is a reasonably sized
middle class in order to provide enough visitors.
Hong Kong Disneyland's market has to be able to get to the resort. This means
that there must be a reasonably well-developed transport infrastructure. The park
has been designed to attract visitors from mainland China as well as from within
Hong Kong itself. China is a huge country and Disney must have forecast that
sufficient numbers of mainland Chinese visitors will be able to travel to the new
resort.
Industry observers believe that the Chinese population is eager to buy into the
Disney experience. But what evidence is there that this is true? Here are some of
the signs indicating that Disney will not have a problem in this regard:
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The company worked for two years with the China Youth League, a state
supported after-school programme with a membership of millions of under14 year olds
This link ensured that young people were 'educated' about Disney stories
by learning to draw the main characters and how animation works
In August 2005, a new train service to the theme park was packed with
passengers, even though the park had yet to open
Disney-themed merchandise has sold in large quantities in Hong Kong
A tune entitled 'He invited me to Disneyland' was a hit on Hong Kong radio
stations in Summer 2005
There may be sufficient demand from Hong Kong and mainland China to
experience the Disney brand, but there must be some problems associated with
setting up a major new attraction in this part of the world. Some of the most
important of these are discussed below:
Travel
In recent years there have been limited opportunities for people in mainland
China to travel to Hong Kong. Part of the reason for this is that until 1997 Hong
Kong was a British colony. Under the British, the local economy developed into a
major international centre of finance and trade. Its economy was therefore very
different to that of mainland China, where the Communist system exerted strict
control over many aspects of daily life.
One of the key aspects of life that had been strictly controlled was travel. In the
past two years, though, the Chinese government has relaxed restrictions on travel
to Hong Kong by people on the mainland. The number of visitors to Hong Kong
from mainland China doubled to over 12 million between 2002 and 2004.
As a result, some analysts in Hong Kong believe that the new Disney resort will
attract over six million visitors in its first year. They calculate that the park will be
Disney's most successful venture outside the USA.
Culture
Mainland Chinese visitors coming from provinces close to Hong Kong are
believed to be very unwilling to spend money during their stay. Indeed some
travel agents expect these customers to just visit the resort for the evening in
order to spend less money on food and attractions. However, because China is
such a huge country, visitors from more distant regions to Hong Kong Disneyland
may stay longer, out of necessity. This will result in them spending more money
on services such as hotel accommodation and restaurants.
Disney has made sure that where possible the resort takes Chinese customs and
beliefs into account. Examples of these efforts include: using a feng shui expert to
advise on the positioning of fixtures and fittings at the park; Chinese advisers
recommended a lucky opening date (September 12th); Disney's Hong Kong hotel
does not have a 4th floor, as this number is regarded as likely to bring bad luck;
the hotel's main ballroom measures 888 square metres, because eight is a lucky
number in China.
Cuisine
In the days before Hong Kong Disneyland was opened there were three cases of
food poisoning reported in the park's restaurants. When local officials arrived to
investigate the outbreaks, they were told by park management to remove their
caps and badges for fear of scaring the guests. Despite officials being reported as
saying that Disney was not above the law, the health officials did as they were
told and dressed less conspicuously; illustrating the power of the Disney
corporation.
As part of Disney's efforts to fit in with Chinese traditions, the company included
shark fin soup in its restaurants. In the end, though, Disney removed the dish
from its menus after local campaigners labelled the dish cruel and ecologically
damaging.
Tasks:
1. Find a map (online or in a book) and locate mainland China and Hong
Kong. Print out a copy of the map if possible and indicate the main areas
of China that could be expected to generate tourists to Hong Kong
Disneyland.
2. What other areas of South East Asia might you expect to generate tourists
to the resort? Back up your answers with evidence.
3. How has state control of China helped Disney in setting up its new park?
Think about how the government has helped Disney connect with its key
market segment.
4. Disney seems to have had more problems with environmental and animal
rights campaigners than with the government of China in setting up Hong
Kong Disneyland. Why do you think this might be? Consider the following
in your answer: economic benefits of the park; media reporting of Disney's
and the Chinese government's activities; the image of the company and
the government of China.
5. Leisure park operators expect to invest heavily in their resorts in order to
maintain their appeal to customers. How have UK-based theme park
operators tried to keep their appeal to visitors?
6. Walt Disney Corporation believes that the world of entertainment has
changed in recent years, with young people expecting more than just staff
dressed up in character costumes. How might Disney ensure that their
parks appeal to this vital demographic group?
Sources of Further Information
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CIA World Factbook on
China(http://www.cia.gov/cia/publications/factbook/geos/ch.html)
Hong Kong
Disneyland(http://park.hongkongdisneyland.com/hkdl/en_US/home/home?
name=HomePage)
Wikipedia on Hong Kong
Disneyland(http://en.wikipedia.org/wiki/Hong_Kong_Disneyland)
Disney launches new HK theme park - from the BBC
(http://news.bbc.co.uk/1/hi/business/4236718.stm)
Dogs' fate gnaws at HK Disneyland - from the BBC
(http://news.bbc.co.uk/1/hi/business/4717347.stm)
Mouse Zedong? Disney opens its gates in Hong Kong - from the Guardian