Preview

Hong Kong Disneyland: Chinese Tourists' Behavior and Disneyland's Internationalization Strategy

Satisfactory Essays
Open Document
Open Document
312 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Hong Kong Disneyland: Chinese Tourists' Behavior and Disneyland's Internationalization Strategy
HK DISNEYLAND: CHINESE TOURISTS’ BEHAVIOR AND DISNEYLAND’S
INTERNATIONALIZATION STRATEGY1
Mainland China is been making an unprecedented economic growth in the previous three decades, and one of the major contributors is its tourism industry. The mainland Chinese tourists are a major force in the world tourism. Considering its proximity to mainland China,
Hong Kong Special Administrative Region (HKSAR) has all the benefits to gain with the increasing demand by mainland Chinese for travelling abroad and for shopping. To enhance
Hong Kong as a first choice for mainland Chinese tourists, the Hong Kong government successfully sealed a joint venture with Walt Disney Company for the establishment of a HK
Disneyland Park. However, the Hong Kong government also gave Ocean Park, its local theme park, all the needed support to rejuvenate itself, in the wake of impending competition from Disneyland, and to give a boost to attract more tourists to Hong Kong.
HK Disney Park, owned and managed by the Hong Kong International Theme Parks, an incorporated company owned jointly by Walt Disney Company, and the Hong Kong
Government is located on reclaimed land in Penny's Bay, Lantau Island. It opened for visitors on September 12, 2005, after protracted negotiations, and construction hassles. The Disney
Company dealt with a lot of cultural backlash, and therefore had to incorporate Chinese culture, customs, and traditions in the design and construction of the resort, including following the Feng Shui. The Park was designed to handle 34,000 visitors per day. The park attracted 5.2 million visitors in its first year of opening, compared to its expectations of 5.6 million. In the 2nd year, the visitors fell by 20% to 4 million, and in the 3rd year increased by
8% to 4.5 million visitors in 2007-2008. Since the opening of Hong Kong Disneyland in 2005, the theme park has attracted 15 million

You May Also Find These Documents Helpful

  • Powerful Essays

    PROJ 592

    • 2367 Words
    • 10 Pages

    The Theme Park project was initiated on 4/14/08 with a total initial budget of $ 4,449,920.00. The project was planned to be completed on 12/19/08. Four months later on 10/1/08 a performance analysis was completed and it was identified that the project is behind schedule and only 40% completed. The total months for the project was planned for eight months and the project should be at 50% completed.…

    • 2367 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    of over $8 billion 3. It is estimated that the Parks and Resorts segment alone accounts…

    • 3344 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Pm592 Course Project 2

    • 3890 Words
    • 16 Pages

    We are here to discuss the “Theme Park” project that we were set to complete. To date we are 40% complete with the project. We currently do not have any actual costs associated with the project so we can assume that they are in order. However, I think that we should still look into the matter since we were given a budget guideline to follow.…

    • 3890 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Polynomials

    • 507 Words
    • 3 Pages

    Knowing that the maximum number of potential patrons is 200, the Park and Planning Commission decided to vary the price of each admission ticket to see what effect this change might have on the number of tickets sold. After much experimentation, they collected the following sales data:…

    • 507 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Alton Towers Audit

    • 3579 Words
    • 15 Pages

    Less people have domestic expenditure which resulted in outbound tourism decreasing by 15% and domestic travel increasing by 17%. In 2009 the theme park industry as a whole gained revenue of £315m.…

    • 3579 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    Cedar Fair Case Analysis

    • 593 Words
    • 3 Pages

    (2013, February 11). Research and markets: 2013 report on the $16 billion us amusement parks & arcades market featuring Walt Disney, six flags, cedar fair, SeaWorld, and universal parks & resorts. Retrieved from http://www.businesswire.com/news/home/20130211005621/en/Research-Markets-2013-Report-16-Billion-Amusement…

    • 593 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    2007). Another theme park in Shanghai is tentatively planned for 2010. Hong Kong, a capitalist…

    • 2610 Words
    • 17 Pages
    Best Essays
  • Satisfactory Essays

    It stands at a 3700 visits per day, the total number of visits has to be, at least, 2.5 millon people to cover the costs.…

    • 337 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Early in 1999, Michael Eisner, CEO of The Walt Disney Company, voiced his opinions concerning potential markets for his firm’s entertainment products and services. A major thrust for the new millenium would be development in Asia.…

    • 1290 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Marketing Audit

    • 5809 Words
    • 24 Pages

    References: Cabico, Eric. (2006). Eric’s Disney Theme Park Page. Retrieved November 16, 2006, from http://www.geocities.com/ebacon_34711/imagineer/disneyparks.html…

    • 5809 Words
    • 24 Pages
    Good Essays
  • Good Essays

    Hong Kong Government (Disney’s partner) is investing some HK $22.45 billion in the project, as follows:…

    • 636 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Hong Kong Disney

    • 1153 Words
    • 5 Pages

    While the owners supported the project with substantial amounts of equity Disney and Government as well as with subordinated debt Government, Disney had significant requirements for the financing portion of the remaining needed amount. Disney was looking to receive bank financing for this new object of HKD as a Delay Draw Term Loan DDTL plus HKD working capital line “Revolving Credit Facility” or RCL. While they had learned from their most recent experience with Disneyland in Paris not to have a too aggressive capital structure in place, they nevertheless demanded significant flexibility with regard to the following terms and conditions a 15 year tenor - delayed amortization structure which would start as late as 3 years after the opening of the park, 8 years after closing of the loan and 6 years after funding of the loan.…

    • 1153 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Throughout the last three to four decades, since Walt Disney World opened its theme park in 1971, the park has undergone an incredible transformation. When the park originally opened only three rides were available and now after adding new rides, attractions, and other developments, there is over forty seven square miles of space. Not only is there the actual theme parks themselves, but Disney also branches out into resorts, hotels, golf courses, campgrounds, water parks, restaurants, entertaining events, and theme shows. The Disney Company has grown to over 60,000 employees who busily keep Walt Disney World operating and running smoothly (Haworth, 2008).…

    • 760 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Disney in Tokyo and Paris

    • 1231 Words
    • 5 Pages

    References: (2006). Hong kong Disneyland attracts 5m visitors in first year of operation. Retrieved February 23, 2008, from http://www.channelnewsasia.com/stories/corporatenews/views/228477/1/.htm…

    • 1231 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    The venture into Hong Kong by Walt Disney was a simple example of a large successful western company not doing its homework. The case presents a clear picture of the importance of understanding a foreign market thoroughly before doing business there. Several factors led to an unsuccessful first year of operations and a majority of these factors could have been avoided with a better cultural understanding in the planning stages. One of the culture differences that was obvious to Disney was the fact that the children are not familiar with the Disney characters. Disney has established its brand and is a marketing poster child in the United States, however this advantage goes out the window in a country such as china that has sheltered itself from the outside world until recently. Disney thought that making a meager attempt at introducing the characters before the launch of the park would help, however familiarity isn’t synonymous with brand attachment. As listed in Global Marketing Management by Kotable & Helson, “Cultural Distance” is one of the six external criteria for choosing a mode of entry into a foreign territory, which was not accounted for by Disney. Cultural distance also recognizes the fact that different cultures have different expectations. This was also the case with China. As stated in the case, “for the tourists of Mainland China, going to Hong Kong means a shopping experience, and so they choose the cheaper alternative to Hong Kong Disneyland…” The case goes on to allude to the fact that the culture in China is one about dollars and cents – when a Chinese person spends his/her money, they are more interested in what they are physically getting. This is very…

    • 1118 Words
    • 3 Pages
    Satisfactory Essays