Ocean Park Case Study
PART VI
Case Studies
CASE STUDY 1
Ocean Park: In the Face of Competition from Hong Kong Disneyland
Bennett Yim In April 2006, Ocean Park, Hong Kong’s only home-grown theme park, launched a syndicated loan to raise HK$4.1 billion for a master plan to revamp the Park.1 The master plan represented the Park’s strategic response to the arrival of Hong Kong Disneyland, which had opened the previous year. Ocean Park had expected attendance to drop significantly with Disney’s opening, but attendance at the Park had remained strong. Nonetheless, the competition posed by Disney was not to be underestimated. How would the commercial banks assess Ocean Park’s strategic plan? Would they buy the Park’s strategy in light of the competition posed by Disney?
CONTENTS
The Tourism Industry in Hong Kong Ocean Park Competition Impact of Competition on Ocean Park Ocean Park’s Positioning
THE TOURISM INDUSTRY IN HONG KONG
Tourism was a major pillar of the Hong Kong economy. In 2004, the territory recorded 21.8 million visitors who spent HK$91.85 billion,2 which was 2.9% of its GDP.3 China formed the key source market for tourists to Hong Kong, with 56.2% of its inbound visitors coming from China [see Exhibit 1].4 Hong Kong had been a favourite destination for
1 2 3
Cash Strapped Master Plan Put to Test
US$1 = HK$7.80. Hong Kong Tourism Board. (2005). A Statistical Review of Hong Kong Tourism 2004. Hong Kong Census and Statistics Department. Hong Kong Statistics, http://www.censtatd. gov.hk/hong_kong_statistics/statistical_tables/index.jsp?subjectID=12&tableID=189 (accessed August 19, 2006). Hong Kong Census and Statistics Department. (2006). Hong Kong in Figures.
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208 CASE STUDY 1: Ocean Park: In the Face of Competition from Hong Kong Disneyland
Exhibit 1
Year
Inbound Tourists and Mainland Tourists Visiting Hong Kong by Year
Number of Inbound Tourists (in Millions)
12.97 11.27 10.16 11.33 13.06 13.73 16.57 15.54 21.81 23.36
Number
Case Studies
CASE STUDY 1
Ocean Park: In the Face of Competition from Hong Kong Disneyland
Bennett Yim In April 2006, Ocean Park, Hong Kong’s only home-grown theme park, launched a syndicated loan to raise HK$4.1 billion for a master plan to revamp the Park.1 The master plan represented the Park’s strategic response to the arrival of Hong Kong Disneyland, which had opened the previous year. Ocean Park had expected attendance to drop significantly with Disney’s opening, but attendance at the Park had remained strong. Nonetheless, the competition posed by Disney was not to be underestimated. How would the commercial banks assess Ocean Park’s strategic plan? Would they buy the Park’s strategy in light of the competition posed by Disney?
CONTENTS
The Tourism Industry in Hong Kong Ocean Park Competition Impact of Competition on Ocean Park Ocean Park’s Positioning
THE TOURISM INDUSTRY IN HONG KONG
Tourism was a major pillar of the Hong Kong economy. In 2004, the territory recorded 21.8 million visitors who spent HK$91.85 billion,2 which was 2.9% of its GDP.3 China formed the key source market for tourists to Hong Kong, with 56.2% of its inbound visitors coming from China [see Exhibit 1].4 Hong Kong had been a favourite destination for
1 2 3
Cash Strapped Master Plan Put to Test
US$1 = HK$7.80. Hong Kong Tourism Board. (2005). A Statistical Review of Hong Kong Tourism 2004. Hong Kong Census and Statistics Department. Hong Kong Statistics, http://www.censtatd. gov.hk/hong_kong_statistics/statistical_tables/index.jsp?subjectID=12&tableID=189 (accessed August 19, 2006). Hong Kong Census and Statistics Department. (2006). Hong Kong in Figures.
4
207
208 CASE STUDY 1: Ocean Park: In the Face of Competition from Hong Kong Disneyland
Exhibit 1
Year
Inbound Tourists and Mainland Tourists Visiting Hong Kong by Year
Number of Inbound Tourists (in Millions)
12.97 11.27 10.16 11.33 13.06 13.73 16.57 15.54 21.81 23.36
Number