UE presentation Hong Kong Disneyland

UE presentation Hong Kong Disneyland

Christy Chan (1) Fiona Tang(22)

Where is Hong Kong Disneyland

VIDEO

Attractions

Main Street, U.S.A. Pirateland Fantasyland Tomorrowland

Main Street, U.S.A

Main Street Vehicles

Disney On Parade

Hong Kong Disneyland Railroad

City Hall

Pirateland

Jungle River Cruise, Pirate Takeover!

Tarzan's Treehouse

Pirate Treasure

Captain Jack Sparrow's Pirate Boot Camp

Festival of the Lion King

Fantasyland

Mad Hatter Tea Cups

Cinderella Carousel

Sleeping Beauty Castle

Fantasyland Train Station

Snow White Grotto

Disney's Storybook Theater

Fantasy Gardens

Sword in the Stone

Dumbo the Flying Elephant

The Many Adventures of Winnie the Pooh

Tomorrowland

UFO Zone

Orbitron

Buzz Lightyear Astro Blasters

Space Mountain

Stitch Encounter

Autopia

THere are so many attractions in the Park, HOwever Is it worthy to

build Disneyland in Hong Kong?

Outline

CASE: Unfair share division Low customer flow Mismanagement problem Environmental problem Low competitiveness Suggestion Conclusion Discussion

1. Unfair share division

The total cost of Hong Kong Disneyland was $5.7 billion Hong Kong Government injected $3.25 billion and provided a piece of land sized 125 hectares Hong Kong government owned 50% of shares of the park Disney Company injected $2.45 billion Disney Company owned 50% of shares of the park ~ Hong Kong Government invested more on the park but the both of them hold the same number of shares of the park

It is unfair to Hong Kong Government

2. Low customer flow

Reasons for low customer flow A. The entrance fee is too high B. The size of the Hong Kong Disneyland is too small C. Poor relationship with the tourism sector D. The park has too many scandals E. Overestimation of brand effect

According to the news of Ming Pao on 5-9-2006 The targeted customer flow of the first year is 5.6 millions In reality, the customer flow of the first year was only 5.2 millions The Hong Kong Disneyland fail to meet the targeted customer flow

Hong Kong Disneyland’s ticket price

One-Day Tickets Prices Adult Child Senior (3 - 11) (65 or above) Regular Day HK$ 295 HK$ 210 HK$ 170 Peak Day HK$ 350 HK$ 250 HK$ 200 Special Day HK$ 350 HK$ 250 HK$ 200 Annual Passes Prices Value Annual Pass HK$ 650 HK$ 460 HK$ 370 Deluxe Annual Pass HK$ 1,300 HK$ 930 HK$ 740 Premium Annual Pass HK$ 1,800 HK$ 1,250 HK$ 1,000 Children under 3 years old are welcomed into the park free of charge. Tickets prices listed above are in Hong Kong dollars, and prices are subject to change.

Ocean Park’s ticket price

A. The entrance fee is too high

Compare with its major competitor, the Ocean Park, Hong Kong Disneyland’s daily passes are much more expensive than the Ocean Park, and the annual passes of Disneyland are nearly a double of the Ocean Park The size of Hong Kong Disneyland is comparatively smaller than the Ocean Park, but its’ tickets are much more expensive the the Ocean Park’s

As the entrance fee of Hong Kong Disneyland is too high > It discourages tourist flow

B. The size of the Hong Kong Disneyland is too small

- The Hong Kong Disneyland is sized 125 hectares -It size is comparatively smaller than the Disneyland of Tokyo, USA, France - The size is also smaller than the Ocean Park

The Hong Kong Disneyland fail to attract world tourists because of its small size

Also, mainland tourists would go to Ocean Park rather than Disneyland

The Hong Kong Disneyland has low customer flow

C. Poor relationship with the tourism sector

According to the Chairman of the Association of Imported Tour Agency Mr. Charles Ng The Hong Kong Disneyland fail to show high standard of cooperation with the tourism sector The Hong Kong Disneyland only give little commission to the tour agency ( $40 less for each ticket for purchase in large number ) This discourage the tour agency to organize tour to the Hong Kong Disneyland And led to low tourist flow of the Hong Kong Disneyland

D. The park has too many scandals

There are food poisonous case happened in the park The park did not allow the inspectors of the Food and Environment Department to go into the park The park close its door and refuse to let the tourists went in regardless that the tourists owned tickets in the Lunar New Year Disneyland used 45 stray dogs as unofficial guard dogs and killed them before the Hong Kong Government’s dogcatcher arrived

The above scandal distract tourist to visit the park

E. Overestimation of brand effect

- Mainland has unremittingly strict stance on foreign media ownership Mainland also has strict control on the mass media People are not familiar with Disney’s characters as they cannot get reach of the Disney cultural it is difficult to attract mainland Chinese to visit Hong Kong Disneyland as they were less familiar with Disney characters

Oversold ticket

During Chinese New Year in 2006, many visitors were refused entry as the park was already at capacity. overselling of tickets led to huge mobs of disappointed Mainland Chinese visitors

-Hong Kong Disneyland’s daily capacity limit is 30000 visitors

-On a charity preview day in 2005, the overcrowded problem became apparent when 29000 locals visited the park -Queue time fast food outlets exceeded 45 minutes and over 2 hours for rides. Though the Hong Kong government put pressure on the Park to lower the limit, it insisted on keeping the limit and ONLY agreed to relieve the capacity problem by extending opening time by one hour or introducing more discounts during weekdays.

5. Low competitiveness

It is predicted that a new Disneyland will be build in mainland The size of the new Disneyland will be much larger than Hong Kong’s Hong Kong Disneyland is only a stepping stone for the Disney Company to expand to the mainland market The small sized Hong Kong Disneyland will fail to complete with mainland Disneyland in the future

Pollution created by Hong Kong Disneyland

AIR POLLUTION

Hong Kong Disneyland opening last Summer when the air pollution index stayed at 164 on the opening day

AIR POLLUTION INDEX

AIR POLLUTION INDEX

AIR POLLUTION INDEX

Severe

201 to 500

People with existing heart or respiratory illnesses may experience significant aggravation of their symptoms and there will be also widespread symptoms in the healthy population. These include eye irritation, wheezing, coughing, phlegm and sore throat.

Very High

101 to 200

People with existing heart or respiratory illnesses may notice mild aggravation of their health conditions. Generally healthy individuals may also notice some discomfort.

High

51 to 100

Very few people, if any, may notice immediate health effects. Long-term effects may, however, be observed if you are exposed to such levels for a long time.

Medium

26 to 50

None to the general population.

Low

0 to 25

None to the general population.

Why?

The firework display generated smoke and dust by the use of low- level gunpowder. The 12 minutes fireworks display exposes residents downwind to high concentration of suspended Particles

Effects

Lower the visibility Produces more greenhouse gases and contributes to the rising temperature in the area Harmful to: -People especially those have asthma -Residents living nearby, such as Discovery Bay And Scare away the birds and led to loss of habitat

WATER POLLUTION

During the reclamation project to build the new Disneyland site at Penny’s Bay, large amount of sewage that could contaminate the water were found. Large-scale reclamation have harmed the sea creatures, such as Chinese White Dolphin.

The distribution of Chinese White Dolphin in Hong Kong

Penny’s Bay

dredging of Penny’s Bay to accommodate Disney has destroyed the

coastline, coral reefs and a fish spawning grounds. Since the reclamation, fish farmers near to Penny’s Bay have reported the deaths of over 500000 kilograms of adult fish and about three million juveniles from 260 species were killed.

Surveys by environmental groups showed that Noise levels were between

43.7 and 53 decibels, also lower than the legal limit of 55 decibels. However, Hong Kong ''air quality objectives'' are 17 years out of date, is less restrictive and lagging far behind the best international standards.

Air pollution level of Disneyland and the local air quality objective

180 micrograms of RSP per cubic meter

33 micrograms of RSP per cubic meter

Disney sacrifices Hong Kong green environment for economic benefits

HOWEVER . . . .

Disneyland has rejected to install air and noise pollution monitors around its Penny's Bay site to monitor the effects of the fireworks display

As Disneyland has passed the environmental impact assessment, it refused to use compressed air technology, which is environmentally friendly fireworks and can decrease the noise by 60% and reduced smoke used by California Disneyland theme park is environmentally friendly fireworks,

What has the Hong Kong Disneyland done to improve current situation

In order to improve the relationship with the tour agency, start from 1-18-2007, tour guides are allowed to buy a tour guide pass which cost $100, with this pass, tour guides are allowed to travel freely in the park within a year The Hong Kong Disneyland increase the commissions to the tour agency by 5% The park provides a free year pass for child who born in 1997 to attract tourist, this policy is assume to increase tourist flow by 20%

Recently, the Hong Kong Disneyland is advertising with Pirates of the

Caribbean: At World's End to attract tourists The Hong Kong Disneyland is going to employ 600 part time employees in the summer to strengthen the ties between the park and the public The US Disney Company will invest more money capital to the park The Hong Kong Disneyland will build more attractions in the future, e.g. ~ Animation academy for visitors to learn how to draw Disney characters in 2007 ~ Mickey’s Water Works, a water – based day parade in 2007 ~ “ it’s a small world” a boat ride attraction in 2008

Suggestions for the Hong Kong Disneyland do to improve current

situation

To divert its targeted tourists from Mainland Chinese to high-end foreigners by launching more advertisements overseas. To develop more new attractions that cannot be found in other Disneylands ? To increase the competitiveness of the Hong Kong Disneyland

Environmentally

. . . - Disneyland can follow the measure in United States California Disneyland to use environmentally friendly firework. length of time for the firework displays be shortened to reduce the amount of pollutants released - During reclamation, nets can be put into the sea to block the flow of mud water and stone so as to prevent the contaminated water from destroying the habitat of sea creatures. - finish the reclamation as soon as possible to reduce the duration for water pollution.

What can the Hong Kong government do

. .

To have stricter control on the park policy Government should ask Disneyland to disclose all information on the Park routine to the Legislation Council

Conclusion

The Hong Kong Disneyland failed to boost Hong Kong tourism industry in both short term and long term And it is proved to be a WHITE ELEPHANT

Discussion Question

What problem does Hong Kong Disneyland face? How far is the Hong Kong Disneyland successful in boosting Hong Kong tourism industry? Is it effective to control the pollution produced by Disneyland by legislation? Suggest ways for the Hong Kong Disneyland to improve. Will you visit Hong Kong Disneyland despite many scandals and negative publicity?

END