-

ln-Depth lntegrative Case 2.lh

Revond Tokyo: Disney's Expansion in Asia

Ai'tor its success rvith Tirkyo Disncyland irr tjre I960s,Disney begzLn io realize the vast pot.entinl ol the Asianrnarket. The therne palk industry throughout Asia has

hcen ver,; successfril iu recent years. with a range ofregiclrii :rntl irtenratir.rnal cornpanies all try'ing t(r enf-er

llre nrarket. l]isney has been one of the nrajor participants.opeling Hong Kong Disneyliud ur 20(15 and discus.<ingfglnss cpt:1a.tions in at least threc other i\sian cilies.

tlisrrey irr GhinaAiier Disne-v's succcss in 1i:kyo, ( hina, in particrrlar.becurne a serii:rr-is option {'or jts next t}rerne pirrk venturcr .inliglit cf the caurrtry's im1:ressive population and ecorroruiegrorvt.h throughi-rut tire 1990s. SLrccessful salcs ass{)ciirted\vi1h th* l)isney movie 7'he Lian King, tn 1996, also con-

'"'inccd llisnev oiticials thal Chiria lr,as a prornisirg lcrca-

lion. Ilorvtrvtr', con$r.lnrcr cnthusia.srn fbr thernc parks inCirina rvas at a lor.i,in the late 1990s. "Betweerr 1993 :rnd

1998. more than 2,0()0 therle parks had been opened inCjriua." anii "mauy pr'oiccts lvcrc iiwarnped by excc.ssivc

colripr)lilir)n. pr,xrr rnarket trrrr.rje ctions. hiqh ccrsts, afidrt; lentlers inleri-eir:nce J:r:orn local ollcials," torcing sevcralirrin<li"rd Lo trc rrlr:sr:<l.i Ncv*:ilht:less. [)isnev continuetl u.r

1:ui:sue pl:urs i.r both Shangirai and Hong Ktrne.lilri.rnghai, kn,orvn us the "l'aris oi'ttre Oricnt." \v:ts iin

il{"lrlclivc sitc ibr Disuev oificials Lrer:ausc of its grr-:r.r lnucc,rnrnerci.ali.zation and industrialization and its alr*advextant traN$portation access. 'l'he prr.rjected $ 1 billionproject *'iis scrircdulcd to he built across the Iiuan{prlRivcr liorn Shanehai's rvodd-lamous lvateriiont prc)ln-

enade, thc: .lJunrl, on a ?(X)'squarc-ntil: cxplnst: callcrl'l'hc 1\rdorrg Nerv Arca. l-irc t'irst phase r.rf cLrnstructic)oincludr":,1 a Llagic Kin5ldoni p;rrk, while ;:n HI'CO'l:stylc1h*nc puk was to he. added alter at lcast five 5,1111-<

p1

rrFc ri!t lo n i.:A Disncl, rhcrnc park in Shanghai rvould l.rc. rlLrtu:ril.r,

bt:ncficial fbr the rornpany and the natiorl (rf Chirra. FrornDi:;ncr1 '$ pi.rripccli!e, it r.r,qrultl g,lin ace css L, ttnc .{' lheworkl's llr'{:esl potelltiul nrarkets (and also c'ornpetcr withLIrri.versal Studios' rrerv lherne park,). Frorrr the persl:recrive

cl (-hinr:sc r:overnnrent cdlicials, Disncv's park rvould tre

a long-auaircti rnark of international success for a corn-rriunist rration.l

Initi:rll_v pl;rnncls hopc:d ro havc a Disneylalrd opcrirLincin Sirnnshai pi-ier to the World Expo in 20l0. Floweverthc; projr:ct stlllcd. rnd as of late 1006. ''the chances olIk:ijing al4lroving thi.r pmjr:cl have shmnk sinr:c Shlnghai's2!i4

Communis( I:'arty bciss rvas irnplicaterl in a big ctrlrrrptir--ninvestigatlon in Seprterrrber P0051." This le'l Disney rr.r

crxsider olher options for the constL:uction oi;r nerv park.a

Hong lt(an$ OisneylarrLPl;rrts in llong Xr:ng. lvhich culrninateri i-n th. cipening ofl:lons Konq Diue.vland in Seprerlber 2iX)5, b*grrn ilft*rthe 1997*1998 Asian financial clisis. 1-)cqrirr: the prxtreconomic conditir.rn of Hong Kong in rhe l;rte 199{'}s.

Disnel- rvas still optinristic about prospects for a themlpark in lhrr "cit.v o{ life." Hong Kong. ;rlreatll..an inrcrna-tionrl tor"rrist der tination, would dra',i.' l-) isnevlanrl pirt.r(itrsprinrarih' frorn China, 'lirir'.,an, iLrrd Souiheirst Asia.

'Iher official park pl;rns wcre rlnn(-)unccd in Novcmb*r199!) as a joint renturc betwecn the \trralt l)jsney Conrpanvand the Hong Kong SAR C,;veriiurent. Unlike its r.,rp*;-i-

ence in lirkvo, rvhere Disnsv hanr1e.l thr.: n:ins ovcr corn-pletL:l5, to a foreisn compsny (the {-}ricntel l,trlrd Com-panyJ, Disncy decided tci rnke rnorer riirect. conrrcl over thisng$r p:rrk. T-he ptrrk u,as built on l-altau Isl;lnd at Pcrur1,"s

Ba,v, within thc 6-mile stretch scp:rri:iinr the: intcrnaiionalairport and riownl.olr.'n. llong Kong [)i.sncl];rld $';rs csti-nrted lo L:rt)aio 18,(XX) iobs^ upon olrcnirrg and ulrirrrerr-:lv

36.(100 jobs. The frrst phase of the park w'as ri,l include ;r

l0 nliltion annual visitor l)isntr\'llut(l-t)xscd thcrne |lu'k.2.100 hiltr:l roorris. and a 300,00{lriqrllri-e-fbol retiril" ilininrnr,(l entr)r1;]ilrnlenI c(-rmplcx.5

In order: to rnirkc the plLk "culturallv sensitive," Ja1'

ILasulo, pr:esident ol Wait Disney Parks & F.esorls.

iurnouncetl that Ilong Kong Disne5'larrd ivould be trilin-lluol with linglish, C-antoncse. *ncl Mandarjl. T'he parkrvoultl also itrcludc a litntasY giucicn fbr tlrk.ing 6;icturc.with the l)isney i:hlrlct.rrs {populiu ;rnri:ng r\si;rn tour-i.sts), as '.r,cll as rnore covcrcrl anci r:ainnrcr<if sFaces toIrcL()nlfilr)(Jal{" tlrc "ilriz rly" clinrarc."

I-lnlortuuatc'ly. Disney soon reiilized thilf its attenrprs ar

culturiil sensitivity had nol go1le fff er-;ough. .[-br trutancr:.thc drcision to ii.)rvc shark fin s{.)up. il Ioca) favoritc,greatlv ani:ered envirorrrneutalists.'lhe park ul.iiqratclrhad to renror,'e the rlisir frtxr its rlt.rrllrs. I)all< exeeuLir',,:s

also failed tLr plan for tire l;ugc influ,r of vis,irors aroutrdthe Chinescr New Yer in earl,v ?006, ibrcirrg rhe.m to turnlwav nurne:r()us patrons who had vahd ticke ts. I)nsrrrpiis-irrgly, this leil to cnst<lnrer otrtrlge i]n(l nei:.:ttivo rncdi;rc()vcragc of the rclativcll' new therne prrk.

Otlre,r criticisrrrs o1' the pryk iravc irrciuried its srunllsr.'ale anrJ slorv pacc of explnsiorr. Hrrrrg Kont Disncvlaurj

t-ln-De'ptlr lrrtcgratiwc Gace 2-l b BeyondTokyo: Disna'/'s Expansir,n in Asia

hiis on[y l6 irllractir:rns trniJ "olle classic Disne-v thrill ride.Spacr: Ilounuin, conrpued fo 52 at Disnevland RcsortPrris {fr:rrnrerlv Huro Disn(l'lrrn,lJ."; Llowcvcr the govt-nr-me ilt hus madc plan$ to increasLr the size of the park b1'

aciluiring larril adjaccnt to thc existing facilitles. Likelytluc ttr its smlii siz.c ancl fcwer attrirctions. Hong Konp.

[)i:;ncyl:tnti pllled in onl-v -s,2 rlilli,rn gr"rcsts tlurin.r irs

{irst il rronth,i, [c$ii tl]an fhc t-stimatct! 5.6 nillion.s Fail-ttrlr. trl rDcet ils prujecttxl )cvgl5 a1 dttcn(laDce :rnd .qrrcst.{pending cotr id cause the park to kxlk t()ward r)thr:r\r)ur\'c\ ('l' lLlirJrng firr thcrc crpattsitllts.

Ilattte oarer }tong l(ong ParkE=p;rnslcn ._

l)rsrrcy had pllns to crprncl the sizc ol'tlte theruc park inHcrn;; Kong by ahoLu a third and it had bccu trling t()

obrlirr the [r1,:;rI gr:verrrrrrent's fil]iutcirl suFpon krr thgatpl:.rtt:i r;int--c ](l()7. I{irwcii:r. Disrrcv's Purk in Honr Korrqhrt,j hrccn lxrliilniina q.eJl hclow the projecferl s;rlcs nunr-bei in 1007-.ltXl8. and tlrc goverurnent. which is 57 perer'rlt .$to('khol(lcr in this busiricss, h.ls e\pressc(l s€rir)u-\

doubts in tir.e ncerl lLr t'und the firrther erpansion..{s notc'd

b'; I.irtlntidl /inrr:: rnrlr,,;ts. in rrrre oi Lhc NIarch 200t.]

t(tl)()(t(, I{orrg Ki.tng Dis;tr.:yllnrl hl-q irtf-t'.rctt:ti :rltottt l5rnvisi(ors lilri:c itr, o1'errirut in .SePtcrnber l0{J-5. or abouc

l.ltrr r vclr. I'hlt tigtire Iell short r:f the oriqinal projcctir)ltr{'rritie tlxur 5nr a ycar.'t Altht;ugh Disney did not releasc'financiill Iiguri* tr the puhlic. Euronrolitor csrinrated tlrcprrrk h:rd r'in ollcr;i(in! loss of 5-16 nrillinn in tirtr ycrrr r'ntiedJr;n.: lf,)((i, anrl [osr $lr-i2 ntillion rlre li.rllo\-\'ing vc-ar::'1

l)i:trrcv':i ol'licills lrlri ltcn ttl inr t(.) -\trrs*{ thc lll)pL)r-lrl{r{ic rJl'p,rrt r::ll)ifitqiiltr Jirr tht-- rrver;rll viirtriiit! of theproject -So irrr. thc pirrk occupied 126 trectlres anrl ltrd

' )ni.v fr)ut " hnd s"-, F:rn1.rsvi und, lirntol orvl and, i\dvcrn,

turr:l:rrtr.l. arrtl rlhrin Succt [.]S.\--a0d t\r,o hotc]s. llongKuug l)isncrl:rnrl ]lirrraging Director: .\ndrc*, Kam saiderp;ursion .i: viirrl to tlro p;lrk's succcss. In one of the

Septcrnbur l{!)B rr,leiiscs. Kaur said tJrc park had pleuryol'rr'r<;ni t-o tlr()\\', ,.,incc it r,,:rr onlv usin.e htll of lhc I:tnr.l

lur.rilirhle. "Exprtn:iilrn is pitrt rrf fhc sfrrtr'g\ Lo rn:rkc- thisparL work tirr l{ong Kong.'' he said.ll ;\n !'rpxtrsir)n couldcorit ;s Jnuch a.s "l billion I{rrrig Ktrng drtllars. ur S3tl? nril-Iirrn. loc:rl rncliiil lrave leported. In Deccmber 2(X)3. thc,!irr.q Ti;o f),1111: 1g1r,'rgr3p!-r in IlooA K()ng rcpot'tc(l thiltl)isn.'y. in r,vhlt rr'*s dce rrc<l an unusual conccssion. nrightgivc thr: g-ovcil1rnctlt I groit{er sharc in thc prOjcct inrclawncnt o1'I cirsh loln ,:l- nriuly SR(n rnilliorr thlrt rhc

ciLv had cxlr.ndrd pleviouclv to fhe thenrc park.l:{;ilrhlL' t{) colltc irt iiqrecntent rvirh the l..lrrn" Kr,rnA

f lv(rr'llrlinl, L)isrtev ha-s indicated thiit it is puttios on holdlcn,:-ervaited irlans tr> cEpaud thc park. ln a stiitcn)cnlirom Disrrcr''s Burbenk {C.rlif.) oficc rclcuscrl in lv.lrrrch

l(-ItI). thrr coiripiln): said it \\,ils llying ot{ cmplo}'ccs iuHi'ng fi,rng rrlter l'rrilirrg to reilch iln lgrccmi:nt with thc

Hong Krng goverrlrnent to funrl a much-nccded cxpan-sion. Accrrrrlitlg m Distlcy. ''Tlld unccrlainty ol the out-conte rcquircs u$ to immediatcll. suspenii all crcative andde..-ign u,ork on the projcct." Thirty Houg Kong-bascdDisncy ''[nragineers" who hclped to plan and dcsign neu'parks, witl tre losing their jobs.rl Business news sour!-esItad nrrted that ont-' r'eason Disnel, nright trc rvilling to cndnecoliiitions rvifh thc Hong Kong g(1l'effrrnent js the corn-prrny's progress in negotiations with Slranghai of-ljcials tuopen a fhcnre park there tlat $,ould tre ilrueh lurgu-r andargurrbly' a rnorc exciting China projecr. This park ise rpcclc(l to bc clsicr fitr rnanv Clhinesr: I'anrilic: tU visit.[{orvctr,er, the y.rssihle shili oi nrainl;lnrl Chincsc awayl'ronr lltlr,rt Kong tr.r Shtlghai could mcan a droP of as

much as fd) perccnt in visitr:r nurtbers to the Ilong Ki:ngIl,rrh, acc()rding tcr Eurornotritrrr's estintates.ra

In June of 20t)(-) I)isney and Hottg Klng's gr')ventrnentlurelly. re:rched a de.rl to expantl the tcrritoric-i of theI)isrrtvl:rnrl thenre palk lt .r cr)st of atrout 5d65 nrillirrn.Llnrler temrs ot- the cleal. the enrertainment .qiirnr tvill cr.ln-tribute all tle ueccssrtrl' ncw cirpital fbr coustnrctjon lrs wellts srrstaininq tir park's srperatiorr during tlrt: buildirrg plrr-ies.lt ',vill also convert into equity abour Sl-50 million in loansto Lhe ve,rltun] to ht'lp with funding, and will ketp ogrcn a

crcdit Iaciliti' ol about S4t] rrillion. I{oue Kong. rvhichshouldcrcd ntuch ol rhe $.1..5 billion rrriginrrl constnrcrionct:st. g,ill nr)t tdd alt), new capiuil. "Disnet, is rnr-rking a

sttbs(rntiirt inr'estrncnt irt this imptxlant prcject." L-e.:licCitxxlrnarr. a Disney vice prcsident. saitl in a statement.!5

I}isrtey Gets Green Llghtfor Shanghal Parkin spitc ol' rlte globll economic downturn. \\ialt DisneyCr-r. [35 revisifcd its plans to hujld .ll px1ft in Shlnglrai,Chinir. ln Januarv 20()9 Disncy presenccrl to tlrc Chjncscccntral govcrnnrcnt I $3.59 billion proposll that outlinetjthc plans firr a jointly orvned park, hotcl, and shtrppin!dcveloprncnt. Sharrghai Disncyland, if the projcct suc-uecds, rr,otrlri l-.r. rrne of lhe Iurg.rst-ever firrciltn lrtl.r.st-mcnts in Chinu.l{' Thorreh I)isnev hlrcl trccn unsut:ccssfrrlin ils nceotiationr q,ith thc Chinesc governmctlt a l'ew

,vcars carlicr. and alntost ahanrirxcd its plans of cxpirnsi(into .Shlngltrri. the elr:bal Lrconomic c:ri,*is playcd a n-rle

making thc prospcr:civc creltion oi .5ti.CKit) ncrv jobs amida crnling Chincre Lront)rly crp*.cial[y attT.iictivc, and g:rvr-'

Disncy thc grounds to revisit its pl.;rn..l1'I'he prr,limin;rn' ; gree rncnt signcd in Junuary lcpre-

sentcd a tianies,ork to be considcred by China'si StatcCoLrnc:il. thc crntnrl F()\,cnlmrnt's highcsr iulminisrr.rtivcbocly. Accr.rriiing trr thc proppsaI L)isLrer, rvould take a,13 perccnt r'quit)'stakc in Shanghai tlisncvland rvitlr57 ptrcent orvned by the Sh:rnghai g{}vcn}lrenr 1-rrry11;g

a joint-vcnrurc c,xrpany. l* Jl1{-r pilrh's trrst phasr-' *,ouldinclLrclc building a thernc pil'k, a hotcl- unrl -ihopping

;, .:

.' ,,):

nd{*$sffillryrrglt :tr$**inh{r5

256 Part 2 The Rola of Cullurn

outlets on about 1.5 square kilo,neters (.171 acresr sitcncar Shanshai's Puclong lutenratjonal Ai4rr:rt.rf, The pre_lirn innry a grc.clllent out li ned :r si.t -year construction |t,ri t.xliirr rhe llrst phase' rvirii tlre prcrjecrcd opening of tlre parkin 2014. Dislc_r,will likel_v pay Sj00 nrillion ro $rjtX) nril-irorr in capital cxpctlscs fi-rr the park in cxchangc forJ lrcr,:cnf ot'rhe tit:kel. .seic:s ilnd l0 percent ol lhe c:onccs-si,.,ns.70 Shl;rghni Disnevlanrl will incr.rqrorate Chincsr-c,l{rrral fe:rl'r'i:r^ as wr:ll as altrnclions ltrrilf urn'ntl rrarli_tionnl L)isncv i:har:rctels ;rn,l themcs. T'he oivnership strlrc_Lure will c()ntiir't .rrrntc :tslxct_s ul Disney.s Hong Kongitrinf verrrlrre lerce nlL.nt. f}rt the dettils r)t' the Shanghriprojccf .,\,ill trccri r() hc furthcr ncgrrti:rtetl alil the tctualcollrrrc{ wjli lra,.c lo bc aFpt(]v!.cl by. f he ccnrnrl .:-or,rrr_tlrcnf. r\rr(:otiling to 77r+: ll?tll Strecf lounutl, a nc!!,lyfor:ntcd Shanghai company nitnrerj Sbendi will hold theIocal gor,grnsrcnt's irtfe-.resr in the p;trk. Shenili is orvnctib1' twir hrrsiness cntities undcr districf gor,er.nrnt:n[s irrShanghai. ;rs rvcll ;rs it tlrirrl c()lTlp.ll!, ow rrcti try llrelirrlicrpill eovernnrcrrt's proparllnda hrrrear r,tt

Al'tcr ;lln:ost a vcilr cll tlegotiitt.ion, in Novelnber ?009.l)isury finallv receivcrl an appror.a! lronr tle Chinese gov-cmnlcnl to procec(l with its Shanglrai park pllrr.??-Thc ni:wpark Flirrurt:d ti:r thc prrdqrng new district ol'Chin1's fin:irr-ci;rl clpiurl ivill talc ].ear"r trl contribute to a conrplnl,thrttilkcs irr )lt()rr thirn S-]0 friltion in ulnual rcvenuc. llutitnJh5l\ scl tlrt,'ltt{}!c l}.\ 11 iltpLlrt.int rtep lbrwar:rl lirrI)ir,rrt:1' lnd o{her !!'eslern nledia Jlrrus to ntitkl: inroir<j.silrttr tltc vast md untappcd Chincsc rrrcdia arrtl cntcnain-nlcnt ntr]rkct.

Hone Kong park than a_r:ybo<jy can inraginc. ,Accr:r:dirrg toPlrita Chitakasern. research managei at Fjurt;nrorritorIntcrnationirl in Sineaflclrc. rvho spcr_*iaiiz_es in thenreparkr. "Disneylantl Shiinghai will lavc twr.r bic l.earuresrvlrich rvill nrrrkt: i! lnorc x{l.ractivc than its }long Koagcounterl)ur: Afuhough it is still eiu"l]. diry.s. Disnc..yland inShanshai g,.ill probnbly off'er a nruch bcttcr srr.rl.ncc tbryour money thau Disne5'land in H0n_q Kcrng_initial plansshow {birt Sharrghiri's Disneyland will be six rimes biggercoolp,iued to the currcnt size c,f l{ong Korrg Disneyhrrtl,rvhiclr is r.erv srriall (only l6 aflrirctions).,,\lio. for vrsirorsfrom lnainlund Chinn, it will be much casier [o trfivcl toI)islrcy'lalrtl in Slrirnghui. us tlrt-rc :rrc ntr vis..r./cross borderconctnls fo t:lke dale ol-,",]-i

Whilc rhe public is dcbarirrg rhc prtlecr, L)isncv is notwast.illg tinte a.nd ntove.c on with gerting all other l]eces-sun, appror.als and docunlcrrfri that &re trcc<lerl lor drc parkcofistru(:tt'olt. q.hich still rnay take |:rng tr; obtaitr. In .\pril201(.| tlrrr conlpul). rr:ceivetl nlproval liir tJre llnd. r\ufh.rr-itics have irl.so conllrrnccl that 97 percenf ol rcsieJenl.r havcbccn alrcady relocotecl, and the larrd rvoultl [re rr:rnsfcrrc-.tlovcr t() l)isney in July. Over 2.{X)0 lrorrsehr>lcls and 297cenrpanics havs [o be rele-atcd t{] rnakc rvly. for thc llrutphasc oL construction. lhe hr:ad of l\rtJotrg Ncrv Dstrictwircrc Sharrghai Disney. will be sited infbr.rlc-d the pLrblicthat thc iirst phasc ol $rc proier.t, including a the mc pilrkantl srrpponing trrcilitie.s, will span fbur silLroc knr witlithc thcme piuk L-overins one sqoue lun. TIre prulcerri'ould talc livc to six yeiu.s tu frrrislr.?n

..I.lrcy.v9l'ecnlal,in{rlhcgrottntlwrtrk1ilraparkfr'lr

nlinv )icirrs L'r'exposinl tire population to Disncy proprr- The Walt Disney Conrparry has llso logked jnt6 builrlin.ijc-r' tilrrr' TV attd tntrclundising," * said Olrirtt4Lh*r r,rller thenre parks and rcsor1s i' ,\si.- l3ascr1 on its suc-lv{ar:Lrrpi, srrlli()l'anx},vsl witi catrclli a.d c. i^ Nerv \i,rk.:l ..s.i,,1 ,,pen,iion of tlo lhcmc parks iu thc unite. states'lltcre ltrc ccrl';rl l.rublic ctlneenrs th;rt the nt:u,Sh;rngh^i 1at ;\nahcim anrJ orlanrlo), I)isney bclieves dl:rt it ca'p:irk' which wottl<l bc Disney's silth. will ine'itabl)'&1fecr have rnore than one parkpcr regiori. Anorher strirtegicallythc I{'ng K')ng p:rrk' Thc ntain conccrn is that }{orrg Korre krcuted pxrk in r\sia. ofl'icials :,!reed. w.uld not corrll)ctcp;irk's rcvettuc mrl' lrc crnnibalizctl wtich will makc thc wirh ro'h1'o Disneylantl or Flong Kong Disnc-vJrnd, b'rtinalicial perspectivcs of th_is underpcrlbrming pitrk cvon ratler bring in a new sel oi customcrs.saddcr lLrokirrg l{owcvet Disncv t}rinks Lhat hoth parks on" su& srrategic locaLi.n is tbc srate

'l Jr-rh.r inrvill cornplclrrcnt cach other rather than be compcti{ors. Malaysia. tr,falaysi,rt olllciiris wanre<J to devel.p Johor inf)isncv's lurirr points are ftitt Shanglrai is close ttra nunl_ orrjer Io rivnl it.s ne..ighhor, Sirrgaprne, as a touljsl attrac_ber of othc:r rnaior cirie.s w'irhin easy clriving t.lislance, tiorr. (Two large casinus *"r. buiit in sincaporc in 2006.)irrc:lrrdins Na'jing, suzhou. and llatgzhou. an,i thlt H'rvc'cr, Disn'ey claimed to have no !,\istj's plans .r rlis-Shanghri's own poprrlatitu tlf around l9 million, com- cussions lirr frr,.,0.,,* a pirrk in lVlllavri;r. Alarrnifi Goss, abiried rvith ten's oi ntillit-rns tntlre rvithitt t thrcr-r-hour <lriv- spokeswr-rnran fbr Disney,s Asia.n opcrati.ns based ining ritdiur. rvould pr'vide a nr.rc-than-antple basc,ll,'rcal H,,ug K,ln.t, sniti. ..Wc iue cr)nstantly e'aluittir)!i slruregicu'scrs lbr the pffk' There uuc analvsts, like Paul Tang. ,r',rrli.t., in the w.rrd k) grolv .ur park anrr rcs,rt husiresrchief economi\t irt Bank'f &rst Asia. who share this optl- and the rri.n*1, t *no. \*,e continue to e'aluatt: n-,arkcts butrnisln' proiecting that "vi-ritor^s fiorri crrangdong and at rhis firrre, i"e have no plurs to arlnounce rerirrrJ.ing a-ioutlll-nr Chr.a rvilj stifl find Ht.rng Ko'g n*r" "onu"- park in rvfalavsia.,-]?

nient, rvlrile Shlnghai rvill attract visitor.s frorn norlhern ^

Singap,rrc. in its efforr to expanci its tourisnr incJ,sttv..lt)\i c:Lstcul Cltittr-"r' t..., ^ilrhc crirics of rhc Srrrngrriii piuk on rhc orhcr h,,trr ll1l,,$ilii::i:iJl:"i:1i,."irfi:::,,1.':!:"ri::;:lJ

arc cort'incc'i that this projcct is a higecr tlreitt to tlre Disneylancl \r,ere rlrricki_v disnrisse,l, srlnre rep{)rrs

t-

I

Rffi;]1"tui*tBlanFffitumffiirn-*qlr{msEt,

In-Depth lrrtegratlve Gase 2.lb l?eyondTokyo; Disnsy's Erpansitrn in Ar;;

slrgqested therc \1'crc dxploritlory discussions ol localions atcithcr,lItrin;r Ea.st or Sclctar. Rcsidcnl-q ol' Singaporec\pressi:(l crinccni fhlit the park wollld not hc ct-rmt-titive,c!!-.r) ilrlrinsl tlre \fi];illcr-$c:iler flnrrg Kong DisncVlllnd. l-tlcirpr-inr;ry f'clrs iirclrrrlcr.l lirnitcd at.tr-rc,tions fb:rs*l on siz,c tirtdkull rt'!}rl.itri'rrs), h()[ rvc;rtht:r, ard high ticket pdces,

tllsney'* Frrtuye In Asia,\ltirough Disnr:v is rvisc io enfer the ;\si;rn rnrrrkcr rvithrt.s nerv thcnrc prlks. it still lirccs nr:rn,v obsl:rclcs, C)nc is

liruling the risht !rcllion. Lee Hc.nil. ploiessor of lourisntllLlli:lgent{nt ilt YiIlyilnc Llnir.crsitf in Se rrul. noted."(-)hcrr, lrx)rc inrlrrt.*l [lt;ur contcnt rs rr'hcther il li]r'tue

r* Itrr:*terl in ;r uictroyrlis, r,r,licthcr it'q c;rsilv acccssitrlc:

h1' prrblic trarlsporl;ttiillr." Clltert ticd trr isrucs ol locatiorris tlre additionill dlrea.t oi competitiern, both from localirtt raetior)s irnrJ tlxrsu of othcr inlernatir-rnal cttqroratirrrrs.[l sr:enrs th:rt .,\si:rn lti]v{lers lrlr l{)virl to theil Jcrcli &ltrlc'liuus. eviden(cd hy thc success ol South Korel's Evcrlandthcrnc p;rrI and ]{ong Kr'lrtg's tlwn Occ;rrt Parh qrvlrich

hrriuqht irr nrr''rc vlsilr.lrs t.han IIrlng Ktrng DisnsvlaJld io20ff').:t -fhe .:tift coflpetitir)n oi the thcrne prrk indusul,irt,,\sia ri'rll ccntcr on no{ onl},*'lriclr par:k ciur crcatc lsurgc of intcrcst in jt-; lirst yeirr but uiso rvhich can build;r loy:rl [r.tse oi lepc:rl custor]rrrr-(.

Despitc its rrlr,::i,.ly large sizc, the Aiian therne parkinrlrrsr4, ii still rj(rri*o1ring. Disncy oificials will necd tohc innovatrve lnd strrrtegic in or.lcr ro mainflin salcs-

.'\lier Ulrrcrsril Stu,lros in .l;tpirrlrvitucsscd a 30 pcrcentrlri:,p in;,ittcrlden('('[)cl\\dLrl 2lX]l untl 2006 rnd HongKonu Disncylend failed to meet its estinrated aftcrdancrler,:l in 10()6, Disrer,' nfti,-'i*ls t-rtig.ht u lnl lo (hink ttuicr:;ihtut hrrilLlirrr ;trl,.litiortal p;rrks in,{sirr.}'

In spitc of urilcrpertorrnane c oi'sonle thcure piirks. anLl

a reccnt n,orld et:orrornic crisis. Asia'is still vieled bynl:ln\r 1.i thc nrosl allractiv(' rcfion ft)r' llre t:trlqrrl;rirtrnerrt

intlustrv Attcndancc nlry be stjunxting in sonre piln.\ o!:

thc rvr,lrkl, but a growirg ,rdddle class u,ith riislxrsat:leincrrnrcs {o nralch is nraking the Asia-Pacilic regirlrr li

pnnrr) tlugcf lor invesfrrr: and thcnte p;rr'k otvDe|s. "Chirtawjll lc.rd th€ r\'r\'," siiid Kelverr 'lan. Soufheast Asia's rep-resentxtivc lbr thc Irtcnrational Associr(ion ol Arnuse'nlcnt Piilks iind Atu:ictions, an intlLrstw group. "'lhecritical nra:s r!-rll)' carne about \rith the rcsLugence oiChina. lbu nctrl a gootl srtirrcs of pcrrplct lott rlso rrecd

lahltr anrl )'r)u noc(l clreir;r Irind."rn'l h;rt'i rvhlt tirc pt:ople bchintl thc jLrst-trorrrplcrecl Urri-

vc-.isui StrLrlio: in Singaptrre ilrc bcttin8. DcvcrioFr-rs ainr

tr) rirp the wallcLs L)l Sinlaporc's 4.6 million residcntr and

9.7 nrillion tourists i] year :lnd its proximity !o pt"rpulous

rrcas of Inrlorresir rnd southen) Nfalay-sir. Alier crpetrirre

zat

in spring of liil0. it lvill bc the islzrnd nilt.ion's ll.rlit br)nxfiilc arnusemen.t plrrk. Outsirje this and {xhL:f irreigtlLrr:rnds like Lcr*trlnnd, which plans to open I park in Jchor,It'{alay-sirr. frrr l0i-1, horrrc-growrr companics IiLc Gc:nlirrsin lr.Ial:r_vsill and OTC liutcrprisc Coqr. in Chin;r ur.:

aggrcssivel.y kxrling to ti.t.kcr ild!anr:r,r:e ol thc burgc,,rrilgrurykct ir t.heir b.'rc,k).rrds.-i!

Ot'crtll \fiendirtr r)tj dnlerllrintncn{ rrntl rrrcili;r i11 AsiaPncil"ic is set to increasr: -!.5 lxrcent eaclr yc;u'. jrrinprng

lo $-113 ttilJion in l0l3 frorn $3-l I billion in 2{108. rccord-inq to Pricc*'rltcrhousccoopers. rvitir pl.rccs like SoutlrKore:t. r\ustralia, lrrd China posting the biggcst increlscs."[t's rn up-irnd-coming tnarket, antl gr-or.viru: r1r:ite flsl,"sai,l C-hristian :\lcn. flnnt Kong-hetrrl r*irional rlir*ctorftrr ;\EC()ir.'l Jlcr)llor]ri(rs. :r consullirrg liiln thlr{ lpecializesin thc eutcrt:iinrncnt ard lcisur.e industries. lr,ILil\.1 Studiosiln(l Piirarilr)unt, too. rre scoutjng rround Asia lerr tufurc

lrojects. Prir-'ervlterhousgCor-rpers predicteri thc rcgiLrn'smlrket \vill be rvorth nelrll,$$..5 hillion h,r' l()12. up lroil56.4 billion in ZIXJ7.rr

I* light ot'these optirniitrc pro.icctrous. it is rc-asrrn-

ilblr: t() ilssumc that Disllcy rnarv conside r crpolrsion toother Asial countrics such ts ltlirluvsi:r. South Korca, orSitt.r:r1:rote, \'hcre it aJrlrurrctl t<) hrrvr: scri,rrr.cl) c,.ltsidcretla pivk. Ciivcn that the t{oug Koui: pirrk clpiinsiorr aud

Shanghrii prrk constnrclion are Lrr triruk. f)irnc.v rorv has

the cxpricucL: lnd nlotivttiotr to iirrthcr perrctratc thd

Asian region. ln this legnrd. Disrrey iltnuuncccl il nrid-2010 a crirnprchcnsivc plan to (lclclr)p anrl opcretc F,rrg-

lish languagc schools throlrghout China.:" Such a nrovecould constitutc a bloader push bv Disnu.1, to establish a

strong Asi$l prcs.rnce across il-s busincs.ses and i:'rirntls, a

nrovD thal wtluJtl IllrJituLrtetllv involr-e tlrc thcrnt'p,rrkop!-r;iliolls as tt crntrirl c(]ntpf]ncnt.

Ouestions for Review

1. Whut cuilural chlllenqes iuc poscrl bl' Di.nt1''rexp',m:rion into Asia'J How are rhes{: diffcfent fromthose in F,uroJrc'l

2. FIoiv do cultural v'lriahles ini-lueur-e the lcrcurion

cht;ice ol thenrc parh.s lround lhc rvur'lt.j'.)

3. \\''hy was Disney's Shirnehai theme park s() ci)ntroyer-si;rllt What iirc the risks and bencfils ol'ilris pr"oleer'.'

{. $''bat loc:rtion tr'ould }'ou rccontme rriJ iirr Lfisne ).'snc:xt tl)cnic piuk in Asi:r? Whl'1']

)irar.c. 'ihis .A{c \!r-\ pruparr.: t'v C0i!i1nu} .-\sl;er rrc.je r lhc ru!r:r. r

si{rn oi Ptoli'\ri\r Jrrnririur Don of Villrnrrt'a I.rii;cr-it,v us tlr b;rsi.fdr cl$s discri-ssirrr. [t is lrr-rt 1li!'l]rfu{i llr illustnrte eirl;r:r cll-er(iie orineliccliyc mrnrrgcdrl crprhrlity \)r adrnilistrd{i\r ru1l3)nsihilrr\.

-"*.-_._.., sr*.'4-it*rFirir.rs lEf:tiiw{