potential theme park development in myanmar

MYANMAR THEME

PARK SITE SELECTION From the Markets, Physical Infrastructure and

Economic Impacts Perspective

By Wonwhee Kim The Park Database

Korea

Doha

Singapore

Macau

Example of what we’ve worked on

• Legoland Korea (under construction)

• Kidzania Doha, Singapore, Korea

• Universal Studios destination parks

• Fox destination park

• Studio City Macau (opened 2016)

Opening

2017

Opened

2016

INTRODUCTION

The Park Database Analytics

The longer

people stay

5-40% of revenues

from F&B The more people

feel connected

to the project

3-40%

of revenues from

merchandise

40-95% of revenues from

ticket revenues

BUSINESS MODEL OF AN

ENTERTAINMENT PROJECT


RAISES THE VALUE OF LAND AROUND IT


GIFT TO THE

PEOPLE

Happy Valley /

Chinese Theme

Parks

Tivoli Gardens


ECONOMIC IMPACTS

Construction (one-time)

multipliers of 2

Ongoing output

multiplier of 1.2-1.6

Earnings multiplier of

0.2-0.3

Employment

multiplier of 1.5


TOURISM ‘INFRASTRUCTURE’

Costly to build often requires public

sector support

Once built has monopoly

characteristics, uneconomic

and unnecessary to build

another in the same market

Requires yearly

maintenance, but

should last for a very

long time.

Drives traffic from

within and from

outside the region.

1 2 3 4


WHERE IS YANGON?

City Population GDP (million

USD, PPP)

GDP per capita

(USD, PPP)

Kuala Lumpur 6,100,000 171,772 28,076

Bangkok 15,600,000 306,765 19,705

Manila 12,900,000 182,842 14,222

Jakarta 32,200,000 321,315 9,984

Yangon 7,500,000 62,500 8,333

Ho Chi Minh City 8,200,000 71,055 8,660

Mumbai 21,500,000 150,853 7,005

Chennai 9,100,000 58,625 6,469

Hyderabad 7,900,000 40,186 5,063

Bangalore 9,000,000 45,313 5,051

Kolkata 15,000,000 60,447 4,036

Annual per capita GDP

(income) growth of

7.9%

on a PPP-adjusted

basis

If growth continues, then

can reach the level of

$17,000 in ten years (close to

Thailand’s level) – no

guarantees


THERE ARE MANY TYPES OF

THEME PARKS


CLIMB THE LADDER

Less costly

More costly


CLIMB THE LADDER

$10-15M Indoor Park / Single Show


Not purely profit-

making enterprises government is involved in a

surprising number of projects


EXTREME EXAMPLE - HONG KONG

Share

HK Govt Equity $417,000,000 10%

Disney Equity $314,000,000 7%

Commercial Loans $295,000,000 7%

Govt Loan $718,000,000 17%

Land Acquisition - Govt $205,000,000 5%

Land Premium – Govt $513,000,000 12%

Infrastructure $1,744,000,000 41%

Total $4,205,000,000 100%


ASIA LAND

80

90

100

110

120

130

140

150

Q4'11 Q1'12 Q1'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'3 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

PRIME ASIA LAND PRICE INDICES

Unweighted

PRIME RESIDENTAL DEVELOPMENT LAND INDEX PRIME OFFICE DEVELOPMENT LAND INDEX

Population growth GDP growth Urbanization High land prices


RESERVE THE LAND

WHILE LAND IS

LESS EXPENSIVE

0

100,000

200,000

300,000

400,000

500,000

Sq

uare

mete

rs


CAN HARVEST REVENUES

FOR A LONG…TIME

Los Angeles

Disneyland 1955

Universal Studios Hollywood 1964

Orlando

Magic Kingdom 1971

Universal Studios Florida 1990

Japan

Tokyo Disneyland/Disneysea 1984 / 2001

Universal Studios Japan 2001

Kuala Lumpur

Sunway Lagoon 1992

Genting Highlands 1970s

Bangkok

Siam Park City 1980

Dream World 1994

Manila

Enchanted Kingdom 1995

Star City 1990

Seoul

Everland 1976

Lotte World 1989

Harvest

revenues of

$20m to $1b

for decades

GDP impacts

Tax impacts

Tourism

impacts


SUMMARY

Why Theme

Parks?

Raises Value of Land

Social

utility

Economic

Impacts

Like Infrastructure

Yangon Observations

Phased development

Consider PPP

Reserve the land


CONTACT

[email protected]

mailto:[email protected]

mailto:[email protected]

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