Hong Kong Disney Land Case
The Walt Disney was founded in 1923, and known for delivering the quality entertainment experiences for the people of all ages. By 2006, Disney's business portfolio consisted of four major segments: Studio Entertainment, Parks and Resorts, Consumer Products And Media Networks. Disney opened the first Disneyland, Disneyland resort, at Anahiem, California, in July 1955. The company's second theme park Walt Disney World Resort , was opened at Lake Buena Vista, Florida, in 1971.Hong Kong Disney land was the third park that Disney has opened outside the United States, following the Tokyo resort and the Disneyland Resort in Paris. The Tokyo Disneyland was the successful of all Disney parks worldwide, and indeed one of most successful theme parks in the world. Chinese economy was booming, Disney thought it would be a good time to set up a new theme park there. China's infrastructure was still substandard by world standards. The Chinese currency was not fully convertible. These all the factors increased the attractiveness of the Hong Kong which is a special administrative Region of China since the handover of the sovereignty from the United Kingdom. Hong Kong was the Gateway to China and had world class infrastructure and a reputation as an international financial center. Tourism was one of the major pillars of the Hong Kong economy. In 2005, the total no. of visitors was more than 23 million, a new record and approximately a 7.1 increase over 2004. Apart from the nations including Taiwan, Africa, Middle East and Macao, China was the biggest source of visitors which contributes 53.7 percent of the total tourism. In 1998, Hong Kong initiated the conversation with the Hong Kong special administrative region government regarding the setting up Disney theme park.HKD was expected to bring the number of economic benefits to Hong Kong like creation of 18,400 jobs directly and indirectly and this no. was expected to increase to 35,800 in twenty years.3.4 million visitors would be attracted, mainly from the Hong Kong and mainland China. There would be soft benefit as well like the acquisition of first class technological innovations and facilities and gaining experience with quality service training. In 1999, the final contact was signed. The theme park and hotel would cost $1.8 billion to construct over six years and $ 1.7 billion had spent on land reclamation. Disney held 43 percent stake and the remaining stake was held by government. The result of which joint venture named as Hong Kong International theme park limited was formed. HKD made the invitation to the 30, 000 selected individual per day to test the rides and other attractions, four weeks prior to the official opening. The park faced the pressure to lower the daily capacity as the waiting time for the restaurants and rides was fort-five minutes and two hours respectively. So, the park proposed measures like extending the opening time and encourage visits during weekends by offering discounts. HKD symbolize the happiness, fantasy and dreams to offer unparallel experience to the visitors. The admission price was set $38 during the weekdays and $45 during the weekends and peak days. A pass for child was of $32 and for senior citizens it's of $27. As the tickets were sold primarily by company website and travel agencies, only the small tickets were available for walk-in customers. To cater the time pressed Hong Kong residents, HKD offered the fast passed ticketing system which proved one hour window to bypass queues for favored rides. HKD collaborated with the Hong Kong government to jointly promote the theme park. It was estimated that the one third of the visitors would come from Hong Kong and one third from mainland china and remaining from South East Asian countries. The magical world of Disney world was aired in Hong Kong and in each episode famous pop star from the region would introduce some behind the scene stories of HKD. The...
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