Professional blog

Hong Kong Disneyland – Adapting the American Fantasy World

Background

Walt Disney opened its fifth Disney theme park in Hong Kong in 2005, joining Tokyo, Paris, Anaheim (California) and Orland (Florida). Although the site is in Hong Kong, its major target market includes the population that resides in the South China region. Hong Kong Chinese are well versed in Disney’s cartoon characters, but the brand is far less pervasive in mainland China. Exporting America’s Disneyland to the Chinese is not simple, as there is no example of a product that has been successful in mainland China based on an American identity alone. Although the Tokyo and Paris parks were both the result of licenses to foreign operators, Hong Kong is Walt Disney’s first direct venture overseas, and it will serve as a test for the company’s future growth in Greater China.

Hong Kong Disneyland is owned by a joint-venture company, Hong Kong International Theme Park (HKITP), in which the Hong Kong Special Administration Region (HKSAR) holds 57 percent of the shares, and the Walt Disney Company holds 43 percent. Because the Hong Kong government invested close to 80 percent of the cost in return for only a 57 percent ownership stake, the major concern for most of the Hong Kong public is whether the deal secured represents a good one for Hong Kong taxpayers. The government bears all of the financial risks, but does not have an exclusive deal for the region.

Adaptation of Park Attractions and Facilities to Chinese Culture

Disney Hong Kong was built with many interesting settings that accord with the rules of Chinese Feng Shui, and it incorporated some Asian elements during the planning and construction stages, so that East- meets-West décor is everywhere. For example, in building the new entrance to Hong Kong Disneyland, Walt Disney executives decided to shift the angle of the front gate by 12 degrees. They did so after consulting a Chinese feng shui master, who said the change would ensure maximum prosperity for the park. Disney also put a bend in the walkway from the train station to the gate, to make sure the flow of positive energy, or chi, does not slip past the entrance and out to the China Sea.

Most Disney parks provide hot dogs, burgers, or fries, but Disney Hong Kong also serves Chinese food. Traditional Chinese taboos are taken into consideration, so the park does not sell green hats, and it minimizes its stocks of clocks. In Chinese culture, a green hat is seen as a symbol of a wife’s infidelity, and the phrase for giving out a clock sounds similar to that of attending the recipient’s funeral.

Because it expected large crowds from mainland China during the holidays, Disney also provided custom- made features, such as the festive finery that was worn by Mickey and Minnie in the grand parade, the launch of subtitles in simplified Chinese at the two Broadway-style shows, and the setting up of special information booths to help visitors. A Disney spokesperson said that the features were introduced in response to feedback from mainland agents, government officials, and park users. The park admitted that it is a challenge to integrate Disney with Chinese culture, as they underestimated the amount of time that guests would spend in restaurants and inside the park. It discovered that Chinese people take an average of 10 minutes longer to eat than Americans do, so the park has added 700 extra seats to its dining areas. Chinese visitors like to take photographs and tend to stay in the park for about nine hours, so Disney has extended its opening hours by one hour on peak days.

A new blow to HKDL’s future expansion

To cope with the challenges, in 2016, Hong Kong Disneyland (HKDL) developed a multiyear transformation plan between 2018 and 2023, bringing something new almost every year based on some of the most beloved Disney stories and characters. When completed, the number of themed areas will increase from seven to nine, and the number of attractions and entertainment offerings (including castle shows, stage shows and character greetings) will increase from around 110 to over 130. HKDL was also to build with the space for a second park directly across from the entrance to the current park. Land is also available for additional hotels other than the three current, but the common thought is that the second park will be built before a fourth hotel.
The expansion plan would require HKIPT to expand the current site and acquire a land adjacent to the current site.

The option to buy the 60 hectare piece of land, which is nearby the city’s international airport, was agreed 20 years ago and would expire in September 2020. The land earmarked for Disney has been unused for years and activists had advocated that public housing be built on it. During the coronavirus pandemic, as the city experienced a renewed rise in coronavirus infections, authorities set up a temporary quarantine centre on the land.

In 2020, Hong Kong’s housing minister urged Hong Kong Disneyland to release a piece of land the park had reserved for a potential phase-two expansion in order to create space for transitional housing. This
request was a complete change of direction from the government’s previous policy to not allow any residential use on this piece of land.

The Hong Kong government released a statement amidst the economic downturn due to the pandemic that “The government considers it prudent for HKITP to focus on the development and expansion of the existing resort in the coming few years, rather than geographic expansion into the site.” With this announcement, Walt Disney Co lost its option to buy a plot of land next to its Hong Kong theme park that was to allow for future expansion after the city’s government said it would not extend the option due to current economic conditions.

Conclusion

It appears HKDL will face a bumpy road to full recovery post-pandemic. Against a backdrop of inflation and rising costs of operations, it is expected that HKDL will fall further into the red before it can see signs of recovery. Even with the easing of Covid restrictions, HKDL expects that its business and the city’s tourism sector as a whole will take a while before it could return to normalcy. By then, Hong Kong as a tourist destination will probably lag behind many Asian countries that have opened up their borders earlier.
Can Hong Kong Disneyland theme park recreate the magical experience that it intended, or will this remain a fantasy that started some 30 years ago?

References

Chan, C. (2005), ‘$5.5b plan to revamp Ocean Park is unveiled’, South China Morning Post, [online] p.1. Available at https://www.scmp.com/article/493408/55b-plan-revamp-ocean-park-unveiled

Lau, J, and Yim, B. (2007) Hong Kong Disneyland: Where is the Magic?’. Harvard Business Education, HKU637-PDF-ENG

Liu, P. and Tsai, T. (2011) Disneyland in Hong Kong – Green Challenge (A): Asian Case Research Journal, 15(02):177-200

Loo, G. and Yim, B. (2007) ‘Ocean Park: In the Face of Competition from Hong Kong Disneyland”. Harvard Business Education, HKU638-PDF-ENG
Reuters Staff (2020) Hong Kong government ends Disney’s option for expanding theme park’, Reuters, [online].

Available at https://www.scribbr.co.uk/referencing/harvard-website-
reference/#:~:text=To%20reference%20a%20website%20in, which%20you%20accessed%20the%20we bsite.&text=Author%20surname%2 20initial. Accessed%3A%20Day%20Month%20Year).

Siddhanta, A. and Gopal, B. (2006), ‘Hong Kong Disneyland: Appeasing the Dragon?’. IBS Case Developmeng Centre, TRT0086B

Tsang, D. (2018). “Hong Kong Disneyland falls further into red as losses double in 2017 to hit HK$345 million, South China Morning Post, 20 Feb

Yeo, R. and Tsang, D. (2022), ‘Hong Kong Disneyland records HK$2.4 billion loss amid coronavirus- related closures’, South China Morning Post, [online] p.1. Available at https://www.scmp.com/news/hong- kong/hong-kong-economy/article/3171258/hong-kong-disneyland-records-hk24-billion-loss

Zhao, S. (2020), “Hong Kong Disneyland Loses Right to Land Near Theme Park, Bloomberg [online]. Available at

https://www.bloomberg.com/news/articles/2020-09-23/hong-kong-disneyland-stripped-of- right-to-expand-theme-park#xj4y7vzkgKIE

The post Hong Kong Disneyland – Adapting the American Fantasy World, Report, University of Roehampton Business School appeared first on Singapore Assignment Help.