SHANGHAI - The Shanghai Disney Resort presents an opportunity to prove that a theme park can be profitable in China and will possibly cause such places to become more popular among the Chinese, according to experts.
Theme parks were introduced to China two decades ago. Yet, despite the years such businesses have had to test out and improve their operations, up to 70 percent of them are either running deficits or are hampered by poor organization and ineffective advertising, said He Jianmin, a tourism management professor with Shanghai University of Finance and Economics.
An artist's rendering depicts the proposed Shanghai Disney Resort. [Photo/Agencies]
Hua Jian, director of the cultural industry research center at the Shanghai Academy of Social Sciences, told China Daily that the Disney project is a new attempt at seeing if theme parks can succeed in China. "Some people say Disney, which has been around for 88 years, is too old for Shanghai," Hua said. "That's just prejudice."
He also predicted that the Shanghai Disney Resort, which enjoys abundant support both from investors and the government, will become one of the most popular destinations among Chinese travelers.
The Chinese people's increasing enthusiasm for tourism will guarantee the park a steady stream of visitors. He noted that 2.3 billion visits were made by Chinese people inside the country in 2010, and that the number of travelers is expected to rise to 3.3 billion in 2015.
Some experts worry the new park will take business away from its competitors in China, especially from the Disney park in Hong Kong, which reported a net loss of HK$718 million ($92 million) in the 2010 fiscal year.
But that fear isn't shared by the managers of the Hong Kong park.
"Asia, including China, is a growing market with a population of several billion, large enough to welcome more than one Disney resort," Andrew Kam, managing director of Hong Kong Disneyland Resort, said on Friday.
"China is big enough to accommodate two Disneylands," said Philip Yung Wai-hung, Hong Kong Commissioner for Tourism.
He said he wasn't worried that tourists will forget about the Hong Kong Disneyland. He said plans are in place to expand the park and bring new attractions into use in 2012 or 2013.
He Jianmin noted that many mainland residents have been impeded from going to Hong Kong by a regulation requiring them to obtain a special pass before making the trip. Shanghai Disney Resort will find one of its main sources of business in such travelers.
"My family has been expecting to see the new Disneyland for a long time, ever since the news about it came out years ago," said Yu Xuebin, a public relation manager for a foreign company in Shanghai and the father of a 5-year-old daughter.
"I will definitely be among the first visitors to the park," Yu said. "With this huge Shanghai Disney Resort coming, who would want to go to another theme park?"
According to He Jianmin, Shanghai is planning to have two theme parks in addition to the new Disneyland and the existing Jinjiang Action Park and Happy Valley, putting the city in a position to become one of the chief destinations for tourists seeking such attractions.
Despite officials' optimism, the property market and stock market both reacted tepidly to the news about the Shanghai Disney Resort. Analysts said the lack of excitement merely showed that investors have already taken into account the good effects that are likely to come from the project and have acted accordingly.
Lu Qilin, research director from Shanghai Deovolente Realty, a Shanghai-based real estate agency, told China Daily that properties near the future Disneyland were affected by news of the project years ago. That's why, even with the announcement that work on the park will begin soon, prices there remain steady at between 15,000 yuan ($2,295) and 20,000 yuan a square meter.
Andrea Deng contributed to this story.
