Hong Kongs Push for Growing Tourism Maj Scott

Hong Kong’s Push for Growing Tourism Maj Scott Roe

Introduction • Background/History • Economic Base • Disney – Japan – France – Hong Kong • Outlook

Background

Background • Administrative Region of PRC – To China in 1997 – High degree of autonomy until 2047 • China – Territory’s defense – Foreign affairs • Hong Kong – Legal, Monetary, Police Force, Customs

Economic Base • Highly capitalist – free market, low tax • Highest concentration of corporate HQ in the Asia-Pacific Region • GDP exceeded UK, France, Germany, and Japan • Ranked as world’s freest economies

Economic Base • Few natural resources • Most exports consist of re-exports – Mainland distributed thru Hong Kong – Lead-based painted toys • Autonomous Status – Point of entry for investments and resources to mainland • 1983 – Fixed rate to the U. S. dollar

Economic Base • Manufacturing base until 1980 s, then rapid transition to service based (mainland) • Growth Rates – 1990 s - 2. 7% move to financial center – 2000 - 10% – 2003 – 2. 3% due to SARS • 2003 – Individual Visit Scheme – Visitors from Mainland – Tourist Industry – Outward look from hardnosed economy base

Disney • Tokyo Disneyland – 1983 Opening – 13 mil visitors a year – 46 Disney stores across Japan-cross promote

Disney • Euro. Disney (Disneyland Paris) - 1992 – American Imperialism – Close to 1 st year “bankruptcy”/recession – Price cuts and marketing • Mold to customer requests(cowboys and wine) • #1 tourist attraction – 1. 4 bil into French Economy – 45 mil to 60 mil visitors in European theme parks

Disney • 1999 Disney and Govt of Hong Kong sign agreement for park – Govt aggressively wooed Disney – Govt – 57% share and 1. 8 bil invested – Disney – 43% with only 314 mil invested • Estimated outlook for govt – 18, 000 to 35, 000 jobs growing over 20 years – Estimated income 19 bil over 40 years

Disney • Attempted grasp of culture – Feng Shui consultants (main gate) – Opening day (Chinese calendar prosperity) – 3 Language choices on rides • Overlooked/Controversies – Shark Fin soup – Lunar New Year • Pre-sold passes – Who is “Mickey? ” • Pre-deployment brief

Disney • First Year – Missed estimate of 5. 6 mil visitors – 70% negative opinion rate from locals – Cast Members Union strike – Disclosure – Small & expensive

Outlook • Govt invested 4 bil in tourism – Eighteen hotels in one year – 700 mil in overhaul of Ocean Park – 300 mil convention center – Expansion of Buda site – Disney Channel on the mainland – Family tourism up 14% – Shanghi Disney?

Questions? “Disneyland will help drive the next generation of Hong Kong’s tourism to enhance its position as an international capital”