Hong Kong Disneyland

Do you agree with Disney's decision with respect to market entry into HK/China?

There is several factors or characteristics need to be considered in order to decide the strategy of Disney to enter Hong Kong/China. The factors that render the market attractive are:

Market size: mainly local residents and tourists from mainland China

According to the statistics the world's population is approximately 6.7 billion, and China represents 20% of the world's population with probability of one in every five people on the planet is a resident of China. Hong Kong current population of 7 million residents and Mainland China 72.7 million people make the market so attractive. More tourism from Mainland China will visit the Disneyland especially from Guangdong since the city is nearby with Hong Kong and consists of 5.8% people of the total China population. In addition, Hong Kong is popular as a city for tourism globally, and is was rated as the top ten destination in Asia with more than 11 million visitors per year. As Hong Kong is in the asean region, people from others asean countries who cannot afford the long trip to US or Tokyo Disneyland will find Hong Kong Disneyland convenient. With a big domestic tourism market couple with the act of government in joining WTO has greatly impact the Disney decision in making an existence in China. Strategic business of Disney would expected fresh capital during the first year USD 80 billion which can be translated into an estimated of 5 million visitors in the first year.

Purchasing power

Hong Kong is one of the richest areas in Asia. China on the others hand has a biggest economy when measured in term of purchasing power compare to US (Bloomberg). After joining WTO, China seen as a large emerging market and the directions of Disney to venture into Hong Kong was a good decision. With a strong purchasing power, the tourism market in China and Hong Kong will increased and this will result to the successfulness of Hong Kong Disneyland.

Potential growth - Special Administrative Region (SAR) support

Special Administrative Region (SAR) also promoting Hong Kong inbound tourism by improving infrastructure, facilities, and negotiating to increase the number of permits for mainland tourists. This will bring more mainland people into Hong Kong and government can anticipated an explosive tourism growth locally. On top of that with the strategic location of Hong Kong being nearby with Guangdong gives China government the perfect reason to exploit the growing Chinese market. With the involvement of the government in the tourism industry, it will give Disney a competitive advantages in setting up Disneyland in Hong Kong.

Cultural fit with the product/ service offering

Looking