Hong Kong’s Push for Growing Tourism Maj Scott Roe

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

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 1980s, then rapid transition to service based (mainland) Growth Rates –1990s - 2.7% move to financial center – % –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 –13mil visitors a year –46 Disney stores across Japan-cross promote

Disney EuroDisney (Disneyland Paris) –American Imperialism –Close to 1 st year “bankruptcy”/recession –Price cuts and marketing Mold to customer requests(cowboys and wine) #1 tourist attraction –1.4bil into French Economy –45mil to 60mil 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 1.8bil invested –Disney – 43% with only 314mil invested Estimated outlook for govt –18,000 to 35,000 jobs growing over 20 years –Estimated income 19bil 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 5.6mil visitors –70% negative opinion rate from locals –Cast Members Union strike –Disclosure –Small & expensive

Outlook Govt invested 4bil in tourism –Eighteen hotels in one year –700mil in overhaul of Ocean Park –300mil 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”