PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved. Module 10 Learning Across Borders: Disneyland on the Move

Copyright © 2005 South-Western. All rights reserved.10–2 Disneyland: At the Top of the Trade Opening in 1955 was nearly a disaster Recovery was swift and sure:  More than a million visitors within six months  Income of Walt Disney Productions grew from $11.6 million in 1954 to $58.4 million in 1959  In 2002, Disneyland drew just under 23 million visitors Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–3 Disneyland Viewed as a Product Disneyland is part movie center, carnival, tourist site, shopping mall, museum, state fair, playground, shrine, etc. One of most striking features is celebration of America:  Walt Disney dedicated the park to “the ideals, the dreams, and the hard facts which have created America” Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–4 Disneyland’s Unifying Themes Contrasts between Disneyland and contemporary urban life Banishment or minimization of all signs of decay, crime, confusion, discontent, pain, or struggle Reduction wherever possible of social, stylistic, and ideological diversity on the part of employees and customers Near total control of environment to create a common and structured experience for visitors Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–5 Disneyland Structure Three groups of people responsible for control of Disneyland:  Imagineers—designers of rides, presentations, and environment  Suits—finance, marketing, and management  Cast members—front-line staff most visible to the customers Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–6 Disneyland Goes to Florida Disney wanted to tap the larger American market  Only 2 percent of average daily attendance during first five years came from eastern portion of U.S. Disney wanted to diversify business from motion pictures Disney also wanted to control environment surrounding the park Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–7 Disney and Local Government Disney’s negotiations with Orlando resulted in considerable power for the company Disney has near total control of Florida land holdings  The company can control police and fire services, build roads, lay sewer lines, regulate sale of alcoholic beverages, build an airport or nuclear power plant Disney World growth decisions are thus outside the reach of voters and elected officials Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–8 Disney World Vs. Disneyland Magic Kingdom in Disney World lacks intimacy of Disneyland Disney World stay is a matter of days rather than hours Orlando represents a “total destination site” Disney World is measure of choice for those who want to build another Disneyland Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–9 The Eisner Era Michael Eisner rescued Disney from film failures, declining attendance at parks As of 2004, activities put together during the Eisner regime include:  Films, videotapes, television, and radio programs  Theatrical shows  Cruise ships  Retail stores  Resort properties Class Notes: Disneyland in the US of A

Copyright © 2005 South-Western. All rights reserved.10–10 Disney Goes to Tokyo Oriental Land Company approached Disney in mid-1970s with idea of building Disneyland in Japan Disney left Oriental Land with virtually all the risk and demanded royalties of 15 percent Disney also asked for artistic control of the park Class Notes: Disney Goes to Tokyo

Copyright © 2005 South-Western. All rights reserved.10–11 Disney Goes to Tokyo Disney wished to localize Disneyland Japan, but Japanese partners resisted Japanese partners persuaded Disney to replicate the American original as closely as possible Class Notes: Disney Goes to Tokyo

Copyright © 2005 South-Western. All rights reserved.10–12 Disney Goes to Tokyo Tokyo Disneyland opened in April 1983 to small crowds but in August it drew 93,000 people in a single day By late 1980s it drew more than 15 million people per year Tokyo Disneyland now has “second gate” and attendance from two parks nearing 25 million visitors per year Employee count is 20,000 (75% entry-level part- time workers) Class Notes: Disney Goes to Tokyo

Copyright © 2005 South-Western. All rights reserved.10–13 Disney Goes to Paris Success of Tokyo Disneyland led Disney to believe it had a “sure-fire global winner” Disney played bidders from Spain and France off one another France offered more attractive deal:  4,800 acres of land at below-market prices  Long-term property and employer tax breaks  Low-interest loans  Highway improvements and extension of rail line Class Notes: Disney Goes to Paris

Copyright © 2005 South-Western. All rights reserved.10–14 Disney Goes to Paris French intellectuals derided the Disney experience Criticisms not abated by Disney’s efforts to make the park more “European” Park areas and rides more attentive to European origins and sensibilities Class Notes: Disney Goes to Paris

Copyright © 2005 South-Western. All rights reserved.10–15 Disney Goes to Paris Troubles inside the park seemed to get worse after opening Guests complained about restaurants, queues, lack of friendly service Park was poorly maintained Dress code resulted in charges of violating French labor laws Difficulties reflect cultural mistakes and misunderstandings Class Notes: Disney Goes to Paris

Copyright © 2005 South-Western. All rights reserved.10–16 Disney Goes to Paris Almost from the beginning, Euro Disney was in serious trouble Losses cost the park about $1 million per day New chief executive was hired and reorganization began  Park is now known as Disneyland Paris  Walt Disney Studios Park opened “second gate” to boost attendance  Disney has added attractions, reduced ticket prices, and increased discounts and special events Class Notes: Disney Goes to Paris

Copyright © 2005 South-Western. All rights reserved.10–17 Disney Goes to Paris European management has improved relations with contractors, local residents, guests, and employee groups Park began attracting larger crowds in 1999 Occupancy in park hotels has increased to 70 – 80 percent Local residents and politicians now concerned about the increasing growth in the area Class Notes: Disney Goes to Paris

Copyright © 2005 South-Western. All rights reserved.10–18 Disney Goes to Hong Kong Hong Kong Disneyland slated to open in 2005 Deal was first announced in 1999 Park estimated to cost nearly $4 billion  Disney putting up $300–400 million  Hong Kong government backs remainder of project Disney will control the design, manage the park, and share in the revenue Class Notes: Disney Goes to Hong Kong

Copyright © 2005 South-Western. All rights reserved.10–19 Disney Goes to Hong Kong Two potential sites: Hong Kong and Shanghai Hong Kong offered better deal and also offers:  Better mixture of per capita income  Western-style commercial infrastructure and culture  Established tourist trade Class Notes: Disney Goes to Hong Kong

Copyright © 2005 South-Western. All rights reserved.10–20 Disney Goes to Hong Kong Park will be smaller than in Tokyo or Paris Workforce estimated to be about 5,000 employees Park needs to attract only 5 or 6 million customers a year to break even Guests are likely to come from Hong Kong, China, and other Asian countries Design is “original Disneyland” with no unique Chinese touches beyond cuisine Class Notes: Disney Goes to Hong Kong