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 1980s, then rapid transition to service based (mainland)

• Growth Rates– 1990s - 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– 13mil visitors a year– 46 Disney stores across Japan-cross promote

Disney

• EuroDisney (Disneyland Paris) - 1992– American Imperialism– Close to 1st 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”