Winton Dong

    dht620@sina.com

    ACCORDING to an online statement made by the Chongqing foreign trade and economic relations commission on June 28, the western Chinese metropolis is aspiring to become the home of a new Disney resort in China.

    It was said that Disney had placed the building of another theme park in central or western China on its agenda as early as in 2011 before kicking off the construction of the recently opened Shanghai Disney resort. “We are paying close attention to the new Disney project and are earnestly making preparations for its launch in the city,” said the commission.

    Chongqing’s ambition to follow suit is surely spurred by the success of Shanghai. The US$5.5 billion Shanghai Disneyland is the largest foreign investment to date for the California-based company and regarded as a great success. Even heavy rain during its opening day on June 16 failed to dampen the enthusiasm of visitors from all over the world.

    “Nothing is as impactful. Nothing creates a connection to our stories, to our brands, to our characters, more than a theme park experience,” said Bob Iger, Disney’s chairman and chief executive at the opening ceremony.

    According to a survey by online travel agency Ctrip, the Shanghai resort is expected to receive more than 40,000 visitors a day and at least 15 million a year. Last year, China’s No. 1 tourist spot, the Palace Museum in Beijing, saw a total of 15 million visitors. If everything goes smoothly, the Shanghai Disneyland will surpass the Palace Museum as the most favorite tourist destination in China next year.

    During the trial operation of the Shanghai Disneyland in May, many visitors complained that it was too expensive. A cheeseburger cost 80 yuan (US$12), a small basket of popcorn cost 65 yuan and the cheapest hotel room was 2,000 yuan per night. Generally speaking, tourists from areas near Shanghai, such as Zhejiang and Jiangsu provinces, will spend less, while those from places farther away, like Beijing and Shenzhen, will spend more. It is estimated that each visitor will spend an average of 2,219 yuan in Shanghai Disneyland. So its revenue is expected to reach 33 billion yuan a year.

    As a multinational company, Disney has so far built six theme parks globally. They are located in California, Florida, Paris, Tokyo, Hong Kong and Shanghai. Of the six locations, three are in Asia, including two in China.

    With the great success and quick economic return of the Shanghai resort, it is no surprise that Disney may aim to build a third one in the vast area of western China. If the Chongqing Disney resort becomes a reality, China will boast three Disney theme parks.

    Can China support so many Disney resorts? What would be the differences between these theme parks?

    As a famous Chinese saying goes, there are as many happy families as worried ones. The newly opened Shanghai Disneyland is shining and promising, however, the situation of Hong Kong Disney, which was put into operation in 2005, is now an embarrassment. Compared with the Shanghai Disneyland, which boasts a total planned area of 7 square kilometers, the Hong Kong one is old-fashioned and much smaller with a total area of only 1.26 square kilometers. In the 2015 fiscal year, because of the slump in tourist numbers from the Chinese mainland, the total number of visitors to the Hong Kong resort declined from 7.5 million in 2014 to 6.8 million. And for the first time, the theme park recorded a loss of HK$148 million (US$19 million). Due to its lousy performance, the Hong Kong resort had to lay off about 100 employees in April 2016.

    Fierce competition comes not only from the inside, but also from the outside. While most of the 300 theme parks in China are losing money, Disney is leading an incoming wave of gigantic parks developed by both local and foreign companies all competing in China’s tourism industry.

    According to Bloomberg, about 60 more parks will open in China by 2020, including Dalian Wanda Group’s chain of 15 Wanda Cultural Tourism Cities. The joining of Wanda and other Chinese brands will make competition in the sector fiercer in the future. Disney will definitely face a great challenge if a third Disneyland opens in China.

    (The author is the editor-in-chief of the Shenzhen Daily with a Ph.D. from the Journalism and Communication School of Wuhan University.)