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Editor’s letter
The Mouse goes East

After decades of hard graft, Disney Shanghai – the most expensive theme park ever built – is open. Tuned to Chinese sensibilities and with capacity to handle huge volumes of guests, the development has required sustained diplomacy at the highest level to bring it to fruition

By Liz Terry | Published in Attractions Management 2016 issue 2


When China began to open up to the West in the 90s, the world’s major brands went calling, in search of the partnerships they needed to get their products in front of what – it was becoming clear – would be the biggest market in the world.

The Chinese were urbanising fast, growing a huge, affluent middle class and adjusting their communist ideology to fit the modern world – the potential opportunities were off the chart.

For some, moving into China was a straightforward process retailers are nimble enough to get up and trading in no time.

It wasn’t long before Gucci, Prada and many other high-end brands were present in China’s big cities. For Disney, however, massive infrastructure was needed for it to fulfil its ambitions, and that meant an unbelievably complex journey.

As Disney Shanghai opens for business, it’s clear the creation of the resort has turned out to be a life’s work for many in the team. Even more so because the opening of this phase is just the beginning of the journey. In this issue of Attractions Management we celebrate the opening, with our supplement which starts on page 60.

Projects of this size are a long-term play when it comes to investment. Disney initiated its move into China more than two decades ago and has effectively missed the first boom years. Growth in the economy is slowing, but this won’t matter when the appetite for the product is factored in. The demand is such that the resort will trade at capacity from the off.

And what capacity it is. The Shanghai International Tourism and Resorts Zone, within which the Disney resort sits, covers 25sq km (9.7 sq mi), with a core area of 7sq km (2.7sq mi), including 4sq km (1.5sq mi) for Phase One of the Shanghai Disney Resort. This leaves plenty of room for subsequent phases. Disney is forecasting 12 million visitors in year one – we think mthis is conservative – growing to an eventual 30 million.

A generation ago, the average Chinese citizen lived a life of subsistence, with little to spend on leisure, but the new middle class is emerging so fast Disney CEO Bob Iger says the company has identified an ‘income-qualified audience’ within a three-and-a-half hour travel radius of more than 300 million people. “It would be as though the whole population of the US could afford a ticket to Orlando and could get there within three-and-a-half hours,” he said. Couple this with the fact that the one-child policy has been relaxed to two and it’s clear the stars are aligning.

A final piece of information that proves the Chinese market has come of age is that peak ticket prices for Disney Shanghai are higher than both Tokyo Disney and Disney Hong Kong.

Disney learned hard, valuable lessons from Euro Disney a projected which went through several rounds of wretched refinancing – so the business case for this new development is clearer. And there’s more to come. The build-out will continue for years, with three parks the goal for Shanghai. This opening is just the beginning. Behind the scenes, the work continues.

Will Disney Mumbai follow? Disney Moscow? Maybe one day the final act of soft power will be to open in the former Soviet Union.

Liz Terry, editor. Twitter: @elizterry

COMPANY PROFILES
Sally Corporation

Our services include: Dark ride design & build; Redevelopment of existing attractions; High-quality [more...]
Red Raion

Founded in 2014, Red Raion is the CGI studio for media-based attractions. [more...]
Simworx Ltd

The company was initially established in 1997. Terry Monkton and Andrew Roberts are the key stakeh [more...]
DJW

David & Lynn Willrich started the Company over thirty years ago, from the Audio Visual Department [more...]
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Editor’s letter
The Mouse goes East

After decades of hard graft, Disney Shanghai – the most expensive theme park ever built – is open. Tuned to Chinese sensibilities and with capacity to handle huge volumes of guests, the development has required sustained diplomacy at the highest level to bring it to fruition

By Liz Terry | Published in Attractions Management 2016 issue 2


When China began to open up to the West in the 90s, the world’s major brands went calling, in search of the partnerships they needed to get their products in front of what – it was becoming clear – would be the biggest market in the world.

The Chinese were urbanising fast, growing a huge, affluent middle class and adjusting their communist ideology to fit the modern world – the potential opportunities were off the chart.

For some, moving into China was a straightforward process retailers are nimble enough to get up and trading in no time.

It wasn’t long before Gucci, Prada and many other high-end brands were present in China’s big cities. For Disney, however, massive infrastructure was needed for it to fulfil its ambitions, and that meant an unbelievably complex journey.

As Disney Shanghai opens for business, it’s clear the creation of the resort has turned out to be a life’s work for many in the team. Even more so because the opening of this phase is just the beginning of the journey. In this issue of Attractions Management we celebrate the opening, with our supplement which starts on page 60.

Projects of this size are a long-term play when it comes to investment. Disney initiated its move into China more than two decades ago and has effectively missed the first boom years. Growth in the economy is slowing, but this won’t matter when the appetite for the product is factored in. The demand is such that the resort will trade at capacity from the off.

And what capacity it is. The Shanghai International Tourism and Resorts Zone, within which the Disney resort sits, covers 25sq km (9.7 sq mi), with a core area of 7sq km (2.7sq mi), including 4sq km (1.5sq mi) for Phase One of the Shanghai Disney Resort. This leaves plenty of room for subsequent phases. Disney is forecasting 12 million visitors in year one – we think mthis is conservative – growing to an eventual 30 million.

A generation ago, the average Chinese citizen lived a life of subsistence, with little to spend on leisure, but the new middle class is emerging so fast Disney CEO Bob Iger says the company has identified an ‘income-qualified audience’ within a three-and-a-half hour travel radius of more than 300 million people. “It would be as though the whole population of the US could afford a ticket to Orlando and could get there within three-and-a-half hours,” he said. Couple this with the fact that the one-child policy has been relaxed to two and it’s clear the stars are aligning.

A final piece of information that proves the Chinese market has come of age is that peak ticket prices for Disney Shanghai are higher than both Tokyo Disney and Disney Hong Kong.

Disney learned hard, valuable lessons from Euro Disney a projected which went through several rounds of wretched refinancing – so the business case for this new development is clearer. And there’s more to come. The build-out will continue for years, with three parks the goal for Shanghai. This opening is just the beginning. Behind the scenes, the work continues.

Will Disney Mumbai follow? Disney Moscow? Maybe one day the final act of soft power will be to open in the former Soviet Union.

Liz Terry, editor. Twitter: @elizterry

LATEST NEWS
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Off the back of the success of the first round of Everyday Heritage Grants in 2022, Historic England is funding 56 creative projects that honour the heritage of working-class England.
Universal announces long-awaited details of its Epic Universe, set to open in 2025
Universal has revealed it will be adding new Harry Potter attractions, alongside Super Nintendo and How to Train Your Dragon worlds to its Florida resort.
Heartbreak for Swedish theme park, Liseberg, as fire breaks out
A fire has destroyed part of the new water world, Oceana, at Liseberg in Sweden, and a construction worker has been reported missing.
Museum director apologises after comparing the city of Florence to a sex worker
Museum director Cecilie Hollberg has come under fire for comparing the city to a sex worker due to uncontrolled mass tourism.
Populous reveals plans for major e-sports arena in Saudi Arabia
Populous have unveiled their plans for a state-of-the-art e-sports arena, designed to stand as a central landmark in Qiddaya City’s gaming and e-sports district, Saudi Arabia.
Raby Castle reveals ambitious plans to become a major visitor destination
Raby Castle, known as one of the finest medieval fortifications in England, is nearing the end of an ambitious two-year renovation project.
Wake The Tiger launches new 1,000sq m expansion
Wake the Tiger, the Bristol-based immersive art experience, is set to open its 1,000sq m expansion on Friday 2 February.
Merlin teams up with Hasbro and Lego to create Peppa Pig experiences
Merlin Entertainments, the LEGO Group and Hasbro have teamed up to create Peppa Pig experiences.
Tate Modern and Frame collaborate on a mind/body experience
London boutique operator, Frame, has teamed up with the Tate Modern to offer two yin and sound yoga classes, following by a tour of the art gallery.
Elvis Presley Live is rolling out globally
Immersive entertainment specialists, Layered Reality, is creating a tribute to Elvis Presley featuring a concert experience with a life-sized digital Elvis.
Carmel Lewis takes top spot at BRC
Carmel Lewis has been appointed president at global experiential planning and design firm, BRC Imagination Arts, heralding a new era for the company.
Perth Museum to launch at Easter with rare Jacobite objects
Opening over Easter weekend in March 2024 after a £26.5m redevelopment project, Perth Museum will tell the story of Perth – Scotland’s first capital.
+ More news   
 
COMPANY PROFILES
Sally Corporation

Our services include: Dark ride design & build; Redevelopment of existing attractions; High-quality [more...]
Red Raion

Founded in 2014, Red Raion is the CGI studio for media-based attractions. [more...]
Simworx Ltd

The company was initially established in 1997. Terry Monkton and Andrew Roberts are the key stakeh [more...]
DJW

David & Lynn Willrich started the Company over thirty years ago, from the Audio Visual Department [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

08-08 May 2024

Hospitality Design Conference

Hotel Melià , Milano , Italy
10-12 May 2024

Asia Pool & Spa Expo

China Import & Export Fair Complex, Guangzhou, China
+ More diary  
 


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