Transcript Scott Roe
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”