Disneyland Comes to China
Filed Under China
In addition to their Hong Kong site, Disneyland recently announced the opening of another location in China. A ground breaking ceremony was held last April 8, 2011 in Pudong District which will set the start of the first phase of construction. The initial phase will cover at least 1.5 square miles which should be good for one amusement park and two on-site hotels. The cost of the initial construction will be $3.7 billion.
Pudong District is a very significant location and destination for the newest Disneyland because it was the location of the 2010 World Expo. The event was a big success as official estimate of the attendance was at 7.3 million. Setting up Disneyland in the same location of the World Expo is a business move that will easily attract locals and tourists.
After the initial phase, another 1.1 square miles will be allocated for additional expansion of Disneyland. The 3rd phase will be completed for Disneyland’s official opening in 2016. By the time that Disneyland China is opened, the amusement park will already have six parks around the world. The ownership arrangement of the new location is identical to Disneyland Hong Kong: 57% for a local Chinese company and 43% for Disney.
The amusement park in China is just one of the many ventures of Disney with the Chinese Government. They are also planning to establish a Cable Channel as well as promotion of a Chinese-language production of animations in the country. As the box office in China is improving, Disney is looking to tap the Chinese-speaking market to improve their revenue and expand their brand.
