CASE STUDY

Case Study: HDK

Case Study: HDK

Introduction

Disneyland is a well renowned topic part, with outlets all round the world, encompassing Japan, America and France. And now, Disney determined that the next topic part it is going to find itself is Hong Kong- is how beneficial will it be to Hong Kong? The design drawing on the left displays the suggested position of Disney land in Hong Kong. It will be located at the west of Hong Kong isle, in Penny's Bay. Land reclamation will be utilised if additional land is required for Disney to elaborate in the future. (Mak 2004)

           

Discussion

Environmentalists and Economists alike have been contending for and contrary to the case of Disney, each suggesting distinct concepts and points in if Disney will advantage Hong Kong. After 9 months of comprehensive discussions, which reflects the allowance of considered put into Disney, the Chinese government, on 2nd of November 1999, broadcast that the last deduction is that Disneyland will be approaching to Hong Kong. Both edges acquiesced that the government held 57% of the portions of the business while the residual 43% were left in the hands of the Disney Corporation.

Predictions have been made on what the accurate worth Disney will convey to Hong Kong. It is approximated that in the time of 40 years after its culmination, the world-class topic reserve will have the promise to supply Hong Kong with a snare financial advantage (in periods of added worth supplemented or earnings over cost) of up to $148 Billion. These advantages will arrive under two categories: Private advantages (benefits to persons, companies, or organisations)

External advantages (benefits to the general public) However, this anticipated worth of $148 Billion Hong Kong dollars is founded upon numerous assumptions encompassing that: Disney will be accomplished in 2005

The topic part is adept to develop $5.2 million Hong Kong in its first year of opening.

A total of $10 million inside 15 years. (Graziano 1999)

 

            Of course, these assumptions can proceed wrong- a hold up in the culmination, or the rapid unpopularity of Disney, will substantially result Hong Kong. However, these handicaps can furthermore be neglected by the likelihood that Disney can develop more than the forecast allowance $148 Billion Hong Kong. The Hong Kong government is expending a total of $22.45 billion to endow Hong Kong Disneyland to commence. The government putting in $22.45 billion, and with a come back of $148 Billion, is certainly a good deal (for the Hong Kong economy) indeed! External Benefits The foremost external advantage that Disneyland can convey to Hong Kong is the expanded tourism that Hong Kong will know-how after the primary unfastening of Disneyland. It is forecast that in the first year solely, a total of 3.4 million visitors will be approaching to Hong Kong, and 1.4 million of them will be approaching for Disney. It is furthermore forecast that in the course of 15 years, a total of 7.3 million visitors will currently have glimpsed the new Disneyland in Hong ...