When all phases of Shanghai Disney Resort are complete, it could attract up to 30 million visitors annually
operators must raise their game if they’re to compete. For international operators such as Merlin (with Legoland Shanghai planned) and others, we’ll see the “tent pole effect” as Disney sets a high price point that other parks price up against. Further impacts will be a rise in standards in service and operations, more new projects and increased interest in the tourism industry.
CREATING A DESTINATION Overall, we think Shanghai Disney will help create an important theme park destination hub in Shanghai and the greater YRD region. Multiple parks enhance the drawing power of all of them, as we’ve seen in Florida and California where there are also multiple parks and operators. As this happens, parks will do more to become self-contained destination parks. Wanda Group has a big project outside Shanghai in Wuxi, one of the upcoming Wanda Culture Tourism City projects, which will be driven by Chinese storylines, content and culture. It’s a significant investment in a self-contained destination with a major theme park, indoor waterpark, big show, large-scale retail mall and flagship hotels. That’s one of the key trends we’re seeing across the industry – creating a destination. For example, ©CYBERTREK 2016 AM 2 2016
Shanghai Disney is going to educate the market and that will have a highly complementary effect on the industry Legoland Parks are adding waterparks and hotels to be more self-contained. Driving overnight visitation is very important and encourages year-round operation. Helping the trend, domestic tourism is growing rapidly. The Chinese are making more weekend trips to nearby cities by highspeed train. More people have cars and are driving to scenic areas and national parks. The success of Chimelong Ocean Kingdom in Zhuhai, near Macau, has shown the Chinese are interested in multi-day stays.
INVESTMENT AND OUTLOOK In terms of return on investment, it’s about the long-term economic impact the destination will have on the tourism and service industry and the creation of a major attractions hub for Shanghai and the YRD. Shanghai Shendi Group and Shanghai’s government will derive value and monetise their investment through this larger cultural tourism and mixed-use leisure and
commercial destination. The International Tourism and Resorts Zone will be positioned as a world-class tourism destination, which includes themed entertainment attractions; hotels/resorts, sightseeing, shopping (including premium factory outlets) and restaurants; meeting, incentive, conference and exhibition (MICE) industry; mixed-use commercial, educational, creative and industry innovation business parks and other supporting industries. Shanghai Disney has the highest ticket price in China and will achieve the strongest visitor per capita expenditure. In a few years, Universal Studios Beijing will reinforce “Chapter 2” of the industry’s development towards large-scale destination parks. Leading up to 2020, Shanghai Disney will help generate significant double-digit attendance growth and boost the cultural tourism industry in China. ●
ECA provides independent analysis, strategy and feasibility studies for the attractions industry. Clients include Universal Studios Beijing, LEGOLAND Shanghai, DreamWorks Animation, CITIC Trust, Huayi Brothers and Wanda. www.entertainmentandculture.com
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