 |
 | |||||||||
| |||||||||
|
| |||||||||
| |||||||||
| Buckle up for the ride of a lifetime ( 01/07/2005 ) | |||||||||
Experts predict Disney's magic will have broad-ranging positive effects across the Hong Kong economy, the likes of which are unprecedented. As one international fund manager noted: "Disneyland could be the catalyst that drives the market higher. It is the thing everybody will be talking about." Building the theme park has been a massive undertaking for the Hong Kong government and US entertainment giant The Walt Disney Co. Some HK$27 billion (US$3.5 billion) has been spent to reclaim land and build the attractions on a 126-hectare site on Hong Kong's Lantau Island in a far-sighted joint venture which began in 1999. Now, Hong Kong's citizens stand to benefit from the added prosperity it will bring. There's a buzz in the city with the countdown to opening day. Around HK$467 million (US$60 million) is being spent on an international promotion campaign. 15,000 visitors per day
The government expects Disneyland will create 18,000 jobs in its first year of opening, or nearly 22 per cent of last year's total. One third of Disneyland's visitors are expected to come from overseas, one third will be locals and one third Chinese mainland tourists whose numbers have already surged after Beijing introduced the individual visitor scheme in 2003. Tour operators in Hong Kong say many mainlanders are delaying their trips until Disneyland opens. Investment bank Goldman Sachs has estimated that a "second wave" of individual mainland tourists lured by Disneyland could contribute up to 0.4 percentage point to the expected gross domestic product growth of 5 per cent and 5.3 per cent for this year and next year respectively. Feel-good factor Apart from tourism-related industries, Disneyland will help foster a feel-good effect throughout the economy. "People will feel more confident about job security and future growth momentum so will be more willing to spend," said Steven Leung, sales director at UOB Kay Hian Securities. In the stock market, companies boosted by the surge in tourism are likely to attract attention. Some pundits even believe it will help the bellwether Hang Seng Index to break out of the 13,300 to 14,300 trading range of the past six months. Hong Kong's property and stock markets feed off each other and there is reason to suppose that the Disney effect could even lift property prices across the city, says Charles Liu, a director at real estate agents Landmaster Property in Discovery Bay, near the theme park. After a big rebound in the last two years, property prices are levelling off as the market adjusts to higher interest rates. But "Disneyland will offset the impact of interest rates and the slowdown in the property market. It will be an obvious benefit to the property market," Mr Liu said, estimating that the park could add 5 per cent to property prices across Hong Kong, and considerably more to some areas within easy travelling distance of the park. Hotels prepare for rush Many new hotels are opening up between now and early next year, adding about 14,000 rooms. "They are all in anticipation of the demand created by Disney and the individual travel scheme. Everything hinges on Disney," says James Lu, executive director of the Hong Kong Hotels Association. With Disney as the driver, hotel-related revenue could surge by up to 25 per cent. Hong Kong's shopkeepers are also excited by Disney-related business. "It's good news for Hong Kong people, especially the retail trade," says Sallus Wong, corporate manager of jewellery chain Chow Sang Sang, which will open a store inside Disneyland. The jeweller has a licence to produce a range based on Disney characters at its 37 stores in the city. It has already taken on an additional 100 new staff this year to meet anticipated demand growth. While the 1,600 square foot Disneyland store will only be half the size of Chow Sang Sang's flagship in Tsim Sha Tsui, its sales are expected to match the bigger store. It's just another example of the economic magic in store from the theme park. Related links | |||||||||
| |||||||||
|
|
