What Value Of The Project Itself Its Spillover Effects On The Hk Economy

Disneyland is visited by almost “600 million people a year, in a day there is an estimate of 44,000 people that come to the amazing park” (Theme Park Tourist). Disneyland is known to be the happiest place on earth, from the rides, to the child friendly food, and the surrounding of people that come to visit from difference parts of the world. However, is it worth the money and the time that people waste there in one day? Disneyland is also known for the expensive cost of admission and food, having an atmosphere for kids of all ages, and the waiting time to get food or ride anything there.

The Walt Disney Company has seen their share of success in taking their parks and resorts into global markets. “60 years ago, the first Disney theme park opened, in California and was the brainchild of Walt Disney himself, who was motivated by the lack of entertainment options available to him and his two young daughters.” (Forbes, 2016). Disneyland California penetrated the market rapidly, and its popularity led to the opening of Disney World in Florida, followed by global expansion in Tokyo, Paris, and Hong Kong. Their latest expansion came in June 2016, on a 963 acres’ site in Shanghai, China (Xu, 2012). After one year in operation, Shanghai Disneyland is outpacing their most optimistic projections, and the park’s

World cities are centres for cultural and entertainment facilities, these including sporting facilities, the opera house and entertainment centres. London is home to the renound Wimbledon tennis centre; its cultural identity contributes around 13 million a year to the cities economy. Hong Kong’s newly developed Disney Land employing over 7000 full time and part time members, with over 15 million visitors per year, this company contributions largely to the financial position of Hong

The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very

Competing amusement parks has upgraded their attractions to attract more consumers and Disney is has recently strategizing this approach to a more concentrated perspective. This can ultimately lower their revenues until the plan is complete.

“Net present value (NPV) measures the value added to shareholder wealth from an investment Project” (Titman, Martin, Keown, 2011, p. 338). It is important for Caledonia Products to figure out the NPV. A start-up cost of $8, 100, 00 is a large amount, so Caledonia Products wants to ensure their investment will pay off. The first and second year covered the startup costs with an additional $7,061,600 profit. The return after year four starts to decline and probably would be negative after year five. NPV can help determine how long a company should continue a project, in Caledonia Products case, five years.

Also lays out other alternatives for Disney's entry into the China market. Case B: HKSAR Perspective Presents detailed information about the proposed theme park and the assumptions used by the Hong Kong SAR in conducting its economic assessment of the project. Also lays out other alternatives for reinvigorating the tourism industry in Hong Kong and the development of Penny's Bay (the proposed site of Hong Kong Disneyland) in nearby Lantau.

After Eisner invested tens of millions of dollars to update and expand attractions and park facilities, Disney recovered its investment with attendance-building strategies. By creating a range of complementary services and entertainment at the park, customers stayed longer and spent more money. A plan was also put in place to develop Disney’s unused acreage and further maximize the profitability of these assets. One result of the above measures was that attendance at Tokyo Disneyland increased by 50% from 10.2m in 1983 to 15.8m in 1991.

There are several traditional methods that can be used in appraising investment decisions. For instance, the net present value method (NPV) which entails estimating the costs and revenues of a project and discounting these figures to get their present values. Projects with the biggest positive net present value are the ones chosen as they represent the best stream of benefits of investing in the project over and above recovering the cost of initiating the projects. The discount rate is another method which is similar to the net present value method but reflects more on the time preference. This approach may focus on the opportunity cost of

This analysis is done assuming the benefits accrued in the year 2050. The costs are evaluated from the year 2011 – the proposed time of starting the project, while the benefits are calculated from the year 2020 – the expected time of launching the project. The estimated streams of benefits and costs occurring each year between 2011 and 2050 were discounted to their present value and summarized to calculate the benefit cost ratio.

With the company having resorts and parks earning revenue the company could take a significant hit when the economic conditions decline in the U.S. and other regions in the world. Thus, meaning that consumers will have to cut back on some spending with cutting resorts and parks out of the budget for the time being. Another risk, is the forever changing consumers taste which Disney has showed consistency but remains a risk factor. So much of the company’s business relies on entertainment, resorts, new hotel attractions, film productions, television programming, merchandise, etc. The Walt Disney Company has to anticipate consumer tastes and it is based off ratings from programming, online services, theatrical film receipts, etc. (Pg. 17 2nd

The supply and demand of goods and services vary due to various factors. This paper will discuss the supply and demand of vacation to a theme park and the various factors which affect them.

Disneyland in Hong Kong- Good or Bad? The aim of this essay is to discuss the advantages and disadvantages in having Disneyland coming into Hong Kong. Disneyland is a famous theme part, with outlets all around the world, including Japan, America and France. And now, Disney decided that the next theme part it is going to locate itself is Hong Kong- is how beneficial will it be to Hong Kong? The diagram on the left shows the proposed location of Disney land in Hong Kong. It will be situated at the west of Hong Kong island, in Penny?s Bay. Land reclamation will be used if extra land is needed for Disney to expand in the future.

|create a labor pool of experienced theme park managers which will in the future help to enhance the |

The actual number of visitors per year never hit the expected number. However, sometimes the park still got too crowded and had to prevent visitors from coming in. During Chinese New Year in Feb 2006, hundreds of people with valid 6-month ticket could not enter the park. It led to chaos and further eroded Hong Kong Disney’s image. Generally this is due to poor capacity planning. Disney tried to boost attendance rate, but neglect its peak capacity. It should smooth demand relative to available park capacity.