Thursday, August 29, 2019

Disney Park in Hong Kong Case Study Example | Topics and Well Written Essays - 750 words

Disney Park in Hong Kong - Case Study Example Tourists might just switch to Shanghai as a key tourism destination. Moreover, the increased flow of tourists more likely will have a negative environmental impact due to increased pollution, consumption, waste, and increased infrastructure (Horner & Swarbrooke, 2004). Â  The arguments for locating a new Disney park in Hong Kong are the following: increase of the national income due to increased leisure tourism activity, creation of new jobs in the area, enhancement of the international image of Hong Kong, and some others economic and social benefits. The arguments against locating a new Disney park in Hong Kong are mainly associated with the risks of this project, as it might be not as profitable as expected due to similar attractions in China, Shanghai. The government has offered some exclusive terms for Disney location and has taken serious obligations towards building the infrastructure required. However, Disneyland in Shanghai might become a too serious competitor to Hong Kong (Horner & Swarbrooke, 2004). Â  The potential risks for the Disney organization of entering into a joint venture with the government to develop the new park in Hong Kong are associated with the extremely high dependence of the company on the government. Minority stakeholder’s share (43%) sets Disney’s management in more vulnerable and dependent position. Disney has its strong corporate culture and other organizational principles. The vision of Disney and Hong Kong government may vary, and thus cause a conflict between the parties. Â  The Hong Kong Disneyland turned out to be a not as successful project as it was expected.

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