With the opening of Disneyland in Anaheim in1955 the notion of the modern theme park was born. The combination of the rides, various other attractions, and the Disney characters has remained irresistible. Tokyo Disneyland also proved to be a big success, making modest money Disney through licensing and major money for its Japanese partners. Three quarters of the visitors at the Tokyo park are repeat visitors, the best kind.
Then came EuroDisney. Dissatisfied with the ownership arrangements at the Tokyo park, the EuroDisney deal was structured very differently. Disney negotiated a much greater ownership stake in the park and adjacent hotel and restaurant facilities. Along with the greater control and potential profits came a higher level of risk.
Even before the park’s grand opening ceremony in 1992, protestors decried Disney’s “assault” on the French culture. The location was also a mistake – the Mediterranean climate of the alternative Barcelona site not chosen seemed much more attractive on chilly winter days in France. Managing both a multicultural workforce and clientele proved daunting. For example, what language was most appropriate for the Pirates of the Caribbean attraction –French or English? Neither attendance nor consumer purchases targets were achieved during the early years: Both were off by about 10 percent. By the summer of 1994 EuroDisney had lost some $900 million. Real consideration was given to closing the park.
A Saudi prince provided a crucial cash injection that allowed for a temporary financial restructuring and a general reorganization, including a new French CEO and a new name, Paris Disneyland. The Paris park returned to profitability, and attendance increased. However, the temporary holiday on royalties, management fees, and leases is now expired and profits are dipping again. Disney’s response was to expand with a second “Disney Studios” theme park and an adjacent retail and office complex at the Paris location. Again in 2005 the Saudi prince injected another $33 million into the park.
In 2006 Hong Kong Disneyland opened for business. The Hong Kong government provided the bulk of the investment for the project (almost 80 percent of the $3 billion needed). As in Europe, the clientele is culturally diverse, even though primarily Chinese. Performances are done in Cantonese (the local dialect), Mandarin (the national language), and English. Disney also inked a new joint venture agreement for online delivery of entertainment services to customers in China. Indeed, it will be quite interesting to follow Mickey’s international adventures in the new millennium!
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