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Nation
Here Comes Disney Magic
After a decade of planning and $5.5 billion in funding, Shanghai Disneyland will open in June
By Corrie Dosh | NO. 7 FEBRUARY 18, 2016

 

An aerial photo of the Shanghai Disneyland taken on February 3. The Shanghai Disney Resort announces on the day that the theme park tickets start to be sold on March 28 (XINHUA)

Disney's Pinocchio promised us that when you wish upon a star, anything your heart desires will come to you. Now, millions of star wishers in China are getting their hearts' desire granted with the opening of Disney's newest theme park attraction in China--Shanghai Disneyland.  

Opening on June 16, the 963-acre Shanghai Disneyland will feature two themed hotels; an expansive recreation area; a unique retail, dining and entertainment district; and a Disney theme park with six themed lands and never-before-seen attractions designed specifically for the people of China. Some familiar attractions will also open, including Tomorrowland and an iconic fairyland castle emblazoned with a golden peony on its tallest tower.  

Victoria Lim, Managing Editor at Walt Disney World Public Relations, calls the new park "authentically Disney, distinctly Chinese"--echoing Disney Chairman and CEO Robert A. Iger who said the resort reflects Disney's legendary storytelling along with China's rich culture, and showcases some of the most creative and innovative experiences we've ever created. We're looking forward to showing it to the world and sharing it with the people of China for generations to come."  

These unique Chinese touches include the first production of The Lion King  in Mandarin, to be staged in a 1,200-seat performance theater and a reimagining of the Chinese zodiac with Disney characters. The park will also host special events for the Chinese holidays and lunar New Year. The two onsite hotels--the Art Nouveau-inspired Shanghai Disneyland Hotel and Pixar-themed Toy Story Hotel--offer guests tea kettles and premium teas, Chinese board games and activities such as the chance to practice calligraphy. Even the opening date of the park was chosen for the lucky connotations the number 6 has in China. 

Park developers also promise to feature the world's longest parade, filled with music, acrobats, Disney characters and marching bands playing traditional Chinese instruments. The parade, called "Mickey's Storybook Express" will wind its way through the theme park as it does at other Disney properties. 

"Shanghai Disney Resort celebrates China's rich heritage and is the result of years of partnership and innovation with contributions from our talented Cast Members and Imagineers, as well as thousands of artists, designers, construction workers and suppliers from across China and around the world," said Philippe Gas, General Ganager of Shanghai Disney Resort.  

Changing the landscape 

With a $5.5-billion investment, Disney Shanghai is the company's third theme park in Asia, following Tokyo and Hong Kong. It will also be the third largest park in Disney's six-property portfolio, slightly smaller than Disneyland Paris. Disney partnered with Shanghai Shendi Group, a state-owned investment holding company, for the park's development.  

The iconic spires of the fairyland castle rise up among the familiar skyline of Shanghai's Pudong district, 12.5 miles from the city's international airport. The park will have its own stop on the Shanghai Metro rail line, making it an easy stop for tourists.   

"Shanghai is one of the most exciting and dynamic cities in the world and we're delighted to be able to open a world-class tourism and entertainment destination befitting this incredible city and its people," said Bill Ernest, President and Managing Director of Asia for Walt Disney Parks and Resorts. "We are taking everything we've learned from our six decades of exceeding expectations--along with our signature innovation and classic storytelling to create this truly magical place."  

Fan Xiping, Chairman of the Shanghai Shendi Group, said in a release that over the past five years, "the joint venture partners have worked closely with one another to ensure the smooth progress of the project and applied innovative and best practices for building the resort," adding that the development is entering the "final sprint."  

The park was originally slated to open in December 2015, but was delayed when the partners invested an additional $800 million to add more attractions. Major construction has now been completed and now park developers are tasked with training nearly 2,000 "cast members" to run the park and entertain guests. There are six themed lands within the park: Adventure Isle, Gardens of Imagination, Mickey Avenue, Tomorrowland, Treasure Cove and Fantasyland, with the Enchanted Storybook Castle. Disneytown, an international shopping, dining and entertainment district, will sit adjacent to the park and include the Broadway-style performance theater. Nearby will be the 40-hectare Wishing Star Park, filled with gardens and walking paths.  

"The structures that we build in a theme park are extremely complex," Disney CEO Iger said in an interview with Bloomberg News. "They're not just buildings but they're shows and they're rides. And there aren't that many examples of the Chinese construction industry building things that are as a complex as what we're building."  

Disney is a familiar and well-loved brand in China. The entertainment company released a number of box office hits in Chinese movie theaters in 2015, including Avengers: Age of Ultron  which earned $225 million in ticket sales; Ant-Man , which made $103 million; and Cinderella , which earned $68 million. The company recently released its blockbuster Star Wars: The Force Awakens  across Chinese theaters, earning $53 million in its first weekend alone.  

Disney is hopeful that the new park will be a resounding success, despite fears of a Chinese economic slowdown and slower consumer spending. The company's Hong Kong Disneyland has been somewhat of a disappointment, with attendance lower than projected (though an estimated 20 percent of Chinese tourists include a stop at Hong Kong Disneyland). The park has been adding new attractions to boost ticket sales.   

The Hong Kong park didn't make its first profit until seven years into operations and only following several expansions to counter criticisms that the park was too small, lacked attractions and was overcrowded.  

Disney hopes to correct those missteps with Shanghai Disney, and Iger told investors in late 2015 that he is confident about the park's potential. Roughly 330 million people will live within a three-hour train or car ride to the attraction, and Shanghai is the Chinese mainland's wealthiest city with a solid tourism base. By 2018, the park should generate $165 million in earnings on revenue of $1.4 billion, according to projections.  

"We feel great about what we're building, and we still feel great about the market," Iger said. "We continue to be impressed with the buzz that we see whenever we go to China."  

Disney's China strategy 

Disney has been seeking a foothold in China for decades in an effort that goes far beyond theme parks. The company opened its first English-language center in Shanghai in 2008, and expanded to 44 English schools in 10 Chinese cities by 2012. The company uses its popular characters and its experience of making educational films and materials to make learning English enjoyable for Chinese children. The company now has 148 schools instructing 150,000 children a year with earnings of more than $100 million annually.  

The schools, like the new park, seek to combine Chinese culture with Disney's knack for storytelling and entertainment. The schools follow standards set by state education authorities and use material based on local fables and songs. A Mickey Mouse statue stands at the entrance of each center and a Mickey logo is carved into every chair. The curriculum, aimed at children aged from 2 to 10 years old, is taught by native English-speakers. Annual tuition is as much as $1,850.  

Speaking at a Fortune Global Forum in Chengdu, southwest China's Sichuan Province, Iger said there is a "misconception" that because technology and development has created access to new markets a "one-world culture" is gradually developing. 

"I think that's absolutely not the case," he said. "I think you can really trip a company up if they start believing that, because the pride that geographies or countries, or markets have for their own culture, and the desire to own and control it still is quite existent, whether it's for political reasons, economic reasons, or just nationalistic reasons."  

Disney, as an "experience brand" rather than a consumable products company, touches culture in a way that a typical luxury brand may not, he added.  

"You have to have a very deft hand, because on one hand the Disney brand and what it stands for is of interest to the culture and to the people in the culture," Iger said. "We're a brand that is viewed as good for me and good for my family. There are values to the Disney brand and what it stands for that have interested people all over the world. But, it's very, very important that while we bring Disney to a market we make sure that in that market it feels like, for instance, China's Disney. It can't just be the Disney that exists in carbon copy form somewhere else in the world."  

The Disney magic and China have to blend, Iger said. It's not just about bringing Mickey Mouse to China. Iger said while the new park won't be perfect on opening day, the Disney company will learn and adapt quickly.  

"It's about looking at China today and seeing what's popular and figuring out a way that we can have a commercial relationship with that product, that intellectual property, so that we can offer it to the people who visit," he said. 

The author is an op-ed contributor to Beijing Review

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