Disneyland in Hong Kong- Good or Bad? The purpose of this essay is to discourse the advantages and disadvantages in holding Disneyland coming into Hong Kong. Disneyland is a celebrated subject portion. with mercantile establishments all around the universe. including Japan. America and France. And now. Disney decided that the following subject portion it is traveling to turn up itself is Hong Kong- is how good 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 renewal will be used if excess land is needed for Disney to spread out in the hereafter.
Environmentalists and Economists likewise have been reasoning for and against the instance of Disney. each suggesting different thoughts and points in whether Disney will profit Hong Kong. After 9 months of elaborate dialogues. which reflects the sum of idea put into Disney. the Chinese authorities. on 2nd of November 1999. announced that the concluding decision is that Disneyland will be coming to Hong Kong. Both sides agreed that the authorities held 57 % of the portions of the company while the staying 43 % were left in the custodies of the Disney Corporation.
To further analyse the advantages and disadvantages of Disneyland in Hong Kong. this essay will be separated into three parts: ? Social Benefits to Hong Kong? Social Costs to Hong Kong? Concluding decision We do non include the private costs and private benefits as we are of course non interested in it- the chief focal point of this essay is the benefits and costs for Hong Kong. non Disney. Thus Disney? s concerns will differ from ours.
Method Primary and Secondary informations will be collected to to the full analyse the pros and cons for Disneyland. Primary informations will include questionnaires. interviews on people? s sentiments with the coming of Disneyland. These will give the public sentiment about Disney. Secondary research will include things such as web pages. newspaper film editings. pictures of of import spokesman. etc. which will supply the beginning of grounds. It is with these two informations combined that there can be a concluding decision on the coming of Disney.
The Social Benefit of Disney- How will Hong Kong. as an economic system. addition from Disney? Predictions have been made on what the exact value Disney will convey to Hong Kong. It is estimated that in the clip of 40 old ages after its completion. the first subject park will hold the possible to supply Hong Kong with a net economic benefit ( in footings of extra value added or income over cost ) of up to $ 148 Billion. These benefits will come under two classs: ? Private benefits ( benefits to persons. houses. or administrations ) ? External benefits ( benefits to the general populace ) However. this expected value of $ 148 Billion Hong Kong dollars is based upon many premises including that: ? Disney will be completed in 2005? The subject portion is able to bring forth $ 5. 2 million Hong Kong in its first twelvemonth of gap.
A sum of $ 10 million within 15 old ages.
Of class. these premises can travel wrong- a hold in the completion. or the sudden unpopularity of Disney. will greatly consequence Hong Kong. However. these disadvantages can besides be neglected by the possibility that Disney can bring forth more than the predicted sum $ 148 Billion Hong Kong. The Hong Kong authorities is passing a sum of $ 22. 45 billion to enable Hong Kong Disneyland to get down. The authorities seting in $ 22. 45 billion. and with a return of $ 148 Billion. is certainly a good trade ( for the Hong Kong economic system ) so! External Benefits The major external benefit that Disneyland can convey to Hong Kong is the increased touristry that Hong Kong will see after the initial gap of Disneyland. It is predicted that in the first twelvemonth entirely. a sum of 3. 4 million tourers will be coming to Hong Kong. and 1. 4 million of them will be coming for Disney. It is besides predicted that in the class of 15 old ages. a sum of 7. 3 million tourers will already hold seen the new Disneyland in Hong Kong. Most of these tourers will come from mainland China. every bit good as other states. In a recent study? s it showed that 93 % of respondents in the mainland would see Disneyland. 82 % of Taiwanese. 87 % of Singapore? s and 50 % Australians.
From these expected figures. it can be safe to state that Disneyland will pull a immense sum of visitants to see this new world-classed Disneyland in Hong Kong.
Another external benefit that this new theme portion will convey to Hong Kong is fame. Disneyland will heighten Hong Kong? s attraction as an international touristry finish. every bit good as attract tourers that do non usually come to see theme Parkss. For illustration. some tourers might come to Hong Kong because of it? s good known shopping monetary values. but with Disneyland in Hong Kong. it gives them one more ground to come to Hong Kong. Ocean Park besides announced that Disneyland will be a compliment to Ocean Park- tourers that come to see Disneyland would non desire to lose out on Ocean Park. every bit good.
Money earned by touristry counts towards the Trade Balance. in the signifier of unseeable exports. This unseeable exports will account to a high per centum in the Hong Kong? s Trade Balance. as Hong Kong experiences an addition it? s trade excess.
Other than Disney. the economic system will turn due to the increased figure of tourers. The local economic system that thrive off Disney will surely grow- like little nutrient bases. Cafes. edifice companies etc. will all see a higher figure of clients. Other houses. such as Sogo. and other shopping related mercantile establishments will besides see the increased figure of clients as these people wish to buy keepsakes. In a recent anticipation. an estimated sum of net tourer disbursement will add up to $ 5. 5-8. 3 billion in the first twelvemonth. to a sum of $ 8. 7-16. 8 within two decennaries. This excess flow of unseeable exports will do economic growing in Hong Kong. which in bend. provides better life conditions for Hong Kong citizens.
Hong Kong? s unseeable imports will besides diminish. due to the coming of Disney. Tourists in Hong Kong will happen that they do non necessitate to go to Japan. France. or America to see Disneyland- they have one right on their doorsill. And because of the fact that the money they spend on Disney will be passing within the state. no money will be loss to other states. therefore no leakages out of the round flow of income.
The round flow of income gives us an image of how the money transportations between companies and consumers. The companies are represented by the? houses? which take in money from the goods that they sell. and the consumers are represented by the? families? who give money in return for the goods and services. However. during the flow of money between families and houses. there can be injections and escapes. which either addition or diminish the sum of money in the flow. Examples of injections are authorities disbursement. exports. investments- these all serve to increase the flow of income. On the other manus. revenue enhancements. nest eggs and imports all try to cut down the flow of income. With the coming of Disney. we should see a important encouragement in the round flow of income within Hong Kong.
Now. to associate facts into the theoretical account. A study from the authorities shows that constructing the subject park and the resort will be up to $ 14. 1 billion. some of this is from the authorities. and some of this as investings by enterprisers. From the diagram above. we can see that. authorities and investings both serve to increase the round flow of income. However. once the subject park is built. as the study informs. that? Attendance of over 5 million is expected? and Extra disbursement by tourers should amount to some $ 8. 3 billion in the first twelvemonth. lifting to $ 16. 8 billion? . This involves the round flow by increasing the flow- the increased figure of tourers will ensue more money spent in Hong Kong. which is an injection as touristry is an unseeable export.
The multiplier consequence is the consequence of a higher demand or lower demand of a merchandise. Because Disney will do people to come to Hong Kong more. therefore demanding the amusement that will convey. more and more companies will be supplying services and goods to fulfill the consumer. For illustration. if people wanted more autos. so the supply of autos will increase. therefore more people will be hired to do autos. However. more people would needed to be hired to do wheels. because more autos need more wheels. And more people would necessitate air current screens. auto doors. etc. and all the constituents for the autos. So in fact. what started as a little demand of addition for autos. ended up a larger lessening in unemployment. This effects Disney every bit good.
Another advantage that Hong Kong will derive from Disney is the added employment that Disney will convey. Disney is expected to supply 18400 occupations on gap and up to 35. 800 new occupations over 20 old ages. This will surely Hong Kong to maintain the unemployment down.
In add-on to the helpful economic system encouragement that Disney will do. it will besides increase the value of the Hong Kong dollar. Because tourers will desire to pass money in Hong Kong. more dollars will be demanded. This will do the demand curve to force upwards. and because the supply stays the same. the monetary value of the dollar will increase.
Due to the more expensive dollar. imports will be comparatively inexpensive.
Social costs: How is Disney traveling to impact Hong Kong in a negative manner? Disney seems to be the perfect park for Hong Kong- good for recreational and amusement for those bored with Ocean Park. and good for educational such as pupils for work experience every bit good as a encouragement for the Hong Kong economic system. Everything seems perfect. except that Disney comes with a monetary value tag- and one that is non inexpensive.
The initial starting cost for Disney is $ 27. 7 billion. The dislocation of this unbelievable cost: ? Infrastructure- $ 2. 7 billion? Transport links- $ 2. 2 billion? Theme park- $ 6. 6b? Support facilities- $ 7. 5? Land- $ 8. 7 billion The governement. out of the $ 27. 7 billion. wages an unbelievable sum of 22. 45 billion.
It is besides said that the authorities will acquire back $ 4 billion in portions for the Phase 1 land costs. This makes the monetary value ticket of Disney well cheaper. Another extra point is that the authorities will be passing this money in stabilising the country to fix it as a site for touristry and diversion development. even if no programs for Disney were to be built. Obviously. this is the economical cost of holding Disney in Hong Kong. The individual fact is that the authorities is paying much more than Disney. about 10 times more. means that it is a heavy cost for Hong Kong.
The edifice of Disney includes many jobs. non merely for the environment. but besides for the economic system. The societal costs will besides be split up in 3 subdivisions to place the jobs and seek to happen a solution to it. These three subdivisions include the edifice of Disney. pollution. and competition.
Land Disney Phase 1 will occpy 126 hectares at Penny? s bay. There is besides a program to spread out another 180 hectares at a farther day of the month. Everything together. this would include 306 hectares of habitat loss to Disney. Some of these hectares of land are claimed from the sea. which is besides lay waste toing to the environment. The processs and machinery required to claim land from the sea will do noise and soil pollution. And of class. with the new subject park in the topographic point of natural home ground. the position of the land is spoilt.
Some rare and endangered species that thrives off the environment near the location of Disneyland will happen that they are threatened. These such species include the Chinese White Dolphins. Romers tree toad and Pitchers Pine.
Pollution With the coming of Disney. many different types of pollution will consequence Hong Kong. These include- Noise pollution. dust pollution. sea pollution. air pollution.
Noise pollution derives from the heavy usage of traffic- to travel natural stuffs needed to construct the Theme park. In add-on. after the completion of the Theme Park. more autos will be going early in the forenoon to Disney. and go forthing tardily at dark. This could consequence the surrounding small towns and towns which could besides take to emphasize.
Another signifier of pollution is dust pollution. This is besides chiefly caused from the large lorries taking natural stuffs to the subject park. and picking up dusts and other unnecessary things off from the building site. Large lorries can pick up dust whilst going to and from the building site. therefore doing dust pollution. This signifier of pollution is regulated by the building company. but who knows what accidents might come from it? Sea pollution is a type of pollution similar to dust. This type of pollution is chiefly from constructing up Disney- Disney requires many claimed hectares of land. By repossessing land from the sea. the home ground of many celebrated Marine animate beings will be lost. And it will be difficult to retrieve. every bit good.
Air pollution has its similarities with dust pollution. but is non merely from the building of Disney- pollution from the autos that would be traveling to and from Disney one time is built. Because of this pollution. it can do many unwellnesss such as malignant neoplastic disease and respiratory diseases.
The chief point is that these outwardnesss involve costs- costs for supervising the sum of air pollution there is. costs for supervising the sum of dusts. And what? s more. is that this will go on to travel on after Disney is built- and so the authorities will necessitate to be seting more money in the environment. other than other classs such as societal security. etc. Some of the harm caused by constructing Disney can non be repaired. or bought with money.
Competition Competition itself can be split into two subdivisions. one including the celebrated Ocean Park at Hong Kong. and the Nipponese competition.
Ocean Park is another subject park dedicated to supplying Hong Kong with amusement and instruction by demoing the assorted rare and endangered marine life in the park. It has attracted many visitants and is good known in Hong Kong. With the coming of Disney. many people are disquieted that Disney will take the consumers off from Ocean Park and into Disney. However. the board of managers from Ocean Park announced that Disney will non be replacement for Ocean Park. but in existent fact. a compliment. They announced that people wishing to travel to Hong Kong to see Disney will non desire to lose out Ocean Park. It is really improbable that tourers will desire to travel to Hong Kong merely to see Ocean Park. but really likely to come to Hong Kong to see Disney. and afterwards go see Ocean Park.
However. who can be certain of the tourers? concluding determination? This graph shows the effects of a replacement on the merchandise. which many people anticipate would go on to Ocean Park.
However. as Ocean Park said. it would really be a compliment.
Japan? s universe category Disney land can besides consequence the competition in Hong Kong. With another Disney land within Asia. many of the tourers that are closer to Japan. but non to Hong Kong. may happen themselves in Japan? s universe category Disney alternatively. There is non much point in going farther to travel to Disney Land. and Japan is besides good known for touristry.
Since 1997. Hong Kong was under British control. Because of this. British civilizations. life styles. and humanistic disciplines have effected the Chinese citizens. It can besides be suggested. that with the coming of Disney. more and more people will follow American? s manner of life manner. therefore doing antediluvian imposts and traditions to? disintegrate? . These disintegrating civilizations are of import. as it is besides a societal cost that we must pay. and is portion of the monetary value ticket that comes with Disney. There was a proposal by the Chinese authorities to alter the Disney land in Hong Kong to be more? Chinese? but Disney does non wish to make so.
Although Disney will supply much more occupations once it is built and during the devising. most of these occupations are unwanted 1s. These occupations are 1s such as lavatory cleansing agent. store keepers. servers. and these occupations are normally low paid with non many fringe benefits. The occupations that offers the most income and fringe benefits will be the managerial 1s. and Disney is taking people from American to come work for Disney in Hong Kong. And so unemployment non such a good benefit for Hong Kong.
There are besides great chance costs for the Disney undertaking. An chance cost is besides counted as a societal cost. as what is given up in order for Disney to come. The chief chance cost is the money involved- the authorities is passing $ 22. 85 billion in Disney. The authorities could hold spent the same sum on societal security. wellness attention. instruction? the list goes on. There was besides every bit program to utilize Penny? s bay as a container storage for imports. Another suited site must be found now. since Disney is taking its topographic point.
Public Opinion I have taken studies on some of my schoolmates and did an interview with my pa. From the interviews. I have come to a decision. that more or less. people think Disney as half good. half bad. There are some people who wholly love Disney. and some that strongly disagree with them. There is no certain reply.
Concluding Conclusion- Is Disney state of affairs itself in Hong Kong a good thought? There has been considerable argument of all time since Disney decided to turn up itself here. The economic system encouragement from Disney will non come unwelcome. whilst the disadvantages of increased air pollution and more land renewal will be sneered at by conservationists. I myself think that Disney will non be helpful. merely by looking at the figures. How can the Hong Kong authorities wage 10 times the sum compared to Disney to acquire Disney working? And there are many premises. such as the sum of tourers. the sum of money generated. and if these premises turn out to be incorrect. Hong Kong may be put on the lining excessively much money. It seems like that Disney is seeking to take advantage of Hong Kong more than seeking to assist Hong Kong.