The first-ever Disneyland in China appears to be doing well amid the country’s economic slowdown as nearly a million Chinese visit surrounding public areas way ahead of the park’s official opening on June 16.
Bloomberg sees a possible triple in tourism industry profit thanks to Mickey Mouse and Co. after the Chinese government projected a 42-percent jump of investment in 2015.
According to the report, Chinese President Xi Jinping approved of the entry of the internationally popular theme park, emphasizing the importance of tourism to the country, especially during the economic slowdown.
Before Opening Shanghai Disneyland
So much positive reaction welcomed Walt Disney Co.'s theme park to the mainland, something that is proven by a "B+" rating given by The Street.
"We rate DISNEY (WALT) CO as a Buy with a ratings score of B+," the report dated Jan. 13 stated. "This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover."
The outlet also quoted Disney's CEO Robert A. Iger's description of the plan, which will merge the Chinese culture with the traditional Disney magic.
"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," he said. "We're looking forward to showing it to the world and sharing it with the people of China for generations to come."
The South China Morning Post said that the trial run held six weeks prior to the official opening of the theme park was "hit by lengthy queues," another proof of the positive feedback to the tourism project.
Visitor Projection
In the Bloomberg report, Shanghai-based China Market Research director Shaun Rein forecasts a continued consumer patronage for Disneyland "as long as it's big enough and good enough."
"The Chinese consumer is spending more and more," he said. "Every person with a kid or grandkid in China is going to go to Shanghai Disney as long as it's big enough and good enough."
However, he also said that Walt Disney Co. may have underestimated the demand considering that there are 330 million people living just three hours from the park's site.
So far, China and Disney have already spent a hefty amount for travel commodities.
Travelers by air increased to as much as 45 percent in 2015 compared to four years earlier, leading to Boeing's prediction of China's demand for more planes that costs as much as $1 trillion.
In the land, Premier Li Keqiang sees the rail spending to be a way of killing "several birds with one stone" by cushioning the economy in the short-term and enhancing long-term efficiency.