Experts: Disney will benefit the city in the long run

With reference to the news of Shanghai Disneyland, Han Jianhua, secretary-general of Shanghai Commercial Trade Association of Household Electric and Electronic Appliances regards it as a "popularity-boosting opportunity", since the theme park will inevitably stimulate and boost the city's tourism, retail, hotel and a series of other modern services. In terms of home appliances for instance, an increase of tourists in Shanghai will considerably raise retail activity.

Wen Yuqing, a director with Yohan Shanghai Department Store, notes that the retail business is closely related to levels of tourism and is also affected by the general economic environment. The arrival of Disneyland in Shanghai will raise the city's popularity in terms of its attraction as a tourist resort. More parents will choose to visit Shanghai with their children as Shanghai offers all sorts of advantages in terms of living conditions, language, and travelling cost. Though the theme park may not attract large numbers of foreign tourists, it still will have huge impact on the city's economy.

According to a securities analyst, Disneyland's positive impact on the city's economy is going to be felt in the long term. Based on Hong Kong's experience, Changjiang Securities thinks the theme park will be most advantageous to hotel and retail industries. Since the Shanghai project is larger than the one in Hong Kong, Shanghai's accommodation services will enjoy the benefits.

Tourism, hotels and airliners: focus more on domestic tourists

When Shanghai Disneyland eventually opens its doors, tourism agencies, airline companies and hotels will benefit directly and immediately from the large influx of visitors. Many business insiders believe the Shanghai facility will be more appealing to Chinese visitors, largely due to its geographical location between Tokyo and Hong Kong.

Xu Zurong, head of Jingjiang Inn, observed to Shanghai Securities News that it will certainly provide a boost to Shanghai's hotel industry. Given that the major customer groups to the Disneyland are young people and couples with children, and these groups are likely to choose budget hotels for accommodation, Mr. Xu is confident his hotel chain will benefit. He also revealed plans to build new hotels around the park's perimeter to further satisfy the potential market.

Furthermore, the Disney Park should also boost the civil aviation industry. After Hong Kong Disneyland opened to the public, Hong Kong-based airlines Cathay Pacific and Dragon Air both hastened to offer package tickets including the air fare and the theme park's admission fee. An aviation business analyst also reveals that Shenzhen airport registered a double digit percentage increase in passenger throughput in the first days after Hong Kong Disneyland opened, since many mainland tourists chose to fly to Shenzhen, and from there they entered Hong Kong.

Once again, considering its two established competitors in Tokyo and Hong Kong, Shanghai Disneyland still has to focus on the huge domestic market.

Nonetheless, the same analyst also forecasts that Shanghai airline companies may not benefit quite as much as expected, as inbound visitors are more likely to take trains and cars rather than planes considering the relative expense of plane tickets.