Does China – or anyone - need another Disneyland?

By TANG Jun

In the past month, there have been rumors about new Disneylands in at least four different cities in China: Tianjin, Qingdao, Wuhan and Chengdu. All were denied, and all were false.

Some of these rumors were started by ordinary people, others by local governments. Regardless of their authenticity, they show just how desperate some places are to have their own tacky theme park.

Long-nosed local governments

Shanghai Disneyland has made other local governments envious in a way that the city’s financial districts certainly have not. On the other hand, Hong Kong Disneyland lost money for eight years. Does China really need a third Disneyland?

In mid-May, news appeared that Chengdu was planning to build a Disneyland in Longquanyi district. The rumor came with its own map.

Longquanyi government knew nothing about the project, stating that online platforms had fabricated images and used benchmark land price results as the base.

Two days later, it was Tianjin's turn. On the afternoon of May 17, a spokesperson declared “fake news.” A month previously, Disney director WANG Yan spoke at an event in Tianjin and that seems to be the entire basis for the story.

On June 1, Wuhan denied having any Disney plans, saying the local business bureau had had preliminary discussions with Disney, something Disney denied, so there is at least some self-deception going on.

Then a Qingdao official said the government had been in talks with Disney, but nothing materialized.

There are good reasons behind the rumors. At least, Wuhan and Qingdao claim that they have been in contact with Disney, although there have been no developments.

Any old theme will do

China has 585 theme parks, but most of them are not much like Disneyland except for some students in giant fiberglass heads and disturbingly long queues. Only about 13 percent of tourists who visit Shanghai Disney are locals. In comparison, more than 70 percent of visitors to Happy Valley in Tianjin that year were locals.

Theme parks like Disney can stimulate development in surrounding areas, provide employment, improve the quality of life for local residents, and shine up the city's image. Tourists are good for retail, accommodation and transportation.

The opening of Hong Kong Disneyland prompted the renovation of Hong Kong Ocean Park, while Shanghai Disneyland spurred the development of the Pudong Chuansha area nearby.

Not the happiest place on earth

Hong Kong Disneyland opened in 2005 and is the smallest Disneyland in the world. Last year, 3.4 million people visited the theme park, but it still lost HK$2.1 billion (US$270 million).

The Shanghai resort opened in 2016. In its first five years, some 16.6 visitors came. From June 23, the ticket price will rise from 435 yuan to 475 yuan.

Theme parks are capital-intensive projects with long investment recovery periods and high uncontrollable risks.

Hong Kong Disneyland has been losing money for eight years, and although the data for Shanghai Disneyland has not been publicly disclosed, higher ticket prices probably mean it is also facing financial pressure.