HK Disneyland: A Thematic Black Hole?
January 20, 2010
Why is Hong Kong Disney failing?
Wall Street Journal: Revenue fell 1% to HK$2.54 billion from HK$2.57 billion as the outbreak of swine flu affected attendance and hotel occupancy, the government said in a paper posted Tuesday on the Web site of the Legislative Council. The legislature will discuss the paper Monday.
The park's hotel-occupancy rate fell to 70% during the period, from 78% a year earlier, while attendance rose 2% to 4.6 million from 4.5 million, according to the paper. The park's fiscal year ends on the Saturday closest to Sep. 30.
Hong Kong Disneyland has been plagued by weak attendance and disappointing financial returns since it opened in September 2005. Critics have pointed to its size--it is the smallest of Disney's theme parks--and a lack of attractions appealing to its target market of mainland Chinese tourists.
There are many reasons why Hong Kong Disney is failing to lure to Chinese consumer into the park. The most common reason is that they are not connecting with Chinese consumers on the emotional level that they did in the US. Perhaps, but we believe the answer is far simpler.
The birth chart for Hong Kong below indicates that every year, thanks to falling birth rates, there will be fewer and fewer Hong Kong children available to walk through its doors. Disney did not do the demographic math before opening the park in 2005.
