Walt Disney Co's resort in Shanghai has attracted a lot of public attention before its grand opening on June 16. Along with some negative reports on issues such as long lines and pricey food, some experts and visitors still believe Disney has a bright future in China over the long term. Facing competition from both domestic and overseas rivals, Disney needs to figure out ways to succeed on the Chinese mainland market, experts said. But the competition is good for the sound development of the theme park market, which ultimately benefits consumers.
With the grand opening of the $5.5 billion Shanghai Disney Resort about two week away, Walt Disney Co is likely less than thrilled that the biggest Disney attraction in the news is a public spat with Dalian Wanda Group, China's leading property developer.
Disney, whose theme park in Shanghai will open on June 16, said it is planning to take action against Wanda to protect its intellectual property rights, according to a Bloomberg report on Monday.
The U.S.-based media company claimed that performers were dressing up as Disney characters at Wanda's new theme park in Nanchang, capital of East China's Jiangxi Province.
Nanchang is about 800 kilometers away from Shanghai.
Wanda, which opened its theme park on Monday, denied the accusation, according to a statement on Wanda's website on Tuesday.
A few days earlier, Wang Jianlin, chairman of Dalian Wanda, said on a China Central Television program that his company will make Disney unprofitable for the next 10 to 20 years.
Facing difficulties
Wang's comment might refer to the fact that it's a bit hard for a company to get quick returns on a theme park investment because of the large up-front cost, said Zhu Zhengyu, a tourism analyst with Beijing-based market consultancy Analysys International.
In fact, Disney faces competition from several other theme parks in China besides Wanda's, such as the Dalian-based Haichang Ocean Park and Shenzhen-based Fantawild theme parks.
In 2014, U.S.-based Universal Parks & Resorts announced it would build a Universal Studios theme park in Beijing. Scheduled to open in 2019, it will be the first Universal Studios theme park in China.
Shanghai Haichang Polar Ocean Park, a roughly 30 minute drive from the Shanghai Disney Resort, is scheduled to open next year. It is expected to draw 6 million visitors a year, according to a report by qq.com in March.
"Indeed, Disney's presence on the mainland has intensified the theme park competition on the mainland," Zhu told the Global Times on Sunday.
"But in the long term, the competition is good for the market and consumers because the players have to enhance their projects and services to attract more consumers," Zhu noted.
During the Shanghai Disney Resort's first day of trial operation, some people complained about the huge crowds and high food prices, according to media reports.
Zhu said Disney needs to figure out ways to deal with these problems to accommodate the mainland market.
