Monday, Jan. 31, 2005

Synergy

By Michael Schuman

What's your idea of a magic kingdom? If it's dancing girls, poker and expensive cigars, head to Macau. If it's dancers in animal costumes, roller coasters and fireworks, visit the real Magic Kingdom only a short ferry ride away on Lantau island. Due to open in September, Hong Kong Disneyland could solidify the Pearl River Delta as Asia's biggest tourist trap. The $1.8 billion park will boast traditional Disneyland favorites, including Space Mountain and Sleeping Beauty Castle. Disney is also building two hotels, one of which—the Hollywood—features a piano-shape swimming pool.

Hong Kong's Financial Secretary Henry Tang says the park will create thousands of new jobs, and generate $19 billion for Hong Kong over the next 40 years. Although gambling and Goofy may seem to have nothing in common, Macau and Disney could share some important synergies. Disney could help attract more families, an audience both Hong Kong and Macau are targeting. Don Robinson, group managing director of Hong Kong Disneyland, says only 5% of current mainland Chinese tourists visiting Hong Kong are under 15 years old and that the park might "bring Hong Kong the family market." Businessmen in Macau are trying to de-sleaze the city by introducing kid-friendly attractions such as the Fisherman's Wharf theme park. "I am quite sure Disney will be positive for Macau," says Albano Martins, financial director of infrastructure firm Nam Van Development. Call it the magic touch.