Disney's New $5.5 Billion Resort In Shanghai Opens On Thursday, But Can It Survive?
Walt Disney Co (NYSE: DIS) spent more than $5 billion to build a resort park in Shanghai, China, which is scheduled to open to the public on Thursday. According to Bloomberg, Disney's ambitions in China is a "prize worth fighting for" (cue "Mulan" tune), as the country's annual tourism revenue is expected to double by 2020 from its current annual level of $600 billion.
Disney hopes to leverage its globally recognized brand in the lucrative Chinese market, but the country's second-richest person is looking to make Disney's park irrelevant and replace Disney as the world's largest tourism company.
Wang Jianlin is China's second-richest person and runs the Wanda Group, the country's largest private property developer. His strategy to beat Disney's new park is simple as he plans on developing 15 to 20 of his own parks.
Jianlin even described his business as being a "pack of wolves," which is vastly superior to Disney's "one tiger."
Wanda Group is already taking the fight to Disney and recently opened Wanda City in the southeastern province of Jiangxi. Admission to the park is just 198 yuan (approximately $30) on most days and 248 yuan on weekends and holidays. On the other hand, Disney's price of admission is 370 yuan for weekdays with a peak rate of 499 yuan.
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