Across The Border | How Mickey’s magic wand will trump China’s slowdown

Shanghai Disneyland will lead China’s tourism industry growth despite the country’s current economic woes, say analysts.

The theme park, set to open its doors in June, is forecast to attract 11.5 million visitors in the first year of its operation and an annual traffic flow of up to 34 million when it becomes fully operational, according to an analyst report from investment bank China International Capital Corporation.

But it also opens at a time of great uncertainties for the Chinese economy struggling with a deepening slowdown. Premier Li Keqiang announced an economic growth target at a lower range of 6.5 to 7 per cent for 2016, compared to “about 7 per cent” last year, while addressing the National People’s Congress on Saturday.

“China will face tougher problems and challenges in its development this year, so we must be fully prepared to fight a difficult battle,” said Li.

But such economic challenges are unlikely to hold Disney back from waving its magic over China’s tourism industry. Analysts cite the positive track record of its sister resort in Hong Kong. Having opened more than a decade ago, Hong Kong Disneyland saw a substantial 9-12 per cent increase of mainland tourists to Hong Kong in 2006 and 2007, said David Lung Wing-hung, a managing partner in the consumer products and retail sector at Deloitte China.

“Shanghai Disneyland is three times bigger than Hong Kong, so we expect the impact will be even bigger,” said Lung.