Shanghai Disney To Celebrate Fifth Birthday With Special Giveaways

 by Beth Keating

News

DisneyBizJournal.com

March 21, 2021

 

Disney World may be getting all the attention right now as it prepares for its big 50th Anniversary celebration, but Shanghai Disney is having a celebration of its own this year.  The Chinese park is turning 5, and will be celebrating the “Year of Magical Surprises!” 

Remember Disney’s big “Year of a Million Dreams” promotion (which technically ended up lasting more than a year, from October 2006 to December 2008)?  Think in similar terms for the Shanghai festivities.  Beginning April 8, guests to the parks can win everything from digital character autographs, to dining rewards, to special VIP access for shows, to exclusive experiences.

 
Mickey, Minnie, Duffy the Bear and their friends will have special birthday outfits to show off, and many rarely seen characters will put in appearances.  A giant birthday cake float will lead Mickey’s Storybook Express pre-parade, while the parade itself gets a birthday overlay. Mickey Avenue will even be dressed in sparkling decorations for the party, and new soundtracks will debut.

 

When they enter the park, visitors will be able to "Tap for a Magical Surprise" on a link on the Shanghai Disney app. They will then be entered into a digital “lucky draw,” and they might find themselves gifted with something special.

 

Joe Schott, President and General Manager of Shanghai Disney Resort, said there will be “surprises waiting around every corner!”

 

Additional fun is in store with the "Surprise Squad" of cast members who will randomly select Shanghai guests to attend one of four daily performances of the Disney Surprise! Show on Tomorrowland’s Pepsi E-stage. Opportunities to win special birthday goodies await at the show, where attendees can spin the "Disney Surprise Wheel" for even more prizes, including “a 37-inch StellaLou Plush, a dining experience at the Royal Banquet Hall, hotel stays, park tickets, Annual Passes and much more.” 

 

The grand prize at the Disney Surprise! Show, though, is that one lucky park guest will be selected as "Magical Star of the Day," and with three of their friends or family members, they will be presented with a “Golden Key” that will grant access to Mickey’s Magical Star Lounge in the park's exclusive Club 33 for VIP treatment.

 

Shanghai Disney will wrap up their daily celebrations by entertaining party-goers with “Illuminate! A Nighttime Celebration,” which will play on the Enchanted Storybook Castle, the world’s largest and tallest Disney castle. 

 

Shanghai will also offer more than 200 limited edition “5th Birthday” themed merchandise,  and new snacks and anniversary menu items will be featured, including beverages in surprise sippers and souvenir popcorn buckets.

Interested in attending the big birthday celebration?  More information can be found on the Shanghai Disneyland website.

 

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Beth Keating is a regular contributor to DisneyBizJournal.

 

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Celebrate the “Year of the Ox” at Shanghai Disney Resort

 by Beth Keating

News

DisneyBizJournal.com

January 19, 2021

 

From January 19 through February 26, Shanghai Disney Resort will be enjoying “A Spring Festival Spectacular” to welcome the Lunar New Year.  Special Chinese games, as well as the traditional sounds and tastes of the celebration, will bring park-goers the rich traditions and customs of a hometown Chinese Spring Festival. The resort will also be celebrating its Fifth Anniversary this year.

Shanghai Disney will be trimmed with festive holiday decorations and iconic Chinese symbols, and will play host to visits from Mickey Mouse and Duffy the Bear, dressed in special holiday attire.  “God of Fortune” Goofy will again be welcoming guests in traditional costume along Mickey Avenue. On February 12 (the first day of the Lunar New Year), Mickey and Minnie will make limited time appearances in outfits designed by famed Chinese designer Guo Pei.

 

This year’s celebration is marked by “The Year of the Ox,” and in honor of that occasion, Clarabelle Cow will be making her debut at Shanghai Disney Resort.   

 

According to Disney, a few new shows will also be unveiled during the Festival, including:

 

• “Our Families” - a unique show set to take place each night after the Nighttime Spectacular that will illuminate the castle with projections of Disney families – symbolizing hope and best wishes for guests in the year ahead.

 

• From February 8 through 14, the beautiful Shanghainese version of “Once Upon a Time” recorded by renowned Shanghainese actress, Pan Hong, will once again return to the Enchanted Storybook Castle, helping to immerse guests in local Shanghai culture.

 

• On Mickey Avenue, special shows will bring excitement and prosperity to the New Year as Mickey Mouse, Minnie Mouse, Clarabelle Cow and more will preside over the “Spring Festival Drum Ceremony”, and guests will have the opportunity to swing in celebration of the New Year with the high-flying “Mickey Avenue Shanghai Swing!”

 

• Guests can also take in the resounding gong beats and impressive acrobatic moves of classic Spring Festival celebrations with the Lion Blessing on February 12 and the Dragon Parade running from February 12 through 16.

 

There will be additional activities scattered throughout the park during the celebration, including shopping opportunities for brand new limited release collectibles at Disneytown’s Spring Festival Wishing Star Market. Also at the market, guests can join interactive games “and take part in traditional cultural experiences such as dough figurine, Chinese calligraphy, puppet show and shadow play” experiences. Paper cutting and dragon mask workshops will take place, and special snacks and traditional meals will be available throughout the Festival.

 

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Beth Keating is a regular contributor to DisneyBizJournal.

 

Please support the efforts of DisneyBizJournal.com to bring news, analysis and commentary on Disney to readers such as yourself. Make a contribution right here via PayPal. Thanks!

Disney and Its Brand Face Increasing Uncertainty in China

by Ray Keating

Analysis

DisneyBizJournal.com

June 3, 2020

In recent decades, seemingly countless U.S. businesses have done balancing acts when it comes to decisions about doing business in China. But few U.S. companies have gone in on China to the extent as has The Walt Disney Company. And the uncertainties regarding this choice are mounting.

American businesses have had to weigh considerable risks and uncertainties of dealing with the communist regime in Beijing that has a grim history in terms of gross human rights abuses, including state-committed murder on a vast scale (see the Tiananmen Square massacre, for example), other wide-ranging forms of oppression, lying, and deception, along with violations of property rights. 

The hope – shared by many policymakers and economists – has been that engaging with China as it partially opened parts of its economy to international markets would benefit the Chinese people. And as economic growth raises living standards, pressure would mount on the regime for increased political freedoms. 

That would require China to follow the path of political opening experienced in places like Taiwan and South Korea. But while many in the media fail to recognize the differences between authoritarian and totalitarian regimes, differences in fact do exist. Authoritarianism is about one person or party having political control, while totalitarianism is about one person or party having control over all aspects of life – private and public. Taiwan and South Korea were authoritarian, while China is totalitarian. The hope has been that China would react to pressure for greater political freedom as did Taiwan and South Korea, but it has been only a hope. Indeed, it has very much been an open question if totalitarian communists would react positively.

The latest signals point to the Chinese communists acting as the totalitarian oppressors they are, especially under President Ji Xinping. Beijing recently violated the “one country, two systems” agreement (achieved when the British handed Hong Kong back to China in 1997) by imposing “national security” laws on Hong Kong. The clear intent was to crush dissent, free speech, and gut Hong Kong’s self-governance, which was supposed to last until 2047. 

For good measure, China has stepped up its provocations directed at Taiwan. And then there’s China’s lying and deception regarding the coronavirus outbreak. (See my  recent Keating Files column on these points).

All of this obviously raises additional questions about doing business in China, including how other countries might change governmental policies directed at China.

Disney is uniquely exposed to these China uncertainties. After all, Disney isn’t just another Hollywood studio with an eye on potential box office numbers from China’s substantial middle-income earners. Disney entered into partnerships with the government on two theme parks.

In 1999, Disney entered into an agreement with the Hong Kong government to open, under joint ownership, Hong Kong Disneyland. At the time, the Michael Eisner-led Disney was seen as cutting an amazingly lucrative deal with Hong Kong. The park opened in 2005. Disney owns 47 percent of the park, and the Hong Kong government 53 percent (originally, it was 57 percent Hong Kong and 43 percent Disney). Disney handles all of the operations. But if things continue in the dire direction that they have been pointed in recently, Disney will be de facto in partnership with the communists in Beijing.

But that would not be new for Disney. After roughly a decade of negotiating, it was announced in November 2009 that Shanghai Disney was approved. Ground was broken in April 2011, and the Shanghai Disney Resort – brought to fruition under CEO Bob Iger – opened in June 2016. The resort is 43 percent owned by Disney, and 57 percent by the Chinese government. And the company operating the park is 70 percent owned by Disney and 30 percent by the Chinese government.

Being in a partnership with the Chinese communist regime is a unique situation to say the least, particularly for a company whose brand – which Disney normally is hyper-defensive about guarding – is overwhelmingly about family fun, wholesomeness and togetherness. That doesn’t exactly line up with the reputation of the Chinese communist government, with recent actions providing grim, stark reminders to people around the world.

As for Disney’s business, Shanghai Disney had 11.8 million guests in 2018, and Hong Kong Disneyland had a record 6.7 million visitors in 2018. Prior to the pandemic, Hong Kong attendance had suffered due to the pro-democracy protests, with The Wall Street Journal calling Hong Kong Disneyland a “ghost town.”

Again, more than most U.S. firms, Disney made a big bet on China continuing to move in positive directions in terms of expanding economic and political freedoms. That bet is in jeopardy more so than at any other point since the House of Mouse invested in the Hong Kong and Shanghai parks. It remains to be seen if the situation grows even more troubling or veers in a more positive direction – for the Chinese people and for Disney.

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See related...

“Disney’s China Woes”

“At a Turning Point with China?” by Ray Keating at KeatingFiles.com

“China Moves to Crush Dissent and Freedom in Hong Kong – Relevant Excerpts from ‘Deep Rough’ and ‘The Traitor’” by Ray Keating at KeatingFiles.com

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution (now available at a deep discount) and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.

News on Theme Park Reopening Plans – Universal Orlando’s Big Step

by Ray Keating

News

DisneyBizJournal.com

May 21, 2020

While the overall economy is not a light switch that can just be flipped back on, the switch on news about plans to reopen theme parks – or related to reopening at some point – has been flipped. The big news is about Universal Orlando moving to reopen on June 5.

After Disney Springs started its partial reopening on Wednesday, May 20, now news arrives that Universal Orlando received approval on May 21 from the Orange County Economic Recovery Task Force to reopen the theme park at reduced capacity on June 5, after having employees do a kind of dry run on June 1 and bringing in invited guests on June 3 and 4, according to The Hollywood Reporter and other news reports.

In terms of how things would operate, the Reporter noted:

“Masks and temperature checks will be required for both visitors and employees. If a guest does not have a mask, one will be provided for them, officials said. Interactive play areas have been closed. There will be no more valet parking. Mist areas will be closed. There will be no more post-show meet-and-greets. All menus will be paper single-use in restaurants. Cash will still be accepted, but the park is trying to minimize it. Employees will self-check at home and then be checked again once they arrive to work. Signage will be placed throughout the park to remind visitors of social distancing, with at least six feet of separation required for ride and food lines.”

Universal’s plan also must be approved by Florida Governor Ron DeSantis. CNN noted: “Gov. Ron DeSantis said Wednesday regarding theme park reopening proposals, ‘Obviously I want to get to yes, so I think if you work with your local [officials], you'll be in pretty good shape.’”

Universal Orlando’s CityWalk was partially re-opened on May 14.

Meanwhile, over at Disneyland’s website, the company provided an update on how things would look upon reopening (whenever that might be) Disney’s California parks. The key part of the statement was:

“Upon reopening, certain Disneyland Resort theme parks, hotels, restaurants and other locations may be limited in capacity and subject to restricted availability or even closure based on guidance from health experts and government officials. Furthermore, certain attractions, experiences, services and amenities will be modified, have limited availability or remain closed. Park admission and offerings are not guaranteed.”

So, Disney is keeping its powder dry for now on when its U.S. parks – for that matter, each of its parks other than Shanghai – will be reopening.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution (now available at a deep discount) and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.

Disney Earnings Decline, Halts Dividend, Experiences Disney+ Gains, and Announces Re-Opening for Shanghai Park

by Ray Keating

News/Analysis

DisneyBizJournal.com

May 5, 2020

In its second quarter 2020 earnings statement and related call today, The Walt Disney Company provided some interesting news, including a decline in earnings, halting its dividend during the first half of the year, subscriber gains at Disney+ and the announcement of Shanghai Disney re-opening on May 11.

Let’s dig into some of these items.

First, the company’s diluted earnings per share (EPS), excluding certain items affecting comparability, dropped by 63 percent in the second quarter compared to the same quarter last year ($0.60 versus $1.61). That also was a miss compared to market expectations – again $0.60 compared to expectations for $0.89.

Second, Disney announced that it was suspending its dividend for the first half of the year, and would make assessments on the future of the dividend in the next six months. In addition, Disney is reducing its capital expenditures to deal with the current crisis.

Third, Disney+ continues to gain subscribers, with the number of total subscribers climbing to 54.5 million as of May 4. That’s up from the 50 million-plus announced in early April.

Fourth, it was announced that Shanghai Disneyland would re-open on May 11. That will feature advance reservations (i.e., dated tickets), guest capacity and density controls, and meeting assorted health and safety guidelines, including masks being worn by both guests and employees. Specifically, the Shanghai park’s daily attendance would be limited, starting out, to 30 percent of the park’s typical daily attendance, according to government orders. That would mean 24,000 guests, given that daily attendance usually runs at 80,000. However, Disney CEO Bob Chapek noted that the park will open below what is allowed by the government to make sure all is running well, and attendance would build up over a few weeks to the government-allowed level.

Fifth, during the second quarter, the COVID-19 crisis cost the company $1.4 billion in operating income, with $1 billion of that attributed to the parks (i.e., “Parks, Experiences and Products”). In terms of further breaking down those numbers, this reflects the domestic parks being closed for two weeks out of the quarter (which ended at the close of March), yet the domestic parks accounted for roughly half of that $1 billion in lost income, with the other parks, the cruise line, and so on accounting for the other half. That breakdown obviously points to larger losses in income during the current quarter given that the domestic parks will be closed for much or all of the quarter.

Sixth, looking ahead at re-opening parks, Chapek noted that parks will only be opened once it is determined that they will make a positive net contribution to the company’s income. No guidance was offered on the opening of any of the parks other than Shanghai.

Seventh, it was confirmed that the Disney cruise line will be the last line of business to return. And while it was noted that the cruise line’s contribution to overall operating income is relatively small, its return on investment is high, and it ranks extremely high in terms of guest satisfaction and guests returning.

In the end, both Chapek and Disney Executive Chairman Bob Iger emphasized the company’s resiliency and ability to come back strong after the crisis. Iger noted that the company will get through this, “but it will take some time.” Disney’s stock price was down in after-hours trading.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution (now available at a deep discount) and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.

Don’t Expect Disney Parks To Open Anytime Soon

by Ray Keating

Analysis/Commentary

DisneyBizJournal.com

March 18, 2020

The Walt Disney Company has shut down Walt Disney World and Disneyland, as well as Disneyland Paris, through the end of this month in response to the coronavirus. But does anyone believe that these parks – or for that matter, Tokyo Disney, Hong Kong Disneyland and Shanghai Disneyland – actually will open on April 1? If so, they shouldn’t. These closures promise to run longer than many originally thought.

Keep in mind that the Shanghai and Hong Kong parks have been closed since the end of January, and Tokyo Disney since the end of February. The Tokyo parks – Tokyo Disneyland and Tokyo DisneySea – will be closed at least through early April, according to the company.

For the U.S. parks, the Tokyo target of mid-April would seem to be a wildly best-case scenario. Indeed, it is highly doubtful. 

Consider, for example, that Major League Baseball had originally pushed the start of its season back from late March to mid-April, and is now saying that it will go beyond that date while not offering any target for Opening Day.

I’m not sure why we should expect much different from Disney, especially given that the U.S. Centers for Disease Control and Prevention on March 15 recommended canceling in-person events of 50 or more people for the coming eight weeks. That would take us into mid-May.

This week, Disney also suspended its Disney College Program, Disney Culinary Program, Disney Cultural Exchange Program, and Disney Academic Exchange Program. The company is sending participants/cast members home, as is the case with international cast members in guest relations as well. This also speaks to a shutdown going beyond the end of this month.

The impact of an extended closure will hit Disney hard. Consider what The Wall Street Journal reported on March 12: “Closing the U.S. resorts has the potential to be costly. Domestic parks accounted for about $17.4 billion in revenue last year—and 30% of the company’s total operating profit.” Using those numbers and doing a back-of-the-envelope tally, each month that the U.S. parks are closed would cost The Walt Disney Company $1.5 billion in revenue.

Of course, one has to also add in lost revenues from the Paris, Tokyo, Shanghai and Hong Kong parks, the Disney Cruise Line, lost dollars at the movie box office, and ESPN being hit by sporting events coming to a halt, including the NBA.

For good measure, the U.S. economy, as I wrote in a recent column, likely already is in recession, and that promises to run at least through the second and third quarters of this year – adding to Disney’s woes.

In its latest update on Walt Disney World Resort operations, the company noted: “We will continue to make adjustments to our operations as appropriate and look forward to welcoming Guests back as soon as it is advisable.” When it will be advisable, no one knows. 

Looking at the CDC recommendations, how this has played out elsewhere and the magnitude of the response so far, I’d be shocked if Walt Disney World or Disneyland re-opened before mid-May or even June. Let’s hope and pray, though, that the U.S. response presents unexpected benefits, and we bounce back quickly.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Disney’s China Woes

by Ray Keating

News/Analysis

DisneyBizJournal.com

January 27, 2020

The Walt Disney Company announced that it was temporarily closing their Shanghai and Hong Kong resorts due to the risks tied to the coronavirus.

Regarding Shanghai, Disney, in part, stated: “Shanghai Disney Resort will assist in the refund for guests who have purchased tickets for admission to Shanghai Disneyland, have booked a resort hotel, or have booked tickets for Beauty and the Beast Mandarin Production through the original ticket purchase channel.”

And as for Hong Kong, the company stated: “As a precautionary measure in line with prevention efforts taking place across Hong Kong, we are temporarily closing Hong Kong Disneyland Park starting from January 26, 2020 out of consideration for the health and safety of our Guests and Cast Members. The Hong Kong Disneyland Resort hotels will remain open... The Standard Park Ticket is valid for six months from the purchase date. If needed, Hong Kong Disneyland Resort will assist in the refund for Guests who have purchased tickets for admission to Hong Kong Disneyland park or have booked a resort hotel.”

As of 1:00 PM EST on January 27, CNN reported that the death toll from the virus had reached 82 on mainland China, with 2,700 cases were confirmed. It was noted, “Nearly 60 million people have been affected by partial or full lockdowns in Chinese cities as the country's government steps up its response.” In addition, there were more than 50 cases confirmed outside of China, including at least five in the U.S.

This first and foremost is a human tragedy, and the primary emphasis should be in getting this under control, and aiding and praying for those suffering and at risk.

As for the business side of this, just before 1:00 PM EST on January 27, Disney’s stock price was down by better than 3 percent.

Disney, which owns 47 percent of Hong Kong Disneyland and 43 percent of the Shanghai Disney Resort, has faced a series of challenges related to China recently, namely, the Hong Kong protests, a China economic slowdown, the U.S. and China trade war, and now the coronavirus (along with controversies and accusations about his this has been handled). And this virus breakout comes at a time when Disney was looking to capitalize on the Lunar New Year holiday.

Now, while serious (and gravely so with the virus), these measures should be short term in nature. Another longer run potential issue for Disney is the increased, Maoist-style crackdowns on assorted aspects of life being orchestrated by President Xi Jinping. Xi has centralized power like no other Chinese leader since, arguably, Chairman Mao. No one knows how the Ji effort might play out, but it certainly raises questions, risks and uncertainties for the Chinese people, the country’s neighbors (including Taiwan), and for those doing business in China, like Disney.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of The Disney Planner 2020: The TO DO List Solution and the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.