A fairy tale impact
Updated: 2016-01-29 07:51
By Wu Yiyao in Shanghai(China Daily Europe)
Real estate professionals also believe that the opening of the resort will help boost retail consumption across the entire city. The Disney resort is expected to receive more than 10 million visitors in the first year, and the brand would as a result generate more than 45 billion yuan across all its businesses in the city, according to a report by commercial property services company RET.
When 70 million people visited the 2010 Shanghai Expo, the combined consumption exceeded 48 billion yuan, according to data from Shanghai's statistics bureau. The expenditure on dining alone was more than 2 billion yuan. Market insiders said that Shanghai Disney Resort's impact on the retail market may be even more obvious because the resort is a permanent facility that can attract visitors to stay in the city for longer periods.
Lu Wenxi, manager of Centaline Property Agency, estimates that for every 1 yuan spent on admission tickets to the Disney resort, another 8 yuan will be spent on dining, hotels and franchised products.
"Just consider the more than 10,000 employees who work in the resort and their day-to-day consumption in the neighborhood. The combined size is huge, and it will not only benefit the resort, but also the city," says Lu.
Siu Wing Chu, head of retail at Savills China, says key retail hubs in Shanghai, including Yuyuan Garden, the Bund, Huaihai Road and Nanjing Road, have all made adjustments to their branding to capitalize on the impending Disney craze.
"We have seen several franchised Disney product stores scattered around Shanghai, and we believe that visitors to the Shanghai Disney Resort will also visit sightseeing locations such as the Bund, Nanjing Road and Yuyuan Garden area. We expect obvious growth in rental in these key locations," says Chu.
Analysts also add that the urban infrastructure in the Shanghai Disney Resort and its neighboring areas will further facilitate traffic dining, accommodation and shopping areas. Numerous department stores and shopping outlets are also under development around the resort as retailers aim to tap into the massive number of visitors.
One of these shopping options will be provided by retail outlet developer Value Retail and Shanghai Shendi Group, the operator of Shanghai International Tourism and Resort Zone (SITRZ). The group announced in 2014 announced a joint venture to build a luxury shopping compound next to the Shanghai Disney Resort. This mall, Shanghai Village, would measure 50,000 sq m in size and host more than 100 brands.
The tourism zone is in Pudong New Area and covers 20.6 square kilometers. It includes 13 sq km of space comprising hotels, restaurants, parks, as well as entertainment and sporting facilities. It is linked to the city center by two subway lines.
Hotel operators, including budget chains such as GreenTree Inn and Jinjiang Inns, have also been quick to develop new properties around the Disney resort. According to Pudong district authorities, as many as 1,000 B&B rooms may be available in the holiday villages located near the Disney resort.