About the industry
Walt Disney's theme park and resort industry have generated a wide circle of economic, social, and political influences ranging from historic preservation, town planning, shopping mall design, and landscaping. Previous year its 11 parks around the globe produced nearly a third of Walt Disney Corporation $45 billion income and 20.7% of its $10.7 billion operating profit. The theme park industry has witnessed a rapid international development in recent years. Growth has been concentrated mostly in Japan and Europe. It is informative to relate industry growth in the U.S. with where other global markets stand. Currently, the European theme park and resort industry comprise of 19 main attractions with a yearly attendance of over 1 million, and about 45 moderate-scale attractions with attendance between 500,000 and 1 million. Europes attraction parks produce annual attendance of about 70 million people and incomes of around $1.5 billion. The European industry is about 1/3 the size of the U.S. industry regarding revenues. Walt Disney Amusement Parks industry receives its income from entrance ticket sales. Industry operators may also price customers once they have entered the recreation park for extra entertainment such as coin arcade games, operated games, carnival rides, access to water parks, mechanical rides, and other attractions (The Walt Disney Company, 16).
Why should we build a new Disney attraction and resort in Sydney?
Sydney is one of the most well-known cities in the world, and with a genuine reason. This flourishing urban metropolitan boasts a vibrant culture and arts scene and is home to beautiful beaches .It has a laid-back and relaxed vibe. Moreover, with Sydneys warm climate we got a genuine reason to construct attraction and resort site here. Sydney, is the largest and most beautiful of all Australian cities, lies between a seductive intermingling of sea and land. Tourism is now one of the fastest and largest growing industry in Sydney. Attraction parks and resorts are increasingly being used to promote Sydney as a tourist destination and enhance its attractiveness and effectiveness. Many locations in the city are now actively developing their intangible and tangible assets as ways of developing similar advantages in an increasingly competitive tourism marketplace, and to create local distinctiveness in the face of globalization.
Australia is ranked as the 6th most attractive country in the world, and the GE Innovation Survey of senior business executives observed Australia rise to 13th in the world for their innovation ranking in 2013. Australias tourism industry has been recognized as a growth sector due to its nearness to the fast-growing economies in Asia, unique food and natural wonders and wine experiences are among the best in the world. As one of the world's most fast-rising countries with steady growth in tourists numbers, Australias tourism quarter is attracting strong international investment interest.
Demographic trends of Sydney
According to Australia census, Sydney is a remarkably diverse city, with a tremendous number of cultural and ethnic groups living there. The top five lineages for people in Sydney are English, Australian, Scottish, Irish, and Chinese. The top five languages spoken in Sydney are: English, Arabic, Cantonese, Mandarin, Greek, and Vietnamese. These statistics gives us a good indication that the population of Sydney is diverse, so we are expecting a vibrant culture here. Six years ago Sydneys population experienced a steady growth rate ranging from 3.96% to 10.88%, adding around 200,000 to 467,000 people each year to the overall population. A lot of people are moving to Sydney to take advantage of employment openings there, which contributes to the population growth. The larger the population will mean a wider market for this business there. Sydney has approximately five million people. It is the most populous city in Australia (Sydney's population growth, 6).
Is economic environment of Australia favorable for the development of Disney parks and resorts?
Sydney is known as Australias only global center and is the top knowledge-based economy in the country. More than $108 billion is generated yearly within the City of Sydney local area. This represents over 7% of Australia's economy. Unemployment is a bit high, but it is not terribly high while inflation is a bit low setting out the challenges that the investors usually face. Australia is still struggling with low inflation, weak wage growth, and excess capacity in the labor market. Emerging economies can provide Australia with stable tourism opportunities. And with labor and innovation productivity developments being sought through the National Long-Term Tourism Policy. Australias tourism industrys competitiveness may be improved through improved product quality and service delivery. The Australian government has the domestic potential to build and maintain tourism-related infrastructure, for example, airports or ports, accommodation properties, road, and transportation systems. In fact, Businesses in Australia are more competitive globally. Australia has spent substantial funds on advertising promotions for their country. It is known that maintaining a presence in the global tourism market increases the volume of tourists to the country. And in return the Disney attraction parks and resorts in Australia gets customers since it is part of the tourist attraction (Guide to investing, 12).
Do legal and political environment favor establishment of attraction and resort sites?
Australia has a well-defined legal system and efficient regulatory bodies. Moreover, it has a national legal framework to guarantee that trading is fair for companies and consumers. In addition to Australian Government law, state and territory rules govern consumer protection. These measures are created to ensure harmful products are not marketed in Australia. Sometimes the Australian administration tries to negotiate tax exemptions to entice or increase foreign investment. This country also has an Independent National Security Legislation Monitor to evaluate the implications and effectiveness of counter-terrorism and national security laws.
Some investors have taken the ideological view that the purpose of government should encourage investors from other places to invest in the country (Guide to investing, 17)
The Australian dollar is freely interchangeable. International demand and supply determine exchange rates. The official plan is not to defend any particular exchange rate level. Only approved foreign exchange dealers, including merchant banks and most trade banks, make foreign exchange transactions. Restrictions on commercial presence in many sectors are a major disincentive to Australian investment. In some cases, residency and requirements limit the ability of international services providers to conduct business Labor relations. By removing the trade barriers, the Australian government aims to ensure cooperation on the international trade system. And also trade in the investment and services sector by reducing technical barriers. Australian government chooses to use a quota when a tariff has the added advantage of raising revenue (Australian Trade Barriers, 23).
Australian Government has put in place anti-discrimination laws which make it unlawful to discriminate in all phases of the employment relationship. Unions still play a significant role in many industries, in particular, negotiating and making collective agreements and industrial action. Overall, Australian employers are subject to less onerous consultation and notification obligations than their European counterparts (Guide to investing, 22).
Australian people like going to attraction parks and resorts to relax, steam off, walk, and enjoy. Many of them say that these Attraction Parks gives them a relaxing feeling and that other fun activities offered in the parks also help them get their minds off the matters that stress them out. A lot of Australian citizens visit attraction parks and resorts often these days is because it provides a shared experience that allows for the creation of new, unique memories for friends and families. People still think that the fun-per-hour value of the experience is still high. Some people say attraction parks are a beautiful place to take a date they say; people tend to become attracted to one another when they're in exciting places, like on vacation or while walking around a fantasy world. This mentality makes this business one of the ideal business ventures.
"Australian Trade Barriers." GlobalTrade.net. N.p., 4 June 2013. Web. 11 Apr. 2017.
"Guide to investing." Understanding Australian business regulation - Austrade. N.p., 3 Jan. 2012. Web. 11 Apr. 2017.
"Sydney's population growth: How is it different from Melbourne?" .id blog. N.p., 09 July 2014. Web. 11 Apr. 2017.
"The Walt Disney Company." The Walt Disney Company. N.p., 5 May 2014. Web. 11 Apr. 2017.
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