Disneyland in Johor?
-
Disneyland in Johor?
Laurence Lau
May 26, 06 12:49pm
Malaysiakini
Could Disneyland be headed for Malaysia? If market insiders in Kuala Lumpur are to be believed, Prime Minister Abdullah Ahmad Badawi, now in Japan for a five-day working trip, will meet with officials from Oriental Land, the Japanese partner for Tokyo Disneyland, with the aim of bringing Disneyland to Nusajaya.
Nusajaya is a large ‘new township development’, or planned city, near the Second Link (a bridge between Malaysia and Singapore) in southern Malaysia's Johor state, just across the Johor Strait from Singapore.
Though no official statement has been issued by any of the governments or companies involved, the rumors were lent credence by the fact that officials from UEM World, the biggest landowner in Nusajaya, were said to be accompanying Abdullah. The prime minister's contingent also reportedly includes Azman
Mokhtar, the managing director of Khazanah, which is UEM World's largest shareholder.
Abdullah is said to have already met with top Disney officials early this month, when he was attending the World Congress for Information Technology 2006 in the United States. A source at a top-three regional brokerage familiar with the Disneyland-Nusajaya overture believes that Abdullah's team is in Tokyo to make a serious pitch, with sweeteners that may include offering Disney an internationally competitive package of incentives. Should the pitch be successful, any announcement of Disney making an entry into Malaysia would improve dramatically the values of land near Nusajaya.
While the Disney rumblings are still at the level of rumor, sources say the rumor has a high level of reliability and a decent chance of success. The reports raise several immediate issues.
First, it is believed that Disney will be more positive for the project going ahead if Malaysia can rope in the Japanese operator as a partner. Oriental Land has an excellent track record with the company; its first park in Urayasu, Chiba prefecture, which opened in 1983, and the later addition DisneySea are both still highly successful.
By engaging Oriental Land, Disney would have a higher chance of successful execution should the project get the go-ahead. Oriental Land's involvement would also ensure proper follow-through (execution) and a strict adherence to the firm's management style and operational culture. These issues, not just financial viability, are major concerns when it comes to the track record of Malaysian government-linked companies (GLCs), particularly given Disney's strong corporate culture.
A free ride
Second, the implications for the perpetual, sibling-rivalry-like competition between Singapore and Malaysia are another aspect worth exploring. Some say the Disney overtures could be a retaliatory move on Malaysia's part after the recent disastrous talks over the construction of a new bridge for the causeway between the two countries. Over the past 12 months, Singapore has hogged the limelight in terms of big tourism projects with its huge integrated resort/casino projects at two sites in Marina Bay and Sentosa Island.
The winning bidders for the two integrated resorts (IRs) paid a very steep price for their winning bids, but none managed to rope in Disney as partner, reportedly because Disney did not want to tarnish its wholesome image entering a partnership with a casino project. The likely winner for Marina Bay IR is likely to be either Harrah's or MGM, while Genting should get the Sentosa IR with Universal Studios as its partner.
A comparison between the Singapore IRs and the hypothesised Nusajaya Disney park is revealing. The winning IR bidders will have to cough up S$1.2 billion (US$758 million) for the Marina Bay IR and S$605 million for the Sentosa IR for the land alone. But should Disneyland decide to go to Nusajaya, chances are the land will be almost free. Not only that, a Disney park would benefit from tourists visiting the two IRs, in effect getting a free ride on Singapore's promotional efforts.
Of the two, the attrition impact would be greater on the Sentosa project, since its Universal Studios theme park would inevitably be competing with, and be compared with, Disneyland just a couple of hours away - no contest, many would say, especially considering that a Disney facility would be able to price its products and services a lot cheaper.
Third, a Nusajaya Disneyland would seem to have excellent prospects with regard to critical market mass and the availability of transportation services. Any viability study would reveal the same factors that already successfully justified the initiation of the Marina Bay and Sentosa IR projects.
In addition, there are two potential international landing strips in Johor, which would boost both the hypothetical park's prospects and those of such feeder airlines as AirAsia (the Kuala Lumpur-based low-cost carrier) and Malaysian Airlines.
AirAsia is already proving to be very successful in ferrying regional travelers at very attractive rates. Imagine the ability to offer routes from Phuket, Bangkok, Hat Yai (in southern Thailand), eastern Malaysia, Hong Kong, Bali or Jakarta to Kuala Lumpur or Johor Baru (Malaysia's second-largest city, adjacent to Singapore) for less than RM200 return ($55) - which is approximately AirAsia's current pricing structure.
Will benefit both
The availability of such low-cost air services could sway Disney's decision. Malaysia's population on its own is insufficient to justify a Disneyland, but the country's low-cost air connections and the additional traffic drawn from Singapore's IRs might be enough to seal the deal. One wonders whether AirAsia founder Tony Fernandes is also part of the Abdullah contingent - he should be.
Fourth, the chances of the project being realised are greater given that Disney holds strong cards in terms of negotiating with Malaysian authorities, and the company is liable to be attracted to Nusajaya since it would have a sharply reduced ‘cannibalising’ effect on the firm's existing parks. Nusajaya has a huge land area, big enough for five or six Disneylands with space for resorts and hotels.
Given that a Disney park would be crucial in giving Nusajaya the critical mass for success, Abdullah and UEM World would probably agree to most of Disney's requests - which might include free land, a waiver of the requirement for 30% bumiputra (ethnic Malay) holdings, tax incentives, and so on.
From Disney's standpoint, it is running out of room to grow after the opening of Hong Kong Disney last year. A Nusajaya Disney would be far enough away from the locations in Hong Kong, Tokyo and a proposed Shanghai park to capture the regional crowd without cannibalising the crowds at other regional Disneylands. It would be silly for Disney not to do the project.
In all probability, Singapore has inadvertently helped Malaysia to snare Disney for Nusajaya. However, the development would benefit both countries, and should not be used to score political points on either side of the Johor Strait.
LAURENCE LAU has more than 18 years of experience in business and finance. Born in Malaysia, he has worked in Sydney, Singapore, Hong Kong and Kuala Lumpur. He was head of research for two securities firms and a portfolio manager for a UK firm. Article courtesy of Asia Times Online.
i think i do look forward to this. -
1. disneyland will never ever succeed in our type of climate. the open air theme park will better have lots of air conditioning. u expect tourists to walk around in the hot sun, queing up for rides and buying food?
2. if it succeeds, game over to our toursim industry. there are mainly 2 reasons why people travel. first is for their kids. will children be interested in disney or a casino? secondly is for relaxation and sightseeing. i dont think the integrated resort is a good place for either.. because u can shop and gamble anywhere in the world. why singapore?
if i were malaysia, i'd demolish the genting casino and build my disneyland up there. if that happens, singapore's toursim industry is as good as screwed. -
2. msia has more than just genting to offer her own tourists. no, i'm not speaking on behalf of msia nor am i siding with them. look at their own msian resorts along the east coast. how abt green forest that tourists (caucasians mainly) would love to "get lost" in?Originally posted by OO_OO_OO:1. disneyland will never ever succeed in our type of climate. the open air theme park will better have lots of air conditioning. u expect tourists to walk around in the hot sun, queing up for rides and buying food?
2. if it succeeds, game over to our toursim industry. there are mainly 2 reasons why people travel. first is for their kids. will children be interested in disney or a casino? secondly is for relaxation and sightseeing. i dont think the integrated resort is a good place for either.. because u can shop and gamble anywhere in the world. why singapore?
if i were malaysia, i'd demolish the genting casino and build my disneyland up there. if that happens, singapore's toursim industry is as good as screwed.
and if talking abt disneyland in this region, hong kong would be their destination. no point building 2 disneyland so close to each other. weather-wise, who cares...its disneyland. actually hong kong is not exactly that cooling at times.
n who would want to travel half way around the globe just to visit another disneyland? -
Disneyland has been in business for a very long time and has been very successful. It should know how to run the business and what are good and no good for it.
-
Looking at the state johor is in now, no offence.. Disney would very unlikely want to build it in johor..
-
it will b a paradise for pickpockets n robbers
-
I love mickey mouse and snow white only in Europe..Malaysia too warm for that. I will see mickey mouse become death mouse while snow white melted with the costume on.
Go and build casino..will create more job and also revenue..What playground for.. Masa Masa? -
imagine mickey mouse robbing pple
-
dont make me laugh.
-
For Disney to deal with Malaysia, Disney will have to be careful not to be seen to be dealing with a corrupted party (requesting for 30% share for giving the permit to Disney to set up shop).Originally posted by pearlie27:Disneyland in Johor?
Given that a Disney park would be crucial in giving Nusajaya the critical mass for success, Abdullah and UEM World would probably agree to most of Disney's requests - which might include free land, a waiver of the requirement for 30% bumiputra (ethnic Malay) holdings, tax incentives, and so on.
For Malaysia to waive the Affirmative Action Policy (requirement of giving 30% to the bumiputra – in exchange for the permit to Disney to set up shop) is something not many Malay in power would be able to swallow. The powerfull (who will loss the chance to gain from this) will arrange for gangs to “demonstrate” and threaten. How many times this will be repeated before we get the message? -
who the hell would wanna go to malaysia? lazy workers, poor work ethic, inferior materials, places fall into disrepair after a while, crap maintenance, almost 0 QC, theft and robbery aplenty.
-
worse when the mickey mouse goes "sia la" and snow white has kutu in her hair because she hasn't washed it in weeks.Originally posted by king108: I love mickey mouse and snow white only in Europe..Malaysia too warm for that. I will see mickey mouse become death mouse while snow white melted with the costume on.
Go and build casino..will create more job and also revenue..What playground for.. Masa Masa? -
Build and the terrorists will surely come and bomb!
-
Will Minnie mouse, Daisy duck, Ariel and other female cartoon characters need to cover up, wear Tudong? Some of the characters are not exactly decently covered by certain standards.....
-
I don't really know what the fuss is about a 'Disneyland' in Johor, or the region for that matter.
With the atrocious reviews of Hong Kong Disneyland i.e. poor service, rude operators, insufficient crowd control etc, i cannot imagine what it will be like in Johor...
Anyway, the one to visit is the original Disneyland in Anaheim, California. The rest won't even come close after that. -
Who would want to go there when the city area crime rate is so high???
-
The theme park could occupy 2,000 acres in Nusajaya, part of a 23,000 acre township being developed by state-controlled UEM World Bhd. , The Edge said.
2000 ac = some 900 ha,good,put this land consuming park in JB.
900 ha = to almost 3 marina south land.
most ,if not all foreign tourists will come to Sg too.
Sg shall welcome the mouse stay in JB. -
Originally posted by hisoka:imagine mickey mouse robbing pple Even HongKee are no used to put on those costume..Mickey Mouse robbing people..so cute
-
confirm fail one.
-
i don't think it will work out...as of now.
-
Euro-Disney in Paris was a financial disaster despite the grand schemes for a propective market in the shape of a supposedly unified European Community.
Can Disneyland survive in Johor - when its National Religion see Disney Culture as the anti-thesis of its religious teachings and faith ?
It was difficult to swallow the Japanese culture and language in Tokyo Disneyland, and it probably is just as bad seeing Hongkongers dressed in American period costumes playing the parts of Disney Culture.
Can we tolerate a Disney Culture that will be 'Malaysianised', with the Disney Shows in Bahasa, and Disney Culture acted out by Malaysians ? -
beware theme park in JB turn into real estate developmemt:
2005-04-21
Section Name: MINISTERIAL STATEMENT
Title: PROPOSAL TO DEVELOP INTEGRATED RESORTS,PROPOSAL TO DEVELOP INTEGRATED RESORTSWhen we were negotiating with the theme parks in the 1990s, I remember somebody told me that we should look at Walt Disney not only as a theme park operator, but also as a real estate player, because they want a big piece of land to build their theme park and then as the theme park becomes successful the capital value of the surrounding land appreciates and they make the capital gains of that land. For example, Walt Disney built Tokyo Disney over 70 hectares.
hope there are wise men in MY govt!
But when they were negotiating with us in the 1990s, they wanted 300 hectares. Seventy hectares for the first phase to build the first set of attractions, but they promised us that they would build Phase II and Phase III, and they wanted the other pieces of land for future expansion. We earmarked a piece of land in Seletar for them to look at.
We even offered to build a MRT station between Yio Chu Kang Station and Khatib Station so that visitors can go to the theme park. We have Seletar Expressway, so transport is very convenient. It is a lovely site with the reservoir as a backdrop. But we were not prepared to pay the very high price needed to give away 300 hectares of land at a very low cost, development fee, management fee, etc. So the deal fell through.
But we are constantly interacting and talking to the various theme park operators to continue to attract them. Unless we are prepared to put in a very high equity stake and fund many of these attractions, the theme park operators are not likely to come in. -
ever heard of euro disney?Originally posted by lotus999:Disneyland has been in business for a very long time and has been very successful. It should know how to run the business and what are good and no good for it.
-
Disney is pouring cold water on this?? (BT May 31, 2006)
Disney 'has no plans for Malaysian park'
LOS ANGELES - Walt Disney on Tuesday said it has no plans to build a theme park in Malaysia -- even though Malaysian government officials said they had been in talks to develop one.
'We are constantly exploring opportunities around the world as we look to grow our parks and resorts business. At this time, however, there are no existing discussions in Malaysia and we currently have no plans for a Disney-branded resort development in that country,' said Lisa Haines, a spokesman for Walt Disney Parks and Resorts.
'Oriental Land Company, which owns and operates Tokyo Disney Resort as our licensee, is a valued partner; however, they have no role in evaluating or negotiating other opportunities for Disney outside of Japan,' Ms Haines said, after The Edge financial weekly reported over the weekend that Malaysian government officials have held talks with executives from Oriental Land, the Japanese company that operates Tokyo Disneyland, to run a similar park in Malaysia.
Malaysian government officials said they are in talks to set up a Disney theme park in southern Johor state, as it battles neighbour Singapore to become a major tourist hub. -- REUTERS -
there will be more robbery case....