Walt Disney World Theme Parks

It took the Walt Disney Company the better part of a quarter century to get the communist government of China to play along, but it's finally here. Disneyland is coming to the heart of China, in Shanghai. It might not seem like a huge deal why a park in China should be especially significant: after all China does have theme parks with some. To begin with, the park, along with all of the resort infrastructure surrounding Walt Disney World theme parks, hotels and all, is going to add up to an investment in China that is in excess of $4 billion. Even in a country where foreign investment has gone on to make a scale, this is top-of-the-line. There's never been anything like this. But more importantly, Disneyland is the very symbol to the world, of the culture of America, and its capitalism. Even better than GM or Boeing would be. The cultural implications on China are bound to be long-lasting and far-reaching.

The resort that Walt Disney World Theme Parks will begin with in Shanghai will not be tentative, experimental or small, as they did in Hong Kong. It will start with a huge spread in Pudong (the old Shanghai), in excess of 1000 acres, that will include, to begin with, the Magic Kingdom, with supporting hotels and shopping opportunities. This makes it larger than Disneyland's home park near Los Angeles. They plan to open it by 2015; they have certainly planned big - expecting 45 million guests each year. Disney's aim with this venture is not merely to expand its theme park business. In the entertainment industry, merchandise is often more profitable than the main entertainment itself. Rock concerts remain viable for the T-shirts and hats sold out front, and action movies make most of their money, over the long run, with the video games, the lunchboxes and action figures that sell for years.

To Disney in China, Disneyland is a vehicle by which to sell more Disney dolls, soft toys and a universe of odds and ends. In foreign countries, Disney typically relies on its TV channels to keep its brand going; this hasn't really been possible with China, a country that imposes severe restrictions on what foreign channels can show. Not even Obama's recent visit could wring a little concession from them on TV channels. For this reason, Walt Disney World theme parks in China are their only hope. To China itself, this is a step out from behind the Iron Curtain like nothing else. Disneyland will be a permanent exhibit in the heartland promoting the virtues of fun and capitalism. For a country like China that permits no more than a couple of dozen heavily censored foreign films to show in the country each year, this is a huge step forward.

One isn't quite sure why China chose to take this step now. Not even a capitalist Western country like France was happy when Disneyland showed up at a Paris suburb. Local farmers and cultural activists went up in arms - literally. Perhaps China's logic has something to do with the jobs potential in a new venture like this. The ecosystem that surrounds Walt Disney world theme parks in any new location usually throws up thousands of new jobs. In this disastrous economic climate, China really needs it.