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Text Chapter 2686: Legitimate Business

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    In the eyes of many people, Disneyland is crowded with people all day long, so it should be very profitable.  ¡û,

    So many of them are very confused by the fact that Hong Kong Disney has been losing money for many years.

    In fact, the reason is very simple, that is, the construction and maintenance costs of Disneyland are too high.

    On the one hand, take Hong Kong as an example. The land purchase cost of these 126 hectares and 1,890 acres of land is an astronomical figure. This part is included in the shares of Hong Kong Disneyland by the government through land investment, and then Disney¡¯s  More than HKD 0.0 billion was invested in the construction to build a Disneyland that was not very grand and spectacular.

    The construction costs of Disneyland and Disneyland at Sea in Japan cost more than 8 billion U.S. dollars alone. Adding in land costs, the cost is almost more than 10 billion U.S. dollars.

    ??The Disneyland in Japan covers an area of ??more than 4,000 acres. It has been expanding and adding new projects for more than 20 years. Coupled with Japan's high consumption, Japanese Disneyland can make money.

    But Hong Kong Disney is different. Due to geographical and site restrictions, as well as the lack of business philosophy, Hong Kong Disney has not been able to attract more tourists to visit.

    On the other hand, the management cost of Disneyland is too high. Not only do thousands of people work there permanently, but there are also employees who come from other Disneyland from time to time, which all costs money.  Great salary and benefits to hire.

    The operating costs are so high, which is also the main reason for Hong Kong Disney¡¯s losses.

    Of course, on the other hand, it is precisely because their Disneyland is not big enough and the programs have not changed for many years that they cannot attract more people.  This is why operating costs are not diluted.

    Because Chengdu is an inland city, it is impossible for Disneyland to directly build a sea park like Japan, but the huge area of ??10,000 acres is enough to offset so many weaknesses.

    Not to mention anything else, it¡¯s just a five-star hotel in Disneyland.  That can¡¯t be when there are a lot of vacancies!

    In addition, there is a Universal Studios to be built next to it, so they will naturally promote each other and attract more people to come.

    It is impossible to visit both Disneyland and Universal Studios in one or two days. If you want to have a good experience, you will need at least three to five days, which is not much in a week.

    With so much time, tourists will not stay away, but will spend money in the surrounding areas. It is conceivable how much it will stimulate the surrounding businesses.

    It has such a good expectation of being an "entertainment town".  Then Fairy Company will of course have more advantages when negotiating with the Chengdu City Government and can enjoy more preferential policies.

    It¡¯s just that Xiao Qi is not willing to take advantage of the government. He will only negotiate fairly and enjoy the rights and interests of foreign investors, and will not deliberately suppress the government, making the government equivalent to giving away to Fairy Company in all aspects.

    ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? off out of the 1,000 acres of land, if it is a black-hearted capitalist.  It is very possible that he will settle in Chengdu as a condition for the government to sell the land at the lowest price possible.  The total price is likely to be RMB 100 million or less.

    On the one hand, the government wants Disneyland to increase employment and tourist population; on the other hand, it also wants to stimulate consumption; and on the third hand, it can also drive the economic development of surrounding sectors. The greater benefit is to increase the city¡¯s popularity, so  The likelihood of submission is high.

    Then there are preferential discounts such as water, electricity, taxation, etc., and it is possible to calculate the construction of 10 billion yuan.

    But Xiao Qi has always made clear distinctions in business.  When doing business, you must follow the rules. You cannot take advantage just because you have acquaintances in China. This is a very bad habit.

    You can be treated well in China, but you can only behave well abroad.  Will this business gap make me less and less interested in doing business abroad in the future, and will I only want to do a good job in one-third of an acre in China?

    How many large companies, because of their fear of going abroad for development and their hard-working spirit, were eventually laughed at and kept in a quarrel?

    Therefore, you should do business in a formal manner from the beginning. You should work hard and abide by the laws and regulations the same everywhere. Only in this way can you cultivate your own sense of normalcy and go further in the long run.

    The land outside the Third Ring Road opposite to Fairy Sports City was only 200,000 acres per acre when Fairy Real Estate bought it, but now the price has increased to 1 million per acre, and the government also froze it directly because Fairy Company was building large-scale construction here.  After signing the transaction, be prepared to wait until the truth comes to light before raising the price to make money.

    Now that the privatization of Disney has settled, smart people will think that Xiao Qi will definitely build a Disneyland in his hometown of Sichuan.

     Then the only choice for Shuchuan is Rongcheng. No matter how extravagant the Yuanyin City leadership team is, they would not dare to put Disneyland in Yuanyin City. This is simply a conflict with the provincial leaders.  Got it right.

    And where will Chengdu be built?

    Of course, many people think of Fairy Real Estate¡¯s large-scale land acquisition in this area a few months ago. A full 5,000 acres is more than enough to build 20 super football cities. So obviously in addition to Fairy Sports City, there are other large-scale land acquisitions.  use.

    With such a calculation, everyone can naturally think, will Disneyland be located here?

    Since Disneyland is located in this area, the price of the land will be at least three to five times higher. If it is in a better location, it may even be ten times more expensive!

    Under such circumstances, the government¡¯s current financial predicament is understandable. Even a wealthy city like Chengdu has a regular funding gap due to too much infrastructure, implementation of welfare policies, etc.

    Land sales cannot be said to play a dominant role, but they also play an important supplementary role.

    Who doesn¡¯t like that the same land area can be sold for three to five times more?

    Of course, as far as Fairy Company is concerned, it will certainly not sit back and watch such a price increase.

    ?? 10,000 acres of land, even at the current price of 1 million per mu, is a land cost of 10 billion yuan. If it rises to 3 to 5 million yuan, wouldn¡¯t it be a cost of 30 to 50 billion yuan?

    The cost of land alone is so high, plus labor, materials, etc., it will cost 80 billion to build a Disneyland. How many years will it take to recover the money?

    And more importantly, the price of this land has increased because our Disneyland is going to be built here, so you are qualified to increase the price. Otherwise, you are just a remote piece of land, so where is the capital to increase the price?

    Because of this prerequisite, Disneyland has taken a lot of initiative. You have to be cheaper and give me normal and appropriate discounts before you can let me build Disneyland in Chengdu. Otherwise, there is no way to justify it!

    Xiao Qi and Huo Zhuzhu have discussed the location and size of the land they want, and the specific negotiations will be left to the experts at Disneyland.

    ¡° Whatever the outcome of their discussion with the Chengdu City Government is, that¡¯s the outcome.

    Naturally, it is impossible for both parties to break up the talks. After all, it is Disney¡¯s boss¡¯ intention to build a Disneyland in Chengdu. The general premise for cooperation between the two parties has been set, so some specific conditions have to be negotiated.

    Xiao Qi will not let them use their power to bully others and scare them with the name of a world-class theme park, but he will not let himself suffer.

    After all, in business, the most important thing is that everyone can benefit. There is no reason for me to sacrifice too much of my own interests to make a dowry for you, right?

    Since the beginning of Disney¡¯s construction, Disneyland has been contributing jobs to Chengdu. It is initially estimated that there will be more than 100,000 construction workers, and the ongoing construction will take about three years.

    After Disneyland opens, the number of formal employees will reach more than 15,000. In addition to related companies that provide services, delivery, after-sales, etc., the entire industry chain can stimulate an industry chain of 500,000 people and bring more people to the industry.  Get great deals.

    80% of the beneficiaries of these commercial activities are the entire Sichuan Province, so considering this, it is also the reason why Disneyland enjoys some preferential policies as a matter of course.

    Another point is, if you want to develop Disneyland well, what is the most important thing?

    It¡¯s not a fairy tale castle or any kind of nostalgic feelings, it¡¯s about the people who serve.

    Whether it is the staff dressed as princesses, princes, Mickey, or Donald Duck, or the restaurant, hotel or even cleaning staff, they are the core of the service.

    Only if you serve your customers attentively and satisfy them will they come back again and again, and encourage their children to fall in love with Disneyland and continue to come to Disneyland.

    In this regard, the Japanese are the best in the world.

    They are not only the Disneyland with the largest number of visitors, but also the Disneyland with the highest user satisfaction. Naturally, the money-making effect is also the first.

    The reason is that in addition to their continuous launch of new projects, the most important thing is the service attitude of the Japanese. The word "home away from home" is not an exaggeration to use here.

    Therefore, after Xiao Qi recruited employees, the first thing he did was to let them intern at Disneyland in Japan for one or two years. After they were recognized by Japan, they would be used in Disneyland in China only after they successfully graduated.  .

    Not suitableThose who are arrogant and have a bad attitude will be fired directly without any accommodation.

    Although it will cause a waste of too many people and a loss for Disneyland, compared to the maintenance and promotion of the brand that has lasted for decades or hundreds of years, this loss is completely fine.

    It is very appropriate to change the face of China¡¯s service industry, starting from Disneyland!

    (Brothers, please subscribe more!) (To be continued.)
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