Report On Ocean Park Of Hong Kong Tourism Essay Example

well-known among Hong Kong households.The success of Ocean Park is attributed to several factors including the growth of tourism not only in Hong Kong but also in the Asia-Pacific region, which raised funds amounting to HK $5.55 billion for updating the park's outdated product line.Additionally, competition posed by Disneyland in Hong Kong can impact Ocean Park's success or failure.

When considering the amusement park industry as a whole, there are five key forces that need to be taken into account:

1.Menace of New Entry: The entry barrier for this industry is high due to significant financial resources required for equipment and human resource investment as well as extensive planning, construction, and development time needed for establishing a park.
Moreover, it is mandatory to obtain various licenses and comply with legal regulations related to safety, health security, etc. Additionally, the cost of land for full-scale development in Hong Kong's real estate market is expensive. Furthermore, competition among amusement parks poses a threat as visitors primarily consider price and service when choosing between them. Consequently, intense competition exists among different parks based on pricing and services offered. To differentiate themselves from rivals, Ocean Park has implemented various strategies such as renovations and introducing new attractions. Their unique range of products helps them stand out among competitors. The arrival of Disney is highly anticipated and poses a main threat of substitution from Hong Kong Disneyland & Wetland Park – an international theme park and educational park. There are also other substitute options available to residents of Hong Kong for cultural and entertainment activities such as visiting the Cultural Centre, Mai Po Wetland or the Hong Kong Zoological and Botanical Garden.

They can also enjoy karaoke sessions, cinema trips or visit game centers Alternatively; they can take a day trip to China.However,Ocean Park's strong "must-see" image gives tourists limited bargaining power because it cannot be easily replaced by other alternatives.

Ocean Park aims to establish a unique reputation in Asia due to the high purchasing power and diverse options available to local residents. Moreover, the relatively low cost of exchanging goods further contributes to this objective. Additionally, people in Hong Kong have a penchant for novelty and are not particularly brand loyal. In response, the Park has implemented several initiatives such as the annual "Large Five" events featuring different themes each year, providing new excitement and experiences for visitors.

The building elements of amusement drives are extensive and intricate, which is why the park heavily relies on providers. However, the market is growing and the number of providers is increasing. Nevertheless, when it comes to constructing buildings with a particular contractor, the park cannot easily switch to another due to the high switching cost. Moreover, Ocean Park can only acquire certain foreign animals from specific countries.
Moving forward, there will be changes in the five forces:

• Rivalry will intensify with Disney's arrival.
• Buyer power will slightly increase.
• Threat from substitutes will also rise.
• Entry threat will significantly decrease.
• Supplier power will also diminish. (Exhibit 2.5 - p.72)

To influence the impact of these five forces, there can be more differentiation in new

products that specifically cater to Chinese native culture. This will affect competition, substitutes, and buyers. Unique high-quality products and services will also impact buyers. Utilizing the internet and specialized websites with superior service quality, features, recommendations, and prices will have a significant impact on suppliers. Lastly, conducting a strategic group/space analysis for Ocean Park is recommended.

There are two main competitors for Ocean Park: The first one is known as Hong Kong Wetland Park. It is a facility dedicated to the preservation, education, and tourism of wetlands. It consists of a large visitor center, Wetland Interactive World, and a Wetland Reserve. This park offers visitors the opportunity to observe wildlife and gain awareness and understanding of the importance of wetlands in the East Asian Region and beyond. Therefore, its main focus is on wetland conservation. Hong Kong Wetland Park aims to serve both local residents and tourists as a leading ecotourism destination.

Compared to Disneyland and Ocean Park, Hong Kong Wetland Park offers a different range of installations and merchandise, including themed exhibition galleries, a theater, a souvenir store, and an indoor drama country. It provides unique services and has its own niche, similar to Disney and Ocean Park. The scope of installations is the narrowest among the three parks. As a result, Wetland Park may not meet the demands of visitors seeking excitement and extreme pleasure that can be found at the other two parks. The main question is who are the main visitors - locals or tourists? Wetland Park has fewer installations than Ocean Park and Disney, but it also has much lower prices. The second park to be discussed is Hong Kong Disneyland. After

28 years of operating as a near monopoly, Ocean Park will soon have to compete with one of the biggest names in the amusement and theme park industry.

Both Disneyland and Ocean Park are popular among families with children. However, Disneyland is globally recognized as the leading entertainment destination with a well-established brand name. Characters like Mickey Mouse, Donald Duck, and Winnie the Pooh have universal recognition, including in Hong Kong. On the other hand, Ocean Park's mascot Whiskeys lacks the same level of impact. The Disney company was founded in 1923 and opened its first park in 1955; their reputation and history have attracted visitors from Hong Kong, mainland China, USA, Europe, and various parts of the world.

• Disneyland is conveniently located, only a 10-minute drive from Hong Kong's airport and less than 30 minutes from downtown Hong Kong.
• In its first year, it was expected that at least 5.6 million people would visit Hong Kong Disneyland, compared to an expected 4 million visitors at Ocean Park.
• Among the five Disney amusement parks worldwide, Disneyland offers the least expensive prices.
• The area of Disneyland covers 310 acres, whereas Ocean Park covers 215 acres.
• There has been a five times greater investment in Disneyland compared to Ocean Park.
• The expected economic effectiveness of Disneyland is $3 billion more than Ocean Park.

The company continuously develops new products, facilities, and services to keep the park fresh, exciting, and attractive (recent additions include a new roller coaster, a subzero Ice Palace,
a 7.6 million-litre fish tank with an underwater restaurant,
33 additional animal species,
and doubling the number of rides to 70).
The company strives to keep park attractions fresh, exciting,and appealing while minimizing costs.
Plans are in place to

revamp and rename OceanPark's main areas,the Lowland andthe Highland.
In addition, there are plans to develop new hotels,
including a five-star boutique hotel anda spa-type hotel.
The renovation program is expected to finish by 2012.In order to strengthen promotional activities in Hong Kong and attract more visitors from mainland China, it has been proposed to establish offices in important cities such as Guangzhou, Beijing, and Shanghai. Moreover, a new incentive compensation program has been introduced that connects employee pay to the financial performance of the park.