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Old 06-03-2013, 11:01 AM   #22
Horace Horsecollar
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Originally Posted by Rebekkap View Post
Cost of building in Hong Kong would have been extremely cheap. Very low labour costs and the HK government provided the land at no initial cost, owned 57% of the shares in the company running the resort, and injected $3.25 billion initial equity compared with Disney who initially put in $2.45 billion.
Those numbers look huge, but those are Hong Kong Dollars, not U.S. Dollars. Currently, a Hong Kong Dollar is worth around 13 U.S. Cents.

If Disney is ever wants to build a third major destination in the U.S., it's highly unlikely and that the Federal government (or a state or local government) would invest directly and take an ownership position. However, it's likely that Disney would seek and receive infrastructure improvements (such as freeway offramps) and tax breaks.

If Disney ever wants to build another smaller project in the U.S., along the lines of Aulani, it's likely that Disney would be part of a larger masterplanned development. Aulani has the benefit of being part of the Ko Olina Resort. Disney's cancelled project near D.C. would have been part of National Harbor, a private development whose developer had already successfully navigated the the sea of environmental issues and government cooperation.
** Horace Horsecollar **

Last edited by Horace Horsecollar; 06-03-2013 at 11:50 AM.
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