This paper has for main objective to calculate the costs and benefits of the Euro Disneyland project signed between the Walt Disney Company and the French government in 1987. The Euro Disneyland project was the most ambitious project for any French government under the 5th Republic and coincided with a decade of economic turmoil. As we shall analyze, the French government accorded many benefits to the Walt Disney Company in order to have the park built in France, with the hope that the French version would be as attractive as its Japanese and American counterparts.
Although the reports conducted by the French government and the Walt Disney Company are not public, enough has filtered to calculate a basic benefit-cost analysis. Thus, this paper regroups the available data and forecasts made in 1987 by the company and the government, calculates the benefits and costs, and then analyzes the government incentives to pursue this project. In addition, the paper discusses both the importance of the forecasting failure from the Walt Disney Company in the results of the analysis and the important data that we could not include in the analysis but would have to be added if available.
Table of Contents
- Introduction
- The Project
- The 1987 Convention
- Literature Review
- Calculation of the benefits of Euro Disney
- The Benefits Included in the Analysis
- The Benefits not Included in the Analysis
- Calculation of the Costs of Euro Disney
- The Costs Included in the Analysis
- An Estimation of the Environmental Costs of Disneyland Paris
- The Cost not Included in the Analysis
- Final Results of the Analysis
- Did the French government really benefited?
- The impact of the failure
Objectives and Key Themes
This paper aims to conduct a cost-benefit analysis of the Euro Disneyland project, focusing on the agreement between the Walt Disney Company and the French government in 1987. The analysis considers the extensive incentives provided by the French government and evaluates the project's overall success, taking into account available data and forecasts from that period. It also addresses the impact of forecasting failures and identifies data gaps in the analysis.
- Cost-benefit analysis of the Euro Disneyland project.
- Evaluation of French government incentives.
- Impact of Walt Disney Company's forecasting.
- Analysis of data limitations.
- Economic context of France in the 1980s.
Chapter Summaries
Introduction: This chapter sets the stage by discussing the development of Marne-la-Vallée, a new city near Paris, and its role in attracting the Euro Disneyland project. It highlights the French government's economic motivations for hosting the park amidst a period of economic turmoil and high unemployment. The chapter also outlines the negotiations between the Walt Disney Company and the French government, emphasizing the concessions granted to Disney and the stipulations for the park's operation in France.
The Project: This chapter details the 1987 Convention signed by Disney, the French government, and regional authorities. It explains the structure of Euro Disneyland SCA, the French subsidiary of the Walt Disney Company, emphasizing the stipulations ensuring French and European company participation and the limitations on Walt Disney Company ownership (49%). The chapter underscores the blend of public and private financing involved in the project, albeit without delving into the specifics of the private sector investment.
Calculation of the benefits of Euro Disney: This chapter presents a calculation of the project's benefits, differentiating between those included and excluded from the analysis. It provides a framework for understanding the economic advantages anticipated by the French government, highlighting the complexities and potential biases in evaluating such a large-scale undertaking. The discussion likely contrasts projected versus realized benefits, emphasizing the importance of accurate forecasting.
Calculation of the Costs of Euro Disney: This chapter mirrors the previous one, presenting the costs associated with the project. The analysis distinguishes between directly included and excluded costs, focusing on the complexities of quantifying aspects like environmental impact. The discussion likely emphasizes the challenges of accurately estimating long-term costs and the potential for unforeseen expenses.
Final Results of the Analysis: This chapter presents the overall findings of the cost-benefit analysis, comparing the calculated benefits and costs of the project. It assesses whether the French government's investment yielded a positive return, considering the economic climate and the concessions provided to Walt Disney Company. This section likely presents a quantitative assessment and explores the implications of the findings.
Did the French government really benefited?: This chapter analyzes the overall success of the project from the French government's perspective, considering whether the anticipated benefits materialized. It investigates the economic impact of Euro Disneyland on the region and the nation, assessing whether the incentives provided were justified by the outcome. The chapter likely assesses both direct and indirect economic impacts and factors in the overall economic context.
The impact of the failure: This chapter examines the consequences of any discrepancies between projected and actual results, analyzing the reasons for forecasting failures and their implications for future large-scale projects. It likely explores lessons learned from the Euro Disneyland experience and discusses the importance of accurate projections in economic decision-making. The chapter provides insights into why the project deviated from its initial predictions.
Keywords
Euro Disneyland, cost-benefit analysis, French government, Walt Disney Company, economic incentives, forecasting, economic impact, tourism, Marne-la-Vallée, 1980s French economy.
Euro Disneyland Project: A Cost-Benefit Analysis - Frequently Asked Questions
What is the main focus of this document?
This document presents a comprehensive cost-benefit analysis of the Euro Disneyland project, examining the agreement between the Walt Disney Company and the French government in 1987. It analyzes the incentives offered by the French government, evaluates the project's success based on available data and forecasts, and discusses the impact of forecasting failures and data limitations.
What are the key themes explored in the analysis?
The key themes include a cost-benefit analysis of the project, an evaluation of French government incentives, the impact of Walt Disney Company's forecasting, an analysis of data limitations, and the economic context of France in the 1980s.
What aspects of the Euro Disneyland project are covered?
The analysis covers the 1987 Convention between Disney and the French government, the structure of Euro Disneyland SCA, the calculation of benefits and costs (including those included and excluded from the analysis), the final results of the cost-benefit analysis, an assessment of whether the French government truly benefited, and an examination of the impact of any project failures.
What benefits were considered in the analysis of the Euro Disneyland project?
The analysis details the benefits included in the cost-benefit calculation and those that were excluded. It explores the economic advantages anticipated by the French government, acknowledging the complexities and potential biases in evaluating such a large-scale project. The difference between projected and realized benefits is likely discussed.
What costs were considered in the analysis of the Euro Disneyland project?
Similar to the benefits, the analysis differentiates between costs included and excluded from the calculation. It focuses on the challenges of quantifying costs, particularly those related to environmental impact and long-term expenses. The difficulties of accurately estimating long-term costs and the potential for unforeseen expenses are likely highlighted.
What were the final results of the cost-benefit analysis?
The final results compare the calculated benefits and costs, assessing whether the French government's investment yielded a positive return, considering the economic climate and concessions given to Walt Disney. A quantitative assessment and the implications of the findings are presented.
Did the French government actually benefit from the Euro Disneyland project?
This question is directly addressed by analyzing the project's success from the French government's perspective. The analysis investigates the economic impact on the region and nation, assessing whether the incentives provided were justified by the outcome, considering both direct and indirect economic impacts and the overall economic context.
What was the impact of any failures in the Euro Disneyland project?
This section examines the consequences of discrepancies between projected and actual results, exploring the reasons for forecasting failures and their implications for future large-scale projects. It discusses lessons learned from the Euro Disneyland experience and the importance of accurate projections in economic decision-making.
What are the key words associated with this analysis?
Key words include Euro Disneyland, cost-benefit analysis, French government, Walt Disney Company, economic incentives, forecasting, economic impact, tourism, Marne-la-Vallée, and 1980s French economy.
Where can I find more detail on the 1987 Convention?
The document details the 1987 Convention signed by Disney, the French government, and regional authorities, explaining the structure of Euro Disneyland SCA, the stipulations for French and European company participation, and the limitations on Walt Disney Company ownership. The blend of public and private financing is also discussed.
- Citar trabajo
- Alexandre Aubard (Autor), 2018, Euro Disneyland. A Cost Benefit Approach, Múnich, GRIN Verlag, https://www.grin.com/document/465022
