High Emotional Value Needs Behind the Perception of Joy

In economics, there is a "Disney effect," which refers to the fact that the more severe the economic downturn, the higher the unemployment rate, and the more delayed the holidays, the more visitors Disney receives, and the more developed the entertainment industry becomes. This is perfectly reflected in the development history of Tokyo Disney.

Why does this happen?

① A golden starting point, making Disney an unbreakable dream for the Japanese people.

Even with continued economic downturn, Japan was already a developed country at the beginning of the "Lost Decade." Tokyo Disney was born during the most glorious period of Japan's economic and spiritual needs.

Japanese society at that time was a scene of lavish banquets, bright lights, and nightly revelry. All Japanese believed that stocks and real estate would rise forever, and the demand for nationwide happy consumption reached its peak. It would not be an exaggeration to call it the most extravagant capitalist scene.

The emergence of Tokyo Disney was like a dreamland in this extravagant era. It not only brought them a fresh sense of entertainment, but also became a spiritual playground in the hearts of the Japanese middle class.

This spiritual recreation has lasted for 30 years.

Whether it's a spiritual need of the middle class or a form of self-comfort that doesn't want to wake up, in short, with 800 million visitors, Tokyo Disney has ultimately become a lifestyle for the Japanese people.

In fact, it's not just Tokyo Disney. Over the past 30 years, the entire theme park industry in Japan has been an anomaly in the tourism industry—the worse the economy, the higher the park's prices, and the more popular it becomes:

According to data from the Japanese Ministry of Economy, Trade and Industry, in 2000, the average consumer spending on amusement parks/theme parks was around 5,000 yen, and it increased to 8,000 yen by 2017. The continuously rising ticket prices have led to a fluctuating upward trend in the market size of amusement parks/theme parks in Japan.

② Tokyo Disney creates a worldview that allows people to forget reality.

The Japanese website "Goo" once conducted a poll on this topic. In addition to reasons unique to Japanese people, such as "strange Japanese habits" and "Japanese people like to do the same things as others," most people believe that Disneyland has created a worldview that "allows people to forget reality."

Some say, "It's a dreamland that allows people to forget reality"; others say, "The unique world of Disneyland never gets boring, and you can always enjoy yourself."

The Disney world is not only enjoyable, but more importantly, it conveys sincere emotions between family and friends. People of all ages can find their own happiness in the Disney world.

If people can find inspiration and courage in the Disney world, then it is not just an entertainment venue, but a spiritual sanctuary that encourages us to move forward.

Image: Street interview in Japan

Source: Screenshot from online video

③ Continuously meeting the excessive demand of Japanese people for festivals

Perhaps influenced by traditional Confucianism, the Japanese are very persistent in "sense of ritual." They have a saying that 'ritual' should embody 'courtesy,' requiring that things be done with a sense of ritual to express their emotions.

The Japanese, considered "diligent" worldwide, are very prone to accumulating stress. To have an outlet for this stress, the Japanese often enjoy celebratory events. Compared to China or Korea, countless celebratory events are held throughout Japan.

"Disneyland holds many parades and firework shows, satisfying the Japanese yearning for celebratory events." (Translated from: A psychological analysis of Tokyo Disneyland's popularity by renowned Japanese psychologist Naito Yujin)

Looking back at the domestic tourism market in the past two or three years, from Zibo to Guizhou Village BA and last year's Harbin "fancy pampering of tourists," in round after round of online meme creation, tourism itself only exists as a stage; the real star is a wave of mass entertainment.

Image: Tokyo Disneyland

Source: Disneyland official website

From 6% to 95% ultra-high repeat visitation rate

The astonishing "Tokyo Model"

As early as its opening in 1983, Tokyo Disneyland's repeat visitation rate was only 6%. To avoid the risk of profit and loss, the original American company did not invest or hold shares, giving up its right to dispose of shares in Tokyo Disneyland. This hands-off approach gave Oriental Land Company the opportunity to create a miracle.

The publicly accessible Tokyo Disneyland created a legendary 10.36 million visitors in its first year. It took the Los Angeles Disneyland 25 years to accumulate 200 million visitors, while Tokyo achieved this in just 14 years and three months. Today, Tokyo Disneyland accounts for half of Japan's industry revenue.

Image: OLC's official statistics on Tokyo Disneyland's competitiveness analysis in Japan

Source: OLC Official Website

Tokyo Disneyland adopts a "licensing operation model." Disney provides technology and authorization, while the Japanese side invests and manages. The Walt Disney Company licenses relevant intellectual property rights to Oriental Land Company (OLC), and OLC is responsible for the park's daily operations.

Under the licensing framework, the Walt Disney Company does not directly participate in project operation and management, and therefore does not share profits, only collecting 10% of ticket revenue and 5% of in-park merchandise sales annually as "license fees."

Tokyo Disneyland is basically Japanese-invested, with most of the equity held by the Japanese side.

It's no exaggeration to say that Tokyo Disneyland, independently developed by Oriental Land, is undoubtedly the best Disneyland in Asia so far, in terms of both atmosphere creation and facility experience.

It is precisely because of sufficient autonomy that Tokyo Disneyland is not a purely Western-style theme park, but incorporates the Japanese business philosophy. The "Omotenashi" spirit is the essence of this Japanese management style.

"Omotenashi" originates from "mote-nasu," referring to an attitude towards people that reflects one's personality and upbringing. It can also be directly translated as "no facade," meaning "consistent inside and out," implying sincere hospitality.

Source: Image from the internet

Regarding this essence, Konosuke Matsushita, the "God of Management," once said, "Take care of what is unseen, and what is seen will shine."

The "Omotenashi" business spirit has gradually taken root in Japan's long-standing service industry and modern Japanese culture. Tokyo Disneyland incorporates Japan's "Omotenashi" spirit into its management, reflected in the details as "carefully creating dreams," maximizing the slogan of "a kingdom of dreams and magic."

Guided by this spirit, Tokyo Disneyland has established four operational principles: "Safety," "Courtesy," "Show," and "Efficiency," abbreviated as SCSE.

Tokyo Disneyland has a very precise data system. The prediction of daily park attendance and the actual number of tickets sold have minimal error. Therefore, employee management can accurately determine the number of employees on duty and adjust them precisely by time slot. In addition, even the quantity of each dish in Disneyland restaurants is precisely planned.

At Tokyo Disneyland, employees are constantly instilled with precise thinking. Such strict requirements gradually become company habits and culture. The numbers reported at various nodes are very precise. In the long run, operating with such precise numbers makes it very difficult not to make money.

Image: Tokyo Disneyland staff

Source: Disneyland official website

Tokyo Disneyland's philosophy is that instead of spending energy on developing new users, it's better to serve existing customers well, deeply understand customer pain points, refine services, and retain existing customers. Gradually, this Western park has been localized in Japan.

This localization allows Japanese people of all ages to find their own happiness here. Compared to domestic and foreign tourists who treat Disneyland as one of the famous tourist attractions, Japanese locals are more inclined to regard Tokyo Disneyland as their own backyard. Many people buy annual passes for unlimited entry throughout the year.

According to official statistics, so far, more than half of Tokyo Disneyland visitors have entered the park more than 10 times, and 16% have visited no less than 30 times.

Maximizing the length of stay

Tokyo Disneyland's mind control method

For theme parks, a healthy revenue ratio should keep ticket sales to under 60%, with the remaining 40% or more coming from secondary spending.

After the park is built, operators must find ways to increase visitor spending to ensure the park's sustainable operation.

So how do you achieve secondary spending? The answer is simple: maximize visitor time in the park and continuously stimulate their desire to spend.

Figure: Tokyo Disney's Consumption Structure Analysis (2019-2024)

Data Source: OLC Official Financial Reports

Based on the official annual revenue data, Tokyo Disney's secondary sales revenue has remained at around 60% of total revenue in recent years.

Tokyo Disneyland has done everything it can to extend visitor stay time, investing heavily in various amusement facilities. However, hardware alone is insufficient; efficient utilization requires operational skills and strategies.

① Creating an Ideal World for Women

Unlike other children's parks that target children and families, Tokyo Disney focuses on women. They are more likely to believe in fairy tales, be moved, and make impulse purchases; they are willing to spend money on beautiful experiences; and women are often the decision-makers in family spending.

Statistics show that one-third of Japanese women have visited Disney more than ten times.

Figure: Tokyo Disneyland Attendance Statistics

Source: OLC Official Website

Tokyo Disney is adept at understanding women's psychology.

For example, Tokyo Disney is deliberately designed to create a dream world separate from reality. You can't see inside the park from outside, nor can you see outside from inside. There are very few mirrors inside, and even the restrooms only have mirrors at the entrance for quick touch-ups, preventing visitors from being pulled back to reality.

② Maximizing Sightseeing Time

For example: The design of the park is meticulous. The ground is specially designed so that visitors won't get too tired after a day of walking.

There is also a slight incline at the entrance, and a gentle decline at the exit, making it easier for visitors to leave in the evening. This design maximizes comfort to extend sightseeing time.

③ Clever Show Scheduling to Make Visitors Forget Time

Tokyo Disney adjusts the number and timing of shows based on the season, but there's always a performance or parade somewhere in the park within a two-hour period.

During the off-season (excluding summer and holidays), when visitor numbers are lower, visitors finish their itinerary earlier. The park schedules well-timed performances to keep visitors engaged just as they are thinking of leaving.

Performances often lead visitors to purchase snacks from mobile food carts at mealtimes. Several small meals or snacks easily exceed the price of a regular meal (1,000 yen), increasing sales by 20% for the park.

④ Cultivating Purchasing Desire Everywhere

Tokyo Disney has carefully considered the strong desire of children and young women for popcorn and souvenirs, and the placement of retail outlets is strategic.

For example, there are 13 popcorn stands throughout the park, each with a unique popcorn bucket. The Winnie the Pooh stand even offers a special honey flavor, encouraging visitors to collect them.

Figure: Tokyo Disney's Popcorn Map

Source: Internet

Tokyo Disney also has its own logic in product display. They present goods in an "unobstructed" way to increase the chances of visitors touching them. Only by holding a product can one truly appreciate it, fostering a sense of fondness and increasing purchase opportunities.

During anniversaries and other festivals, Tokyo Disney releases limited-edition products at higher prices, creating a sense of urgency. Attractive festivals are also a reason for the park's 95% repeat visitor rate.

⑤ The Right Amount of "Regret"

If it's your first time at Tokyo Disney, you won't be able to experience everything in one day. The park is designed so that you can only experience about two-thirds of it in a day, leaving you with a sense of regret. This feeling motivates repeat visits.

But on your next visit, there will be new themes and activities. This accumulation of "small regrets" continuously fuels the desire for "next time." Some call this experience "addictive!"

Tokyo Disney's revenue growth is mainly driven by increased per capita spending and slow growth in visitor numbers. By enriching its offerings, Tokyo Disney has effectively extended visitor stay time from 7 hours to about 68 hours, making it the most consumer-driven area in the Tokyo metropolitan area.

Figure: All of Tokyo Disney's Offerings

Source: Disneyland official website

A Park That Never Finishes Construction

Constant Innovation: Tokyo Disney's Core Competitiveness

Since its opening, Tokyo Disneyland has employed a business strategy of continuously adding new attractions, facilities, and services to attract visitors and encourage repeat visits. The initial construction investment was 150 billion yen (approximately 11.8 billion RMB).

Over 18 years, a further 120 billion yen (approximately 9.5 billion RMB) has been invested in constructing super sound equipment and 35 attractions.

The newly opened "Fantasy Springs" area in Tokyo Disneyland last month alone has exceeded 320 billion yen in total investment.

Image: Summary of newly added areas and facilities in Tokyo Disneyland over the years

Source: Compiled from official Disney information

Today, there is no more land available for construction on that plot of land in Urayasu Port, Chiba Prefecture. Tokyo Disneyland is still searching for new ways to meet the ever-increasing consumer demand.

This led to the "Wish" cruise ship. Oriental Park officials predict its official launch in 2028, bringing approximately 400,000 consumers and 100 billion yen in revenue annually.

From land to sea, Tokyo Disneyland seems to be a creative park that will never be completed.

Image: The "packed" Urayasu Port in Chiba Prefecture

Source: OLC Official Website

② Monthly themed events, always fresh

In addition to hardware upgrades, Oriental Park Company adds tens of billions of yen in funding each year for construction. Facilities, performances, and parades are constantly being updated to attract repeat visitors.

Themed events at Disney change monthly, adding a sense of freshness for visitors. Games launched through these themed events keep many visitors entertained.

Tokyo Disneyland has seven themed areas: World Bazaar (Victorian-era streetscape), Adventureland (adventure and legends), Westernland (Wild West era), Critter Country (waterfront charm), Fantasyland (enchanting world), Toontown (fairytale kingdom), and Tomorrowland (future science and space).

These seven themed areas feature a total of 35 spectacular performances, all characterized by "everything is moving and colorful." The settings and characters are magical, novel, thrilling, and exciting.

This is made possible by Japan's self-developed "electronic sound and motion device." Driven by this device, the park's more than 2,000 puppets and animals are incredibly realistic, creating an immersive experience.

Image: Tokyo Disneyland's nighttime activities

Source: Disneyland official website

Understanding the Underlying Logic of Theme Parks from Tokyo Disneyland

A world-renowned theme park not only brings revenue and profit growth to listed companies, but can also drive local economic development. The radiating effect of a theme park is more than 15 times the park's own revenue.

Not just Tokyo Disneyland, the peak of Japan's theme park industry reached 720 billion yen in 2019, with a compound annual growth rate of 4.7% from 2000 to 2019. Even in a mature market, the theme park industry continues to maintain faster growth than GDP.

Why is this?

As an offline experiential entertainment consumption, theme parks prioritize providing visitors with scene and content experiences, not just equipment and thrills.

This immersive experience. From the moment a visitor enters the park, all the scenes, facilities, equipment, and staff service work together to create a "story" for the visitor.

Leveraging the brand power of IP further enhances customer loyalty, allowing the park to continuously increase prices.

On one hand, there's proactive price increases; on the other, when the park nears capacity, passive price increases filter out some visitors. This is why Disney parks worldwide are continuously raising prices, yet visitor numbers continue to grow.

Finally,