Euro Disneyland. A Cost Benefit Approach

Research Paper (postgraduate) , 2018 , 24 Pages , Grade: A

Economics - Finance

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

Conclusion

Bibliography

Annex 1: Structure of the Euro Disneyland Project

Annex 2: French Minimum Wage Table

Annex 3: Estimate of the Benefit

Annex 4: Attendance

Annex 5: Total Benefit with adjusted for created tourism

Annex 6: Estimate of the Costs

Annex 6: Estimate of the Environmental costs

• College: The George Washington University (Trachtenberg School of Public Policy and Public Administration)
• Course: Cost-Benefit Analysis
• Grade: A
• Author: Alexandre Aubard (Author)
• Publication Year: 2018
• Pages: 24
• Catalog Number: V465022
• ISBN (eBook): 9783668944053
• ISBN (Book): 9783668944060
• Language: English
• Tags: Public Finance, Economics, Disney, Disneyland Paris, France, Cost benefit analysis