Euro Disneyland. A Cost Benefit Approach

Research Paper (postgraduate) from the year 2018 in the subject Economics - Finance, grade: A, The George Washington University (Trachtenberg School of Public Policy and Public Administration), course: Cost-Benefit Analysis, language: English, abstract: 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.