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Yes, I'd say that Tokyo and Hong are too close to each other. But Japan pretty much provides its gate from within country so they directly compete with Hong Kong less than I imagine Sydney and Hong Kong would compete with each other (and Sydney is twice as far from Hong Kong as Tokyo is) for the wealthy Southeast Asian tourist market.
Keep in mind that all of Australia has fewer people than Southern California so a park there would have to rely on intenrational tourism much more than TDL does with six times the domestic population.
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