The House of Mouse is going to get a lot bigger — literally.
Disney has announced plans to invest about $60 billion in the expansion of its theme parks, cruise lines, and resorts over the next decade, nearly doubling its investment in the division that serves as its primary profit source, the Wall Street Journal reported.
CEO Bob Iger and Josh D’Amaro, chief of Disney’s Parks, Experiences, and Products division, revealed the plans at an investor summit held at Walt Disney World in Orlando.
While details were scarce, Disney emphasized a focus on high-return projects, including potential additions to its U.S. and international parks and cruises. Among the possibilities mentioned were the introduction of “Frozen” at Disneyland Resort and the creation of a “Black Panther” Wakanda experience.
Disney has more than 1,000 acres of undeveloped land for park expansion to accommodate the millions of visitors that frequent its global theme parks annually. The company also intends to introduce more cruise ships and establish a new home port in Singapore.
This announcement underscores Disney’s ongoing transformation in response to changing market dynamics. Historically reliant on income from its traditional cable television business, Disney is adapting to the decline in cable customers by ramping up its thriving theme parks as its primary financial engine.
In recent quarters, the parks division’s operating income has outperformed the linear TV business by substantial margins, the newspaper reported.
Not everyone was sold on Disney’s manifest destiny plans. Despite the significant investment in parks, Disney shares dropped 3 percent in trading, possibly due to concerns about near-term cash flow issues.
Over the past few years, Disney has implemented various changes in its theme parks, such as price increases, premium add-ons, and higher concession prices, aimed at maximizing revenue per guest. However, these changes have generated complaints from some visitors, particularly annual passholders.
While the COVID-19 pandemic had initially impacted Disney theme parks, there has been notable growth at international locations, such as Shanghai Disney Resort and Hong Kong Disneyland, according to the company. Despite this, reports from July suggested that Disney parks were emptier than usual during the summer, possibly due to recent ticket price increases.
The announcement comes in the midst of a feud with Florida Gov. and presidential hopeful Ron DeSantis that started over the company’s stance on the state’s so-called “Don’t Say Gay” law that restricts the discussion of gender identity and sexual orientation in schools.
That drew DeSantis’ ire, with the state legislature voting last year to strip Disney of its special tax district, which gives the company the authority to effectively act as a local government that can issue bonds and approve building plans for its 25,000-acre theme-park complex.
— Ted Glanzer