The Walt Disney Company, a popular leisure and entertainment corporation, has announced its plan to double its theme park investment over the next decade. This will reach a massive sum of 60,000 million US dollars. The company aims to use this investment to expand and enhance its parks in the United States and other countries, attracting roughly 100 million visitors annually. It also aims to increase cruise capacity.
The CEO of an American company, Bob Iger, and the president of Disney Parks, Experiences, and Products, Josh D'Amaro, met with Wall Street analysts and investors. They explained their plans for the group's entertainment business and theme parks.
Bob Iger said, "We are fully aware of the company's financial fundamentals, the need to continue growing and delivering results, the importance of investing wisely to increase the return on invested capital, and the need to maintain a balanced sheet."
Disney's CEO has stated that the company can absorb its plans' associated costs while increasing its results. Disney plans to explore more characters and franchises, including some that have not been widely explored. D'Amaro, the CEO, said, "We have a wealth of untapped stories to bring to life across our business. Frozen, one of the most successful and popular animated franchises ever, could be at Disneyland Resort. Wakanda has not yet come to life. Coco’s world is waiting to be explored. Storytelling has many opportunities."
Expansion by Land and Sea
Disney currently operates 12 parks across six locations around the globe. Shanghai Disney Resort's latest resort opened in 2016. On the other hand, Disney Cruise Line offers trips to 94 ports in 40 countries.
Disney's parks business is a crucial driver of company success. The international parks, mainly those in Asia, have witnessed significant growth after the pandemic. The expansions planned for later this year offer even more growth opportunities. This is especially true for Shanghai Disney Resort and Hong Kong Disneyland.
Disney has announced that it still has plenty of room to grow on land and at sea. Their theme parks currently span over 1,000 acres (equivalent to roughly 404 hectares) of land, leaving ample space for expansion. The available land could create up to seven new Disneyland parks if fully used.
In addition to expanding their theme parks, Disney is doubling their cruise line capacity in two years. This includes adding two new ships in 2025 and another in 2026 and establishing a new home port in Singapore from 2025 onwards. These expansions will enable Disney to reach new audiences and establish its presence in Asia.
Disney parks attract around 100 million visitors annually. However, according to internal studies conducted by the company, there is a potential market of over 700 million individuals who share a strong affinity for the Disney brand. However, they have not yet visited any parks.