Few tourism businesses can boast of nearly 12-figure investments in their companies, but few tourism businesses are like the Walt Disney Co.
In an update to the US Securities and Exchange Commission (SEC), Disney says it plans to spend around US$60 billion (nearly AU$100 billion) in its theme parks and cruise lines over the next decade – equal to about AU$25 million daily for the next 10 years.
The American giant’s new commitment would nearly double its parks expenditure, the company says, as it looks to accelerate growth in what is already one of its most successful business arms.
As part of the investment, Disney would continue “expanding and enhancing domestic and international parks and cruise line capacity, prioritising projects anticipated to generate strong returns, consistent with the company’s continuing approach to allocate capital in a disciplined and balanced manner”.
At a recent meeting of Wall Street analysts and investors at Walt Disney World Resort in Orlando, Disney CEO Bob Iger called the parks “a tremendous business” for the California-based entertainment group.
Wins and growth
According to Reuters, Disney says its parks, experiences and products segment had grown at a combined average rate of six per cent since 2017, generating some US$32.3 billion (approximately AU$50 billion) in income over the past year alone, per a presentation included in the SEC filing.
In a September blog, it notes that significant investments like Cars Land at Disney California Adventure or Disney’s Hollywood Studios in Orlando had boosted parks’ attendance.
It also flags new attractions and amenities for its Disneyland Resort in Anaheim, California.
Elsewhere, the organisation says it currently has more than 1,000 acres of land for development at its six existing theme park sites around the world, Reuters reported.
The company says it hopes to appeal to around 700 million identified Disney fans who have yet to visit one of its theme parks.
While business has slowed at Walt Disney World in Orlando, Disney reports that attendance has surged at parks around the world, particularly at Shanghai Disney Resort and Hong Kong Disneyland.
Sailing to success
Meanwhile, the company says it plans to nearly double capacity of its cruise line with two ships in 2025 and one more in 2026.
After the sell-out success of the first-ever Disney Magic at Sea sailings in Australia and New Zealand from late October 2023, Disney Cruise Line shared the ocean-going enchantment again with a new cruise season from 19 October 2024 through to February 2025.
In August, Karryon joined some 150 travel advisors on a journey to the happiest place on earth, via Melbourne – specifically the first Disney Days event of 2023.
Earlier this year, Karryon also attended an invite-only fireside chat and interview session with Disney Destinations’ Javier Moreno and Jeff Van Langeveld for an Australian exclusive sneak peek into new developments for the group and APAC region.
Meanwhile, this Aussie city is already choosing sites for Australia’s first Disneyland.
