Parks segment to nearly double capital expenditures
BAY LAKE, Fla. – The Walt Disney Company is planning to invest approximately $60 billion into its theme parks and cruise lines over the next decade, the company announced Tuesday.
The company said in a regulatory filing that the planned investment is nearly double what it spent in the prior 10-year period.
The Disney Parks, Experiences and Products segment continues to do well for the company, with revenue rising 13% in its fiscal third quarter. That’s helped to offset the struggles in its Disney Media and Entertainment Distribution unit, which saw revenue dip 1% in the period.
Disney is confident in its plans, saying in a prepared statement that it's seen growth following previous periods of significant investment, which included the additions of Cars Land at Disney California Adventure, Star Wars Galaxy’s Edge at Disneyland and Hollywood Studios at Walt Disney World, Avengers Campus at California Adventure and Walt Disney Studios Park in Paris.Avengers Campus at Disney's California Adventure (WKMG)
During a presentation at its Destination D23 event earlier this month, Disney leaders made several parks announcements, including plans to create a new Pirates of the Caribbean-themed lounge in Magic Kingdom, a reimagining of the Test Track ride at EPCOT and future lands being considered at Disney’s Animal Kingdom.At Destination D23 2023, it was announced that Walt Disney Imagineering is planning to reimagine Dinoland U.S.A. at Disney’s Animal Kingdom Theme Park (© 2023 Disney. All Rights Reserved )
Disney also shared first looks at new Frozen-themed lands at its Hong Kong, Paris and Tokyo theme parks, along with a Zootopia-themed land in Shanghai.
Disney’s theme parks have been a top priority for Bob Iger since he returned in November to take over the CEO post from Bob Chapek.
The Burbank, California-based company’s theme parks are widely viewed by industry experts as a critical component of its business.Disney investments over the past 10 years (Disney)
While the company didn’t provide details on any specific plans it has for the $60 billion investment, it did say that “there is a deep well of stories” that haven’t been fully explored at its theme parks yet. Disney said it has seven of the top ten most attended theme parks in the world, including Walt Disney World’s Magic Kingdom Park, which has been the number one attended theme park on earth for decades. Disney Parks welcome approximately 100 million guests each year.
Disney said that it has significant room to expand its theme parks further, with more than 1,000 acres of land for possible future development to expand theme park space across its existing sites. That's equal to about seven new Disneyland parks.The Disney Treasure, the newest ship in the Disney Cruise Line fleet expansion, will set sail in December 2024 (Disney Cruise LIne)
Some of the company’s cruise line plans are already in place, as it previously announced that it will be adding two ships, the Disney Treasure. in fiscal 2025 and another in 2026. Based on its latest earnings report, Disney Cruise Line reported that it’s seeing 98% booking occupancy.
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About the Authors:
Landon joined News 6 in 2017. He grew up in Southern Illinois and graduated from Southern Illinois University with a bachelors degree in TV and digital media. When he is not at work you can catch him at one of Orlando's theme parks or the beach. Before working at News 6 he worked for stations in Miami and Fort Myers.