Disstevefan1
Well-Known Member
Iger will absolutely use the word "reason" when making his excuses
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News Disney plans to accelerate Parks investment to $60 billion over 10 years
- Thread starter CaptainAmerica
- Start date
Well, the brake pedal is usually next to the accelerator.
Disstevefan1
Well-Known Member
James Alucobond
Well-Known Member
I agree. Again, I was just saying that I think the majority of things that experience cancellation will likely be those we haven’t officially heard of yet. It was in response to a question about whether or not there had been announcements yet.
There's been no announcements of any cancellations, roll-backs, reduction in Capex, or scope of projects.
Yet.
Yet.
They are coming, but right now Disney is still diligently working ("laser-focused", according to what someone heard Josh say) on the press release officially announcing of the cancellation of the Main Street Theater. Just be patient.
Splash4eva
Well-Known Member
In fairness. No need to speculate. When was the last project that didnt get delayed
BrianLo
Well-Known Member
I’d be pretty surprised to see major cancellations. Most of the larger products are self funded thanks to LLSP and they need to feed that beast.
It’s the 2025 slate that frankly would normally be the things they’d cancel in a downturn. Entertainment. But we are in a pretty strange window.
As is, they can certainly slow roll things, but there still is some development obligation that is being audited in 8 years. Something I don’t quite see evidence of that they’ve actually met, even if this all carries through.
It’s the 2025 slate that frankly would normally be the things they’d cancel in a downturn. Entertainment. But we are in a pretty strange window.
As is, they can certainly slow roll things, but there still is some development obligation that is being audited in 8 years. Something I don’t quite see evidence of that they’ve actually met, even if this all carries through.
Wendy Pleakley
Well-Known Member
Annual passes are better for Disneyland, where the primary source of revenue is theme park tickets and food/merch.
WDW relies on tourists to fill hotels. I don't think discounts will be enough to entice locals to make up for all of any shortcomings in that department.
Annual passes are an easy way for Disney to "top up" the daily guest count, but you don't operate a major resort with four theme parks, two water parks, and multiple hotels based on a local audience.
Bocabear
Well-Known Member
I would be pretty surprised to see cancellations too, but with construction materials costs heading upward, those budget numbers that were approved a year ago will fund a lot less for the parks...
You can be sure something is going to have to give... Maybe the full scope of the projects...Maybe some complete announced projects.... Look what happened with their EPCOT reimagining... They demolished half of Communicore, cancelled the demo on the other one and just remodeled, and then cancelled the big new building and added a cafeteria building...just to finish it off. They also cancelled the attraction for the UK Pavilion completely with nothing ever spoken of it again... I imagine they will have to value engineer what has been announced and we will probably lose anything that is a "Phase 2" project....
Tha Realest
Well-Known Member
The last half hour of the most recent Disney Dish went through the problems facing various projects that have not yet broken ground.
On one side of it, there is the uncertainty involved with the tariff situation, and the interconnected problems accurately budgeting these projects.
On the other side of it, there are the current challenges and headwinds they’re experiencing in terms of the lower attendance projections (possibly already evidenced by the aggressive discounts already being offered). Couple that with the international travelers pulling back on trips for the foreseeable future with the airlines like Delta already saying that growth has stalled and they had to retract their profit projections, and you have a scenario where the company is squeezed in terms of development costs at a time their revenue (let alone profits) may be cratering.
Oh, and Avatar 3 might not get a Chinese release (Avatar 2 made $250M in China alone).
On one side of it, there is the uncertainty involved with the tariff situation, and the interconnected problems accurately budgeting these projects.
On the other side of it, there are the current challenges and headwinds they’re experiencing in terms of the lower attendance projections (possibly already evidenced by the aggressive discounts already being offered). Couple that with the international travelers pulling back on trips for the foreseeable future with the airlines like Delta already saying that growth has stalled and they had to retract their profit projections, and you have a scenario where the company is squeezed in terms of development costs at a time their revenue (let alone profits) may be cratering.
Oh, and Avatar 3 might not get a Chinese release (Avatar 2 made $250M in China alone).
Disstevefan1
Well-Known Member
BrianLo
Well-Known Member
Absolutely something has to give. But there is a lot of headroom between the 17B they intended to spend, the 8.5B they have to spend and the 5B or so we know about.
I think the inflationary pressures on projects will be marginal compared to the tourism decline.
The inflationary pressures assume policies last more than days, but the tourism downturn is locked for a number of quarters, at least. If there’s a global recession, that worsens.
Sirwalterraleigh
Premium Member
Well if there was any commitment - whatsoever - to any of this…then these proclamations might be easier to figure out…
Sirwalterraleigh
Premium Member
I like the concept of “have to spend”…it’s theoretical…like the lost city of Atlantis
BrianLo
Well-Known Member
Disstevefan1
Well-Known Member
This is pure speculation on my part, but I have a bad feeling we are going to end up with some scope cut cr@p when all the dust settles in 5 to 7 years
Sirwalterraleigh
Premium Member
…well…a more obvious stunt you’d be hard to find
I’m sure even in the land of hopes and dreams you can get an economic study on the negative impact that a prison would have on both instate and out of state business…
Tough to follow through on when you’re a tax haven who depends almost solely on sales tax from Those visitors.
By the way…did anyone see the report that recreational travel from the EU to the US is tracking down 32%
so far this year?Yowza
hopemax
Well-Known Member
I'm guessing the hand is going to come down on this thread too, but I'm lol'ing.
However, more seriously, people keep predicting recession which means Disney could make a strategic decision to move forward even if things cost more. But what happens if construction / technical components aren't available at any price? The reason because of actual or effective embargo, or things are no longer in production because the place that made them went out of business / eliminated them? Pandemic supply chain issues x 100. I've seen trade professionals talking about this, and where my mind went early in this chaos. We're used to things being "available, somewhere, if you pay." And that's not a guarantee depending on how badly things seize up and the collateral damage.
However, more seriously, people keep predicting recession which means Disney could make a strategic decision to move forward even if things cost more. But what happens if construction / technical components aren't available at any price? The reason because of actual or effective embargo, or things are no longer in production because the place that made them went out of business / eliminated them? Pandemic supply chain issues x 100. I've seen trade professionals talking about this, and where my mind went early in this chaos. We're used to things being "available, somewhere, if you pay." And that's not a guarantee depending on how badly things seize up and the collateral damage.
Rosso11
Well-Known Member
Total International was down 4.4% from January-March. March alone was 10% however Easter was in March last year compared to April this year so they believe a good chuck of that is the Easter vacations last year. Not sure if the European number he references is accurate but overall internationally into the US is not nearly as bad. But still not good.