80 billion injection, do we know how much is going to Asia?

[Supersnow84]

So as we know there are pretty credible “rumour announcements” going around that Disney is going to inject 80 billion into the parks division in the next 10 years.

We also know something in the realm of 10-15 billion of that is going to Paris which makes sense due to Paris slow expansion relative to its popularity.

But has there been any speculation or announcements about how much is going to China, HK still has money banked from its last expansion and Shanghai has no concrete plans beyond zootopia, will either of them get anything since they have to get the government to agree to provide equal share and China is not doing terribly well economically right now.

If you do think they will get some, how much and what do you think they will do with it given each parks current financial situation

 

[Haymarket]

and China is not doing terribly well economically right now.

That's exactly why the Shanghai and Hong Kong governments will invest. Beijing wants more domestic consumption and high-quality development. Disney parks are perfect for this.

I wouldn't be surprised if Beijing is discussing another new resort with Disney—e.g., Chongqing or Beijing.

 

[Mark_E]

Sure more sense for a second Shanghai park before a totally new resort though? Watch out where Universal Beijing ends up on the global attendance table for 2023 - that will give a good indication along with SDL figures on what to expect going forward. I can totally see another Disney resort happening eventually, especially since I’d say 99% of the attendance is from domestic travel. But they’d be mad not to utilise the space they already have in Shanghai which desperately needs more capacity.

Does this funding include Tokyo? Or is that funded separately? That said can’t see TDS or TDL getting anything else major announced anytime soon with their massive current expansion.

 

[Haymarket]

Sure more sense for a second Shanghai park before a totally new resort though? Watch out where Universal Beijing ends up on the global attendance table for 2023 - that will give a good indication along with SDL figures on what to expect going forward. I can totally see another Disney resort happening eventually, especially since I’d say 99% of the attendance is from domestic travel. But they’d be mad not to utilise the space they already have in Shanghai which desperately needs more capacity.

Does this funding include Tokyo? Or is that funded separately? That said can’t see TDS or TDL getting anything else major announced anytime soon with their massive current expansion.

Disney doesn't fund anything related to the Tokyo resort. It's all OLC, as it's the sole owner.

Disney pays for 43% of any project for the Shanghai resort, equal to its ownership; for every $1 billion Disney invests in the park, the local government invests $1.33 billion.

 

[marni1971]

Hong Kong have said tourism - both local and further afield - is suffering since Covid. Perhaps they’ll use this as part of their solution.

 

[Advisable Joseph]

So as we know there are pretty credible “rumour announcements” going around that Disney is going to inject 80 billion into the parks division in the next 10 years.

Bob Iger outright said Diney was planning around $60 billion of capex spending in the parks.

I wouldn't be surprised if Beijing is discussing another new resort with Disney—e.g., Chongqiing or Beijing.

It* was also said that Disney was not planning right now on building parks in new cities.

You can see an article about this here.

EDIT: * I originally said Iger, but the article didn't say who made the announcement.

 

[Mark_E]

Disney doesn't fund anything related to the Tokyo resort. It's all OLC, as it's the sole owner.

Disney pays for 43% of any project for the Shanghai resort, equal to its ownership; for every $1 billion Disney invests in the park, the local government invests $1.33 billion.

Incredible. I guess if the local government is willing to put the money in they’d be mad not to invest.

 

[Haymarket]

Bob Iger outright said Diney was planning around $60 billion of capex spending in the parks.


Iger also said that Disney was not planning right now on building parks in new cities.

You can see an article about this here.

"At the moment, Disney does not plan to build parks in new countries or cities. (In the past, the company looked at building a park in India, for instance, and expanding beyond Hong Kong and Shanghai in China.) Rather, the company will focus on developing new ports for its ships."

This paragraph? Iger wasn't quoted. I think they're paraphrasing D'Amaro.

 

[Advisable Joseph]

"At the moment, Disney does not plan to build parks in new countries or cities. (In the past, the company looked at building a park in India, for instance, and expanding beyond Hong Kong and Shanghai in China.) Rather, the company will focus on developing new ports for its ships."

This paragraph? Iger wasn't quoted. I think they're paraphrasing D'Amaro.

I apologize.

 

[Disstevefan1]

So as we know there are pretty credible “rumour announcements” going around that Disney is going to inject 80 billion into the parks division in the next 10 years.

We also know something in the realm of 10-15 billion of that is going to Paris which makes sense due to Paris slow expansion relative to its popularity.

But has there been any speculation or announcements about how much is going to China, HK still has money banked from its last expansion and Shanghai has no concrete plans beyond zootopia, will either of them get anything since they have to get the government to agree to provide equal share and China is not doing terribly well economically right now.

If you do think they will get some, how much and what do you think they will do with it given each parks current financial situation

Its up to 80B? I thought it was 60B

I hope they can get some sweet DEI/SEG financing because they obviously need all their money to make money losing movies.

Iger LOVES China, so most of it will go there and NONE for WDW because of (you know who).

 

[networkpro]

Incredible. I guess if the local government is willing to put the money in they’d be mad not to invest.

Ahh you have stumbled on the rubric that plagues China these days, local government, and how it's financed. 90% of it is done by leasing real estate to developers like Evergreen and Country Garden via local government financing vehicles which now are quite insolvent to the point where they cant even pay the interest on their debts.

 

[CosmicDuck]

I would guess very little of it would be. Zootopia is finishing in Shanghai, and with tensions at an all time high with China it's not exactly a worthwhile near-term investment. Arendelle finishing in HKDL will give it a much needed shot in the arm. I expect if anything, if plans solidify for the Avengers E-Ticket in DCA, they'll finally build that over in HKDL as well. Otherwise I wouldn't expect anything for them. And obviously capex has nothing to do with the TDR parks.

 

[SweetDuffy101]

Wildcard would be another destination resort in Asia and Australia pacific, DCL are coming bothe to SG and Down Under.

For every 10 years we've gotten a brand new castle park. and maybe just maybe somewhere in SOUTHEAST ASIA or Australia might be getting a Theme park. The market potential for another Disney park is Huge for DISNEY. Even countries like The Philippines, Vietnam, Thailand, Indonesia and Australia has untapped market. and WDC might wanna tap into that territory.


Especially with Hongkong Disneyland majority of cast members are Filipino Cast members.

 

[Supersnow84]

They are never going to build a resort in Australia, Australia’s best theme parks struggle to pull 1.5 even in the tourist capital

It wouldn’t even come close to meeting Disney’s standards

Singapore already rejected a resort (or more precisely they both agreed one wouldn’t fit on Sentosa) and the rest of SEA probably isn’t quite profitable/high enough socioeconomic for Disney yet

 

[Rush]

HKDL fills the SEA market and i still maintain that Disney's next resort is going to mainland China.

 

[Supersnow84]

Yeah HKDL is the most common resort for all non AUD SEA (I believe Australia is actually Anaheim) and that’s a market they really haven’t actually tapped into yet since HK had been floundering for so many years

I also agree after the great theme park failure of the gulf states a theoretical 7th resort would also probably be in mainland China after they internally stabilise

Shanghai’s guests are overwhelmingly people from the Yangtze delta region so Shanghai shows you really only need one big mega city to support a resort so it’s hard to say that the Chinese market is remotely saturated

 

[EPCOTCenterLover]

I’m betting on India.

 

[Robbiem]

I’m betting on India.

I’m going for a middle east resort built with local money.

 

[Rush]

I can see Dubai closing down the MotionGate resort in favor of a Disney park. And we know Saudi Arabia has been in contact with TWDC about opening one there. I think both would be successes, actually. Especially if Dubai's government works to clear the way for a Disney resort.

 

[Haymarket]

i still maintain that Disney's next resort is going to mainland China.

I agree.

Maybe new type of smaller resort with a different kind park—not a castle park—in South Korea, too.