Effect of Hong Kong Deal on Walt Disney World?

[WDWFigment]

For those unfamiliar with the story: http://www.bloomberg.com/apps/news?pid=20601080&sid=alP3wtOsQMIE

How, if at all, will this effect any potential expansion plans at Walt Disney World? Now, I know the two resorts should operate on mutually exclusive budgets since they have their own revenue streams, but they still both fall under Parks & Resorts, which likely has finite amounts of money for the aggregate of all projects (so Hong Kong and WDW's budgets really aren't mutually exclusive) improvements at one park may to some extent depend on what's occuring at other parks.

I think with DCA getting $1 billion pumped into it, and HK getting nearly half a billion dollars invested into it, we might be at a point where Parks & Resorts is leveraged to the extent that the division is unable to take on additional debt or make further investments. Especially given that both of the aforementioned parks might take several years before turning a profit. It thus seems possible that profits from WDW will be diverted to these projects elsewhere.

I hope this is not the case, but I could see Parks & Resorts being skiddish about undertaking other large-scale projects given the massive resources being expended in these two projects.

Please recognize that I'm not making excuses for TDO, nor am I advocating this as what I'd like to see happen, or what I expect to happen--just what possibly could happen.

What do you all think?

 

[Figment632]

Seeing that I could careless about parks that arent in the US Id rather have the money spent on a domestic park.

 

[PhotoDave219]

I think that any thoughts of Park expansion or 100-million-dollar attractions coming anytime soon are sadly mistaken. There's no way the SSE decent will get finished now.

Unless the suits decide to start reinvesting money from WDW into WDW, looks like profits here will be going to fix Disney's California Mistake and improve HKDL.

How is HKDL doing financially & capacity wise? I know it was a small park to begin with but is the expansion needed this soon in?

 

[prberk]

Seeing that I could careless about parks that arent in the US Id rather have the money spent on a domestic park.

What a remark to make on a board that is owned and run almost completely at his own financial risk by a fellow located in Britain. If Steve felt that way, you wouldn't have a place to post such a statement....

I wonder if you ever visit World Showcase...

Paul

 

[MousDad]

They get the Adventurer's Club, and we don't.

 

[Figment632]

What a remark to make on a board that is owned and run almost completely at his own financial risk by a fellow located in Britain. If Steve felt that way, you wouldn't have a place to post such a statement....

I wonder if you ever visit World Showcase...

Paul

Seeing how more people from Europe come to WDW then DLP,HKDL,and TDL combined you would think they would invest more money on WDW.

If all I go is to the domestic parks why should I care if HKDL gets an expansion?

 

[bgraham34]

I would love for Disney to do more for Florida but Disney is an international brand. There is probably more money to be made outside the US at this point than inside. Plus DLP is a really nice park.

 

[jakeman]

Seeing how more people from Europe come to WDW then DLP,HKDL,and TDL combined you would think they would invest more money on WDW.

If all I go is to the domestic parks why should I care if HKDL gets an expansion?

Because Disney is a global company, and if they suffer in other parts of the world then the US parks will be responsible for compensating for that loss of revenue.

The best thing that could happen would be for all the other parks to out-perform WDW on a regular basis.

 

[Figment632]

Because Disney is a global company, and if they suffer in other parts of the world then the US parks will be responsible for compensating for that loss of revenue.

The best thing that could happen would be for all the other parks to out-perform WDW on a regular basis.

But due to the size of WDW and the amount of people that come each year that will probaly never happen.

 

[DisneyDellsDude]

Wow. I'm glad this is occurring for the park, as it desperately needed it!
And I'm glad it is something unique to their park - plus a "new" Haunted Mansion style attraction - with the trackless system - amazing!:sohappy:

But I have little doubts that this will affect WDW all that much - so I would not be worried. Like I said, this park really needed it.
But Shanghai better be the last Disney Resort for a LONG TIME! We need to invest in the existing resorts.

And IMO about the expansion, I like how everything sounds so far except for the Toy Story Land - it just screams Dino-Rama to me.

 

[jakeman]

But due to the size of WDW and the amount of people that come each year that will probaly never happen.

In sheer numbers probably not. However, it's apples to oranges compare the whole WDW complex to HKDL.

There are several ways that WDW could be passed by other resorts that wouldn't look good. Per guest spending would be one of the biggest indicators. Guest satisfaction (blah, blah, blah TDO hates guest post incoming) is another.

Raw numbers are usually not the best indicator of success.

 

[Buried20KLeague]

Seeing how more people from Europe come to WDW then DLP,HKDL,and TDL combined you would think they would invest more money on WDW.

If all I go is to the domestic parks why should I care if HKDL gets an expansion?

Wow.

You do know there's more out there in the world than the McDonald's at the end of your street, right???

That's a bold statement to say more people from Europe come to WDW than DLP, HKDL, and TDL combined. It's not only bold... But I'd venture to say it's COMPLETELY INCORRECT... Considering DLP is in their backyard and is the largest tourist attraction in Europe. And that doesn't even take into account TDL... When I was there, there were thousands of "westerners", and the vast majority was from Europe.

You should care if HKDL gets expanded if for no other reason than the cloning that Disney has been obsessed with lately. Let them do the R&D on new top notch attractions overseas with the help of other governments, then clone it in your backyard.

And while you're ignoring the fact that there are actually other countries and continents on this planet that co-exist with the USA, I'll be over there checking those attractions out.

Disney is a global brand. World wide growth can do nothing but help the company in all areas. Domestic parks included.

 

[Figment632]

Wow.

You do know there's more out there in the world than the McDonald's at the end of your street, right???

That's a bold statement to say more people from Europe come to WDW than DLP, HKDL, and TDL combined. It's not only bold... But I'd venture to say it's COMPLETELY INCORRECT... Considering DLP is in their backyard and is the largest tourist attraction in Europe. And that doesn't even take into account TDL... When I was there, there were thousands of "westerners", and the vast majority was from Europe.

You should care if HKDL gets expanded if for no other reason than the cloning that Disney has been obsessed with lately. Let them do the R&D on new top notch attractions overseas with the help of other governments, then clone it in your backyard.

And while you're ignoring the fact that there are actually other countries and continents on this planet that co-exist with the USA, I'll be over there checking those attractions out.

Disney is a global brand. World wide growth can do nothing but help the company in all areas. Domestic parks included.

I understand this but if WDW doesnt get any cloned new rides and doesnt benifit I really dont care. I will probaly never go to China, and would like to go to TDL but Disney doesnt own it anyway so they dont count. I understand that there are other countries out there but until recently DLP when it was known as Euro Disney was viewd as a disaster. Whe just saw DL get a billion dollars now almost half a billion is going to a park I will probal never set foot in. The way I view it is once again WDW gets the shaft.

As for the clones I think a lot of the HKDL expansion will be clones from the US parks ex TSMM.

 

[WDWFigment]

Disney is a global brand. World wide growth can do nothing but help the company in all areas. Domestic parks included.

In the long term, this is likely true for the reasons you stated (of course, even in the long term, it assumes the park will be profitable). However, in the immediate future and as HKDL experiences "growing pains" on its way to profitability, its difficult to construe said growth as a positive for the domestic parks.

The long term is definitely more important (and I applaud Disney for making long term decisions rather than using duct tape and band aids to fix these problems), but it sure would be nice for some of those "long term expenditures" to be invested into WDW in the more immediate future.

 

[SirGoofy]

They still aren't getting a POTC? I thought that was going to be one of the first things they did get?

And the AC worries me.

 

[Enchantâmes]

Seeing that I could careless about parks that arent in the US Id rather have the money spent on a domestic park.

Again selfish. You do know you are not the only person who walks through the gates at any park. I find it funny you demand that Its a small World be closed just because you don't like it, and then have Dinosaur turned into a Indy ride that would turn out to be a Jurassic Park rip off because you don't like Dinosaur. and it all began with demanding that MI be put in MK instead of AK even though AK needs more attractions let alone themed areas. Now I don't understand how you would never go to DLR? Seeing how you love the Indy attraction there (As do I) why you wouldn't take a trip there. And by the way TDL does count my dear, otherwise it wouldn't be listed as a Disney resort. Have a Magical Day. :wave:

 

[Figment632]

Again selfish. You do know you are not the only person who walks through the gates at any park. I find it funny you demand that Its a small World be closed just because you don't like it, and then have Dinosaur turned into a Indy ride that would turn out to be a Jurassic Park rip off because you don't like Dinosaur. and it all began with demanding that MI be put in MK instead of AK even though AK needs more attractions let alone themed areas. Now I don't understand how you would never go to DLR? Seeing how you love the Indy attraction there (As do I) why you wouldn't take a trip there. And by the way TDL does count my dear, otherwise it wouldn't be listed as a Disney resort. Have a Magical Day. :wave:

TDL is not owned by Disney, I like Dinosaur but think that we will never get Indy, if you dont like my idea I wont lose sleep. I want MI in MK because those attractions are not about animals, id rather have BK or Australia in DAK.

 

[EpcotServo]

Maybe they just wanted a closer look at Lao's books, and Bob Iger will go swooping in to bring him back to Gotham so Harvey can prosecute him and the syndicate?

:shrug:

 

[CRO-Magnum]

I understand your point but I have to agree with Figment632. Those of us who have been going to WDW have been paying more into the Disney behemoth than we've been receiving in updates for years. We financed the bad movies (Condorman, Something Wicked This Way Comes, etc.), DCA, expansion into Europe and China, and bad acquisitions (CapCities/ABC, go.com, etc.). In fact WDW is the collateral on many Disney loans. Disney has a fiduciary responsiblity to its shareholders for sure but it first needs to fulfill the expectations of its visiting public to remain successful.

I just returned from WDW and was very disappointed at the low value driven primarily by high prices. WDW is a tremendous profit machine but Disney keeps reinvestment low while prices go up. I have cancelled my trip for 2010 because it's not worth the money to recirculate old experiences. Remember that Disney counts on return and local guests to make up the largest percentage of their sales. As prices go up so do expectations. I feel they are reaching the point where increments in price will drive larger increments in expectations because they are charging such a high premium.

For example. All Star Music Resort family suites start at $184/nt (more than the cost of 2 rooms) to get a single bedroom with Queen, pull-out sofa, pull-out chair, and pull-out ottoman all in the living room; once everything is pulled out there is no room to walk! There is a kitchenette with a microwave and small refer but no utensils such as a glass bowl for the microwave. The prices at the food court are outrageous for the quality of food (think McDonalds quality at double to triple the price). Compare it to the Staybridge Suites which is just off property. For $135/nt they have a 2 bedroom suite with 1 King and two Doubles, plus a full kitchen with a stove, microwave, and full refer, full sized living room, free breakfast (eggs, meats, cereals, pastries, fruits, juices, waffles, etc.). I've been an excited fan of the All-Stars but it's not a $200/nt hotel.

Unless the bus system at WDW is your thing, it's not ours so we drive anyway most of the time, we can't justify staying on property.

 

[ClemsonTigger]

They get the Adventurer's Club, and we don't.

I guess we should have been more specific in our "Save the Adventurer's Club" campaign....

It will be a bit of a commute!