-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
Iger interview in WSJ - "not currently planning" to expand parks
- Thread starter FourFourSeven
- Start date
speck76
Well-Known Member
I am not sure why people think the various Disney parks will saturate the market.....
A few numbers to help enlighten you:
Tokyo Disney Resort: only 3% of visitors come from outside of Japan (source: http://www.olc.co.jp)
Orlando, FL: Only 6% of visitors are from outside of the US (with most coming from the UK, Canada, and Brazil) (Source: Global Insight). The largest source markets to Orlando are Tampa/St. Pete, Miami, NYC, Philadelphia, and Boston....in that order.
Anaheim: The park is the most "regional" park in the chain, with the vast majority of its business coming from Southern California.
Paris: 92% of visitors come from Western Europe (source: EuroDisney SCA 2004 annual report)
The world is a very large place, and many people would not visit a park unless it is on their door-step......much like the VAST majority of people on this site have been to 1 location, and no others.
A few numbers to help enlighten you:
Tokyo Disney Resort: only 3% of visitors come from outside of Japan (source: http://www.olc.co.jp)
Orlando, FL: Only 6% of visitors are from outside of the US (with most coming from the UK, Canada, and Brazil) (Source: Global Insight). The largest source markets to Orlando are Tampa/St. Pete, Miami, NYC, Philadelphia, and Boston....in that order.
Anaheim: The park is the most "regional" park in the chain, with the vast majority of its business coming from Southern California.
Paris: 92% of visitors come from Western Europe (source: EuroDisney SCA 2004 annual report)
The world is a very large place, and many people would not visit a park unless it is on their door-step......much like the VAST majority of people on this site have been to 1 location, and no others.
Sir_Cliff
Well-Known Member
I don't think the problem people have with building more international parks is that they will leech customers away from one another. The point is that Disney parks currently have a lot of cache because there are very few of them and they thus seem unique and important places to visit rather than mere theme parks. Once there's Disneyland Hong Kong, Disneyland Shanghai, Disneyland Mumbai and Disney's Australian Adventure, Disney Studios Seoul, etc then they just become like a franchised operation with cloned facilities in major markets all around the world. Suddenly Disneyland doesn't seem much more significant a prospect than visiting the very first Hard Rock Cafe, Planet Hollywood or Disney Store.
From a business standpoint I understand it, but I think they're treading a fine line between growing the business and diluting one of the world's strongest brands to the deteriment of the whole organisation. On paper it may make sense to build several Disneylands in China and South Asia, but the reality could end up being quite different, particularly if they expand too quickly, get saddled with several unprofitable parks and are faced with the embarrasing prospect of having to close a Disneyland. We shall see I guess, but they need to be cautious.
As for the article in question, I don't see any indication from it that there'll be no new attractions. I think he was pretty clearly referring to new parks.
From a business standpoint I understand it, but I think they're treading a fine line between growing the business and diluting one of the world's strongest brands to the deteriment of the whole organisation. On paper it may make sense to build several Disneylands in China and South Asia, but the reality could end up being quite different, particularly if they expand too quickly, get saddled with several unprofitable parks and are faced with the embarrasing prospect of having to close a Disneyland. We shall see I guess, but they need to be cautious.
As for the article in question, I don't see any indication from it that there'll be no new attractions. I think he was pretty clearly referring to new parks.
speck76
Well-Known Member
How can they dilute a brand that has little or no recognition in many major markets?Sir_Cliff said:
Again, you are thinking very much of "Disney in America" where they are at a saturation point....a new park in the states makes little or no sense.....but on a much broader level, they are not reaching the entire world population.
In addition, why would Disneyland be any less special to its market (Southern California) if another park was built in China....a place less than 1% of DL's market will ever visit?
shoppingnut
Active Member
speck76 said:
One thing that you missed in all your stats is that before the TDR, etc. in Japan, many of these people were coming to WDW. I can recall a time when it was commonplace to see large groups of Japanese tourists in the WDW parks. Now, it is a rare occurence.
I hope they build a disney park in the Uk. I have to travel for 10 hours to get to Florida. Much to my annoyence we are going on boxing day but cant go to disney and instead we are going on a stupid ship for 2 weeks... Oh Well 
We have DL Paris fairly close... But its rubbish because you always have to wait twice as long as the french dont understand how to line up.
We have DL Paris fairly close... But its rubbish because you always have to wait twice as long as the french dont understand how to line up.
Sir_Cliff
Well-Known Member
speck76 said:
Disney and Disneyland are almost universally recognised brands. The parks are tourist attractions which attract visitors from all over the world not incidentally because people happen to be passing through Anaheim or Orlando, but in their own right. Part of the brand's appeal is the uniqueness of Disney theme parks and their special place in Western culture. If they start opening in different parts of the world every few years, that aura disappears. It may not be that your average America (or Australian, or European, etc) will ever visit Hong Kong or Shanghai, but the sausage factory approach to churning out the theme parks could quite easily rob the exisiting parks of much of their prestige as wherever you go it the world, a Disneyland or "Disney's whatever" is never that far away.
For example, there's no logical reason why a Hard Rock Cafe or Planet Hollywood should appeal less to you because there are many around the world if there's only one in your city. However, they are a less appealing concept precisely because they are (or were) in every major city in the world. Suddenly it's little more than a somewhat upmarket chain resteraunt rather than something worth seeing in its own right. I think it would take a while for this to happen to Disneyland, but it is an issue they should be aware of in the never ending persuit for new markets.
speck76
Well-Known Member
Sir_Cliff said:
If WDW appeals "around the world", why are only 6% of the visitors from outside of the US, and 75% of those are from 3 specific countries.
If WDW is so important to Austrailia, tell your countrymen to put their money where your mouth is, and come visit....otherwise, your argument is unsound.
speck76
Well-Known Member
Sir_Cliff said:
But that is not the problem with HRC or PH.....
The problem is that these venues do not attract locals, they are part of the experience of travel.
If you build a PH in Detroit, it will not be successful, as nobody (with good mind) visits Detroit.
The other factor is that these places are static in their offering. If WDW was the exact same today as it was in 1971, it would most likely be suffering the same fate.
Sir_Cliff
Well-Known Member
speck76 said:
I think you're missing the point of what I'm saying.
I agree that in theory it makes sense to open Disney theme parks in markets all around the world from which Disney currently receives little to no business. It makes sense to open new parks in markets which could support them in their own right while not significantly effecting the earnings of the existing parks. However, the pull of the Disneyland or WDW brand has a lot to do with scarcity, ie. it is a unique and significant experience. People would not stop visiting DL or WDW completely were new Disney parks to start opening wherever in the world could support them. The risk, though, is that they stop seeming anything special and thus the emotional appeals that Disney constantly resort to in their marketing (e.g. 'magic') cease to have any resonance. They may still perform decently as entertainment venues, but once the place they hold in the American (and world) psyche disappears then the idea of spending years saving up to go and spend large sums of money on a Disney vacation will loose its pull and people will simply go elsewhere. You only have to look at Disney marketing to realise that the appeal of Disney parks relies heavily on irrational, emotional feelings toward the product, the kinds of feelings which could be destroyed by over-exploiting the brand.
If done right, this expansion could grow revenues for the theme park division and end up being a positive. If they go nuts and start opening more parks in China, India, South Korea, Australia and wherever else will support them, then I think we're seeing the beginning of the end.
peter11435
Well-Known Member
Less crowded equals less profit. Less profit equals not good.donald23 said: