New park not exactly soarin'

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New park not exactly soarin'
By most key measures, Disneyland's companion has missed its marks.

August 5, 2001

By DANIELLE HERUBIN
The Orange County Register






Anaheim When Disney's California Adventure opened Feb. 8, officials
anticipated an overflow crowd.

Despite worldwide attention, it never happened that day - and it hasn't
happened since.

From the beginning, the $1.4 billion Disneyland Resort expansion, with a
theme park designed to take visitors on a quick swing through the Golden
State, has seen disappointing crowds.

In order to boost attendance, Disney has given away hundreds of thousands of
free tickets, slashed admission prices and added quick-fix attractions.

On Thursday, Burbank-based Walt Disney Co. reported disappointing earnings.
Profit was off 3.2 percent for the third quarter. The theme-park division
was flat at $1.9 billion in revenue, but higher Disneyland Resort costs, due
to the expansion project, helped hold down what is usually a big moneymaker
for Disney.

Disney executives Thursday said earnings from the new park have been a
disappointment. Disney Chief Financial Officer Tom Staggs said in an
interview that the park, with its high opening costs and unimpressive
attendance, has been a drag on earnings.

"Opening in a recession is not fun," Staggs said.

The park hits the six-month mark Wednesday, and Disney officials, theme-park
experts and the all-important guests are all weighing in.

The most persistent criticisms so far:

Not enough for small kids to do.

Too few "e-ticket" rides - the blockbuster attractions.

It's too expensive.

The rides are often broken down.

Why visit fake California attractions - Hollywood, the mountains, the
ocean - when you're not too far from the real thing?

But the park is not without its high points, according to interviews,
chat-room discussions and industry talk. The hits:

Soarin' Over California, an original ride that simulates hang gliding.

General beauty and thematic design.

California Screamin', a popular roller coaster that's smooth and fast.

Fine dining experiences.

The Grand Californian hotel and Downtown Disney, also part of the resort's
three-pronged expansion.

In 10 years, the park will be "sensational," said Disneyland Resort
President Cynthia Harriss. And it's likely that hits such as Soarin' Over
California will be copied at other parks.

"Every time you ride it, we just walk away in awe of what it is," Harriss
said. "Any time we have something that sensaional, we always take it and
mull that over: 'How can we apply this?' "

SHORTCHANGED?

Some observers, such as Al Lutz, editor of an unofficial Disney Web site
called Mouseplanet.com, complain that the new park, with about 25
attractions, was all about saving money - and it shows.

Indeed, the Register obtained an internal Disney outline of a 1996 speech
given to Disney employees that shows executives bragged about the cost
savings to the Imagineers, the group of creative people responsible for
concepts Disney is known for.

Disney officials acknowledge that they could no longer spend as freely under
the watchful eye of Disney Chief Executive Michael Eisner.

This rankled some Imagineers, according to Lutz and others.

Walt Disney's attitude about money was well-known. "You don't work for a
dollar, you work to create and have fun," Disney said in 1967.

Originally, Disney planned Walt Disney-style spending on the Anaheim
expansion. Disney considered building a $2.75 billion world's-fair theme
park and resort complex called Westcot.

But after years of infighting, Disney decided to scale back and go with the
roughly $1.4 billion Downtown Disney and California Adventure project.

In order to trim costs further, Disney filled the 55-acre California
Adventure with "off the shelf" rides - in other words, premanufactured rides
that were then dressed up to make them more Disney. The speech delivered to
the Imagineers included the topics "direct lifts" from other theme parks and
"If it's good enough for Six Flags ... " - a nod to one of Disney's
successful rivals, known for its collection of roller coasters.

"There had been this sneer that Six Flags is the bottom feeder," Lutz said.
"The question with this park was, 'Gee, they're doing good, why not imitate
it?' "

Disney documents show cost savings for the park included low-cost
landscaping, no expensive Indiana Jones-type rides and the copying of Disney
attractions in Florida, such as "Muppets 3-D" and "It's Tough To Be a Bug."
Instead of real buildings such as Main Street U.S.A. across the way in
Disneyland, "themed facades are faux, show-set-like; not immersions into
replications of period-themed architecture," the Imagineers said.

But despite Disney's new enthusiasm for cost savings, the question remains:
How has the park been received by the public?

BLAME THE WEATHER


When California Adventure first opened, attendance was usually well-below
10,000 people a day. The park holds about 33,000. Disney blamed rainy, cold
weather.

Disney said the park would fill up at spring break. It didn't.

Disney then went to work.

It brought back the Main Street Electrical Parade, an attraction so popular
at Disneyland that it ran for more than 25 years. Then Disney mailed out
hundreds of thousands of free children's tickets to annual-pass holders and
began giving out tens of thousands of free tickets to its own employees. It
also cut prices for Southern California residents from $43 to $33 and began
letting children in free.

According to internal Disney operations documents, the free tickets have
helped fill the park. Disney refuses to discuss its attendance. The
documents show that the park fills up on weekends - indicating locals are
visiting - and that despite the free tickets, attendance is beginning to
dip.

Reviews were mixed. Some people interviewed at the park loved being able to
stop and have a glass of wine in the Mondavi area. Some said they liked a
theme park aimed at baby boomers.

"It's lovely. It's very well thought out," said recent visitor Deborah
Zimmerman of Santa Ana. "Every detail is considered."

"I would consider it a success," said Tim O'Brien, managing editor at
Amusement Business, an industry publication. "People that are going are
enjoying it. It (just) didn't hit as quick as they hoped."

Others were not as kind.

"Personally, I place it as Disney's worst park, and behind some of the
competition," said Ian Parkinson, a resident of France who came to Anaheim
to review the park for Mouseplanet.com. "It is very geared to making money;
there are so many shops and places to eat, but very little in terms of
Disney 'star' attractions."

Ty Gamblin, a Huntsville, Ala., resident visiting with his family, thought
the park was too expensive, even with discounted tickets. "I didn't think I
got a lot of value for my dollar, I guess," Gamblin said.

Part of the problem was that many of the rides were down while the Gamblin
family visited, he said.

RIDES ON FRITZ


Disney documents obtained by the Register show that on five recent days,
three to five rides were down, often for two to three hours at a time.

On July 27, for example, an apparent power blip caused problems at four
attractions. California Screamin', one of the park's most popular rides,
often has been down for two to three hours at a time.

According to the documents, the big roller coaster has been experiencing
electrical problems, motor failures, braking problems and sensor failures.

Asked about the continuing downtimes, Harriss indicated that Disney is still
learning how to operate those rides.

"With grand new attractions, there's a period of time where we're getting an
opportunity to break them in with the guests," Harriss said. "Sometimes
there's downtimes that are just unavoidable. Our endeavor is to get them up
and rolling as quick as we can. It's our goal to have them 100 percent of
the time up and rolling."

Richard Harris, a Yorba Linda ride-safety expert, links the breakdowns to
the "off the shelf"' rides. Those rides are basically carnival-type rides.
Such rides typically run six hours to 12 hours a day and, at most, 21
straight days at fairs, Harris said.

"Disney runs their rides sometimes 14 hours a day, seven days a week,"
Harris said. But "once they figure out what their problems are, I think it
will be a success down the road."

Part of the problem with California Adventure comes from the inevitable
comparisons with the immensely popular Disneyland, the second-most-visited
theme park in the nation. Disneyland had about 13.9 million visitors in
2000, according to Amusement Business. Disney officials had hoped to attract
7 million guests to California Adventure this year.

A 1955 newspaper article about Disneyland's opening reveals similar
criticism. Critics then called Disneyland "too commercial" and "too
expensive."

Walt Disney's response: "The public likes it ... it's a success ... the
critics must be crazy."

While California Adventure has suffered its share of criticism, the rest of
the Disney resort expansion has been well-received.

THERE IS AN UPSIDE


Downtown Disney, a 300,000-square-foot mix of shops and restaurants, is
considered a success. "We're thrilled with Downtown Disney," Harriss said.
"It's hot and hopping, and guests are loving it."

Some of Downtown Disney's eateries became instant hits. The Wetzel's
Pretzels store is one of the highest-volume outlets of its roughly 150
locations worldwide.

John Pierce, regional manager for Disney-owned ESPN Zone, said the
sports-themed restaurant has been popular from the beginning. ESPN Zone is
serving nearly 15,000 people a week, close to the numbers at its New York
City location.

"We initially just weren't sure," Pierce said. "We weren't sure how well it
would adopt locals."

Disney's 751-room Grand Californian hotel, sandwiched between the new park
and Downtown Disney, also has been doing well, despite an overall decline in
hotel occupancy in Orange County.

Dismissing criticism of the park, Harriss said that, like Disneyland,
California Adventure is a work in progress. A "Who Wants To Be A Millionaire
Attraction" is under construction in the Hollywood Backlot area and will
open in September.

Dave Koenig, author of "Mouse Under Glass" and other unofficial Disney
books, said there are widespread changes planned in Anaheim, for both
California Adventure and Disney's planned third theme park.

The third park, on the southeast corner of Harbor Boulevard and Katella
Avenue, is widely rumored to be a water park, but Disney won't confirm that.
Construction was expected to begin in 2003, but that date is no longer firm.

Meanwhile, the Superstar Limo ride in California Adventure might become a
Goofy Goes to Hollywood ride, Koenig said. And the Bountiful Valley Farm
area may be replaced with kids' bug-themed rides.

In the Cannery Row area, Disney is considering building a Tower of Terror -
a 13-story drop through an abandoned hotel that is a copy of one in Florida,
Koenig said.

"I think they've been very upfront, admitting some of the stuff they should
have done to begin with," Amusement Business' O'Brien said, referring to the
shortage of children's attractions.

Disney executives think California Adventure is going to be successful.

"I would say virtually every theme park we've ever opened - because Disney
has such a high standard - people are critical of what they don't like,"
Harriss said. "It's human nature to feel compelled to give their point of
view."




Q&A with Cynthia Harriss

Disney's California Adventure in Anaheim is 6 months old Wednesday. We
talked to the president of the Disneyland Resort, Cynthia Harriss, about the
new theme park:

Q. What is the best ride or attraction at the resort, in your opinion?

A. I could be diplomatic and say they're all the best, but I would have to
say, based on what our guests are telling us - and on a personal level -
California Soarin' is one of the most innovative.

It's certainly an attraction we're very proud of.

Q. What do you think needs improvement in the park?

A. I think everything is brand new to the guests. (What's important) is us
listening to our guests, reaction to what the guest tells us what they want
to see more of ... (and) adding more exciting experiences for our guests.

Then, we'll look at our five-year plan. We've got plans to add attractions,
entertainment and new experiences that will be contemporary to what they -
the guests - want at that point in time.

Q. Now that it's built, is there anything you would do differently if you
had it to do over again?

A. Open it about 10 years earlier. That's honest. There has been such a
demand for more Disney product. The first year or two, with any new product,
it is a learning curve.

Q. Are people spending money at the shops and restaurants as you would like,
or are they going to Downtown Disney?

A. Probably the best indication of that is as you are standing in the parks
and watching the guests. They're coming and enjoying the park and enjoying
dining and picking up their souvenirs. Would we like more? Absolutely.

But the reality is the guests are coming and enjoying themselves.
 

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