OLC To Invest 140 BLN Yen in TDL

[cherrynegra]

Oriental Land to Invest 140 Bln Yen in Tokyo Disney Theme Parks

Sept. 15 (Bloomberg) -- Oriental Land Co., operator of two Disney theme parks near Tokyo, plans to invest a total of 140 billion yen ($1.28 billion) as the company aims to attract more visitors to its theme parks.

Oriental Land will spend 90 billion yen by 2008 to improve and add attractions at its Disney theme park complex. The company may also invest 50 billion yen over three years to build hotels and theaters within the resort facility.

``We plan to make Tokyo Disney Resort more attractive,'' said Kazuo Kato, Oriental Land senior managing director. ``To increase the capacity of Tokyo Disney theme parks is our most important business strategy.''

Oriental Land may sell bonds to pay for part of the expansion, Kato said.

The company expects sales for the fiscal year ending March 2007 to increase 7 percent to 360 billion yen from 336.5 billion yen last fiscal year. The company also forecasts operating profit will reach 45 billion yen in the third year.

Oriental Land, based in Chiba near Tokyo, pays royalties to Burbank, California-based Walt Disney Co.

The company said 25.5 million people visited the Disneyland and DisneySea theme parks last year and the number may rise in the year that ends March 31, 2005.

 

[gardabble]

Why expand so soon? They just built Disney Sea a couple of years ago. Did it just pay off already? I guess it might be HKDL might happend to steal their buisness when it opens up. (Even though it ain't up to par with Tokyo Disney) It sounds to me the competition is starting to heat up, and that HKDL might be the affordable alternative to Tokyo. OLC doesn't want to lose their tourist market (I assume the Chinese mainland tourist make the bulk of its foreign visitors) when HKDL opens up next year. (Rumor mill has it, HKDL might open on Walt Disney's birthday.)

 

[jrriddle]

I'm not sure the money is for another park.
OLC is rumoured to have spent 3 Billion on TDS.
Besides they really have no room. They would have to do more land reclaimation to do it.
I think the money will be used for new attractions, shows, the new hotel that they are planning, and I once heard a very vague rumour about a new land for Tokyo Disneyland.
I wonder if this money includes the new RS coaster and ToT?

On another note isn't this more than what Disney spends on all the parks per year?

 

[cherrynegra]

I remember reading somewhere that the bulk of TDL's guests are not foreign visitors but the Japanese themselves. In fact they do so well with the Japanese that they don't bother advertising the park in other countries. I think the money is being spent on just maintaining the quality that TDL is famous for. Wish the American parks were run the same way.

 

[xfkirsten]

And that, my friends, is why everything at TDL has totally pwn3d the stuff in the US parks. :lol: I only wish that the management here in the States would see things the same way.

 

[jrriddle]

Hmmm, taking money generated from the parks and re-investing it back into the parks.
Boy, those OLC guys are CRAZY!!! :hammer:

 

[NemoRocks78]

Why can't the OLC take over the company?

 

[jrriddle]

You know who has to be really excited about this, (besides the Japanese)...WDI!
They can finally design something besides ToT & Buzz.

 

[cherrynegra]

Doesn't it just make you sick to your stomach to know that there is a MUCH better version of Disney parks happening so far away?? I mean, how many of us, besided JR, have had the chance to visit?

 

[jrriddle]

Just luck my friend. My company paid and my girlfriend sprung for the MiraCosta for my B-day.
Now getting there a 2nd time to see all the amazing new stuff you just know that they are going to have, that's going to take a lot of effort!
Or we could go to HKDL and see the...um...gardens.

 

[lebernadin]

When we were there the parking lot to the left of the Miracosta and the TDS entrance, that the monorail passes by before arrival at TDS was desolate. I don't remember how packed the main one for TDL was, but i bet it was busier.

But i think the majority of daily visitors just take the JR line from Tokyo station etc like we did, unlike visitors to WDW parks and even DLP which arrive/depart overwhelmingly by vehicles.

So they could utilize some of that space they paved for overflow parking at TDS to expand the NY area.

I just love Japanese culture in general. Its such a great place to visit.

 

[jrriddle]

I found that rumour for the "new land" at TDL. This poster (who seems to have a good rep) claims that Tomorrowland will be split and a sort of "Hollywood" land (a small MGM/Disney) will be added. After looking at a map I would think that they might remove the Speedway to make room for this new land. I hope they will also make a new Tomorrowland while they are at it. It's really dated.
And lets not forget the Mission Space rumour from awhile back.
BTW I agree with lebernadin, it is a great place to visit. I found all of Tokyo overwhelming (in a good way).

 

[netenyahoo]

How does Hollywood fit in the DL theme? Witht he kind of money they are investing they should just expand the lands and build great new rides. I think we will have to save up to go there is a few years.

 

[jrriddle]

How does Hollywood fit in the DL theme? Witht he kind of money they are investing they should just expand the lands and build great new rides. I think we will have to save up to go there is a few years.

Honestly I have no idea, but I do remeber Jim Hill once saying that some sort of Hollywood land was planned along time ago (pre Eisner) for Disneyland between Main St & Tomorrowland. If you look at a map of TDL it would make both Tomorrowland & this Hollywood land really small. Unless the take out the Speedway and expand into the parkinglot.

 

[jrriddle]

A few more details. From LA Bizjournal.

LATEST NEWS
9:50 AM PDT Thursday
Japanese owners announce major expansion of Tokyo Disney parks
Plans for a $1.28 billion expansion of the two Disney theme parks in Tokyo were revealed Thursday.


The Oriental Land Co., which owns and operates Tokyo Disneyland and Tokyo DisneySea parks, pays royalties to the Walt Disney Co. for the use of its name and other services.

According to Bloomberg News, plans to improve the two parks and add attractions will be spread out over the next four years. The company says it also is considering spending another $800 million over the next three years for hotels and theaters in the resort complex, located in the Chiba prefecture south of Tokyo.

Bloomberg quotes Kazuo Kato, the senior managing director for the company, as saying, "To increase the capacity of Tokyo Disney theme parks is our most important business strategy."

The company expects to raise the money to finance at least part of the expansion by selling bonds.

More than 25 million people visited the two parks during its last fiscal year, which ended in March. The company says sales will increase by fiscal 2007 by 7 percent.

Media giant Walt Disney Co. operates Walt Disney Parks & Resorts; owns ABC television network, 10 broadcast stations and more than 60 radio stations; and produces films through Walt Disney Studios. The company is based in Burbank.



© 2004 American City Business Journals Inc.

 

[jrriddle]

Wow, another $ 800 Million for hotels, etc.. That's alot of cash just for the parks.
OLC should take over DLP. Let it go bankrupt and let them have it.

 

[gardabble]

Wow. Tokyo disneyland is really going all out to become a mega-park like Disney World or Disney Paris. Must explain why they are plunking their money into the park. Gotta a question: which is bigger? Tokyo Disneyland with Disney Sea or Anaheim Disneyland with DCA.

 

[jrriddle]

These figures are very approximate (the info is harder to find then I thought it would be):

Tokyo DL: 200 Hectares
California DL: 220 Hectares
Paris DL: 2000 Hectares
Hong Kong DL: 126 Hectares
WDW: 11000 Hectares

 

[gardabble]

jriddle,
For HKDL area does that include Phase 2? I just decided to poke around that area today and noticed that they already started to reclaim land there. About 50-60% of Phase 2 has already been reclaimed. It sounds like once that whole area reclaimed they will be adding new attractions. One more update, Hollywood Hotel is completely built now. Taking the ferry to the nearby neighborhood, you can't see much structure in Phase 1 except Space Mountain and tonnes and tonnes of trees.

 

[jrriddle]

I don't think those figures include Phase 2. I didn't realize that they had started on the Phase2 reclaimation. Very cool. From what we've all read the faster they get those new attractions the better it will be for the park.
Thanks for the update! :wave:
How about some pictures if you can?
Please keep the news coming on HKDL coming Gardabble.