Transformative Multi-Year Expansion Announced for WDS Paris

[mrflo]

Wasn't DLP supposed to get a significant part of Disney’s $60 billion supercharge investment? Some insiders were even claiming that it would be in the double-digit billion range and outpace the investment for the DLR. Maybe a more substantial expansion phase - this time also including the first park - is in development and still to be announced? Though rumours have gone very quiet around this. Anyone heard any recent update on this?

While I would be super excited to see such a investment coming to DLP, I have always said that even just matching the investments for DLR in the next couple of years would be already a major win for DLP.

On the lack of compelling package for DAW, I completely agree. I find the new concept extremely lazy and like something that some Marketing executives came up with in brief brainstorming session. I have recently visited a few non Disney-parks like Europa-Park or SeaWorld Abu Dhabi and was very impressed how other parks have ramped up their game on theming, innovation and immersive story-telling. Meanwhile the primary thing that Disney has raised was their prices.

 

[SplashJacket]

Did you just say DAK was one of the worst Disney parks???? (When it’s obviously in the top 5)

I love DAK, but I don’t see people arguing MK, DLP, TDS, TDL, etc are bad parks

 

[Centauri Space Station]

I love DAK, but I don’t see people arguing MK, DLP, TDS, TDL, etc are bad parks

DCA is way worse than DAK

 

[SplashJacket]

DCA is way worse than DAK

As a themed park, I would agree, but I could spend infinitely more time in DCA. I find myself rarely visiting DAK because there’s just so little to do.

 

[Gusey]

Wasn't DLP supposed to get a significant part of Disney’s $60 billion supercharge investment? Some insiders were even claiming that it would be in the double-digit billion range and outpace the investment for the DLR. Maybe a more substantial expansion phase - this time also including the first park - is in development and still to be announced? Though rumours have gone very quiet around this. Anyone heard any recent update on this?

While I would be super excited to see such a investment coming to DLP, I have always said that even just matching the investments for DLR in the next couple of years would be already a major win for DLP.

I'm not sure if we ever found out if the $60 billion included the DAW transformation $1 billion announced in 2018 (Avengers Campus, Frozen and Star Wars/Lion King). Disneyland Parc's expansion stuff has gone quite quiet and seems to depend on if Space Mountain removes Star Wars or not. Current rumour is that Big Thunder's refurb last 6 months, then Space will go down in June for a refurb (a maintenance bay has been created now for Space)

 

[mrflo]

I'm not sure if we ever found out if the $60 billion included the DAW transformation $1 billion announced in 2018 (Avengers Campus, Frozen and Star Wars/Lion King).

Very good question. This is the way that I would see it - and I am happy to get convinced otherwise .

Disney’s $60 billion investment announcement is a strategic vision for the next decade, indicating their plan to double investment in parks and cruise lines. This isn’t money they already have set aside or fully allocated to specific projects but a signal of their long-term commitment to growth in the parks to investors, stakeholders, etc.

Regarding the $2 billion previously announced for WDS expansion, some of that has been spent on completed projects (e.g. AC) or construction costs, but ongoing and future costs might now already be part of the broader $60 billion plan. This blurs the lines between the initial and new announcement. The positive is that this should not mean Disney is limited to the original $2 billion for attractions within that original scope like the LK, especially since the timelines have shifted due to factors like COVID-related delays. Though there might be still budget limits for each project/attraction. It also does not tell us yet how much DLP will ramp up investments for other unannounced projects that will fall into the $60 billion scope.

 

[cjkeating]

I'd be surprised if we heard anything about significant further investment in the parks until they gauge how Frozen performs. The Olympics spooked Burbank plus they are nervous about the political landscape in France and the wider impacts that could have on the economy and tourism.

I expect Frozen will do well. Just like Avengers Campus drove the numbers and Frozen will lead into the 35th which is always a strong year for the resort so should set them up to have further expansions green lit.

Because it is all about synergy the performance of various IPs could also impact on projects being greenlit such as Moana 2, Mandalorian and Grogu, Avatar 3 etc.

Also there has been zero new money announced for Paris from the $60bn 10 year investment although I wouldn't be surprised if they are now counting Lion King as part of that as pre-announced plans like the Dinoland replacement form part of the 10 year plan now.

 

[X-filed]

I'd be surprised if we heard anything about significant further investment in the parks until they gauge how Frozen performs. The Olympics spooked Burbank plus they are nervous about the political landscape in France and the wider impacts that could have on the economy and tourism.

I expect Frozen will do well. Just like Avengers Campus drove the numbers and Frozen will lead into the 35th which is always a strong year for the resort so should set them up to have further expansions green lit.

Because it is all about synergy the performance of various IPs could also impact on projects being greenlit such as Moana 2, Mandalorian and Grogu, Avatar 3 etc.

Also there has been zero new money announced for Paris from the $60bn 10 year investment although I wouldn't be surprised if they are now counting Lion King as part of that as pre-announced plans like the Dinoland replacement form part of the 10 year plan now.

The Olympics haven’t intimidated Burbank; they understand that during the year of the Games, attendance typically declines, only to rebound sharply in the following years due to the surge in soft power generated for the host country. This was precisely the case for Japan. The Olympics act as significant tourism advertisements for host nations. There's no need to wait for Frozen's results to unlock additional funds. Plans for a New Adventureland are currently under consideration with the demolition of the Temple du Péril by 2028, they're certainly waiting before announcing a project that wouldn't be opened in the next 5 years according to @Ally and a French Insider.


As for France’s economic environment, there’s nothing particularly disruptive on the horizon. At worst, the status quo will be maintained under Macron until the next elections. At best, a stronger European market may emerge. What might concern Burbank, however, would be the rise of the far-left to power. Yet, this seems increasingly unlikely given their loss of credibility and the growing disapproval from the rest of the French left.

 

[mrflo]

I have just listened to this week's interview with Hugh Johnston, the new Senior Executive Vice President & CFO of TWDC. He is also talking about the International Parks (9:20) including the impact of the Olympics on DLP (9:50):

"As we mentioned on the most recent call, China was a little bit soft, and Paris was soft because of the Olympics, which, by the way, we have history on them. We know when the Olympics shows up, the park that is in that city tends to lose some attendance. I will tell you, I was in Paris during that time frame, and I went and visited the park. You could see it. People were coming to Paris for the Olympics, or they weren't coming to Paris. So there were some crowds in Paris, but not nearly to the degree you would expect. The good news is, once the Olympics were over. The attendance came right back, so we certainly feel good about that."

Source: The Walt Disney Company at the UBS Global Media and Communications Conference

So yes, they acknowledge the impact of the Olympics on DLP this summer but do not seem to feel too surprised or worried about it. For the rest of the interview he talked a bit more about doubling the Cruise line and the expansions in the US parks - where it appears to me still the majority of the companies OI is coming from and investments will go. Also one interesting comment on the expansion and pricing:

"So as we sort of look forward, we're basically creating new lands, new attractions, really across just about all of the parks. And given the level of demand that's out there for it, we're expecting to be able to both get increased attendance, get higher pricing, because again, you know, we're delivering more value. Value is what you get as a consumer, price is what you pay. People feel good about the value they're getting, so we ought to be able to take more pricing in that. And as a result, we'll drive good financial results out of it, in line with the guidance that we all shared with you of 6% to 8% OI growth this year and high single digit growth in the subsequent couple of years."

Not surprised. But I am curious how much of an additional price increase we will see with the opening of Frozen in DLP.

 

[Loose Pebble]

Plans for a New Adventureland are currently under consideration with the demolition of the Temple du Péril by 2028, they're certainly waiting before announcing a project that wouldn't be opened in the next 5 years according to @Ally and a French Insider.

Ooh that would be awesome! Hopefully it's a unique replacement (or multiple rides added) and not just a clone of one of the existing Indys

 

[mrflo]

 

[cjkeating]

The Olympics haven’t intimidated Burbank; they understand that during the year of the Games, attendance typically declines, only to rebound sharply in the following years due to the surge in soft power generated for the host country. This was precisely the case for Japan. The Olympics act as significant tourism advertisements for host nations.

I completely agree about the impact that the Olympics have on a host city, I was posting about this likelihood on this forum for years when most other people were saying DLP would be sold out all summer.

So yes, they acknowledge the impact of the Olympics on DLP this summer but do not seem to feel too surprised or worried about it.

I think that Hugh is putting a positive spin on it. There was no forward guidance given that DLP would have a soft summer and the actions DLP took with the first hotel discounts since COVID, discounted tickets for locals and reducing park hours were all done at short notice and seemed very reactionary.

 

[TheDisneyParksfanC8]

The Olympics haven’t intimidated Burbank; they understand that during the year of the Games, attendance typically declines, only to rebound sharply in the following years due to the surge in soft power generated for the host country. This was precisely the case for Japan.

I think Burbank has different expectations for LA2028 and how that will impact DLR's attendance in that it would grow. That's why I think both Infinity Defense/Stark Flight Lab and Coco with both be up and running by 2028.

 

[Bernswss]

I personally feel like DLP is waiting on DAW to open with Frozen, the lake and everything else (including the night show) to start doing new stuff, PDL included. The main focus, I feel, will be to severely reduce the amount of one day guests and making WDS more of a full day experience, while also selling more hotel packages as the value offer gets higher. The nighttime spectacular is a huge part in this because if you're visiting just for one day you'll have to choose between Disneyland Park's show or Adventure World's. By having strong attractions with huge IPs such as TLK and Frozen (which by the way, TLK is absolutely huge in Europe), guests will be more inclined to visit both parks kind of ending the "ah, that's just the other park" talk. I strongly believe that when Frozen is proven to be a success we'll finally see some projects being announced for PDL, especially since the word on the street is that they're working on several at the same time.

 

[TheDisneyParksfanC8]

I personally feel like DLP is waiting on DAW to open with Frozen, the lake and everything else (including the night show) to start doing new stuff, PDL included. The main focus, I feel, will be to severely reduce the amount of one day guests and making WDS more of a full day experience, while also selling more hotel packages as the value offer gets higher. The nighttime spectacular is a huge part in this because if you're visiting just for one day you'll have to choose between Disneyland Park's show or Adventure World's. By having strong attractions with huge IPs such as TLK and Frozen (which by the way, TLK is absolutely huge in Europe), guests will be more inclined to visit both parks kind of ending the "ah, that's just the other park" talk. I strongly believe that when Frozen is proven to be a success we'll finally see some projects being announced for PDL, especially since the word on the street is that they're working on several at the same time.

For DAW I wonder if the post LK project will be another Avatar land. Iger hinted one could be destined for Europe.

 

[Loose Pebble]

For DAW I wonder if the post LK project will be another Avatar land. Iger hinted one could be destined for Europe.

I heard that rumor (on this board). I’d imagine if fire and ash pulls in similar numbers to way of water, it would be quite likely.

 

[Vegas Disney Fan]

Definitely an upgrade over Studio 1 but I wish they’d have torn down that building and just provided a “street lined with shops” entrance like the castle parks, DCA, HS, etc.

I’ve always found the entrance to the studios park a very underwhelming experience and by far the worst first impression of any Disney park.

 

[wdrive]

Definitely an upgrade over Studio 1 but I wish they’d have torn down that building and just provided a “street lined with shops” entrance like the castle parks, DCA, HS, etc.

I’ve always found the entrance to the studios park a very underwhelming experience and by far the worst first impression of any Disney park.

I agree entirely.

Studio 1 was never a nice place to spend time. It felt claustrophobic and very busy anytime I was in there. I don’t think improving its visuals will help with this whatsoever.

 

[Bernswss]

I agree entirely.

Studio 1 was never a nice place to spend time. It felt claustrophobic and very busy anytime I was in there. I don’t think improving its visuals will help with this whatsoever.

It will actually be a lot more open, with the right side façades now removed and the new restaurant the whole thing should feel a lot larger. I believe the "street" itself has also gotten slightly larger, with space for more people. It has also become apparent that they will open the left side path that's currently the only entrance when there are high crowds which makes total sense.

 

[Aramar]

I find it funny how people complain that the new expansion doesn't have any covered walkways, but at the same time people complain they haven't demolished the only covered area and replaced it with an open street.