Why has Disney stopped expanding globally?

britain

Well-Known Member
Original Poster
Disneyland - 55
Walt Disney World - 71
Tokyo Disneyland - 83
Euro Disneyland - 92
Hong Kong Disneyland - 05
Shanghai Disneyland - 16

So it looks like the world ticks along at intervals of about every 12 years a new Disney destination is built.

So… they’d be building the next one right now if that cadence were to continue. But they aren’t.

In what ways has the world changed? Or how has the company changed?
 

Timothy_Q

Well-Known Member
Expanding into new territories takes a lot of work, time, money and it's extremely risky

They learned it's much easier, safer and cheaper to increase their revenue by squeezing every cent out of guests visiting their existing parks by upcharging everything, and cutting costs in entertainment, maintenance and overall guest experience
 

BrianLo

Well-Known Member
Disneyland - 55
Walt Disney World - 71
Tokyo Disneyland - 83
Euro Disneyland - 92
Hong Kong Disneyland - 05
Shanghai Disneyland - 16

So it looks like the world ticks along at intervals of about every 12 years a new Disney destination is built.

So… they’d be building the next one right now if that cadence were to continue. But they aren’t.

In what ways has the world changed? Or how has the company changed?

They are building a "new destination"; there are 6 ships in the next 6 years and another one for their partner.

Even though people don't like to thing about it that way, DCL is the new park as far as P&R is concerned and they are micro experiences that can be brought into Disney's strong markets that are harder to justify large scale parks due to population density. Canada, Australia, etc.

I don't think we'll never see another destination resort, but this is the decade of DCL.
 

JoeCamel

Well-Known Member
Disneyland - 55
Walt Disney World - 71
Tokyo Disneyland - 83
Euro Disneyland - 92
Hong Kong Disneyland - 05
Shanghai Disneyland - 16

So it looks like the world ticks along at intervals of about every 12 years a new Disney destination is built.

So… they’d be building the next one right now if that cadence were to continue. But they aren’t.

In what ways has the world changed? Or how has the company changed?
You have a ceo that believes parks are a mature business and has already built his legacy park.
 
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BrianLo

Well-Known Member
DCL's current expansion represents about 12 million passenger nights. Which sounds respectable (not crazy) if you compare like for like park attendance of a theme park.

But the real caveat there is 12 million "on-property" guest nights as well; and full restaurant spend. Which is actually a huge, huge number. No resort, other than WDW, exceeds 12 million on-property guests nights. It's debatable how much they exceed that figure even when accounting for occupancy differences between land and sea.
 

ChrisFL

Premium Member
The only reason Tokyo happened is because they were approached by OLC (and Disney had spent so much money on getting EPCOT Center made so it probably helped their decision to license it out and get some $$$ back).

So if it wasn't for that, it would have been 20+ years
 

Animaniac93-98

Well-Known Member
(1) there's been a need to invest in parks that already exist.
(2) investments in Disney Cruise Line have been / will be a few times cost of Shanghai construction costs
(3) probably also some other bigger Disney things like investment costs in Disney+, ESPN, film, etc.

All of this plus the cost of Disney theme park projects have spiraled out of control and a new resort or park from the ground up may not been seen as a worthwhile investment
 

Animaniac93-98

Well-Known Member
In what ways has the world changed? Or how has the company changed?

The first feasibility study for an international Disney park was done around 1972. It suggested Japan and Europe, in that order, were the best places to build one.

The only reason Tokyo Disney happened at all was that OLC paid for everything. Card Walker had 0 interest otherwise.

Tokyo Disney opens in 1983 and is a smash hit right out of the gate, but the licensing deal means that Disney isn't benefitting much from its success. Eisner joins Disney a year later and makes theme park expansion a top priority because the parks were the strongest division in the company at the time and seen as the best to exploit. Additional parks and hotels are proposed and built everywhere and Disney can't build them fast enough.

Euro Disney opens with underperforming revenue and suddenly everything gets scaled back. New parks and attractions like California Adventure and Disney Studios Paris suffer from this. Disney's America and others don't happen at all.

Hong Kong Disneyland was initially not supposed to be a theme park, but some other kind of smaller local attraction that could be replicated globally, without the start up cost of a theme park. Then they decide to make it a proper Disneyland with hotels and there's a lot of back and forth as to how much is enough. It opens underbuilt and underwhelming and also suffers financially.

Iger becomes CEO at this time and is stuck with parks like DCA, WDSP, HKDL and aging infrastructure elsewhere. He wants out of theme parks, but when he can't find a buyer he looks for ways to avoid spending money on new rides (MyMagic+, NextGen). This strategy still costs a lot of money and doesn't yield the expected results so instead money is invested in the parks, but only if it supports overall company synergy.

A park in mainland China was a long term goal going back to the early 2000s. It's seen as an entry into the market to raise brand awareness. It remains the only theme park built since Eisner left, but as previously mentioned there's been major cruise line expansion, plus DVC like Aulani and tours with Adventures by Disney. All higher margin efforts than new theme parks that have much higher construction and operating costs and take longer to build.

That's the gist of it. @lazyboy97o did I get anything wrong? 😄
 

DarkMetroid567

Well-Known Member
Hard to imagine where else they would put one. Brazil? Seems like a good option but could risk cannibalizing WDW attendance/revenue.

I’m sure someone in the Arab States has tried to license.
 

Jrb1979

Well-Known Member
Do the new island getaways not count? Or new cruise ships?
It depends on how you look at it. For my family, we go the parks for attractions mainly. A cruise has very attractions. For us a cruise isn't the same.

If you're a family that goes to Disney parks for the resorts, food and Disney immersiveness than a cruise is a great alternative
 

JMcMahonEsq

Well-Known Member
Disneyland - 55
Walt Disney World - 71
Tokyo Disneyland - 83
Euro Disneyland - 92
Hong Kong Disneyland - 05
Shanghai Disneyland - 16

So it looks like the world ticks along at intervals of about every 12 years a new Disney destination is built.

So… they’d be building the next one right now if that cadence were to continue. But they aren’t.

In what ways has the world changed? Or how has the company changed?
This seems like pretty macro/simplistic analyst as to discussing WD company building. For example it lists Walt Disney World date at 71. This completely ignores Epcott that was opened in 82, Animal Kingdom opening in 98, and and MGM/Hollywood Studios opening in 89.

But assuming the discussion is just about completely new destinations, as opposed to significant building at already existing locations, what would be logical reason/spot for a brand new destination? I mean a company isn't going to just keep building for building sake, hey we haven't spend billions of dollars to open a new spot in 10 years, we got to get going on that.

So you already have 2 well established spots in North America. I can't seen any business reasons for building a new stand alone location in that market, as opposed to building out existing infrastructure at the already established parks.

You have 3 separate locations in Asia. Again i can't imagine where it makes businesses sense to build a new forth location in that market vs just expanding in the existing 3, which they have been doing.

Is there any thought that that a stand alone destination in Australia makes sense? with a population less then 1/10 of the United States, what reason is there for opening a completely new park complex in that region?

Europe has an existing destination and has had it since 92. There has been some spending and expansions taking place at the park itself recently, but the history of the park hasn't always been one of raging demand. I can't see where you would put a new destination/location in the European market that has demand that's high enough to warrant the construction of a new park, and that is far enough away geographically that it would make sense to build a new park there, as opposed to expanding Disney Paris.

That leaves really 2 areas that could see a completely new destination be built. First somewhere in Africa. Obviously WD has more data than any of us have, but given political stability/instability in the region, and a less overall monetary base (sure you have some outliers with oil money, but on whole the disposable income levels in Africa are far less than say NA/EU or AS) why would you invest money in a park in that area?

So that brings you to South America, likely IMO the location that would probably have the most going for it. Large populations, no existing parks in close proximity. At least Anecdotally from my previous visits, large groups of visitors from SA countries to US parks, which at least shows some demand in the market. But again is there a large enough, self sustaining market to justify building a new park, when you do get the tourists from the SA market coming up to NA?
 

Andrew25

Well-Known Member
Right now, Disney is unfortunately prioritizing DCL expansion and, rightfully, improving their existing parks.

Long-term, Disney will be looking at the success of the Universal Kids project in Texas to see if a smaller Disney park project can be a realistic option. I think there's a market for smaller focused parks that are cheaper to construct/design and smaller in size. Untapped markets with large population centers like Australia, India and Brazil can easily justify such an experience.

The new CEO, whenever that happens, will come in with a full slate for DCL and initial project work for their existing parks. Wouldn't be surprised to see them tap Imagineering to come up with a smaller market park project.

This is pure speculation, but Disney expanding their offerings of additional DVC resorts worldwide (like Aulani) could be something to look for in the 2030s. There are places around the world (and US) begging for a Disney hotel.
 

Moth

Well-Known Member
Almost every place that has the capital, population and willingness to work with Disney has had a park built. Also it's a risky investment with the how the world economy is today.

Cruises are a cheaper way to make the brand more global with less risk.
 

Comped

Well-Known Member
If Eisner had his way, there would have been a number of Disney's America sized projects throughout the country (if not worldwide) - it was his roadmap for the kind of parks he thought Disney could do going forward - highly themed regional experiences. An outgrowth of his failure to properly capitalize in DisneyQuest/Club Disney/Mickey's Kitchen... But that's another story.

As to why we never saw another park post Shanghai? Disney never quite signed on the dotted line for Dubai (pre or post GFC) so that is likely the only place that could fit without screwing over one of their existing parks.
 

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