If you’ve been following along with the announcements Disney made at Destination D23 in early September, then you know that the company has a lot planned for its parks.
With updates to Dinoland, USA and an expansion to Magic Kingdom planned for the future, plus changes to several attractions, we know that Disney will probably be spending the big bucks on theme parks in the coming years. But just HOW much will they spend? We’ve got the answer.
In a recent security filing, Disney shared more information about intentions with the parks business. The statement started with the following:
“The Company is developing plans to accelerate and expand investment in its DPEP segment, to nearly double, as compared to the previous approximately 10-year period, consolidated capital expenditures for the segment over the course of an approximately 10-year period to approximately $60 billion in aggregate, including by investing in expanding and enhancing domestic and international parks and cruise line capacity, prioritizing projects anticipated to generate strong returns, consistent with the Company’s continuing approach to allocate capital in a disciplined and balanced manner.”
This means that Disney is looking to invest $60 billion in the Disney Parks, Experiences, and Products segment of the company over the next 10 years. Compared to the previous 10 years, this is nearly double the amount of investment. And when you think about everything that was added to the parks in the past 10 years — Star Wars: Galaxy’s Edge, Toy Story Land, Avengers Campus, Pandora, and countless rides — that’s a significant investment.
Disney also shared in a report on their website that they have more than 1000 acres of land available for future developments at the theme parks. It’s spread across various sites, but the land available is about the size equivalent of seven new Disneyland Parks.
There is plenty of potential in terms of growth for the number of visitors as well. Disney noted, “Today, Disney has seven of the top ten most attended theme parks in the world, including Walt Disney World’s Magic Kingdom Park, which has been the #1 attended theme park on earth for decades. Disney Parks welcome approximately 100 million guests each year.”
“According to Disney’s internal research, there is an addressable market of more than 700 million people with high Disney affinity it has yet to reach with its Parks. In fact, for every one guest who visits a Disney Park, there are more than ten people with Disney affinity who do not visit the Parks.”
UPDATE: After Disney made this announcement about increased spending on the DPEP segment of the company, The Walt Disney Company stock dropped 3% to $82.75, according to Deadline. Investors have been focused heavily on the streaming side of Disney’s business in the past few months and years.
We’re interested to see what Disney announces for the future of the theme parks and cruise line business. There’s a lot of room for growth still, and with $60 billion to invest, there’s significant potential.
What do you think of the additions announced for Disney? Tell us in the comments!
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