The operator of Tokyo Disney Resort has revealed that attendance at its two theme parks is expected to be 11% lower than its 2019 high despite the opening of a new $2.1 billion expansion in the coming months. The new area, called Fantasy Springs, includes a deluxe hotel and new attractions themed around popular Disney movies. The park is expected to draw in visitors, but the overall attendance is not anticipated to reach previous levels.
Tokyo Disney Resort is unique in that it is owned and operated by the Oriental Land Company (OLC) rather than The Walt Disney Company. OLC contracts Disney’s Imagineering division to create attractions and hotels on the site, with Disney earning royalties on revenues generated by the resort. Despite the ongoing pandemic recovery in Japan, attendance at the parks is forecasted to reach 29 million next year, lower than previous years leading up to 2019.
OLC’s latest projections show an increase in sales revenue for the upcoming year, driven primarily by theme park revenue. However, other sources of revenue, such as the shopping and dining district and monorail system, are expected to decline slightly. With the opening of Fantasy Springs, there is hope for increased sales, but the data shows a mixed forecast for various revenue streams.
The addition of Marvel characters to Tokyo Disneyland’s new nighttime fireworks show later this year adds to the park’s appeal. Marvel characters were previously restricted at the park due to a licensing agreement with Universal Studios Japan, which has now expired. The integration of Marvel characters into the Disney parks is anticipated to draw in a new audience and increase visitor engagement.
Despite the upcoming enhancements and expansions at the Tokyo Disney Resort, including the replacement of existing rides with new attractions, some investors have been urging shareholders to sell their stakes. The share price of OLC has hit a one-year low, prompting concerns about the company’s financial performance. As the park continues to navigate the challenges of the post-pandemic recovery, OLC faces pressure to deliver positive results to its shareholders.
As the theme park industry continues to evolve and adapt to changing consumer preferences and market conditions, Tokyo Disney Resort remains a key player in the global entertainment landscape. With the opening of Fantasy Springs and the introduction of Marvel characters to the parks, there is optimism for increased attendance and revenue generation in the coming years. However, challenges persist as the company works to balance investment in new attractions with the expectations of investors and shareholders.
