© Reuters.
Disney ‘s theme parks, which have been in operation for 68 years, are projected to generate $10 billion in profits this year, a noteworthy increase from $2.2 billion a decade ago. This financial success is notable considering the global pandemic’s economic impact a few years prior.
On Tuesday, Disney disclosed its ambitious plan for the upcoming decade in a security filing. The company intends to invest around $60 billion to expand its domestic and international parks and further develop the Disney Cruise Line. This investment is double what was spent on parks and cruises over the past ten years, a period already marked by significant investment.
Despite potential legal issues with Florida Governor Ron DeSantis potentially jeopardizing a planned $17 billion expansion at Walt Disney (NYSE:) World near Orlando and perceived expansion limitations at Disneyland in Anaheim, California, Disney’s CEO Robert A. Iger expressed confidence in the parks division as a major growth driver for the company last month.
Furthermore, Disney’s overseas parks, excluding Tokyo Disney Resort which pays royalties but is not directly owned by Disney, have struggled to turn a profit. However, the company remains committed to its international presence with heavy investments in its Paris and Hong Kong parks. Themed expansions based on “Frozen” and other Disney films are set to open soon.
In the past decade, Disney has undertaken several significant projects including opening Shanghai Disney Resort, doubling its cruise line capacity, and introducing new rides inspired by popular franchises such as “Star Wars,” “Guardians of the Galaxy,” “Tron,” Spider-Man, “Avatar,” and “Toy Story” at its domestic parks.
Further emphasizing their growth strategy, three more ocean liners are set to join the Disney fleet, bringing the total to eight ships. Additionally, Disney is nearing completion of a new port on a Bahamian island to add to its existing private island port.
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