Anika Begay
By Dawn Chmielewski
ANAHEIM, California (Reuters) – Walt Disney (NYSE:) is expected to announce new theme park attractions at its D23 fan convention on Saturday, revealing how the company will begin investing $60 billion in capital investments.
Disney said it will ramp up its investment in its parks, nearly doubling spending over the next decade, as it reimagines attractions at its 12 parks around the world and increases capacity at its cruise line.
The parks have become a reliable profit engine for Disney, helping to cushion the impact of declines in its traditional television and losses in its streaming video business, which turned a profit last quarter.
The experiences unit, which includes parks, cruise ships and consumer products, contributed 60% of the company’s operating profit in the latest quarter, up from 30% just a decade ago.
Disney CEO Bob Iger said the company plans to spend $17 billion over the next decade on the Walt Disney World Resort in Orlando.
These investments would build on recent attractions such as Tiana’s Bayou Adventure, inspired by Disney’s animated film “The Princess and the Frog,” the Guardians of the Galaxy: Cosmic Rewind roller coaster, and Tron Lightcycle/Run.
The company faces increasing competition in Central Florida from rival Universal Studios, which plans to open Epic Universe next year, adding 750 acres (303.5 hectares) that will be populated by Harry Potter, dragons from the Viking world of “How to Train Your Dragon” and classic Universal movie monsters such as Frankenstein and Nintendo’s Donkey Kong.
In Anaheim, California, Disney won approval earlier this year for a development plan that paves the way for a $2 billion investment in the Disneyland Resort.
The company has not yet provided details, other than that it is seeking the flexibility to combine hotels, shops and attractions within the same themed world, as it did with Fantasy Springs at Tokyo DisneySea Park.
“We have an obligation to continue to build on these tremendous businesses and the amazing experiences that we have here in California and Florida,” Disney Experiences Chairman Josh D’Amaro recently told Reuters. “And we’re going to invest aggressively, massively and smartly.”
