Disney to bet big on parks

Disney has announced plans to radically increase its investment in its Parks, Experiences and Products business, with a commitment to spend about US$60 million over the next 10 years.

The plan was unveiled at an analyst and investors event in Orlando, Floriday attended by Diseny CEO  Bob Iger and Disney Parks, Experiences and Products Chairman Josh D’Amaro.

The US$60 billion commitment effectively doubles Disney’s planned investment in parks and experiences over the last 10 years.

Iger highlighted parks as a key growth opportunity on the entertainment giant’s last earnings call.

The move comes despite continued tension and a legal battle between Disney and the state of Florida and its governor and Republican presidential candidate Ron DeSantis.

“We’re incredibly mindful of the financial underpinning of the company, the need to continue to grow in terms of bottom line, the need to invest wisely so that we’re increasing the returns on invested capital, and the need to maintain a balance sheet, for a variety of reasons. The company is able to absorb those costs and continue to grow the bottom line and look expansively at how we return value and capital to our shareholders,” said Iger.

“We have an ambitious growth story that is supported by a proven track record and a bold vision for the future of our Parks business,” said D’Amaro.

Disney is already planning IP-based additions to its existing theme parks, such as new Frozen-themed lands coming to Hong Kong Disneyland, Walt Disney Studios Park in Paris and Tokyo Disney Resort.

Disney also says it has over 1,000 acres of land for possible future development to expand theme park space across its existing sites – the equivalent of about seven new Disneyland Parks.