Budget cuts at Walt Disney World

[rteetz]

Maybe the foreign based Parks should be spun off from the domestic operations. That's where the trouble lies, don't sink the whole ship trying to bail water out of a few dinghys.

Considering they just bought majority stake in Paris I doubt that will happen. Also Disney is not majority owner in either China park.

 

[carmelhp]

Considering they just bought majority stake in Paris I doubt that will happen. Also Disney is not majority owner in either China park.

That doesn't prevent them from bundling their interests into a separate company and divesting it.

 

[rteetz]

That doesn't prevent them from bundling their interests into a separate company and divesting it.

I don't think they will right now that's not to say it won't happen in the future though.

 

[DDLand]

Coming off of that shareholders meeting we know a few things...

1) Parks and Resorts performing better then ever is critical.

2) Disney is investing 2 Billion+ in designing and building Cruise Ships (this is my guess based off of the last wave of building)

3) Parks and Resorts is more integrated into the brands of the Company then ever before.

4) They're taking the expansions seriously.

I know this goes against the grain, but I think these budget cuts have more to do with redeploying funds than anything else.

Disney is expanding operating hours at DAK. At the same time they reduce them at Future World (which is actually creepy at night TBH) and Disney Quest.

Disney is opening new attractions and additions adding staff and hours. (Soarin', TSMM, Frozen, etc) At the same time they're reducing the number of employees at others.

Disney is adding new entertainment like ROL and SW Fireworks. At the same time they may be looking reduce it in other ways like number of characters and parades.

 

[carmelhp]

I don't think they will right now that's not to say it won't happen in the future though.

Agreed, it's not likely soon.

 

[Maineiak]

... Maybe we just looked really innocent

Are you implying we don't?!?!?!

 

[iamsarahpotts]

Guys, the cuts are worse than we thought! The mailroom must be SEVERELY understaffed due to budget cuts because this time-sensitive information just arrived in my mailbox yesterday! Now I'll never be able to score a 10AM 7DMT fast pass!!

(I'm just being silly, but for real..c'mon Disney! )

 

[iamsarahpotts]

Also, obviously @lockedoutlogic helped design this packet based on the suggested things to use my FPs on

 

[Maineiak]

Guys, the cuts are worse than we thought! The mailroom must be SEVERELY understaffed due to budget cuts because this time-sensitive information just arrived in my mailbox yesterday! Now I'll never be able to score a 10AM 7DMT fast pass!!

(I'm just being silly, but for real..c'mon Disney! ) View attachment 154879

Could have been the postal service too...

 

[adam.adbe]

That doesn't prevent them from bundling their interests into a separate company and divesting it.

Ceding control of DLP is what landed them in a mess in the first place.

 

[OhioStateBuckeye]

Lurker finally registering an account to say hi, and to chip in a bit of my perspective on the Shanghai park because I've spent quite a bit of time as an American traveling throughout Asia.



The most important reason is probably language. Tokyo operates a park in Japanese characters and language. Hong Kong operates a park where the first written language is in traditional Chinese characters and the first spoken language is in Cantonese. But everyone in mainland China uses simplified Chinese characters and speaks a different language, Mandarin. None of these three languages is mutually intelligible when spoken...

While the written characters share a common heritage, and Hong Kong Disneyland certainly courts mainland visitors - there's absolutely a need for a park presented in their native language. The Tokyo park in particular is unlikely to draw visitors from China, and there's a growing amount of resistance from locals in Hong Kong to increased mainland tourism.

Disneyland Paris benefits from the widespread usage of English across the European Union as a common denominator language; there's no such convenient alternative for the major Asian languages yet (although English may fill that role sooner rather than later!)



This is true - Shanghai is the largest city proper in the world and a very vibrant market in and of itself. But don't discount its position within mainland China, either - both Beijing and Shanghai are aspirational cities to visit for people throughout China. It's already a built-in tourist destination with fantastic transport connectivity and a neverending stream of visitors - much like Paris is in Europe. I think this park will be very well positioned to pull in a steady stream of new guests.



Shanghai is an interesting place. For most of its history, it's been the city in mainland China that has been the most open and welcoming to foreigners. In the 1850s, the city was designated as a hub for western trade; it was divided into fourths and run by the Americans, Germans, British and French. The Bund - the waterfront promenade - still has a very western feel and looks more like 1920s New York than a Chinese city. And if you squint while walking through the French Concession, you could easily imagine yourself in Europe. This heritage has left the city very receptive to western ideas, and you'd be hard pressed to describe the people and culture as a hostile environment...

Most Chinese people are actually very open and receptive to Western culture and ideas. They're certainly proud of their own country, too - don't get me wrong - but there isn't a general hostility toward the US at all that I've encountered in my travels. Far from it - Disney characters are everywhere, western movies are popular, and people actually have a more positive perception of America than most western Europeans do. I can barely walk a block in China without people approaching me, wanting to practice their English and take a selfie with me - it gives me a taste of what being a character in a park must be like!

(This is referring to everyday citizens, of course - leaders of all kinds often take much more aggressive positions for a variety of reasons ranging from politics to trade, and that's what we hear more about in our news reports. But even there, I think everyone recognizes that a healthy, balanced relationship between the US and China is beneficial to both parties.)



Hong Kong and Shanghai actually have a surprisingly large amount in common; both had a British colonial period, both are prosperous financial centers with gleaming new downtowns. But as rteetz says, it's important to recognize that Hong Kong is a completely distinct region from the rest of mainland China - they're proud of their separate governance and the city has developed a culture all its own.

The main risk to Disney from opening a Shanghai park is cannibalizing the Hong Kong Disneyland market. For now, it won't be a problem - HK is extremely popular among mainlanders because it has a perception of offering higher quality products and services, and there are enough visitors to keep both running well. But in 20 years, if the Shanghai park ends up wildly successful, people may choose to go there instead and bypass HK entirely... leaving HK's primary audience as only Australian and Southeast Asian visitors.

---

Long story short, as a US based Disney visitor, all the cuts coming this year are a major bummer. But as a world traveler, I'm super excited to see the new park in Shanghai coming together, and I think it will quickly be known both a source of new rides for us to enjoy and an attraction all its own. I'd encourage all of you to consider eventually visiting China and experiencing the new park (as well as all the other attractions of both Beijing and Shanghai). I find both Hong Kong and the mainland to each be really, really rewarding places to visit, and I believe both would well exceed your expectations if all of your impressions of China are based on what you've seen on TV.

For now, though, I'd nudge you all towards Japan, instead - the currency exchange rate is very favorable right now and airfares are low, making a trip very affordable. And Japan is extremely accessible to westerners - it's the perfect balance of excitingly unfamiliar and comfortably welcoming. Maybe the best part is discovering the vast array of delicious food that would satisfy even the pickiest eater (it's not just sushi!). If you're frustrated with the Disney cutbacks stateside this year, why not plan a trip to Tokyo Disneyland instead? Just make sure to add plenty of extra time to explore Tokyo and Kyoto

(Way off topic for this board, but if you're considering a trip to either China or Japan, I'd love to hear from you via private message - I may be able to help offer some advice!)

I'd like to get your input on Japan, but I don't think you have enough posts yet to get a private message. I left a note on your profile page.

 

[carmelhp]

Ceding control of DLP is what landed them in a mess in the first place.

I don't think that was DLP's main problem.

 

[iamsarahpotts]

Could have been the postal service too...

We do have a horrible postman, but I couldn't figure out how to work that into a Disney joke to post on here.

 

[rteetz]

I don't think that was DLP's main problem.

What is then? DLP is the most visited theme park in Europe even if it under performs. Europe just isn't as theme park centric as say the U.S. Or Japan.

 

[carmelhp]

What is then? DLP is the most visited theme park in Europe even if it under performs. Europe just isn't as theme park centric as say the U.S. Or Japan.

You just said it yourself and it has nothing to do with who controls it. The market isn't there. They can't make money even as the most visited theme park in Europe (and attendance is declining). They have a debt burden from it's initial construction that can't be shed. It's a dying dog. Disney should have backed away instead of taking it inside the house.

 

[adam.adbe]

You just said it yourself and it has nothing to do with who controls it. The market isn't there. They can't make money even as the most visited theme park in Europe (and attendance is declining). They have a debt burden from it's initial construction that can't be shed. It's a dying dog. Disney should have backed away instead of taking it inside the house.

It still has an attendance level that is close to that of DLR. It's not profitable because the park was allowed to wither and die for many years, and putting that right is expensive. It probably wont be as profitable as WDW because it isn't driving a DVC cash cow[1], and likely does not shift as much merchandise. That's far from saying it could not be profitable. If Anaheim can make money, so too can Paris, as soon as Disney has properly righted the ship. DLP is a typical Eisner era half finished project, that never did get finished. As with DHS today, the fix is going to hurt.

[1] and sooner or later, that's going to blow up in Disney's face too.

 

[carmelhp]

It still has an attendance level that is close to that of DLR. It's not profitable because the park was allowed to wither and die for many years, and putting that right is expensive. It probably wont be as profitable as WDW because it isn't driving a DVC cash cow[1], and likely does not shift as much merchandise. That's far from saying it could not be profitable. If Anaheim can make money, so too can Paris, as soon as Disney has properly righted the ship. DLP is a typical Eisner era half finished project, that never did get finished. As with DHS today, the fix is going to hurt.

[1] and sooner or later, that's going to blow up in Disney's face too.

If it is already the most visited park, and has had a attendance decline of 25% since 2008 and has made money only a handful of times in its existence, what is Disney going to do now that it didn't do before? The demographics of Europe are against it. People are not having families, and the market is withering much faster than the park. Plus, in the Iger era, even the healthy parks are being neglected. Why should Disney cannibalize profitable operations to save an operation that it never has been able to make a go of?

 

[rteetz]

You just said it yourself and it has nothing to do with who controls it. The market isn't there. They can't make money even as the most visited theme park in Europe (and attendance is declining). They have a debt burden from it's initial construction that can't be shed. It's a dying dog. Disney should have backed away instead of taking it inside the house.

Eisner wanted it. And then they were forced to do the second park by the French.

 

[carmelhp]

Eisner wanted it. And then they were forced to do the second park by the French.

So. What's that got to do with anything? Disney owned a controlling interest in EuroDisney S.C.A. since opening. Control had nothing to do with it.

 

[rteetz]

So. What's that got to do with anything? Disney owned a controlling interest in EuroDisney S.C.A. since opening. Control had nothing to do with it.

I'm not saying it did. I'm saying the reason DLP was built was because of Eisner. And the reason the studios was built was because they were forced too.