Disney confirms Hawaii Resort

[crazy4wdw]

Disney moves into Hawaii market -- without Mickey and his friends

Jason Garcia | Sentinel Staff Writer
October 4, 2007

Disney is heading to Hawaii, with plans to build an 800-room hotel and time-share resort on Oahu, the company announced Wednesday.

But don't expect to see Mickey or Minnie wandering around the complex, which is being billed as the company's "first mixed-use family resort outside its theme parks."

The move comes eight months after Walt Disney Parks & Resorts Chairman Jay Rasulo told investors that Disney was considering building stand-alone hotels, independent entertainment districts or even niche theme parks in locations far beyond its mega-resorts in Orlando and four other cities around the world.

"This resort hotel will give our guests another way to visit an exciting part of the world with a brand they trust," Rasulo said in a statement.

It also marks another major expansion of the rapidly growing Disney Vacation Club, the company's Celebration-based time-share arm. Vacation Club President Jim Lewis said half -- and possibly more -- of the resort's 800-plus rooms will be time-share villas.

"Hawaii is just an ideal location for us as we continue to venture outside of the theme-park berm, if you will," Lewis said.

Several analysts called the move a way for Disney to drive new growth in its parks-and-resort division and further capitalize on its reputation for detailed customer service.

"It's a good business extension for Disney because they have built up a tremendous expertise in running resort hotels at all their various properties," said media analyst Harold Vogel of New York-based Vogel Capital Management.

What's more, Vogel added, "It's almost like an advertising beacon for them. They can market and advertise all of their properties while they're out in Hawaii."

But the decision to build a stand-alone resort could also be a sign that Disney expects growth to flatten at its traditional theme parks. Disney, after all, is increasingly focusing on vacations beyond trips to Walt Disney World and its other signature resorts in Anaheim, Calif.; Paris; Tokyo; and Hong Kong.

Two years ago, for instance, the company launched Adventures by Disney, in which it offers guided-tour packages to locales ranging from Wyoming to Peru to China.

Meanwhile, Disney Cruise Line, which is planning to double its fleet to four ships in the next five years, had one of its existing ships sailing in the Mediterranean this summer and is rumored to be considering itineraries everywhere from Alaska to Northern Europe.

"It's difficult to further increase the size and scope of the big theme parks. . . . In a week's vacation or five days, there's only so much one can see and do," said Janna Sampson, co-chief investment officer for Oakbrook Investments in Lisle, Ill. "Are people actually going to take longer vacations at Disney World? I think probably their research must be saying no."

Disney, which unveiled its plans in a news conference with Hawaii Gov. Linda Lingle, said it has purchased 21 acres of oceanfront land for the project on the southwestern corner of Oahu, Hawaii's most populous island. The property is part of Ko Olina Resort & Marina, about 25 miles from the heart of Honolulu.

The company said its Imagineering unit is still finalizing designs but that it intends to begin construction on the resort next year with a goal of opening by 2011. An artist's rendering depicts a lush, tropical setting with palm trees, thatched roofs and Tiki torches -- and not a Disney character in sight.

Disney spokeswoman Lisa Haines said any use of the company's iconic characters at the resort will be limited to those "that fit the authenticity of the area," such as figures from the 2002 animated movie Lilo & Stitch, about a Hawaiian girl who befriends an alien.

Characters are "not going to be a prominent part of this," Haines said.

In addition to extending Disney's presence beyond its theme parks, the project will also continue a sudden westward expansion for Disney Vacation Club. Just two weeks ago, Disney revealed plans to build its first time-share units in California, saying it would add 50 two-bedroom villas at Disneyland's Grand Californian Hotel & Spa.

Vacation Club's eight existing resorts are all on the East Coast, including six at Walt Disney World and one each in Vero Beach and Hilton Head, S.C.

Further expansions are certain for a Disney unit that, according to Lewis, has seen revenues, profits and membership double since 2003. Lewis mentioned Lake Tahoe on the California-Nevada border and the Caribbean as possible future time-share locations.

"This is a very important business to parks and resorts," Lewis said.

 

[Lilolvr]

Looks great! Good tie in to DCL and a land/sea package to the West Coast

 

[dday2022]

Here are some thoughts of mine, just putting some facts together with some hopeful wishing.

1) Disney is building an 800+ room resort in Hawaii, opening in 2011.

2) MSNBC had the location of the future resort on a map. The location marked was within 1.5 miles of Barbers Point Harbor.

3) Hawaii DOT lists Barbers Point Harbor as having or slated for some dredging, and pier expansion. From other reading on the web, it looks like Barbers Point is under utilized.

4) DCL is building 2 new ships, the first of which will come out of dry dock in... 2011

5) Disney Magic and Wonder both have 875 or so staterooms.

My theory is that in 2011/2012 or so we are going to see Land/Sea vacations coming out of Hawaii via Disney/Disney Cruise Line. Magic and Wonder are going to move to L.A. and Hawaii, as they are replaced by the larger ships who will take over the Caribbean and Med Cruises. Any thoughts?

 

[pugdog]

When and where do we sign up? It would be a nice way to get to Hawaii without the jetlag.

 

[minnie61650]

Here are some thoughts of mine, just putting some facts together with some hopeful wishing.

1) Disney is building an 800+ room resort in Hawaii, opening in 2011.

2) MSNBC had the location of the future resort on a map. The location marked was within 1.5 miles of Barbers Point Harbor.

3) Hawaii DOT lists Barbers Point Harbor as having or slated for some dredging, and pier expansion. From other reading on the web, it looks like Barbers Point is under utilized.

4) DCL is building 2 new ships, the first of which will come out of dry dock in... 2011

5) Disney Magic and Wonder both have 875 or so staterooms.

My theory is that in 2011/2012 or so we are going to see Land/Sea vacations coming out of Hawaii via Disney/Disney Cruise Line. Magic and Wonder are going to move to L.A. and Hawaii, as they are replaced by the larger ships who will take over the Caribbean and Med Cruises. Any thoughts?

Your timeline and theory sound very plausible.

I think there would many guests who would like that land/sea option.

 

[DancingBear]

DCL could be coming to Hawaii, but this 2020 Plan from Hawaii DOT refers to cruise capacity expansion for Honolulu Harbor and not Barbers Point:

D. CRUISE PASSENGER TERMINALS

DISCUSSION

In anticipation of a "boom" in the number of ocean cruise passengers, the international cruise industry is building a record number of new passenger ships. The domestic cruise industry, reportedly experiencing saturation of the Caribbean market and the Alaskan market's approach of its limit, is reaching out to new markets. As these cruise lines investigate new destinations, local ship agents are receiving increased inquiries for new and additional cruise ship calls. Hawaii's inter-island cruise line, acting on internal market studies and near-capacity bookings of its existing ship, is actively pursuing the acquisition of a second vessel. Recognizing the potential growth of this industry, the Chamber of Commerce of Hawaii has agreed to promote Hawaii as a destination for both foreign and domestic cruises.

RECOMMENDATIONS

While Hawaii offers an excellent destination for cruise passengers, cruise terminal facilities are largely lacking. This discrepancy is addressed by the recommendation to improve or construct four cruise ship terminals at Pier 2 (two berths), Pier 9, Piers 10-11 and Piers 19-20. These terminals provide berthing for five cruise ships.
....

F. BARBERS POINT EXPANSION PROJECT

DISCUSSION

Hawaii's cargo volumes continue to increase. To ease the congestion within Honolulu Harbor, the "hub" of Port Hawaii, , bulk cargo shipments are directed toward Barbers Point Deep Draft Harbor. In the scant six years that Barbers Point Harbor has been in operation, however, competition for berths has grown rigorous and shippers are concerned about potential delays and the resultant revenue losses. Already, ships are sometimes forced to anchor off-shore while other vessels are loading and discharging their cargo. Barbers Point Harbor only has two piers and the surge-ridden barge harbor available for cargo operations, and many bulk cargo vessels require substantial time at berth to complete their operations. (Scrap metal loading requires 8-10 days, 5 days are usually necessary to discharge coal, clinker ships normally are at berth for 4 days, as are ships carrying naphtha.) These delays can cost shippers between $20,000 and $50,000 per day, depending on the charter rate in use.

RECOMMENDATIONS

The increased use and importance of Barbers Point Harbor as Honolulu Harbor's supplement, coupled with the growth of the communities in Oahu's Ewa, Central and Leeward areas, necessitate Harbors Division's current plans for the deep-draft harbor.

Perimeter lighting and construction of a control tower on the Pier P-4 peninsula are proposed as navigational aids, enabling 24-hour operations.

To allow safer entry and exit, the 2020 Master Plan proposes dredging and flaring of the harbor's entrance channel and construction of a jetty to attenuate cross-currents. These projects will be coordinated with the U. S. Army Corps of Engineers.

Plans for dredging the turning basin to accommodate deeper draft vessels will also be coordinated with the U. S. Army Corps of Engineers. A depth of -45 feet is recommended to allow fuller bulk loads into the harbor.

A triangular section of land is targeted for dredging to form a 90 degree corner between Pier P-4 and Pier P-5, which allows greater berthing flexibility at Pier P-5.

A 300-foot seaward extension of Pier P-5 is planned to follow the dredging of the Pier P-4/P-5 corner.

The proposed harbor expansion, approximately 1,100 feet by 1,100 feet along the northeast margin, will provide additional space for cargo and dry-dock operations. All efforts will be taken to develop the full 1,100-by-1,100-foot expansion. Only if this cannot be accomplished in a single project will the phased development (Pier P-5 extension, 1,100-by-600-foot expansion; Pier P-7 construction; 1,100-by-500-foot expansion; relocation of the dry dock; construction of the Pier P-4 fuel dock) be considered.

Following completion of the harbor expansion, construction of Pier P-7 is planned as a 1,100-foot marginal wharf for bulk cargo.

A dedicated petroleum dock is proposed at Pier P-4, displacing the dry-dock operation which will be relocated to the northwest area of the expansion project.

A new harbor access road, wide and strong enough for industrial loads, with the requisite lighting and overhead clearances, is planned to connect the Pier P-7 yard to Kalaeloa Boulevard.

http://www.hawaii.gov/dot/harbors/oahu/2020-2.htm

 

[Another Voice]

Yet no one remembers the flaming rumors from two years ago when it was "I bet my Dole Whip" certain that Disney was going to announce a giant new crusie ship terminal for Long Beach during Disneyland's 50th and they had a whole series of instantly sold-out west coast cruises.

Disney is a reactive company these days. They will not cruise to Hawai'i until other companies have proven the market and Disney can convince themselves of a massive profit margin.

 

[tfc3rid]

Last week on the 7 Day Eastern cruise, I overheard that there is a potential 5th DCL ship in the works because of an option that DCL has with Meyer Werft....

 

[DancingBear]

Yet no one remembers the flaming rumors from two years ago when it was "I bet my Dole Whip" certain that Disney was going to announce a giant new crusie ship terminal for Long Beach during Disneyland's 50th and they had a whole series of instantly sold-out west coast cruises.

Well, somebody made this connection--it seems that the Ko Olina developer has been pushing for a cruise stop nearby:

http://dvcnews.com/index.php?option=com_content&task=view&id=211&Itemid=1

 

[raidermatt]

It's possible, though the Ko Olina developer has been pushing for ANYTHING, with little success until this.

One of the issues I think is the location. The area surrounding Ko olina isn't the greatest, and it's a fair distance from all of the major tourist destinations on the island.

That aside, I could see them trying it. But Hawaii cruises have been a sketchy business. For awhile, I don't think anybody was cruising to Hawaii. There's a few now, but still, its not the natural that a Caribbean or Mediterranean cruise is.

I think the issue is that once people get to Hawaii, they realize they would much rather spend their vaction time in the Islands rather than getting to them. There's a lot to see and do. A Castaway Cay type destination, but it's tough to tell if people will be happier with that and a 5-6 days at sea than with a full week in Hawaii.

But, perhaps there is a market for that and Disney will give it a shot.

My guess is they would want to somehow "test the waters" (pun intended) before making a large investment.

 

[YoHo]

The problem to is it's a large time commitment. Hawaiian cruises departing from the west coast are almost all 2 week or more depending one whether your sailing one way or 2 ways.

 

[Keyser]

That aside, I could see them trying it. But Hawaii cruises have been a sketchy business. For awhile, I don't think anybody was cruising to Hawaii. There's a few now, but still, its not the natural that a Caribbean or Mediterranean cruise is.

I think the issue is that once people get to Hawaii, they realize they would much rather spend their vaction time in the Islands rather than getting to them. There's a lot to see and do. A Castaway Cay type destination, but it's tough to tell if people will be happier with that and a 5-6 days at sea than with a full week in Hawaii.

But, perhaps there is a market for that and Disney will give it a shot.

My guess is they would want to somehow "test the waters" (pun intended) before making a large investment.

I counted at least 6 cruise lines (Royal Caribbean, Norwegian, Holland America, Princess, Celebrity, Carnival) with Hawaii cruises. I think Norweigan has three ships solely on Hawaii routes. True, it's not the Carribean, but it does seem established.

You're right about people probably preferring to spend time in Hawaii rather than sailing to/from (which is a strike against cruises). But, the big advantage is that one could easily visit more than one island, without having to pack up and travel for each. I've never been to Hawaii, but when I think of the things I would most want to see there, I'd want to go to at least 2 islands. Since I'm not likely to take repeated trips there, a cruise would be an attractive option.

The other thing is that they wouldn't necessarily have to run them out of the West Coast. Norwegian offers cruises that just go between the islands (mainly 7-day round trips from Honolulu, with 2 days on each of three other islands). I could easily see someone staying at a Disney resort on Oahu for a couple of days before or after such a trip. The cruise would be more of a moving hotel than the main event, though.