Euro Disney Eyes $180 Mln 'Tower of Terror'

[ProfGoofy]

Euro Disney Eyes $180 Mln 'Tower of Terror

By Caroline Brothers

PARIS (Reuters) - Euro Disney wants to use part of a planned rights issue to build a gut-wrenching new "Tower of Terror" ride that could cost some 150 million euros ($182.2 million), sources familiar with the situation said.

The attraction, to be built at its second Paris theme park, would be similar to the Hollywood Tower Hotel attraction at Walt Disney World in Orlando, Florida.

The French theme park operator is up against a Sept. 30 deadline to restructure its debt and its chairman, Andre Lacroix, has said he hopes to use part of the planned 250 million euro rights issue to fund "exciting new rides and attractions."

Building a Tower of Terror, a heart-stopping vertical drop in an elevator from the top of a tower, would be consistent with that strategy, sources told Reuters.

"It will either be the Tower of Terror or three smaller attractions," one source, who declined to be named, said on Tuesday. A second source said that of the two options, the tower was the most likely.

Euro Disney, the most visited tourist attraction in Europe, has to add novelties to its existing parks roughly once every three years, analysts say, to maintain interest and encourage its fans to return.

To that end it opened a second theme park, The Walt Disney Studios, next to the Magic Kingdom at its east-of-Paris site in spring 2002. But the new park has failed to draw in the crowds.

Instead, it has increased operating costs at a time when tourism has slumped following the Sept. 11, 2001 attacks, driving Euro Disney to the brink of bankruptcy.

Euro Disney's 39 percent shareholder, the Walt Disney Co., has agreed to extend it fresh credit lines and waivers on some of the royalty payments it owes for use of the Mickey Mouse characters.

Euro Disney, surviving on temporary debt waivers from its banks, is counting on new attractions to revive its flagging fortunes. Visitors to the second theme park, which has only 10 attractions against 47 at the first, have complained that the new park lacks thrills.

Euro Disney was able to revitalize attendance at The Magic Kingdom with the construction of its Space Mountain ride, though shareholders still blanche at the 100 million euros it cost the company to construct it.

When Space Mountain was opened, former Chairman Philippe Bourguignon said that each new attraction drew about half a million more visitors, but that was in Euro Disney's early days.

With numbers now stabilizing at about 12.2 million a year, some analysts say bringing increasing the number of visitors will be a much tougher challenge.

Shares in Euro Disney, which have been grazing record lows amid debt talks that have been going on for a year, were trading on Tuesday at 0.24 euros. ($1=.8231 Euro)

 

[Sarangel]

Oy. Don't these guys ever learn? This didn't work for California Adventure, why should it work for DLP? This really isn't rocket science - build something new & cool and people will want to see it. Build something everyone's already seen before, and they'll probably find some other way to spend their $50.

Sarangel

 

[WDWHound]

Originally posted by Sarangel
Oy. Don't these guys ever learn? This didn't work for California Adventure, why should it work for DLP? This really isn't rocket science - build something new & cool and people will want to see it. Build something everyone's already seen before, and they'll probably find some other way to spend their $50.

Sarangel

I agree, but apparently this Euro version of MGM Studios has even less to do than California Adventure, so anything would help.

 

[TheRustyScupper]

1) DLP needs the three rides more than one big ride.
2) Disney Studios Paris is a REAL NOTHING.
3) It took us less than 4-hours to see almost everything.

4) IMHO, I don't think there is much that can save DLP.

 

[Michael623]

DLP Studios has 3 good rides/attractions:
1. Rock n Rollercoaser
2. Moteurs stunt show
3. Cinemagique

That's it. I was there the day after Easter and while the Magic Kingdom was packed the Studios were empty. I agree with the previous poster that it is indeed a 4 hour park. It has no charm, no atmosphere nothing, and another top attraction won't really help. I actually enjoyed DCA but the DLP Studios is a wound that a TOT band-aid won't fix. I'm glad I got to see DLP once in my lifetime because I fear that it may not be around forever.

 

[disneyuk]

A view from over the pond !

Firstly, let me say we haven't been to DLP since they opened the Studios.
We have always saved up and visited WDW (4 times in the last 5 years). However, I don't think we will be able to afford to fly to USA for sometime now.

I loved the 'Magic Kingdom' park at Paris, but was never that fussed about going to the Studios. However, we love the TOT ride at MGM.
Personally, I would jump at the chance of driving to DLP for a long weekend 'to do' MK and one of all-time favorite rides - TOT. I hope they build it because we miss the 'Disney Magic' when we return to England. DLP doesn't hold the same attraction for us, but having TOT would definitely help us!

 

[leise]

I agree, disneyuk.

Also in the UK, we love having DLP there for a weekend break, and I think most of DLP's customers are similar. I also think that a large proportion (larger than WDW) of DLP's customer base is families with young children, as there is soooo much for them to do in Disneyland Park.

Therefore while I think that TOT would no doubt help Disney Studios, they also desparately need to put something in there for all those families crammed in to the other park. At the moment there is nothing- no Muppets, no Playhouse Disney, no shows for kids like Beauty and the Beast. I know, we were in there for two whole hours in May, and that included 40 mins for lunch! Two very bored small boys, I can tell you.

I do hope they save DLP , it would be madness to lose it as it does so much right and is a valuable quick fix of Disney Magic. But its going to need a great deal of long-term investment.........