When you consider the long-term prospect each company has for future growth, Universal looks like a more formidable threat than ever.
In recent years, Universal has acquired more than 2,000 additional acres on which to grow, while Disney has allocated its largest chunk of property for the development of a subdivision.
At WDW, 9,000 acres have been set aside for Celebration, which is a Del Webb-style planned community. The problem is 9,000 acres represents most of the land WDW had for long-term growth.
While Disney owns 30,000 acres, 10,000 have been set aside as wildlife habitat. This leaves 20,000 total acres on which WDW can build. Subtract the 9,000-acre subdivision and you have 11,000 acres on which to build.
Sounds like a lot of land, but given the fact WDW has already constructed 24 large-scale resorts, five golf courses, three water parks, four theme parks, a camp ground, a multi-sports facility, two night-time districts and a large shopping complex
11,000 acres doesnt seem so big anymore.
Even the Orlando Sentinel has reported that Disney has room for one more theme park. Universals master plan calls for two more theme parks, hotels, golf courses and maybe another water park.
The reality is that WDW had sold off its most valuable asset its land. I contend most of what makes WDW feel so "magical" is its massive size not just its theme parks. Its the fact that these theme parks are tucked away from civilization and spread throughout a massive property dedicated to vacations and entertainment.
Lets face it, if Islands of Adventure sat in a distant forest and could only be reached by taking a boat ride across a 1,000-acre lake, it would feel pretty darn "magical" too.
Step on Disney property and you were in a land of make-believe that expanded far beyond the borders of the its theme parks. Now WDW developments are starting to appear on top of each other creating a very urban feel. Each new development makes WDW seem smaller not bigger. Look at Pop Centurys tight proximity to the Caribbean Beach Resort. CBR once was once surrounded by forests. Now when you look to the south you see the eye soar of another garish discount motel and its enormous black top parking lot. There at least 10 other examples of a newfound urban density at WDW that most of us can site as well.
Maybe Im crazy, but Im a big fan of the concept of WDW; of 30,000 acres devoted to fun and escapism. And I rue the day that WDW gave away that land to build an albeit nice, but a very ordinary planned community.
These days, anyone with financing can build or buy a world-class attraction. Few, if any, companies can place those attractions on a property as large (and thefore as unique) as WDW. Which is why the decision to give away nearly half of their useable land, was a decision to give away their most powerful competitive advantage. Universal couldn't be happier with Celebration, I'm sure.
I keep reading posts on this site about how Disney is sacrificing its long term value in sake some short-term profits. Well my friends, you will not find a more damaging example of this new new short-sighted business mentality than in Celebration. Parceling their property into business units that fall outside of WDW's core competency is utter lunacy.
And 10 years from now, when WDW has the same urban density as Universal (and therefore nothing unique to offer), Disney management will learn the painful lesson that the whole truly was greater than the sum of its parts.