The operator of Tokyo Disney Resort has announced that attendance at its theme parks is expected to be down 11% this year despite the opening of a new $2.1 billion expansion. The expansion, called Fantasy Springs, includes a deluxe hotel and new attractions based on popular Disney movies. It is the biggest expansion at the resort since it opened in 2001. The Tokyo Disney Resort is operated by the Oriental Land Company (OLC) rather than The Walt Disney Company.
Attendance at the Tokyo Disney Resort surged by 24.5% in the past year as Japan recovered from the pandemic. However, the new expansion is not expected to have the same impact on attendance in the next financial year. OLC expects attendance to reach 29 million next year, lower than in the 2019 financial year. The resort is also forecasting an increase in sales, with revenue from the theme parks making up a large portion of the rise.
Despite the opening of Fantasy Springs, OLC is facing challenges with declining revenue from other sources such as merchandise and monorail sales. Costs are also expected to increase with the opening of the new expansion. While OLC is still projected to make an operating profit, it is expected to increase only modestly. The company’s president and chief executive are focused on steering the resort back to its pre-pandemic attendance levels.
Tokyo Disney will debut a new nighttime fireworks show in September featuring characters from Marvel Comics for the first time in the resort. This is a significant event as Tokyo Disney had been unable to use Marvel characters due to a contract with Universal Studios theme parks. The contract ended this year, allowing the resort to bring Marvel characters to its parks. OLC hopes that the new fireworks show will help boost attendance and revenue.
Further developments are planned at Tokyo Disneyland, including replacing a popular ride with a new attraction themed to a Disney movie. The park is also investing in upgrades to classic attractions. However, some investors are pressuring major shareholders in OLC to sell their stakes in the company. Despite the excitement surrounding the new expansion and upcoming attractions, OLC’s share price recently hit a one-year low, indicating ongoing challenges for the company.
