Disney to Spend $60 Billion in Attempt to Bring Guests Back Into Parks

Disney CFO Hugh Johnston said the company is looking to spend $60 billion over the next ten years; 70% of that will bring “incremental capacity expanding investments around the globe.” Let’s find out what this means for Walt Disney World Resort expansions.

Disney Seeks to Bring Guests Back Into the Parks Through Billions of Dollars

In September 2023, Disney unveiled its ambitious strategy to allocate a staggering $60 billion toward enhancing its parks and cruise lines over the ensuing decade. This substantial investment marks a significant milestone, doubling the expenditure dedicated to park development and enhancement compared to the preceding ten-year period.

The comprehensive investment strategy encompasses several key initiatives:

• Upgrading and expanding existing theme parks to enhance guest experiences.
• Introducing new themed lands within the parks to enrich their offerings.
• The Disney Cruise Line is continuously developing to meet growing demand and offer innovative experiences.
• Increasing overall capacity across all parks and cruise lines to accommodate more guests.

Approximately 70% of the total investment will be allocated towards capacity-expanding endeavors, with each Disney theme park and cruise line earmarked to receive a share of these enhancements. The outgoing Chief Financial Officer (CFO) has indicated that investments will ramp up during the latter half of the ten years, with a more gradual increase anticipated during the initial years of implementation.

At this week’s Q1 earnings report, Disney once again shared this news with a few more updates, giving fans a look into what they can expect from this billion-dollar investment.

The Q1 Earnings Call and What It Means for the Future of the Company – Walt Disney World Resort Expansions

During the Walt Disney Company Annual Shareholder Meeting in April 2023, CEO Bob Iger announced Disney’s strategic plan to invest $17 billion over the ensuing decade, exclusively dedicated to Walt Disney World. This substantial investment is expected to generate approximately 13,000 new employment opportunities within the region.

Iger emphasized that the company is actively engaged in meticulous planning to determine the allocation and nature of these new investments. Anticipated developments are slated to commence unveiling in 2025, with a consistent rhythm of additional investments and capacity enhancements scheduled to follow annually. An analyst asked Iger about where and when we will see new investments:

You can pretty much conclude that they will be all over, meaning every single one of our locations will be the beneficiary of increased investment and thus, increased capacity, including on the high seas where we’re currently building three more ships and a business that is obviously extremely positive to us. We may look expansively in that direction. I’m not going to give you more of a sense of timing except that we’re hard at work at getting these things basically conceived and built.

– Disney CEO Bob Iger

While the company did not disclose specific details regarding the allocation of the substantial investment in Walt Disney World, CEO Bob Iger did not rule out the possibility that a portion of these funds could be directed towards the potential development of a fifth theme park in Central Florida. “We’re already hard at work at basically determining where we’re going to place our new investments and what they will be,” Disney CEO Bob Iger said.

A Fifth Park, More Attractions, and Everything Else in Between

Despite the theme park division achieving a record quarter overall, executives noted a decline in operating income for the Central Florida parks at Disney World. Factors attributed to this decline include inflation, increased wages, and lower attendance compared to the significant numbers observed during the park’s 50th-anniversary celebration a year earlier.

However, executives expressed confidence that the new investments in Walt Disney World will yield positive returns in the long term.

Speculation has arisen regarding Disney’s potential plans to construct a fifth theme park in Orlando. This speculation gained traction when Disney included a future major theme park provision in the developer agreement signed with the Reedy Creek Improvement District (before it became the CFTOD). This agreement garnered attention, particularly concerning recent developments involving Governor Ron DeSantis’ administration. Despite some secrecy on how the billions will be spent at WDW, there is a timeline of when we expect some upcoming parks and experiences to open:

Disney Vacation Club Cabins at Fort Wilderness Resort

Opening Date: July 1, 2024

Disney Vacation Club at Polynesian Resort

Opening Date: Late 2024

Tiana’s Bayou Adventure

Opening Date: 2024

Country Bear Musical Jamboree

Opening Date: Summer 2024

New Star Tours Characters and Stories

Opening Date: 2024

EPCOT CommuniCore Hall and Plaza

Opening Date: 2024

The Little Mermaid – A Musical Adventure

Opening Date: Fall 2024

That’s it for now. Be sure to tune back into Inside The Magic for more accurate news regarding all things Disney.

Do you think these Disney World expansions will be arriving anytime soon? (aside from what is already mentioned above)