Disney’s Anaheim Parks Pushing for Higher Numbers
By SANDI CAIN
Orange County Business Journal
Down the road from the drama playing out in Burbank, Walt Disney Co. is gearing up for a big year in Anaheim.
The publicity workers for the company’s two Anaheim theme parks are touting a much-needed addition to Disney’s California Adventure and a new musical at Disneyland Park. The moves are a prelude to an even bigger push set for next year when Disneyland is set to celebrate its 50th anniversary.
The goal: keep visitor numbers on the upswing after the tough going of the past few years.
Disney doesn’t disclose attendance, but industry estimates put Disneyland at 12.7 million visitors in 2003, about the same as 2002. Struggling California Adventure drew only 5.3 million visitors, though that was up 13 percent from 2002. In the fourth quarter, the two parks saw attendance grow by 3 percent from the year-ago period, with hotel room nights up by 10 percent. Advance bookings for 2004 are running about 20 percent ahead of 2003.
“Advance bookings are making us smile,” Chief Executive Michael Eisner told investors during a recent conference call.
For now, Comcast Corp.’s takeover offer and the boardroom intrigue surrounding Eisner don’t seem to be impacting Anaheim, although a sale of the company would raise big questions about whether a new owner would keep the parks.
For now, hoteliers near Disneyland are reporting more business and they’re boosting efforts to play off Disney’s drawing power. Hilton Anaheim installed the first Disney Desk information center last summer, and the Crowne Plaza in Garden Grove teamed with a timeshare company that uses the hotel as a sales center for Disney vacation packages.
Winter typically is prime time for sprucing up rides at the parks. But this year, workers have more to do as the park gets ready for the “Happiest Homecoming on Earth” the tag line for next year’s celebration.
Upgrades are slated for Disneyland’s highly visible areas, including Central Plaza and City Hall. In February alone, half a dozen attractions were closed, including Indiana Jones, Space Mountain and Big Thunder Mountain.
Some of the rides are set to reopen in time for Easter vacation. But Space Mountain won’t be ready until next year. “It takes about four weeks just to take down the holiday decorations from It’s A Small World,” said Tom Brocato, director of press and publicity for the Disneyland Resort.
Meanwhile, Disney is pushing “Snow White: An Enchanting Musical” at Disneyland. “Disney’s Aladdin,” now into its second year at California Adventure, inspired the addition of the Broadway-style show.
At California Adventure, Twilight Zone Tower of Terror is set to debut in May and expected to give another boost to a park that has yet to meet expectations. Industry sources said new thrill rides such as Tower of Terror can raise attendance by as much as 10 percent. “Tower of Terror will make that park a more competitive second gate,” Eisner said in a recent conference call.
But even with a 10 percent increase, the park still would fall short of the originally projected 7 million visitors each year. “It’s a B-grade park,” said Dennis Speigel, president of Cincinnati-based International Theme Park Consultants.
In recent months, company executives repeatedly have touted lower capital spending. With less spending, stage shows are the alternative. Disneyland officials insist the shows work, citing studies that show theatrical performances are as effective as E-ticket rides in bringing visitors.
“We are constantly soliciting feedback from our guests, and their response to new entertainment shows has been very enthusiastic,” said Disneyland Resort President Matt Ouimet.
Besides “Snow White” and “Aladdin,” the “Magic of Brother Bear” show added at California Adventure last fall is said to be a big hit, even if it’s not all that California-oriented.
The new Disneyland team has abandoned the Disneyland Resort logo made up of California Adventure’s Grizzly Peak, Disneyland’s landmark castle and an updated typestyle. Instead, officials have reverted to the stylized, classic look of earlier days.
Comcastland?
The early betting is that Comcast Corp. would want to hold onto Walt Disney Co.’s theme parks if it’s able to take over the entertainment giant largely because without the parks, the Disney name has less value.
“The theme parks are the heart and soul of the company,” said Dennis Speigel, president of Cincinnati-based International Theme Park Consultants. “It would probably take someone as big as Comcast to do it.”
In Orange County, it’s only natural to look to Sandusky, Ohio-based Cedar Fair LLP, parent company of Knott’s Theme Park, as a potential suitor.
Cedar Fair Chief Financial Officer Brian Witherow said taking on all the Disney parks would be “hard to digest.”
“But we’ve looked at big deals before,” he said. “We’re always encouraged by our board to grow the company internally or externally.”
As for park operations, few think consumers would notice a difference. “Look at Universal Studios,” said John Robinett, senior vice president of Economic Research Associates in Los Angeles. “They’ve had ownership changes and the park just keeps going.”
Witherow believes Comcast could run the parks with little difficulty. “Anheuser-Busch does a nice job with Sea World and they’re not an amusement company,” he said. “If Comcast wanted to focus on (the parks), they could likely do it well.”
Sandi Cain
