DCA to get $1.1 billion overhaul

[Browntggrr]

http://online.wsj.com/article/SB119257768823361264.html

Love Disney or hate them, at least they can see a problem, and are trying to fix it.

Disney's $1 Billion Adventure

Five-Year Revamp of Its Lagging California-Themed Park

Will Add 'Cars,' 'Toy Story' and Disneyland-Like Main Street

By MERISSA MARR

October 17, 2007; Page B1

ANAHEIM, Calif. -- Since its 2001 debut, the Walt Disney Co. theme park Disney's California Adventure has floundered in the shadow of its legendary neighbor, Disneyland. To fix it, Disney is now planning a $1.1 billion overhaul -- the most extensive makeover the company has ever given to a theme park.

Disney's board recently approved the investment, which will be poured into California Adventure over roughly five years, according to people familiar with the plan. The sum is particularly significant, considering the theme park cost around $1 billion to build and Disney has already spent more than $100 million trying to improve it.

Originally aimed at luring visitors to spend more time and money at the Disneyland Resort, California Adventure has been criticized as lacking Disney's trademark creative spark. The California theme has fallen flat with visitors from the western U.S., who make up the bulk of attendance. Last year, the park drew just under six million visitors, compared with nearly 15 million at Disneyland and short of Disney's original forecast of seven million visitors a year for the new park.

Disney's California Adventure theme park, next to Disneyland, celebrated its grand opening in 2001.

Now Disney hopes to turn the park around by making it more like its successful neighbor, filled with references to company founder Walt Disney, say people familiar with the plan. A key project will be redesigning the entrance plaza, now a hodgepodge of California icons, and replacing it with something akin to Disneyland's signature Main Street.

Just as Main Street harks back to Walt Disney's hometown of Marceline, Mo., in the early 1900s, California Adventure's new entrance will trace the footsteps of Walt Disney from when he arrived in Los Angeles in the 1920s, these people say. Similar to Disneyland's iconic castle, the redesigned park will feature a replica of Hollywood's former Carthay Circle theater, where Walt Disney premiered the movie "Snow White" in 1937.

The new-look park also will be expanded by around 12 acres and will bulk up its attractions, with a heavy emphasis on animated movies created by Pixar, including "Cars" and "Toy Story."

Jay Rasulo, who inherited California Adventure when he became president of the parks in 2002, says the park has had some success in extending the time visitors spend at the resort as a whole and does have some popular rides. But he concedes: "Guests have told us that when they stand in California Adventure, they don't have an emotional connection to it." Mr. Rasulo declined to comment on the investment Disney is making.

Several of Disney's efforts in recent years have had teething problems that forced Disney to spend big money on efforts to fix them, raising questions about Disney's theme-park strategy. New Disney parks in Paris and Hong Kong -- seen as too small and lacking insight into the cultures they serve -- have needed big additional investments after initially drawing slim crowds.

When Walt Disney created Disneyland in 1955, and the company started the Disney World resort in Orlando, Fla., in 1971 with the first Magic Kingdom park, the parks were powerful brand builders. But it is unclear whether that is still the case in the 21st century, when kids are more interested in the Internet and Disney has more tools to play with, such as the relatively investment-light but popular Disney Channel.

Disney maintains its parks are a good return on investment. In fiscal 2006, they accounted for almost 30% of the company's total revenue of $34 billion and reported 30% growth in operating income. Mr. Rasulo says the parks are long-term undertakings and the company always anticipates having to invest in changes. Walt Disney himself said Disneyland was never finished.

Even so, California Adventure has had special problems. On a recent afternoon at the Disneyland Resort, 18-year-old season-pass holder Megan White made a standard complaint: "Disneyland is a magical place, but California Adventure is just a theme park you can get anywhere." Ms. White, of Valencia, Calif., adds she spends most of her visits at Disneyland, only entering California Adventure for one or two rides because it has "no imagination."

California Adventure was the result of a years-long attempt to build on Disneyland's success. In 1991, Disney originally announced it was working on a plan to build Westcot, a West Coast version of Disney's Florida park, Epcot, which had opened nearly a decade earlier.

According to people involved, Disney's then-chief executive, Michael Eisner, was eager to replicate the successful model of Walt Disney World in Florida, which had grown to include several theme parks, a fleet of hotels and a thriving retail and entertainment district. The expansions created a destination that families sometimes visit for a week.

But Westcot came with a price tag of as much as $3 billion and, according to these people, Mr. Eisner got cold feet after the new Disney park outside Paris became a financial and public-relations nightmare.

In 1995, Disney ditched Westcot. In the summer of that year, Mr. Eisner held a three-day retreat in Aspen, Colo., where about 30 executives came up with an idea for a California-themed park, say people at the meeting. Mr. Eisner chose Disneyland chief Paul Pressler to oversee a $1.4 billion project in Anaheim that included California Adventure, a retail district and hotels.

He positioned the new park as a contemporary alternative to Disneyland. It included three main areas: the Hollywood Pictures back lot; the Golden State wharf, which included offbeat, decidedly sedate features like a vegetable garden and tortilla factory; and the carnival-style Paradise Pier, anchored by a big, traditional roller coaster.

When the park opened in 2001, visitors complained it was light on rides and that the ones there lacked the imagination of Disneyland hits such as the indoor roller coaster Space Mountain. As a brigade of Web sites savaged the park, a perception set in that it was a dud.

Mr. Pressler, who left Disney in 2002, says the park suffered from comparisons to its successful neighbor, but he denies the budget was ever a problem. "What we missed the mark on was not having enough for young kids compared to the Magic Kingdom," he says. He quickly added new rides: The vegetable garden was replaced by A Bug's Land, based on the 1998 Pixar movie "A Bug's Life." Disney also later added a $100 million attraction called The Twilight Zone Tower of Terror.

The Disneyland resort as a whole, especially the Downtown Disney retail district and hotels, succeeded in increasing visitors' average stay from one day to two. But attendance at California Adventure languished, while Disneyland was bursting at the seams.

Bob Iger, who took over as Disney chief executive in 2005, asked the company's legendary theme-park designers -- known as Imagineers -- to come up with a plan about a year ago, according to people involved in the planning. An initial idea was to combine Disneyland and California Adventure, creating a massive park that required one ticket. But the investment in infrastructure to transport visitors around that area was prohibitive, so they focused instead on creating a second Disneyland.

This summer, Disney hired theme-park consultant Bob Weis to oversee the new project. The remake is a complex undertaking, according to people familiar with the situation. Disney plans to keep California Adventure open during the five-year project, a plan that will require visitors to navigate construction zones and initially go in through a temporary entrance. Disney has no plans to discount ticket prices during that period, they say. Though prices vary, an adult ticket for a day at either park now costs $66, while a combined ticket is $91.

Mr. Weis will add a new area called Cars Land, which will re-create the fictional town of Radiator Springs from the 2006 Pixar movie "Cars," say people familiar with the plans. The centerpiece will be a cutting-edge attraction in the style of Disneyland's popular "Indiana Jones" ride.

Addressing criticism of Paradise Pier, Mr. Weis plans to add a flagship ride based on the 1989 animated movie "The Little Mermaid" and another on the 1995 feature "Toy Story," the people say. The Mulholland Madness ride, which re-creates a careening drive along a famous Los Angeles street, will be rethemed featuring Disney characters. Others, like the Maliboomer thrill ride, are likely to be axed.

It is still unclear what will happen to the name, as the company sees appeal in the words "Disney," "California" and "Adventure," these people say. But there is a big risk in leaving it the same. That said, some unusual relics will be left untouched for now, including the tortilla-making factory and a bread-baking demonstration. A person familiar with the plan says the Golden State area isn't considered as thematically out-of-place as others in the new plan and won't be changed in the near-term.

[The Interpreter]

Disneyland's Ugly Siamese Twin (from the Motley Fool):

http://www.fool.com/investing/general/2007...amese-twin.aspx

[The Interpreter]

Disney: It's An Expensive World After All:

http://www.forbes.com/2007/10/17/disney-re...artner=yahootix

and

Disney's Renovation Dreams Come True:

http://www.forbes.com/2007/10/17/disney-re...artner=yahootix

[Kenban]

This plan sounds a lot like the rumors which have been talked about on Disney forums for months. The only thing I see missing here is a night show that was planned.

This makeover sounds great so far and I do have to wonder how the money is being spent. Disney spends more on attractions then any other company but even still its currently around $100 million per an attraction. It seems like $1.1 billion should buy more then what is listed in this story. I suspect there might be a few surprises planned that nothing has been talked about yet.

[Kenban]

Here is Disney's press release on the changes.

Disney Announces Significant Expansion Plan For The Disneyland Resort

Multi-Year Build-out Plan Includes Major Attractions and a New “Cars Land” at Disney’s California Adventure

GLENDALE, Calif., October 17, 2007 -- The Walt Disney Company today unveiled a significant multi-year expansion plan for the Disneyland Resort in Anaheim that continues its growth as a multi-day, world-class tourist destination.

Announced by Disney President and Chief Executive Officer Bob Iger and Parks and Resorts Chairman Jay Rasulo at a press conference at Walt Disney Imagineering’s Glendale headquarters, the expansion will bring new entertainment and major family-oriented attractions to Disney’s California Adventure, including an entirely new Cars Land inspired by the hit Disney•Pixar animated film Cars.

“The success of the Disneyland Resort over the past few years provides us with both the opportunity and the need to invest for growth, to enhance and expand the experience for our guests and attract new visitors, while at the same time delivering attractive returns on the investment,” said Iger. “This plan is a reflection of our belief in the bright future of the Disneyland Resort and our continuing commitment to grow the Anaheim Resort Area as a world class tourist destination.”

Disney Imagineers will be bringing more of Walt Disney into Disney’s California Adventure, celebrating the hope and optimism of California that attracted Walt to this land of opportunity in the 1920s. Guests entering the new Plaza will be instantly immersed in the world that inspired Walt during his early days as an animation pioneer. The new, interactive Walt Disney Story attraction will set the stage for the unfolding story of Walt that will permeate the park.

The expansive program reaches throughout Disney’s California Adventure, with an amazing Little Mermaid attraction, a groundbreaking, signature nighttime spectacular and new viewing area for 9,000, and the addition of the 12-acre Cars Land featuring the world of Radiator Springs with three new attractions. Extensive landscaping, new retail and dining will create an even richer environment throughout the park in ways that reinforce Guests’ connection with Walt.

“Our Disneyland Guests have a deep emotional connection with Walt Disney, whose life story really captures the pioneering spirit of California in the 1920s,” said Rasulo. “The creative evolution of Disney’s California Adventure will connect guests to Walt’s own California adventure and reflect the place that he found when he first arrived with a cardboard suitcase in his hand and a head full of dreams.”

The expansion is part of Walt Disney Parks and Resorts’ overall growth strategy of continuing to invest in its core business of existing parks and resorts around the world, while exploring new opportunities to capture more of the growing family vacation market. This announcement follows Disney’s ground-breaking last month for a 250-room expansion of Disney’s Grand Californian Hotel & Spa, including 50 rooms dedicated to the West Coast debut of Disney Vacation Club, the company’s growing time share business.

Multi-day, World-Class Tourist Destination

Today’s announced expansion builds upon the transformation of the Disneyland park into a multi-day destination resort that began in 2001 with the creation of the Disneyland Resort and the opening of Disney’s California Adventure Park, Downtown Disney and Disney’s Grand Californian Hotel & Spa.

Since then, the Disneyland Resort has continued to grow with the addition of popular attractions and shows, including: Finding Nemo Submarine Voyage, Pirate’s Lair on Tom Sawyer Island, Buzz Lightyear Astro Blasters, The Twilight Zone Tower of Terror, Monsters, Inc. Mike & Sulley to the Rescue!, Block Party Bash, High School Musical 2: Schools Out!, Disney Princess Fantasy Faire, and Jedi Training Academy, along with the re-Imagineering of Space Mountain and enhancements to Pirates of the Caribbean.

“This expansion builds on a commitment we made more than a decade ago to create and grow the Anaheim Resort Area as a world-class tourist destination where guests would want to stay for more than one day,” said Disneyland Resort President Ed Grier. “That investment has become a success for Disney, the Anaheim community and for the economy of Southern California.”

According to the Anaheim/Orange County Visitor and Convention Bureau, Anaheim is one of the fastest-growing tourist destinations in the country, enjoying some of the highest hotel occupancy rates in the nation and attracting millions of visitors each year who spend billions of dollars.

Coming to Disney’s California Adventure Over the Next Several Years

In addition to the new themeing and attractions, Disney’s California Adventure will receive new restaurant and retail innovations, landscaping to enrich the placemaking, facade and graphics enhancements, and an extensive menu of entertainment and events.

Disney’s California Adventure is already home to some of the Disneyland Resort’s highest-rated attractions and shows, including: Soarin’ Over California, California Screamin’, The Twilight Zone Tower of Terror and the Broadway-caliber show, Disney’s Aladdin - A Musical Spectacular.

Cars Land

The expansion will culminate with an entirely new, 12-acre addition: Cars Land, immersing guests into a world inspired by the hit Disney/Pixar movie, Cars, playing to America’s love affair with automobiles.

Radiator Springs Racers, a major “E-ticket” attraction, places guests right in the middle of the amazingly detailed, dimensional Cars world of Mater, Lightning McQueen, Doc and Sally. Guests get a quick race briefing from Doc and Lightning, and suddenly find themselves in the midst of a race around hairpin turns and steep banks.

Cars Land increases capacity to the park with two additional immersive family rides, featuring Luigi and Mater from the movie. Cars Land represents an unprecedented level of collaboration between Pixar Animation Studios and Disney Imagineering to create this extensive new area. The new land will substantially extend the total area of Disney’s California Adventure park.

Paradise Pier

Paradise Pier will host major new attractions beginning next summer with the opening of Toy Story Mania!, a ride-through, interactive adventure where Guests ride into a high-energy 4-D carnival midway hosted by Toy Story characters. Woody, Jessie, Buzz, Hamm and the gang come to life in amazing ways, immersing guests in the rich stories of the Pixar blockbuster Toy Story films.

A major ride based on Disney’s classic The Little Mermaid comes to the park’s Paradise Pier with leading-edge animation and special effects. Guests will dive into the magnificent scenes and magical songs from the movie. A Mermaid Grotto area with a fountain and sand castle will offer new play experiences for children.

Unique Nighttime Spectacular

The dramatic and unique Disney’s World of Color will bring new nighttime excitement to Paradise Pier. This nightly panorama of spectacular water effects, colorful lighting and music will bring Disney animation to life with an entirely new creative and technical approach. The 9,000 person viewing area offers prime waterside viewing of the show – and provides a site for live entertainment, music festivals, and outdoor film premieres.

Entry Plaza and Gateway

The totally new gateway to Disney’s California Adventure welcomes guests into an immersive world of historic California streets as Walt experienced them as a young artist arriving with big dreams.

A new visual icon in the tradition of Los Angeles, California’s great entertainment palaces will draw guests into the heart of the attractions. This new facility, which was inspired by Los Angeles’ historic Carthay Circle Theatre that premiered Snow White and the Seven Dwarfs in 1937, will house a next generation Walt Disney Story featuring an interactive tribute to Walt’s California experiences, and his entertainment legacy that continues world-wide today. Red Car trolleys reminiscent of the old Pacific Electric Railway will travel up and down the main street. New dining and shopping experiences and a slate of unique, live entertainment will bring energy to the Walt Disney Plaza.

Hollywood Pictures Backlot

Hollywood Pictures Backlot will be a new home for a slate of special ticketed events and chances to hear first hand from innovative directors, writers and animators. An update of the popular family show “Playhouse Disney” will provide an experience for younger children.

Golden State

The “Golden State” area of the park will see the addition of numerous new dining opportunities tied to the incredible bounty of California’s farmland and its rich ethnically diverse food heritage. Food and wine festivals that celebrate the seasons, tastes and cultures of the dynamic communities of the Golden State will entertain guests, bringing unique one-of-a-kind experiences.

Preview Center

A Preview Center located on San Francisco Street in the Golden State region of the park will feature models, Imagineering concepts – giving park guests a sneak peek at the excitement that lies ahead. The Preview Center is scheduled to open in late 2008.

About the Disneyland Resort:

Located on approximately 500 acres in Anaheim, Calif., the Disneyland Resort includes the Disneyland and Disney’s California Adventure Parks, three hotels with approximately 2,200 rooms and the 310,000 square foot retail, restaurant and entertainment Downtown Disney District. With 20,000 employees, the Disneyland Resort is Orange County’s largest single-site employer and a $3.6 billion annual contributor to the local economy. In January 2004, the Resort welcomed its 500 millionth guest since opening on July 17, 1955.

SOURCE:http://corporate.disney.go.com/news/corpor...texpansion.html

The press release does talk about the new night time show. This plan really sounds amazing and I look forward to seeing the finished product.