Tokyo Disney Operator to Invest $2.3 Billion in Expansion
(Bloomberg) -- The operator of Tokyo Disneyland is investing 250 billion yen ($2.3 billion) in the biggest expansion to the Japanese resort in almost two decades as Walt Disney Co. continues to upgrade its theme parks in Asia.
Oriental Land Co., which is licensed to operate the Tokyo resort, will expand the DisneySea park to include a hotel and new areas based on movies such as “Frozen” and “Peter Pan,” according to a statement Thursday. The investment is in addition to a previously announced about 100 billion yen upgrade to DisneySea and the Disneyland park. Oriental Land said it extended its license with Disney for an additional 30 years, to 2076.
Shares of Oriental Land jumped as much as 2.7 percent to an intraday record in early trading in Tokyo on Friday.
The new areas are set to open by mid-2022 and will add 50 billion yen in annual revenue, according to Kyoichiro Uenishi, chief operating officer of Oriental Land. Uenishi said the resort may consider raising ticket prices if there is an opportunity. He declined to give a specific target for visitor numbers with the new attraction areas.
Tokyo Disneyland opened in April 1983, becoming the first Disney park built outside the U.S., while the adjoining DisneySea opened 18 years later. Disney is continuing to expand its parks in Asia. Earlier this year, it opened the first expansion, Toy Story Land, to its two-year-old Shanghai resort, and is in the middle of a $1.4 billion upgrade of its Hong Kong resort, which will include “Frozen” and Marvel-themed lands.
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