Disneyland Paris - Money making machine

[evilcod]

I knew that title would come as a surprise thanks to the usual doom and gloom reports about how much DLP is apparently losing. But for the Disney company and France it appears that DLP is a huge success according to a new report covered by Forbes.

http://www.forbes.com/sites/csylt/2...ehind-disneys-2-2-billion-theme-park-profits/

New research has uncovered some of the secrets to this success.

It reveals that Disneyland Paris, which was once seen as a poor relation to its bigger brothers in the United States, is now one of the top performers. In fact, it has generated more than $700 million in profits since opening in 1992 and made $85.7 million last year alone.

It revealed that €50 billion of added value to the French economy has been generated by Disneyland Paris and 6.2% of foreign exchange income generated by tourism in France has been provided by travellers whose primary reason for coming to the country was to visit the theme park complex.

A total of 250 million guests visited Disneyland Paris in its first 20 years and it is now the fifth largest concentration of hotels in France. To give an indication of the knock-on effect of this, between 1992 and 2011 an average of 55,000 direct and indirect permanent jobs were created by the activities and investments of Disneyland Paris.

The higher the attendance, the more money Disney makes under the license agreement and last year alone it was paid $85.7 million (€63.4 million). In the 22 years since Euro Disney’s ornate iron gates first swung open Disney has received around $735 million (€611.7 million)

All this could mean ever increasing investment for the park...... we hope.

 

[Rob]

That certainly all sounds very positive. Let's hope it does translate to some great future investments. If it making a lot of money then there's no reason why it shouldn't. I guess it is important that Ratatouille has a postive impact on guest numbers and income though to demonstrate that the large investments are worth it.

 

[Scott]

Let's not get too carried away - the park itself isn't actually making a profit. I think I'm right in saying it has only turned a profit once in all the years it has been open.

What that article is actually saying is about Disney's theme park income as a whole. DLP pays the Disney company a set amount of money for the license agreement and that is what the article is studying.

Therefore last year it made Disney $86m and has generated them $700m in total over it's life but the resort itself is actually in piles of debt and doesn't turn a profit.

Just clearing that up

 

[evilcod]

Yes but for the Disney companys finances this would suggest Paris is a big money maker... For them and France. (For EuroDisney... Not so much) but since Disney now get final say on investment and new attractions I would say this appears to be a good sign.

 

[Scott]

Nobody's ever denied that Disneyland Paris is a huge economic boost for France and we all know they give Disney a lot of cash too but $86m out of a $2.2bn overall Disney parks profit? It's a drop in the ocean...

All we can hope is that as Disney now have direct control on investments, we'll see more positivity.

 

[thefatone]

Quite good they have control of the property - as judging on the terms an increase of visitors would only make DLP further in debt.

The article has nothing to do with profits the actual place was making - so unless Disney (if it had continued down that route) was wishing to just make more money from its licensing agreement then it would've plowed money back in. Not too sure what they intend on doing now!

 

[josht]

Generally it's saddening to see any theme park struggling so any improvement is a good sigh right ??

But after some reviews from April it needs major improvement and from seeing there Facebook page improvement is happening