By Don Chmielewski
ANAHEIM, Calif. (Reuters) – Walt Disney Disney (NYSE:) is expected to announce new attractions at its theme parks on Saturday at its D23 fan conference, and reveal how the company is beginning to deploy $60 billion in capital investments.
Disney said it will boost its investment in parks, nearly doubling its spending over the next decade, as it reimagines attractions at its 12 parks around the world and increases the capacity of its cruise line.
The parks have become a reliable profit engine for Disney, helping to mitigate the impact of a decline in traditional television and losses in its streaming video business, which turned a profit last quarter.
The experiences unit, which includes theme parks, cruise ships and consumer products, contributed about 60% of the company’s operating profit in the most recent quarter — up from 30% just a decade ago.
Disney CEO Bob Iger said the company plans to spend $17 billion over the next decade at Walt Disney World Resort in Orlando.
These investments will build on new attractions such as Tiana’s Bayou Adventure – inspired by Disney’s animated film “The Princess and the Frog” – the Guardians of the Galaxy: Cosmic Rewind roller coaster, and Tron Lightcycle/Run.
The company faces increasing competition in Central Florida from rival Universal Studios, which plans to open Epic Universe next year, adding 750 acres (303.5 hectares) to house Harry Potter, the dragons from the Viking universe in “How to Train Your Dragon,” and classic Universal movie monsters like Frankenstein and Nintendo’s Donkey Kong.
In Anaheim, California, Disney earlier this year won approval for a development plan that paves the way for a $2 billion investment in the Disneyland Resort.
The company has not yet provided any details, except to say it is seeking the flexibility to integrate hotels, stores and attractions within the same themed world, as it did at Fantasy Springs at Tokyo DisneySea.
“We have a commitment to continue to grow these great businesses and amazing experiences that we have here in California and Florida,” Josh D’Amaro, chairman of Disney Experiences, told Reuters recently. “We will invest heavily, invest heavily and invest smartly.”