Hong Kong Disneyland debuted The Walt Disney Company's first ever Frozen theme park attraction this week, as the entertainment giant moves forward with its $60 billion plan to attract more visitors to its parks and cruises.
The Walt Disney Company CEO Bob Iger told USA Today in an interview that he and his team are "really excited about" the launch of the new attraction, which is based on the hit animated movie of the same name.
"When you immerse someone, a guest, into the physical world of the story that they loved so much, it becomes an experience that is—I know we overuse this word sometimes—it's just magical. It just lives with them forever," Iger added.
"If you were to go to Cars Land in California, or the two Star Wars lands we built, Galaxy's Edge in Florida and in California, or Pandora in Florida, you'd see what I mean. You just walk into this world, and you believe that it actually exists."
Disney has six theme park resorts, located in Florida, California, France, Japan, Hong Kong and China. The Walt Disney Company generated a total revenue of almost $29 billion in 2022 through its parks, experiences, and products, according to Statista. This represented an increase of around $12 billion from the previous year. However, there have been reports of changing numbers in recent months.
The Associated Press reported in August that travel analysts observed an unusual downturn in visitors heading to the U.S. theme parks during peak summer months. Ride waiting times at Disney World in Florida and California's Disneyland were shorter by an average of 10 minutes over the summer from a 2019 high, per the report.
A spokesperson for Disney told Newsweek that the reduced wait times do not necessarily represent a reduction in customer footfall. The representative added that Florida was the sole park to have seen a reduction in numbers—an issue affecting parks across the region—as more Americans opted to vacation in Europe this past summer following the global lifting of COVID-19 pandemic restrictions.
In a move that is set to boost fortunes, Disney is spending $60 billion to expand its parks and cruise offerings over the course of about a decade. With travel markets back in full swing following the crippling lockdowns imposed at the height of the pandemic, Disney's efforts could see more Americans returning to the parks, as well as an increase in visitors flowing in from overseas.
Theme Park Costs
So what, exactly, is behind Disney's issues? A revolving door of CEOs, a dip in revenues, raising inflation pressures, layoffs, big wage demands from workers, and an ongoing political battle with Florida Governor Ron DeSantis—who has placed the theme park at the center of his ideological war against "wokeness"—have all taken their toll.
The recent storms clouding Walt Disney World in Florida have consumers and economic experts keeping a close eye on what its future holds, with some questioning how exactly park bosses will transfer increasing costs onto consumers.
"The costs of running the theme park will continue to escalate, creating pressures for executives to quickly adjust and evolve their formula for growth. The real challenge? How do you disperse the hourly wage increase for park employees onto paying customers who themselves are dealing with the looming threat of a recession," Christina Curtis, founder of Curtis Leadership Consulting, previously told Newsweek.
Loyal Disney World attendees were left dismayed when CEO Bob Chapek introduced a series of radical prices hikes during his short-lived tenure in the top job.
After replacing long-serving boss Iger in February 2020, Chapek oversaw an increase in the cost to stay at Disney hotels and ditched free Fast Passes, which allowed people to bypass longer lines at their favorite rides. The cost of food and beverages also went up dramatically at Disney parks. Chapek did away with free resort parking as well, and raised the price of the shuttle to and from Orlando airport.
Iger was reportedly "alarmed" at the price hikes at Disney's parks and overturned some of the decisions when he came back as CEO in November 2022. His return was not all good news, as it came with the announcement that there would be mass layoffs and a freeze in hiring following a fall in revenue.
Disney said back in March of this year it planned to cut $5.5 billion in costs, including $3 billion on content spend, and in April, Iger informed Disney staff the company would cull 7,000 jobs in the following months.
Conservative Criticism
There has also been a PR issue among certain conservatives. In May, Disney Cruise Line was hit with false allegations that it offers an itinerary that includes visits to convicted sex offender Jeffrey Epstein's private Caribbean island, Little St. James. Epstein purchased the island in 1998 and owned it until his 2019 death.
A fact check by Newsweek at the time found no credible sources saying that Disney Cruise Line's vessels make stops, or have ever stopped, at Little St. James.
In April 2022, the Associated Press reported that Disney denied claims its cruises made stops at Epstein's private island, or had any affiliation with it.
"The island, as well as another location, were included in the description of a third-party tour so that participants could identify the areas where snorkeling would be available," a statement from Disney read. "The tour had no connection to the island itself and Disney has never had plans involving the island."
The erroneous claims regarding Disney and Epstein were part of a number of false claims attempting to link both parties and incorrectly paint the entertainment conglomerate as sympathetic to pedophiles and predatory to young children.
When the false allegations arose last year, Disney had made headlines for criticizing DeSantis' Parental Rights in Education bill. The bill, also known as the "Don't Say Gay" law, says that "a school district may not encourage classroom discussion about sexual orientation or gender identity in primary grade levels or in a manner that is not age-appropriate or developmentally appropriate for students."
It also says that parents "may bring an action against a school district to obtain a declaratory judgment that a school district procedure or practice violates this paragraph and seek injunctive relief. A court may award damages and shall award reasonable attorney fees and court costs to a parent who receives declaratory or injunctive relief."
After DeSantis, a Republican, signed the bill into law in March 2022, Disney said in a statement: "Florida's HB 1557, also known as the 'Don't Say Gay' bill, should never have passed and should never have been signed into law. We are dedicated to standing up for the rights and safety of LGBTQ+ members of the Disney family, as well as the LGBTQ+ community in Florida and across the country."
Disney, which continues to be at loggerheads with DeSantis, has since faced criticism from a faction of conservatives angered by the company's stance.
MAGA conservatives, who have been fervent critics of The Walt Disney Company in recent years have also lashed out at Disney's other endeavors. A move for more diverse casting and themes in its movies has sparked backlash.
Former President Donald Trump, who is the de facto face of the MAGA movement, called out Disney for "going woke" during a rally in Florida earlier this month.
The studio arm of the company was criticized for choosing to cast Halle Bailey in the role of Ariel in the 2023 live-action remake of The Little Mermaid—including from conservative commentator Matt Walsh, who said a Black mermaid wasn't accurate from a "scientific perspective."
Update 11/22/23, 3:25 p.m. ET: This story has been updated with clarification from a Disney spokesperson.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Ryan Smith is a Newsweek Senior Pop Culture and Entertainment Reporter based in London, U.K. His focus is reporting on ... Read more
