Disney Expects Reduced Investment in Theme Parks to Continue into 2021, Return to 2014 Spending Levels

    As part of their recent fourth quarter earnings call, Disney gave a bit more insight into their capital expenditures forecast for 2021.

    To recap, Disney reduced capital expenditures by $854 million in fiscal 2020 compared to 2019. Disney said that the difference was “driven by lower spending at our domestic parks and resorts primarily due to a decrease in spending on Star Wars: Galaxy’s Edge at both the Walt Disney World and Disneyland resorts”. With both lands mostly completed in fiscal 2019, with the exception of Rise of the Resistance which opened in fiscal 2020 on both coasts, Disney was able to reduce their total theme parks spending by a whopping $1.24 billion in fiscal 2020. The extra spending in the overall capital expenditure report was due to “higher spending on technology to support our direct-to-consumer services and on corporate facilities”.

    On the recent earnings call, Disney CFO Christine McCarthy provided some insight into Disney’s plans for spending over the next year. McCarthy said that Disney expects capital expenditures to be roughly $550 million higher in fiscal 2021 versus 2020. However, theme park fans shouldn’t expect that money to necessarily go towards the parks. McCarthy says that the increase in spending will be due to “investments at our media and entertainment distribution businesses and at corporate. Partially offset by reduced spending at parks experiences and products.”

    While McCarthy didn’t say how much Disney plans on spending at the theme parks, she did forecast “reduced spending at parks”, likely meaning spending even less money than Disney did in fiscal 2020 on the parks. According to Disney’s year-end financial statement, they spent roughly $2.9 billion on the theme parks division. To find spending in the theme parks division below $2.9 billion, we have to go back to fiscal 2014 where Disney spent $2.7 billion in the parks. Domestically, spending in 2020 was similar to 2016 levels. If spending at the theme parks drops below $2 billion, we’d be looking at 2010-levels of spending. Here’s a look at Disney’s listed capital expenditures for the theme parks division in recent years:

    • 2020: $2.90 billion
    • 2019: $4.14 billion
    • 2018: $3.88 billion
    • 2017: $3.19 billion
    • 2016: $4.22 billion
    • 2015: $3.60 billion
    • 2014: $2.69 billion
    • 2013: $2.11 billion
    • 2012: $2.88 billion
    • 2011: $2.72 billion
    • 2010: $1.53 billion

    This significant reduction in spending comes at a time where Disney is up against the clock on several projects promised in time for Walt Disney World’s 50th Anniversary in 2021. Most notably, rumors swirling about the potential delay of the TRON Lightcycle Run roller coaster and Guardians of the Galaxy: Cosmic Rewind attractions. Other projects such as the Spaceship Earth overhaul and Mary Poppins attraction are already officially “postponed”. Disney has not commented publicly about the rest of their EPCOT overhaul plans, but they also didn’t give a firm timeline on a lot of the projects, buying them a bit of time.

    As always, keep checking back with us here at BlogMickey.com as we continue to bring you the latest news, photos, and info from around the Disney Parks!

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