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  1. #1

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    Would Disney ever close Disneyland Paris if the economy ever got too bad?

    I want to be really careful in asking this because I don't want to offend anyone, but a friend and I from school were talking about this today and I did not have a good answer to a question he asked me about Disneyland Paris.

    By his account, and by what I read often in many forums, Disneyland Paris seems to be the least popular Disney park and also seems to make the least amount of money for Disney. My friend asked if I thought Disney would ever shutter Disneyland Paris if the economy got too bad that it was not making enough money to keep going.

    I personally can't imagine a Disney Park closing unless something cataclysmic happened like a Second Great Depression or a war in France...I think all the parks will be open as long as the Disney company still exists.

    Does anyone have an opinion on this?

    I don't mean it to be a gloomy topic but I'm in grad school taking economics courses and marketing classes and Disney is a company we study a lot so this question came up because of an assignment we had and I honestly don't know what to think about the idea of Disneyland Paris ever shutting down for economic reasons.

  2. #2

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    Re: Would Disney ever close Disneyland Paris if the economy ever got too bad?

    First of all, Disney doesn't completely "own" DLP. They only own about half, while the EuroDisney (an independent compony) owns the other portion.

    Second, Disneyland Paris is far from the least popular Disney Park. It's on the upper half in terns of annual attendance, if you take into account that much of Animal Kingdom and Hollywood Studio's attendance is from huge package discounts offered at Walt Disney World.

    With so much investment put in the resort as a whole, it would take an incredibly long and severe economic depression to justify closing it.

    At the same time, if attendance does decline significantly, the Disney may stop investing in attractions, close certain attractions seasonly, slim down the entertainment schedule, and open the park less, to save money and work force.

  3. #3

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    Re: Would Disney ever close Disneyland Paris if the economy ever got too bad?

    The answer is simple : No, Disney won't ever close Disneyland Paris.

    Why ? Because money goes from Disneyland Paris to the Walt Disney Company and not from the Walt Disney Company to Disneyland Paris. You know, Disneyland Paris pays a lot of taxes and royalties to the Walt Disney Company so that it doesn't cost anything to the Walt Disney Company. The Walt Disney Company never give a single dollar to Disneyland Paris. But they gave a lot of money to expand Disney California Adventure. You know, Disneyland Paris's second park really sucks but the Walt Disney Company doesn't care about it. What a shame!
    Last edited by Fultimate; 04-06-2012 at 03:04 PM.

  4. #4

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    Re: Would Disney ever close Disneyland Paris if the economy ever got too bad?

    The park itself has never really been the problem. Yes, guest spending was below expectations, but that was about it. The financial issues stem from the large number of hotel rooms built, the decision to finance the Phase 1 and the establishment of Euro Disney SCA, which ended up with all of the debt.

    The situation was made worse about ten years ago when Walt Disney Studios Park opened. The original contracts with the French government include a timetable that stipulated a date by which a second and third gate would open. Still saddled with the debt from building all of those, Euro Disney SCA was essentially forced to get something open. A repeat of this situation was at least delayed, as Euro Disney SCA was able to negotiate a delay in the opening of the third gate, as it was realized that another slapped together park would be in nobody's best interest.

    Euro Disney SCA also has Val D'Europe, a real estate development.

    Quote Originally Posted by MactheMan View Post
    First of all, Disney doesn't completely "own" DLP. They only own about half, while the EuroDisney (an independent compony) owns the other portion.
    Just a technical clarification, The Walt Disney Company, through another subsidiary, owns 39.8% of Euro Disney SCA which wholly owns Disneyland Paris. It has a special corporate structure which, despite this minority interest, gives The Walt Disney Company a lot of control.

  5. #5

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    Re: Would Disney ever close Disneyland Paris if the economy ever got too bad?

    Quote Originally Posted by lazyboy97O View Post
    Just a technical clarification, The Walt Disney Company, through another subsidiary, owns 39.8% of Euro Disney SCA which wholly owns Disneyland Paris. It has a special corporate structure which, despite this minority interest, gives The Walt Disney Company a lot of control.
    Yes, thatīs it. TWDC is not the full owner of the company that runs DLP (39,8 TWDC, around 10 an oil prince, the rest: all the many little shareholders) but they can control nearly everything. They choose the CEO, they choose the direction - and they get all that money from DLP. One of the biggest part of the money dlp earns went directly to TWDC. Because they are one of the biggest lender. Some attractions are directly owned by TWDC (Space Mountain) and are just lent to Euro Disney SCA. Itīs a very complex structure behind all this. And this structure was built cause TWDC wants no risk and full control. Even if you would own 51 % of ED SCA, TWDC could control the structure.

    For the success: DLP was a big success after some little problems in 1992. After Space mountain it was even cash-flow positive. But the start dept was and is simply to big. They started with 7 hotels, an huge entertainment district, an own TGV station, an huge infrastructure....and an extremly expensive park (we have a castle without lightweight construction) with much more details and much expensive construction methods. It was mr. eisners baby and costs were never a big problem - till 1992.

    On the other hand its not a big problem that they are not a positive cash-flow company. They havenīt to pay that much taxes with a red number at the end of the fiscal year.

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