Walt Disney Co. is increasing the investment in its Shanghai resort to $5.5 billion, adding attractions that will boost the capacity of the park when it opens next year.
The new spending on the Shanghai Disney Resort will amount to 5 billion yuan, or about $800 million, the Burbank, California-based company said today in a statement. The total outlay was originally projected at 29 billion yuan ($4.64 billion), according to the resort website.
Disney, the world’s largest theme-park operator, plans to open Shanghai Disney Resort late next year. The decision to spend more was based on the outlook for tourism and travel in China, Chief Executive Officer Robert Iger said today at the Milken Global Conference in Beverly Hills, California, and represents one of largest foreign investments in the country.
“There aren’t that many markets that are as obvious or exciting in terms of potential,” Iger said.
Disney owns 43 percent of the project, with the balance held by three Chinese companies. The added investment will be made on a proportional basis, Disney said. No third-party debt will be incurred to finance the expansion, according to the company. Construction began in April 2011.
Most of the new attractions will be ready when the park opens, Disney said, without saying what has been added.
To contact the reporter on this story: Christopher Palmeri in Los Angeles at [email protected] To contact the editors responsible for this story: Anthony Palazzo at [email protected] Rob Golum, Stephen West.