The result is that they don't have money to invest in new rides, and let parks like Epcot, AK, DHS, DS Paris with out any investments for years!
So they try to compensate investing in Carnival rides with expensive theming, spending a lot in "cheap experiences". They are in a trap!
They already have the best themeing in the industry. Disney doesn't need to improve it (except of course, DCA and Disney Studios Paris). They should invest in better rides, not better themes for common rides!
For the average theme park company, $22 mil is a lot of dough, but in the case of Disney, $22 mil is chump change.
If you got it, flaunt it.
I Respond: I don't think Disney builds attractions based upon cash availability. Certainly a company of Disney's size could finance the construction of a marquee attraction whenever it sees fit. Rather, I think that Disney has a long term strategic vision for all of its parks and bases the launch of a new attraction upon its impact on attendance.
Also (as a guy with a construction background -- including constructing attractions) I would assume that the reason the costs seems so high is because the attraction needs to be resilient. The ride has to be up and running (at least) 10 hours a day 365 days a year. It must be built in order to perform -- it's not a "carnival standard ride." Subcontractors bidding the job realize the performance requirements (and the warranty they must extend for their work) and calculate that into their bids (along with overhead and profit costs).
And one other thing, your $22 million may be a "budget" rather than an actual cost. The projects I have worked on had "budgets" but once they were completed the construction team eventually gave money back.
So there ya go,
When considering the cost of the attraction they'd note how it was going to impact on revenues and attendance and what the overall Aladdin brand brings to the resort.
On the face of it, it may seem a lot to spend on a spinner attraction. However all the budgets will have been worked out to ensure it makes financial sense to sanction such spending.
There is a freestanding building of elaborate design which I assume houses the queue area. That requires its own design, engineering and architecture work. Structural steel, exterior finishing, electrical (lights), sprinkler system and plumbing (drinking fountains), floor work, etc. There are decorative elements on that building's exterior, a themed-roof and themed painting.
There's a smaller freestanding building which I assume is operator's location. More design costs. More electrical, more steel, more stucco, windows and more themed painting and decorative elements.
There is elaborate tile work on the load deck. There are water effects at ground level -- a large pool, fountains (pumps that run constantly - filters, etc.) and probably underwater lighting (electrical). And it looks like there is an ELEVATED pool with lighting fountains (water and concrete [or gunite] are heavy -- more engineering and structural steel).
There's landscaping (planters) and themed barriers (likely one-of-a kind and not off the shelf).
There is a ride system (this is not just a "plug-and-play" off-the-shelf attraction) which means computers, software programming, etc.
Music probably needs to be composed and recorded.
Each of the ride vehicles are unique and have to be manufactured individually.
The very elaborate center piece likely contains lighting, water and sound effects. Notice how the arms suspendeding the ride vehicles protrude from between the columns? That means the entire centerpiece below the elevated fountain rotates with the attraction. That entire assembly has to be engineered with the strength of a bomb shelter. There are the assemblies that make the ride rise and descend.
There's area development work to prepare the project for construction (including underground work to run plumbing and electrical, concrete work, etc.) The attraction is being built in Japan which means there are seismic considerations.
Then there is ride testing and programming, top of the line project management. Some attraction budgets include publicity and marketing costs.
And then there is overhead and profit because subcontractors and vendors do not work for cost.
And finally, $22 million is a "reported cost" and may be only a budget. Just because that amount (assuming the "reported cost" is true) is earmarked for the attraction does not mean that's how much it is going to cost.
I respond: Why do I have reason to believe that that particluar phrase and a late night in a tattoo palor combined for a pivitol moment in Rao's deep dark past?
What makes us grow old is replacing hope with regret, and although my "I Love Belle" tattoo may not be the most manly thing in the world, I have no regrets.
@Cristian, while I agree with your sentiment, even without the theme and narrative, the Tower of Terror is a very unique experience. I guess you could say it is a combination of a space shot and a drop ride, but even that is not quite accurate. However, I get your point: Disney is great at taking common midway rides and transforming them into unforgettable experiences.
It is true that Tower of Terror is basically a drop ride and Space Mountain is an average roller coaster, but in these cases, the theming provide a much better and different experience. But that is not the case in Jasmine. No matter how better it is, it is still the same experience.
Perhaps I am not looking to the issue with a children’s eye. You can build two roller coasters with the exactly same design, but paint one of them in black and put a Batman logo. For an adult, or latter teenager, the experience will be the same in either one, but for a children, or early teenager the fact of riding “the Batman” roller coaster will have an impact on their experience. I don’t see the same happening in a spinner. Flying in a magic carpet or in a flying elephant has its magic for children, but also does flying in a rocket or in a world war I airplane, that you can find in your local shopping mall.
And I don’t see enough people saying “hey kids, we were not going to Disneyland this season, but now that they have a new spinner I changed my mind! Let’s go to the flying carpet!” to justify 1 billion yen of investments. This kind of impact on attendance analysis applies only for E-tickets rides.
No matter who is writing the check, if it is Disney, Oriental Land Company, or Disney’s partners in France or China. This price indicates how expensive Disney’s Imagineering are. It is easy to be the best when you have unlimited money. To be creative and innovative with limited (that does not mean cheap) budget is the real challenge.
And being expensive has its impact in Disney capacity to invest in more rides. Disney management, as many of modern companies, pursues the ideal leverage (debt/equity) that maximizes shareholder value. If it spends more in a ride, with no direct return, they will have fewer resources to invest in new rides/parks. That does not mean that they couldn’t invest in new rides with positive returns, but to do that they would increase the leverage and destroy (temporarily) shareholder value.
(By the way TH, if you are used to perform constructions under the budget, you should come to Brazil, most of the infrastructure and sports facilities under construction for the World Cup and Olympics’ Games are missing their budget by far!!)
I Respond: Again, the price tag is "reported." And it may be a budget and not a final cost.
Also you're assuming the attraction is being built with the intent to cause guests to initiate a visit. I would assert that attractions such as this one entertain families, create emersive atmospeheres and reult in positive experiences that produce return visits.
Not every attraction is meant to be a gate-crasher.
Speaking of money, Disney makes about a billion dollars PROFIT per quarter... that's four billion dollars a year PROFIT. That's after spending millions on new rides, attractions, and experiences. Tokyo Disney Resort alone pulled in $300 million PROFIT in their last fiscal year which included the month they were closed due to earthquakes!
We have to stop thinking like $22 million is a big deal for Disney. It's pennies, gang, pennies.
The entire WWOHP was reported to be around 200-260 milion to build, roughly ten times the reported cost of Jasmine's Flying Carpets.
Walt Disney World's Magic Kingdom
Disney's Animal Kingdom
Disney's Hollywood Studios
Disney California Adventure
Universal Studios Florida
Universal's Islands of Adventure
Universal Studios Hollywood