So what happens next in the theme park industry's ongoing sibling rivalry?
Now that Disney has chosen Abu Dhabi and the UAE by partnering Miral for its next theme park, surely Universal will have some response, right? The leak a few days prior to the Disney Abu Dhabi announcement that Universal was in talks for a small indoor park in a Delhi mall in India is no match for a formal announcement of a fully realized theme park in an established entertainment resort, paid for by the deep pockets of the UAE.
Having just announced a park in the United Kingdom to reestablish a presence in Europe - a continent that Disney has dominated for more than 30 years - Universal is not about to allow Disney to claim the Middle East and South Asia markets for itself. Ever since The Wizarding World of Harry Potter revived Universal's theme park division in 2010, company leaders have worked to close its gap to Disney. In doing so, Universal has separated itself from the rest of the US-based industry and established itself clearly as the ambitious little sibling to the successful, widely admired "first-born," Disney.
What options do Universal have for expanding in this part of the world? It could proceed with the India mall development and go for a volume-based counter to Disney. Open not just one big theme park in Abu Dhabi, but many, smaller parks in major population centers throughout India and the Middle East.
Or, it could hook up with the big kid on the block that Disney just spurned - and plan their vengeance together.
I wrote yesterday that sources in the Middle East claim that Saudi Arabia made Disney a huge offer to place its next Disneyland in the KSA. Now that Disney has chose Abu Dhabi, Saudi has suffered a real setback in its attempt to establish itself as the premier secular tourist destination in the region - a designation long held by the UAE. If Saudi is to catch and surpass the UAE, it will need to align itself with brands that can challenge Disney.
On the theme park front, Six Flags ain't it. Even the world's fastest roller coaster - the under-construction Falcon's Flight - cannot surpass the Disney brand name. If it could, Miral's Yas Island - the current home of the world's fastest roller coaster, Formula Rossa - would not have been so inclined to sign a deal to bring Disney in to boost its profile and attendance.
So who can challenge Disney? Universal. And who has a space for a "movie theme park" designated on its site plan for the upcoming Qiddiya mega resort? That would be Saudi Arabia. C'mon. It doesn't take Tinder to make this match. Especially if Saudi Arabia is willing to write Comcast a big check to entice Universal to license its IP for that movie studio theme park, plus promising a heavy flow of royalty checks into the future.
For what it's worth, I doubt that Comcast gets the same blank-check offer that Disney allegedly enjoyed. But rounding errors for Saudi Arabian accountants build Epic Universe-scale theme parks in America. Universal Studios Qiddiya could do for the next generation of Universal theme park development what The Wizarding World of Harry Potter has done for the current generation.
Is that an offer than Universal can refuse? Especially since Disney has signed with Miral and the UAE. I cannot imagine that Disney did not request a provision in that deal that keeps Universal well away from Yas Island. That leaves Universal with Saudi. Any other nation in the region would be starting from scratch to develop this type of resort, and I also cannot imagine that Universal would want to be cast in that role.
So there are Universal's options. One - defy its current nature and do nothing to respond to Disney Abu Dhabi. Two - attack Disney with a swarm of smaller parks in malls and other developments throughout the region. Or three - go big and cut a deal with the Saudis.
Which do you think Universal should do?
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Will gobs of Saudi money be enough to outweigh the negative publicity bound to come from doing business with a repressive regime? WWE takes a huge amount of heat for running pay-per-view events there, and already being saddled with one PR disaster (JK Rowling's continued ant-trans buffoonery) might make Comcast shy about stepping into another hornet's nest.
Would Dubai be considered well enough away from Abu Dhabi? Kabletown already has a presence at Motiongate with its Dreamworks franchise, so it may make sense to rebrand it as a Universal resort. Harry Potter is off the table, but Kabletown could bring its brand name and franchises like Nintendo and Jurassic Park to Dubai’s struggling park, which may see a bump in attendance after Disney Desert’s opening.
Universal should ignore it...Keep doing their thing which is a better strategic plan. Universal built and opened EPIC only a few (I think two) months shy of Disney building Tron... a clone. If Disney builds a park in a Female/pronoun suppressive country... to their current standards... and Universal opens a "Epic" quality park in the cold of the British Empire... I know where everyone will lean too....they will just need to buy a good coat.
There's a world of difference between the UAE and Saudi Arabia, as you indicated in a previous article Robert. Whilst the UAE has already established itself as a (largely) guest-friendly holiday destination Saudi Arabia has a LONG way to go to get anywhere close to that. I predict that the new Six Flags park, despite it's record-breaking line-up, will be largely a ghost town. Great for those intrepid few who do venture to it as they'll have short to non-existent lines everywhere, but even Universal ain't going to be a big enough draw I fear to overcome the Saudi effect. Those limitless cheques are being offered for a reason. Tempting for Universal but I wonder how happy they'd be with an empty, albeit magnificent, park?
I agree with Zabex... would Dubai be considered an option? Kind of how Disneyland is in Tokyo and Universal Studios is in Osaka in Japan. I think that would be it. Saudi Arabia may be a bit too controversial to a lot of folks. I am fully on board for Disney Abu Dhabi and was planning to visit UAE even before the big announcement. Saudi Arabia meanwhile... I don't know. I'll tell you what Robert is right. They're going to ask and try to make a move. Wouldn't it be convenient for them to get a Universal park in time for the 2034 World Cup which they will host? (After only a short 12 years since the Middle East hosted the event in Qatar...ugh FIFA, that's a discussion for another day and place).
I'm not sure I'm into Universal moving into Saudi, but I'm glad they will be busy in the UK (which I'm so excited to follow the progress of and visit next decade too). After all that is said my preference in all this...
Universal Studios Dubai!
Well either way its not a park I would visit but Saudi Arabia would be much worst then the UAE. If they want a park in the middle east UAE is really the only option for Universal.
As for the India development I don't think Universal should be making these tiny little "parks". Kinda like luxury brands making cheaper and cheaper cars it really de-values the brand and prestige. If there gonna build something in India it should be a full park / resort.
I think the Abu Dhabi resort is Disney's response to Universal's increased expansion plans. Universal's response at this point is likely just staying the course.
If they wanted to respond in earnest, I see a couple different options:
- First, they could follow in the footsteps of Horror Unleashed or Universal Kids in Frisco, Texas by building more parks or experiences with smaller footprints. This would comport with the rumored India installation. Rather than trying to compete directly with Disney in larger markets Universal could chip away at smaller markets, ensuring that wherever you are on the globe you have a Universal destination a reasonable distance away. I think this is probably the preferred option.
- If they do want to build a major theme park in the region without stepping into the geopolitical minefield that is Saudi Arabia, the aforementioned Dubai location could be a tantalizing opportunity. If you look at a chart of tourism and tourist spend, I think Turkey could be another compelling option--although again, you run into the same geopolitical and sociopolitical issues. That's true pretty much anywhere in the region.
Maybe they'll stay out geopolitically sensitive countries altogether and open Universal Israel.
Simple answer, Robert. Build it next to Disney at Yas Island. This would then be a great holiday destination across the world with multiple Class A theme parks in close proximity and the primary rival to Orlando, bar none, globally.
One destination with Universal, Disney, Warner Bros, Ferrari World, SeaWorld and Yas Waterworld would put Abu Dhabi firmly on the map particularly across Europe as well as from the States for theme park junkies.
Building in Saudi in isolation makes no sense as the park itself will not have sufficient pulling power to go there instead of Abu Dhabi. Saudi is a possibility only in conjunction with multiple other Class A attractions creating a similar "hub" as at Yas Island.
For us English, it may increase the investment in Universal UK and make it the premier Universal park in the world.
Will Universal have the capital to build UK and Middle East in parallel so soon after Epic or will they concentrate all of their creative efforts, resources and money on the UK park? I think the UK will take precedence in the short/medium term.
I think KSA makes a lot of sense for Universal, but they should tread really cautiously. If Disney did indeed have a blank-check offer, there were obviously some concerns and other considerations that led the Mouse to choose Abu Dhabi. TKO (WWE/UFC) have been dealing with the Saudis for a number of years now, and despite some consolations given by the KSA, they are still being forced to adapt to societal requirements of the country - initially females couldn't participate at all in events, but do now with highly modified attire including wigs and other hair coverings. KSA has injected their propaganda heavily into WWE programing since the formation of TKO (merger between UFC and WWE) that now includes Riyadh Season ads on the ring canvas and ad bumpers during live event broadcasts (both Peacock, owned by Comcast/Universal, and Netflix). With that partnership between TKO and KSA, Comcast/Universal probably has some more insight and familiarity than Disney given their long-time partnership with WWE, so if they do make a move into KSA, it would definitely be an "eyes wide open" situation that they would need to feel that they could manage.
Personally, I do think the reception that Six Flags Qiddiya has and the success of that park may go a long way in determining whether Universal really wants to make a leap into the Middle East. For now, I feel like UC has plenty of stuff on their plate with the Texas, Las Vegas, UK, and India projects already in the pipeline. I tend to think that the UK park was their trump card, and they are not in a spot where they are willing to extend any further right now unless it was a series of smaller investments. Now, if KSA gives them an "offer they can't refuse", maybe they'll do a deal, but any such partnership would need to provide them with a decent runway and concessions, though with enough time to ensure it would be open well in advance of the 2034 WC.
One path I don't like for Kabletown is the swarm of smaller parks option. Out of all the company's expansion efforts in Orlando, Las Vegas, and the UK, I have the least amount of confidence in the Texas expansion. Disney Regional Entertainment spit the bit when it attempted to spread the "magic" across the US and I can see the same fate for Frisco. Both of the big two should keep their focus on being highly sought after destinations and not risk diluting what makes them special (though I do think the year round Horror Nights experiment is a solid idea).
Stay out of Saudi Arabia no matter how much money the Saudis throw at you. Nothing good can come from partnering with a de facto ruler who orders the killing and dismemberment of members of the press.
Build a real theme park in India, and tap into the opportunity to do business in the world's most populous country.
Why does Universal have to respond to Disney Abu Dhabi? It's not a war (regardless of how the media likes to portray it). It's just 2 huge media corporations trying to maximize their profits to please their shareholders. As long as Kabletown can do that, no response is needed.
My top 2 dream cities:
I vote Seoul. It has more people and tech than London. They are clean, proficient, and polite. Busan would also be great for a waterpark if you want to avoid snow.
Stockholm, Sweden. Such a beautiful country. Make it integrate with the nature. I know there's limited sun at times, but it would be cool.
I just feel at ease and peace within these cities.
If I'm Disney I counter with an inclusive island in the bahamas where only their cruise ships can go. But the island is full of defunct attractions like GMR and Mr. Toads from WDW.
Json Son - South Korea. Great choice! Wonderful country, fabulous people, large population and would now be my first choice. Of all the SE Asian and general Asian countries South Korea is the most westernised with the heaviest slice of American culture to complement their own growing pop and media culture.
It's South Korea for me.
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This is a great opportunity for Universal to design and construct several indoor, multi-story, state-of-the-art establishments that can be located in major cities worldwide. Just spitballing here...but "Universal Quest" would bring brand synergy to the masses! Maybe a different name, but I feel this concept has promise. ;)