Walt Disney World says
the world of “Avatar” will become a reality in May, and Star Wars land will open in 2019.
Walt Disney World will open Pandora: The World of Avatar on May 27, while its 14-acre Star Wars land will debut in 2019.
The Walt Disney Co. gave analysts the details of the highly anticipated openings during a conference call to discuss quarterly earnings. During that call, Disney said year-over-year attendance fell at its theme parks for the quarter ending Dec. 31.
Chief Executive Officer Bob Iger told analysts that the Avatar land at Disney’s Animal Kingdom has “an extremely unique design and architecture. It really does make you feel you’re in Pandora.”
The area will be “the biggest new land we’ve opened in Florida in a very long time,” he said. “I think that’s good for the whole business down there.”
Some experts have expressed skepticism over the choice of “Avatar” as a franchise. The original movie came out in 2009. Several sequels are planned beginning in 2018.
“We really believe in the coming years, the interest in Avatar is only going to grow as those movies enter the marketplace,” Iger said. “We can’t quantify it but we think this is big potential.”
There seems to be general agreement that Disney will have a hit on its hands with its Star Wars land at its Hollywood Studios theme park. Another Star Wars area will open the same year at Disneyland in California.
“One thing you know, it’s going to be very transformational,” said Tuna Amobi, an analyst with CFRA Research. “I’ve heard comparisons to (Universal’s) Harry Potter attractions in Orlando. Really, expectations are sky high.”
Disney’s theme parks saw a 5 percent decline in attendance in the quarter. Hotel occupancy was down “modestly,” the company said, to 91 percent.
Disney said much of the decline was because of Hurricane Matthew, which forced Disney World to close for a day and a half, and the timing of the Christmas holiday that reached into the company’s second quarter.
At Disney World, the drop could be influenced by an overall decline in Central Florida tourism. Overall, Orange County hotel taxes dipped 3.5 percent in December, according to an industry report.
Analysts said they were not alarmed by the decrease. Disney’s chief financial officer, Christine McCarthy, noted that seasonal pricing implemented in 2015 and 2016 gives people an incentive to visit during less busy times.
Parks-and-resorts revenues still increased 6 percent because of visitors spending more on tickets, food, and hotel rooms. Operating income growth jumped 13 percent
One analyst asked if there was potential for more ticket-price increases. Iger’s answer: “Yes.”
“We do take ticket pricing up typically on an annual basis and we do so in a variety of different ways,” he said.
Overall, The Walt Disney Co. reported adjusted earnings per share of $1.55, a 5 percent decrease from the previous year. Revenue decreased 3 percent to $14.8 billion.
Revenue decreased in other segments — including media networks, consumer products and studio entertainment.
“Theme parks were by far the standout,” said Robin Diedrich, an analyst with Edward Jones.