Last April, Disney CEO Bob Iger announced that the company planned to spend $60 billion on its Disney Experiences division over the next decade. Of that, $30 billion would be spent on Disney Parks, $18 billion on tech and maintenance, and $12 billion on Disney Cruise line.
At the time, Iger said:
As I looked at the returns on the invested capital that we made in this business over the 15 years prior to my coming back, it was extraordinarily compelling. We should allocate in a direction where we had great returns.
When Iger made that announcement a year ago, he could not have foreseen the headwinds the company is currently facing. Disney’s domestic parks are looking at fewer guests and uncertainty in the economy, which is causing guests to rethink paying thousands for a Disney trip.
Disney is also facing increased costs due to the tariffs imposed by President Donald Trump. The new tariffs rose exponentially in cost for steel and other building materials from China.
The company will also have to deal with increased costs to import most of its merchandise from China, which it will pass along to already strapped consumers. These additional stressors have caused Disney’s stock to dip below $90 for the first time since September 2024.
With the economy turning against Disney, fans fear that the company might cut back on its planned expansion plan, and Disney may have just given a hint that they are doing just that. Former Imagineer found a clue in Disney’s latest announcement.
Disney recently created a website highlighting its contributions to the American economy. However, in the future theme park expansion section, Disney has only listed $30 billion rather than the original $60 billion promised. Former Imagineer Jim Shull wrote on X (formerly Twitter):
Wasn’t the announced investment $60 billion USD? And now it’s $30 billion. Is this a result of the downturn in the United States economy?
Wasn’t the announced investment $60 billion USD? And now it’s $30 billion. Is this a result of the downturn in the United States economy? pic.twitter.com/sorGXp0w08
— Jim Shull (@JimShull) April 24, 2025
The original announcement was for $60 billion, but that included Disney Cruise Ships and maintenance at Disney’s current parks. This doesn’t necessarily mean that Disney is cutting back on its investment in its domestic parks. Still, it’s an ominous sign for a website bragging about Disney’s investment in America, which should include Disney’s cruise line.
Time and the economy will tell if Disney ultimately decides to cut back on its theme park investment, but its stock price and the new CEO will have a big say in just how deep Disney’s pockets will be over the next decade.
Are you concerned about Disney cutting back on its theme park investment?
The post Disney May Have Just Mistakenly Admitted That Theme Park Expansions Are Being Significantly Reduced appeared first on Inside the Magic.
