Rasulo: Parks poised for growth

ORLANDO -- The expansion into China's rapidly expanding economy by Walt Disney Parks and Resorts is emblematic of the company's growth strategy, president Jay Rasulo said Thursday in his keynote speech at the General Managers and Owners Breakfast at the International Association of Amusement Parks and Attractions annual convention in Orlando.

Rasulo pointed out how research indicates that the international theme and amusement parks business has plenty of room to grow.

To maintain its market as well as expand its lead, Disney -- as well as other international operators -- needs to adopt three policies, he said: Enhance the guests' experience and build a strong connection with them; expand into new geographic regions; and tap into emerging lifestyles.

"It's difficult for parks to differentiate themselves when it comes to rides, so we must build long-term relationships with consumers," he said. "Thrills may last a few minutes, but the memory lasts longer."

Rasulo emphasized that those principles need to be high in operators' minds. First, U.S. operators cannot afford to become complacent. "The U.S. needs to get back in the game when it comes to competing internationally for visitation," he said.

Rasulo illustrated those points with Disney's plans for a $1.8 billion park and resort in Hong Kong in 2005-06 to serve mainland China and its 1 billion-plus population.

"China is poised to become the largest market of them all. But the biggest challenge is introducing Hong Kong and mainland China to our icons, including Dumbo and Sleeping Beauty," he said. "Sometimes, it is difficult to remember that not everyone in the world grew up with Disney stories."

Consequently, the company and its employees have started learning about Chinese fairy tales such as Myth of the Dragon, which will be adapted for the entertainment at the Hong Kong park and resort.

Disney is also tapping into the 70 million members of the China Communist Youth League, the Chinese equivalent of the YMCA, to learn what the nation's young people look for in out-of-home entertainment. It has also started marketing the new park to the country's young citizens.

Rasulo's speech also focused on the need to customize theme park entertainment and services to emerging lifestyles.

Having noted the trend of families, friends and even neighbors to travel in groups following the Sept. 11 terrorist attacks, Disney's parks came up with a new business called Magical Gatherings.

"Post 9/11, family and friends are meaning more to each other," Rasulo continued. "And in the 10 months after Magical Gatherings, there has been a 31% increase in visitors as part of multi-household groups. Future growth depends on our ability to cater to other family figurations."