D’Amaro: Disney’s investment strategy shields it from Epic Universe impact

Disney executives have expressed strong confidence that their visitor numbers will not be cannibalized as Universal Orlando Resort gears up for the official May 22 opening of Epic Universe.

Speaking about the potential impact of the new competitor, Josh D’Amaro, Chairman of Disney Parks, Experiences and Products at the MoffettNathanson Media, Internet & Communications Conference today emphasized the company’s long-standing investment strategy and its positive track record in driving tourism to the region.

D’Amaro highlighted Disney’s consistent “offensive” approach over the past five to ten years, citing significant additions like Pandora – The World of Avatar at Animal Kingdom, TRON Lightcycle / Run at Magic Kingdom, Star Wars: Galaxy’s Edge at Hollywood Studios, and the ongoing transformation of EPCOT, including Guardians of the Galaxy: Cosmic Rewind. He asserted that this continuous investment in new and compelling experiences has been a key driver of long-term success.

“We are constantly investing in the longterm and that has worked incredibly well for us,” he said.

The company’s thesis, according to D’Amaro’s notes, centers on the idea that new attractions and parks entering the Orlando market ultimately benefit the entire region. He suggested that new tourists drawn to the area by Epic Universe would also be inclined to visit Disney parks. The new tourists will visit Magic Kingdom for Tron, or Galaxy’s Edge, Guardians of the Galaxy: Cosmic Rewind or Pandora. This dynamic, he believes, ensures the continued health and sustainability of Disney’s four-park ecosystem.

Recent financial indicators appear to support this outlook. During the Q2 earnings call, Disney Chief Financial Officer Hugh Johnston, said booking for Walt Disney World in the third quarter are currently up 4%, with approximately 80% of the quarter accounted for. Looking further ahead, fourth-quarter bookings are showing even stronger momentum, up 7% with 50% to 60% of that period already booked.

There is a widespread belief that the opening of the new theme park will mean a siphoning of guests from Disney. However, D’Amaro said, “‘And you think cannibalization, that cannibalization is not coming from us.'”