Disneyland Paris expects full recovery by 2021

Disneyland Paris expects full recovery by 2021

Disneyland Paris owner Euro Disney is reported to be on course to make a full recovery by 2021 following the terrorist attacks in France over the past two years.

Almost half (49%) of visitors to the park come from France, followed by 17% from the UK.

However, attendance is down from a peak of 16 million in 2012 to 13.4 million last year, a fall of 9.5% on 2015, due to the cloud over the tourism industry in France.

Revenue for the year-ending September 30, 2016 dropped 7% to €1.3 billion while costs rose 5%, driven by investment ahead of its 25th anniversary in March and rising salaries and security costs.

This left it with an underlying loss of €34 million but performance has improved.

Attendance rose 5% in the six months to March 31 on the same period the previous year with revenue increasing €19 million to €623 million and occupancy up three percentage points to 81%.

Euro Disney’s half year results state that the boost in attendance was due to more guests visiting from the UK and France, partially offset by fewer from Belgium.

The 25th anniversary was followed three months later by Walt Disney Company taking full ownership of what is Europe’s most popular tourist attraction in a €2 a share offer.

Documents filed in connection with the takeover state that “the full recovery following November 2015 events in Paris (in terms of volumes and revenues) is expected by FY2021,” The Telegraph reported.

Disney is backing a €1.5 billion share recapitalisation and will use the majority of the proceeds to repay debt.

Euro Disney’s classic attractions such as its Star Wars simulator have been updated for its birthday, while the site plans to new performances next year by comic book characters such as Spider-Man and Iron Man from Marvel Entertainment which was acquired by Disney for $4 billion in 2009.

“The 25th anniversary clearly is resonating,” said Peter Welch, marketing and sales vice president for Disneyland Paris in the UK and Ireland.

“There’s the investment in the shows, the parade and like any business, it’s probably not one factor. When the stars are aligned you get a momentum and we definitely have that with the UK market.”

Brexit could help Euro Disney as it buys more from UK firms than those in any country outside France, accounting for 30% of its annual €77.5 million spending on suppliers.

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