Oriental Land to Invest 140 Bln Yen in Tokyo Disney Theme Parks

Oriental Land to Invest 140 Bln Yen in Tokyo Disney Theme Parks

Oriental Land Co., operator of two Disney theme parks near Tokyo, plans to invest a total of 140 billion yen ($1.28 billion) as the company aims to attract more visitors to its theme parks. Oriental Land will spend 90 billion yen by 2008 to improve and add attractions at its Disney theme park complex. The company may also invest 50 billion yen over three years to build hotels and theaters within the resort facility. "We plan to make Tokyo Disney Resort more attractive," said Kazuo Kato, Oriental Land senior managing director. "To increase the capacity of Tokyo Disney theme parks is our most important business strategy." Oriental Land may sell bonds to pay for part of the expansion, Kato said. The company expects sales for the fiscal year ending March 2007 to increase 7 percent to 360 billion yen from 336.5 billion yen last fiscal year. The company also forecasts operating profit will reach 45 billion yen in the third year. Oriental Land, based in Chiba near Tokyo, pays royalties to Burbank, California-based Walt Disney Co. The company said 25.5 million people visited the Disneyland and DisneySea theme parks last year and the number may rise in the year that ends March 31, 2005.

SOURCE: Bloomberg.