News On Japan

Theme Parks Bet on 25th Anniversary Year

TOKYO - Tokyo’s and Osaka’s flagship theme parks are both marking their 25th anniversaries this year, raising expectations that milestone celebrations could provide a boost to visitor numbers and earnings.

The focus first turns to the eastern champion, Tokyo DisneySea, which celebrates its anniversary on September 4. Commemorative events, branded as the 'Sparkling Celebration,' began this week.

Sato Sekine, senior analyst at Daiwa Securities and a five-time top-ranked analyst in Nikkei’s leisure and amusement sector rankings, said the event could help drive attendance.

DisneySea has adopted 'Jubilee Blue' as its theme color, inspired by the park’s many attractions, with decorations and lighting displays across the resort. When Tokyo Disneyland marked its 40th anniversary, visitor numbers increased, and Sekine expects DisneySea’s 25th anniversary to have a similar effect.

Higher spending per guest is also supporting earnings growth, he said.

Looking further ahead, Tokyo Disneyland is scheduled to reopen its redeveloped Tomorrowland area next year, followed by the park’s 45th anniversary the year after, creating additional opportunities to sustain momentum.

Oriental Land, the operator of Tokyo Disney Resort, reported net profit of 99.5 billion yen for the April-December 2025 period, up 4% from a year earlier. Revenue rose 5% to 530.2 billion yen.

Sekine said higher guest spending inside the parks and at hotels contributed to the results.

Visitor numbers were broadly flat, reflecting sluggish growth in Japan’s domestic travel market, he added.

Rising ticket prices have fueled discussion that younger visitors and families may be turning away from Disney. Demographic data suggests the share of children has fallen below that of middle-aged and older guests.

Sekine said many long-time visitors aged 40 and above continue to visit, while financially secure customers are better able to absorb higher prices.

He also pointed to operational frustrations. Reservations for attractions fill quickly, and smartphone bookings have become essential. Such factors, combined with increasingly diverse leisure preferences, may be discouraging younger people and families.

From next year, guests will be able to purchase Disney Premier Access for selected attractions before entering the park, a move expected to gradually ease dissatisfaction.

Inbound tourism is another factor supporting demand. While some have expressed concern that fewer Chinese visitors are traveling to Japan amid strained bilateral relations, Sekine said the impact on Oriental Land should be limited.

Chinese visitors account for only around 2% of total guests, he said. Meanwhile, inbound visitors from countries other than China have been increasing at an annual pace of roughly 20%, cushioning the effect.

Daiwa Securities rates Oriental Land shares as 'Outperform' with a target price of 3,300 yen.

The stock is currently trading in the 2,600 yen range, less than half its peak level in January 2024.

Sekine said several negative factors have weighed on the shares over the past two years, including selling pressure related to major shareholder holdings, fading post-pandemic recovery momentum and stagnant visitor growth.

However, he said many of those concerns are now already reflected in the stock price.

Risks remain, including prolonged inflation and weaker consumer spending, but Sekine said the downside may be increasingly limited.

He also noted a strong pipeline of Disney film releases, including sequels to 'Zootopia,' 'Toy Story,' and 'Frozen,' which could renew enthusiasm for the brand among younger audiences and children.

Source: テレ東BIZ

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