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The Honolulu Advertiser
Posted on: Sunday, February 2, 2003

Disney parks working on comeback

By Richard Verrier
Los Angeles Times

Walt Disney Co.'s new theme park chief could use a little pixie dust right about now.

Disneyland in Anaheim, Calif., and other theme parks are still looking for that magic touch that will revive sales.

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In his first three months on the job, Jay Rasulo, the former chief of Disneyland Paris, has seen the travel and tourism business that is Disney's bread and butter falter once again, just as it seemed about to bounce back from one of the worst slumps in a decade.

A sagging economy, waning consumer confidence and potential war with Iraq could forestall hopes for a quick turnaround in an industry devastated by the Sept. 11 terrorist attacks.

"We continue to be in a period of multiple uncertainties," Rasulo said in his first in-depth interview since replacing Paul Pressler, who resigned last year to become CEO of the GAP Inc. "We think the comeback will be slow in 2003."

The 17-year Disney veteran is drawing heavily on his international marketing expertise to find new ways of luring visitors to the company's 10 theme parks around the globe.

Rasulo has set about overhauling theme park marketing strategy by tailoring entertainment to suit the individual tastes of domestic and international vacationers. He's looking to promote more live shows in theme parks, such as the new Broadway-style Aladdin production at Disney's California Adventure park in Anaheim.

Disney, however, hasn't given up on the big "e-ticket" rides, however.

Later this year, it opens a $200 million space flight simulation attraction at Epcot in Orlando, Fla., called "Mission: SPACE." Next year, California Adventure will add Twilight Zone Tower of Terror.

The new attractions come after a period of heavy belt-tightening across Disney's parks. Industry analysts say Rasulo's strategy is prudent for the market.

"The idea for live entertainment shows is smart because it's less risky than putting in a $100 million attraction," said veteran leisure industry consultant Steve Baker.

"I think they've squeezed the parks too much. Now they've got to get back to concentrating on the show and that's what they seem to be doing."

Rasulo, a 47-year-old New Yorker, came to his current job after two years as CEO of Euro Disney, where he helped transform Disneyland Paris into the most popular tourist destination in Europe.

One of his priorities has been to change the way Disney markets its parks in Europe.

"The idea is to motivate a desire to go to a Disney destination," he said, adding that a similar approach might be used to jointly promote Walt Disney World and Disneyland.

And through what Rasulo terms "portfolio marketing," Disney also is looking to create more cross-promotions among Disney's 10 parks.

To counteract the steep falloff in international travel after Sept. 11, Disney also has aggressively stepped up its marketing in Europe, Canada and Asia. And like its rival Universal Studios, the company also has been offering heavy discounts to local residents.

Following a practice common in the lodging industry for years, Disney also is venturing into the practice of database marketing. Using is extensive customer surveys, Walt Disney World has developed a database called "Destination Disney" that tracks demographics and customer preferences.

The new marketing approach comes as Disney takes a breather after a period of hefty investment since 1990.

It was then that CEO Michael Eisner outlined a 10-year plan to do "nothing less than reinvent the Disney theme park and resort experience." The expansion continued into the new millennium, with Disney opening three new parks — Anaheim, Paris and Tokyo — in 18 months in an effort to build resort destinations.

The overseas push continued last month with the groundbreaking of Hong Kong Disneyland, set to open by 2006.

Outside of Hong Kong, however, Disney has neither the capital nor the inclination to spend hundreds of millions of dollars building new parks over the next decade. Instead, it will focus on rounding out existing attractions and find new ways to entice vacationers and keep them coming back, Rasulo said.

To that end, Rasulo is pushing for more live entertainment across all of Disney's properties.

The test case is the new Aladdin musical show at Disney's California Adventure, an elaborate, 40-minute stage show produced under the direction of New York theater veteran Anne Hamburger.

The attraction is part of a strategy to invigorate Disney's California Adventure, which has struggled to meet attendance projections. But, if successful, the show could find venues at other Disney parks.

"I see this as an evolution for us in entertainment," said Rasulo.