Walt Disney Company, boosted investment in its Shanghai resort to about $5.44 billion to add attractions that will increase the park’s capacity when it opens next year.
The new spending on the Shanghai Disney Resort by the company and its Chinese partner will amount to 5 billion yuan, or about $800 million, the Burbank, California-based company said yesterday. The total outlay was originally projected at 29 billion yuan, according to the resort’s website.
Disney’s decision to increase spending was based on the outlook for tourism and travel in China, Chief Executive Officer Robert Iger said. Travel demand is rising as the number of upper-middle class and affluent households in the nation is expected to expand 18 percent annually between 2012 and 2022, Disney said in a statement, citing McKinsey & Co.