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Ask and ye shall receive; Universal Orlando to drop $100 mil on new attractions
2007-04-05
By
Robert Niles: Universal fans are buzzing about the
company's latest SEC filing, which reveal plans to more than double capital spending, to "$100 million to $120 million" on shows and attractions in 2007. Universal told federal regulators that it plans to spend just $15 to $20 million of that on maintenance of existing rides.
(Background: All U.S. companies whose stock is traded through public exchanges must file quarterly statements with the SEC, the Securities and Exchange Commission, revealing how much money they've spent and earned, plus any plans they have which could affect their stock price.)
Universal's announcement lends support to rumors that the park is planning a
major retheming of one of the IOA lands, possibly to a Harry Potter theme. Keep in mind that $100-$120 million is just what Universal's planning to spend this year. A newly rethemed land would not open until 2008, at the earliest, so additional funds for the project, presumably, would come from the 2008 budget, as well.
As I
noted earlier this week, Universal's attendance has not kept up with rival Walt Disney World's, and has declined at IOA. Attendance remains down, 3 percent for the year, according to the SEC report. So Universal needs to do something to boost attendance. And the Blue Man Group, tweaked admission deals and another Orange County ad campaign won't cut it.
