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Comment by epylar | Hacker News Reader

3) build more parks?

You have to fund that somehow so ... prices go up! Real estate isn't infinite, but Disney World in Florida is expanding now more than ever. If they ever have to build a new set of parks elsewhere, real estate prices are going to be ridiculous, and you have to buy it somehow so ... prices go up!

I don't see how increasing supply brings prices down at Disney - they'll hike the price now to fund it, then they'll hike prices again to control attendance.

Buy Disney stock.

>You have to fund that somehow so ... prices go up! Real estate isn't infinite, but Disney World in Florida is expanding now more than ever. If they ever have to build a new set of parks elsewhere, real estate prices are going to be ridiculous, and you have to buy it somehow so ... prices go up!

Why raise prices on consumers when you can fund a new park with the $12.6 billion in profit they earned in 2018?

Edit: I'm not the most fiscally-savvy person, so it would be cool if someone explained why I might be wrong rather than just hitting the downvote button and walking away.

Anaheim is landlocked, it would cost them several billion dollars just to buy more land in Anaheim alone, the odds of more park in Anaheim are basically zero.

IIRC, Walt Disney practically begged friends and associates to buy up the land surrounding Disneyland, and always lamented the cheap motels and establishments that quickly proliferated outside the park. But he maxed out, mortgaged and bet pretty much every penny of the studio (and personally) to get the park built at all. There was simply no money left to buy up any more orange groves.

Why use our precious profits when people will indeed pay higher prices to visit the parks? Shareholders don't like spending money, even when they have it. They'd rather increase revenue and then siphon a bit off of that for spending. Once it's listed as 'profit', executives, boards, and shareholders are loathe to spend it at all.

I personally wish that Disney's America park was built...

I wouldn't be shocked if a lot of reasons that failed to get off the ground are the same reasons holding back new parks in north america.

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