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This is Disney's second venture outside the U.S. Eight years ago, Japan's Disneyland opened in the Tokyo suburb of Urayasu; for the fiscal year that ends this month, it should post revenues of more than $1 billion. The Japanese Disneyland was meant to be thoroughly American, though: most signs are in English, and only one of the 30 restaurants serves Japanese food.
But for the French, injecting at least some European flavor into the enterprise has become a cause celebre. Among the European accommodations, signs will be bilingual, and possibly multilingual, and plenty of French cuisine will accompany American fast food. Disney officials like to point out that one attraction, Discoveryland, is inspired in part by the works of French science-fiction writer Jules Verne. Disney also agreed that only its major attractions, such as Pirates of the Caribbean and Adventureland, will be called by their English name.
The 500-page pact between the French government and the Walt Disney Co. stipulates a 49% ownership stake in Euro Disneyland for the U.S. firm, with the remaining 51% of the shares held by investors. Euro Disneyland shares will be traded on the Paris Bourse. Disney will retain operational control of the facility. As part of the deal, the government is lending Disney $920 million at a remarkably low 7.85% interest rate. Disney has agreed to use European firms for 90% of its goods and services, and will pay for various roads to be built near the complex.
For France, the payoff is plain: as many as 30,000 new jobs will be created by Disney, and tourists will spend millions of francs on French businesses as part of their travels to Euro Disneyland. In the neighborhood of Marne-La- Vallee, 12,000 houses and apartments will be built, along with new schools and stores. The tiny (pop. 925) village of Serris, many of whose resident are elderly or retired, is bracing itself for the arrival of Euro Disneyland nearby. Says Mayor Philippe Mancel: "One realizes it's a lost cause to be against Euro Disneyland. Once Disney starts paying taxes, on a per capita basis, Serris will be one of the richest villages in France."
Disney executives can expect to whistle while they work, since the deal is already showing handsome returns. The firm is putting up only $160 million in equity. Investors stepped forward with an additional $1.2 billion, and banks and the government lent $2.6 billion. When the gates open, Disney will take 10% of admission revenues and 5% of food and merchandise receipts. It will also receive 49% of all profits. Estimated annual gross receipts for the first year: about $1.12 billion.
On the subject of the French bureaucracy, Disney executives sound decidedly less bullish. For example, when Disney executives requested an extension of local water service to their park area, they had to seek about a dozen official approvals and clearances. To help navigate this sensitive thicket, Disney hired local consultants familiar with the rules of the game. Says Euro Disneyland president Robert Fitzpatrick: "Form is very important in France, much more so than in the U.S. You have to be sure you contact the right person and don't overlook someone."