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Walt Disney Parks and Resorts has managed through the downturn primarily
in two ways. First, we have made better use of existing assets by
instituting efficiency measures and by innovative promotions, such
as Walt Disney World’s Play Four Days and Magical Gatherings
programs. Second, we have kept enhancing and expanding the product
with exciting new attractions, such as Mission: SPACE and
Mickey’s PhilharMagic at Walt Disney World and Disney’s
Aladdin – A Musical Spectacular, a bug’s land, The Many
Adventures of Winnie the Pooh and the-soon-to-open The Twilight
Zone™ Tower of Terror at the Disneyland Resort.
In addition, we continue to open new resort facilities, such as
the Pop Century Resort at Walt Disney World, which makes it easier
for families on all budgets to enjoy the full Disney experience
of staying “on property.”
We are also building for tomorrow on the other side of the Pacific
Ocean, as work progresses on schedule for Hong Kong Disneyland.
The park is now starting to take shape as the infrastructure is
being constructed at its magnificent site on Lantau Island and,
when completed, will provide us with an important presence in the
world’s most populous nation. Even with all of these additions
to our Parks and Resorts inventory, in 2003 we were able to reduce
our capital expenditure from the annual levels of the previous five
years. This will continue to be the case going forward, which should
result in increased free cash flow.
You should also know that we have a very big birthday party coming
up. The park that started it all – Disneyland – will
be 50 years young on July 17, 2005. So, in the spring of 2005, we
will begin an 18-month celebration, which will be observed not just
in Anaheim, but in all of our parks. I’ll be talking a lot
about this in next year’s letter, but I thought I’d
tell you now so you could mark the date on your calendars!
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