New Orleans Marketing Plan
Introduction
The City of New Orleans is a remarkable city and has enormous potential for expansion.
The “Big Easy” has always been known for the French Quarter, yet New Orleans is so much more than just a “party city.” I suspect there is a demand to show the “family friendly” side of the city. While there have been notable failures and setbacks along its progress, New Orleans is an international tourist attraction. Visitors come from all over the globe to witness its history and culture. My proposal is to offer new development in a vigilant and financially responsible manner, while offering a glimpse of the extraordinarily exciting and expansive visions that may occur in the future. The market feasibility and infrastructure demands …show more content…
must both be carefully assessed. The objective of this tourism plan is to show the possibility of developing a Disney
Park and 2 Disney Resorts in New Orleans. This proposed plan will be evaluated based on current trends, possible investments, and future economic impacts.
Table 1.1
Financial Highlights Jan 2, 2016
Profitability
Profit Margin: 16.72%
Operating Margin: 25.90%
Income Statement
Rev.: 54.32B
Rev. Per Share: 32.28
Quarterly Rev. Growth: 13.80%
Gross Profit: 24.10B
Net Income Avl to Common: 9.08B
Quarterly Earnings Growth: 32.00%
Cash Flow Statement
Operating Cash Flow: 11.42B
Levered Free Cash Flow: 5.90B
Theme parks can be seen all across the world. They are one of the biggest tourist attractions, and
generate a respective amount of income. From an economic stand point this will have a positive impact on
the city. Walt Disney was responsible for introducing a new era in the theme park industry by developing
Disneyland in 1955. This was a milestone in theme park history, and many other companies followed
Disney's example and erected large scaled sized theme parks all over the U.S. Further, the establishment
of Disneyland leveraged an enormous economic growth to the City of New Orleans. Due to these and due
to the fact that the expansion of Disney’s theme parks is under construction, I thought it would give a
perfect example to analyze the impacts which appear from constructing the park as well as to analyze the
impacts, which occur from running a theme park.
Major theme parks requirements
Key to a successful theme park is an adequate market within 100 to 200 miles, consisting of a
population with a disposable income to afford the required expenditures. The bulk of the people at theme
parks are day-trippers and, in fact, successful theme parks require repeat business, which is most likely to
come from day-trippers. Disneyland and Disneyworld are exceptions to this distance requirement in that
each has either broad regional or national and in the case of Disneyworld, foreign tourist. An adequate
site is critical. A site of 100 acres or more is necessary to provide not only the attraction itself, but also
parking, buffer zones and expansion. (If a resort is planned, of course, more land is required.) The land
should be rolling to permit attractive landscaping and changes in elevation to mask exhibits and rides,
although level sites, with proper inward-looking design, can work as well. Access to the site is important
because of the need to tap markets from which attendees can arrive by express highways, with minimum
delay to arrive at the site. Some attractions (e.g., Busch Gardens, Williamsburg, Six Flags over Georgia in
Atlanta and Opryland, U.S.A.) have been able to acquire direct access from the highway, thus alleviating
traffic congestion.
Appropriate zoning of the site is critical. A long drawn-out battle to change zoning classification
is highly undesirable. The theme park developer has no interest in becoming involved in a battle for zoning change. The availability of a large pool of part-time labor is a real asset for a locality hoping to
land a destination attraction. College students, spouses of military personnel, and housewives seeking
temporary or part-time employment are key sources. Location near a college or a military base is
particularly desirable. Weather also has a direct bearing on the number of days a theme park can operate
and, hence, on its potential profitability. Initially theme parks were designed to operate year round, but
now many can be successful with 140-150 days of operation. Warm, rain-free weather is most desirable
and in the case of New Orleans that is the norm.
Requirements to impact destination tourism
• Be unique, a "must see" destination. This can be accomplished through character development (Mickey and his friends), architectural form, natural features, special events and programming (Opryland) or a combination thereof.
• Have large scale and a critical mass of attractions.
Investment levels to impact international tourism generally must exceed U.S. $150 million.
• Combine high technology with human scale and quality service.
Investments in the excitement hardware must be combined with a high level of service from the "hosts and hostesses" so that a unique local culture and friendly human contact is balanced to the high technology.
• Encourage instantaneous stays.
The major economic benefit of tourism comes when overnight stays are generated. Day visitors or tourists who stay with friends and relatives generate only 20 percent of the economic impact of tourists staying in hotels and motels ($50 versus $250 per day).
Consequently, in designing a theme park for tourism, a multiple attraction destination is more likely to have a preferred impact.
The Impact of Tourism on Local Government
Very often, local policy makers have assumed that economic activities associated with tourism
improve the quality of life. As such, much of the analysis of this industry has focused on the positive
impacts on employment, income, tax revenue, and local economic growth and development, generally.
It is reasoned that promotion of tourism will result in the following:
• Improved transportation facilities and other infrastructure which will benefit local residents
• The generation of enhanced local government revenue will result in improvement of community facilities and services.
• The multiplier effect of tourism on development of other economic sectors.
The general logic behind local government initiatives to promote their region as a tourism center is lying on the assumption that local residents will benefit from the employment income, and tax revenue generated from tourism. Tourist industry promoters argue that the impact on the local tax base is positive. First, the tourism industry will facilitate expansion of the property tax base through development, which will facilitate stable or declining tax rates. Second, a large portion of the tax burden may be exported through the use of sales and transient guest taxes paid by tourists. Thus, it would seem possible to import economic development at little or no expense, while at the same time exporting a significant share of the tax burden on local taxpayers (Wong, 1996, …show more content…
p.314)
The objectives of the Disney Resort in New Orleans
• To reconfirm and enhance New Orleans as one of the world’s greatest tourist destinations.
• To transform from a primarily seasonal destination into a year round destination for use by the New Orleans metropolitan area residents as well as visitors from around the world.
• To maintain and enhance the economic vitality of the City of New Orleans by providing business and job opportunities associated with the construction and operation of the Disney Resort.
• To lay a foundation for future economic expansion.
• To minimize environmental impacts through comprehensive site development guidelines.
Cumulative impacts
• Loss of prime agricultural land
• Land use incompatibilities inherent in the comparison of commercial and residential uses.
• Cumulative air quality impacts related to emissions of ROG, NOx, CO and PM1O which will exceed SCAQMD significance thresholds, significant cumulative Sox emissions may also occur but are required to be offset.
• Construction impacts such as transportation disruption, air emissions, and visual disruptions.
• Solid waste impacts due to limited landfill capacity
• Potential impacts related to cumulative consumption of electricity and natural gas. Table 2.1 From the chart above you can see how theme parks play an important role in generating revenue
and tourism demand. They are one of the leading reasons people vacation to many destinations. The
theme park market is very competitive and constantly growing. Walt Disney, creator of Disneyland and
Disney World, knew he needed to create a “sustainable tourism” plan, while also promoting
environmental awareness. Disney avoided destruction to nature and its inhabitants, economy, and
cultures of the areas where he developed his theme parks. Walt used natural resources long before it
became popular to do so, and would like to see this tradition roll over to New Orleans.
Theme Park Models Past and Future
In 1955 Disneyland Park in Anaheim, California had only one theme park (“Magic Kingdom”).
The park has since expanded into two parks, three hotels and much more, all without disturbing the local
wildlife and the economy.
New Orleans did have several theme parks here in New Orleans, however they
did not survive. One amusement park that was built in 1928, Ponchatrain Beach, had a good run and
lasted for 55 years. However, new technologies arose and the park could not compete with the changing
of times. Another theme park that was built in 2000, Jazzland, had little success due to location and lack
of support from locals that couldn’t afford the season passes. Instead of closing the park they sold it to Six
Flags in 2003. Six Flags tried to revive it by putting money into advertisement and bringing a mascot.
However, their attempt failed and Katrina was the nail in the failed theme parks coffin. The city of New
Orleans forced Six Flags to keep their 75 year lease and since then the property just sits there.
The big allure to our city has been our tasty food, culture and Mardi Gras. Unfortunately, New
Orleans loses money every year due to guests taking their families to other states that have more family oriented attractions. Unlike cities like Orlando and Lakeland California, New Orleans has a lot to offer the adults and now we would be able to offer the same level of fun to their kids as well. The start of
the venture would be finding a suitable location that can support all of the rides and hotels that would be built in that area. The main thing Walt Disney parks are known for is their eco-friendly practices. When planning the development of the Disney theme park we will first need to combine the elements of the park, with all the elements that define the environment of the theme park. Disney would bring the green movement to our city and invest money into local businesses. For Disney to come in and start with one theme park and two hotels to our area, it would cost about 1.5 billion dollars. However, the return value would be doubled since New Orleans is a port of call for cruise ships. Imagine coming to our city to go on a cruise and seeing Mickey Mouse or Donald Duck; the children would want their parents to stay in our city just a little bit longer. Disney Cruise Lines are also another possibility for expanding our city, but this will come in stages once Disney breaks ground in New Orleans. Once the revenue for New Orleans increases, it could drastically affect our local communities by fixing our streets and clearing up the blight in our city. Walt Disney saw the potential in a city that was swamp and wet lands and made a state of the art facility that anyone any age can enjoy. We can see it with the unique attractions the parks have shown to the world. The city can have that same experience without being reminded of the loss and devastation from the hurricane that affected so many people. It would be an awesome sight to see the city highlighted by Cinderella’s castle on Main Street USA. This proposal for Disney includes locally owned businesses and working with area youth groups to offer internships and art /music programs in the park. Since the park would be open all year round, it would generate at least 600 jobs, and 1000 additional seasonal jobs.
Conclusion
In conclusion, the theme park market has grown drastically during the last few decades. The primary target market is parents and their children. Keeping that in mind, we intend to design our facilities to address this primary market, while also building a few attractions for the secondary markets (teens and young adults). I believe that our main goals to succeed include: supplying popular and various entertainment activities, I also feel that we can minimize certain risk factors by: initial capitalization of the company to sustain operations through year one, low overhead through the use of multi-skilled employees and continual training, strong customer base through aggressive marketing, strong community ties and involvement, eliminate collection costs by establishing cash/credit/debit card only facilities. In closing, mixing New Orleans culture with a little Disney “magic” is just what this city needs.
The City of New Orleans is a remarkable city and has enormous potential for expansion.
The “Big Easy” has always been known for the French Quarter, yet New Orleans is so much more than just a “party city.” I suspect there is a demand to show the “family friendly” side of the city. While there have been notable failures and setbacks along its progress, New Orleans is an international tourist attraction. Visitors come from all over the globe to witness its history and culture. My proposal is to offer new development in a vigilant and financially responsible manner, while offering a glimpse of the extraordinarily exciting and expansive visions that may occur in the future. The market feasibility and infrastructure demands …show more content…
must both be carefully assessed. The objective of this tourism plan is to show the possibility of developing a Disney
Park and 2 Disney Resorts in New Orleans. This proposed plan will be evaluated based on current trends, possible investments, and future economic impacts.
Table 1.1
Financial Highlights Jan 2, 2016
Profitability
Profit Margin: 16.72%
Operating Margin: 25.90%
Income Statement
Rev.: 54.32B
Rev. Per Share: 32.28
Quarterly Rev. Growth: 13.80%
Gross Profit: 24.10B
Net Income Avl to Common: 9.08B
Quarterly Earnings Growth: 32.00%
Cash Flow Statement
Operating Cash Flow: 11.42B
Levered Free Cash Flow: 5.90B
Theme parks can be seen all across the world. They are one of the biggest tourist attractions, and
generate a respective amount of income. From an economic stand point this will have a positive impact on
the city. Walt Disney was responsible for introducing a new era in the theme park industry by developing
Disneyland in 1955. This was a milestone in theme park history, and many other companies followed
Disney's example and erected large scaled sized theme parks all over the U.S. Further, the establishment
of Disneyland leveraged an enormous economic growth to the City of New Orleans. Due to these and due
to the fact that the expansion of Disney’s theme parks is under construction, I thought it would give a
perfect example to analyze the impacts which appear from constructing the park as well as to analyze the
impacts, which occur from running a theme park.
Major theme parks requirements
Key to a successful theme park is an adequate market within 100 to 200 miles, consisting of a
population with a disposable income to afford the required expenditures. The bulk of the people at theme
parks are day-trippers and, in fact, successful theme parks require repeat business, which is most likely to
come from day-trippers. Disneyland and Disneyworld are exceptions to this distance requirement in that
each has either broad regional or national and in the case of Disneyworld, foreign tourist. An adequate
site is critical. A site of 100 acres or more is necessary to provide not only the attraction itself, but also
parking, buffer zones and expansion. (If a resort is planned, of course, more land is required.) The land
should be rolling to permit attractive landscaping and changes in elevation to mask exhibits and rides,
although level sites, with proper inward-looking design, can work as well. Access to the site is important
because of the need to tap markets from which attendees can arrive by express highways, with minimum
delay to arrive at the site. Some attractions (e.g., Busch Gardens, Williamsburg, Six Flags over Georgia in
Atlanta and Opryland, U.S.A.) have been able to acquire direct access from the highway, thus alleviating
traffic congestion.
Appropriate zoning of the site is critical. A long drawn-out battle to change zoning classification
is highly undesirable. The theme park developer has no interest in becoming involved in a battle for zoning change. The availability of a large pool of part-time labor is a real asset for a locality hoping to
land a destination attraction. College students, spouses of military personnel, and housewives seeking
temporary or part-time employment are key sources. Location near a college or a military base is
particularly desirable. Weather also has a direct bearing on the number of days a theme park can operate
and, hence, on its potential profitability. Initially theme parks were designed to operate year round, but
now many can be successful with 140-150 days of operation. Warm, rain-free weather is most desirable
and in the case of New Orleans that is the norm.
Requirements to impact destination tourism
• Be unique, a "must see" destination. This can be accomplished through character development (Mickey and his friends), architectural form, natural features, special events and programming (Opryland) or a combination thereof.
• Have large scale and a critical mass of attractions.
Investment levels to impact international tourism generally must exceed U.S. $150 million.
• Combine high technology with human scale and quality service.
Investments in the excitement hardware must be combined with a high level of service from the "hosts and hostesses" so that a unique local culture and friendly human contact is balanced to the high technology.
• Encourage instantaneous stays.
The major economic benefit of tourism comes when overnight stays are generated. Day visitors or tourists who stay with friends and relatives generate only 20 percent of the economic impact of tourists staying in hotels and motels ($50 versus $250 per day).
Consequently, in designing a theme park for tourism, a multiple attraction destination is more likely to have a preferred impact.
The Impact of Tourism on Local Government
Very often, local policy makers have assumed that economic activities associated with tourism
improve the quality of life. As such, much of the analysis of this industry has focused on the positive
impacts on employment, income, tax revenue, and local economic growth and development, generally.
It is reasoned that promotion of tourism will result in the following:
• Improved transportation facilities and other infrastructure which will benefit local residents
• The generation of enhanced local government revenue will result in improvement of community facilities and services.
• The multiplier effect of tourism on development of other economic sectors.
The general logic behind local government initiatives to promote their region as a tourism center is lying on the assumption that local residents will benefit from the employment income, and tax revenue generated from tourism. Tourist industry promoters argue that the impact on the local tax base is positive. First, the tourism industry will facilitate expansion of the property tax base through development, which will facilitate stable or declining tax rates. Second, a large portion of the tax burden may be exported through the use of sales and transient guest taxes paid by tourists. Thus, it would seem possible to import economic development at little or no expense, while at the same time exporting a significant share of the tax burden on local taxpayers (Wong, 1996, …show more content…
p.314)
The objectives of the Disney Resort in New Orleans
• To reconfirm and enhance New Orleans as one of the world’s greatest tourist destinations.
• To transform from a primarily seasonal destination into a year round destination for use by the New Orleans metropolitan area residents as well as visitors from around the world.
• To maintain and enhance the economic vitality of the City of New Orleans by providing business and job opportunities associated with the construction and operation of the Disney Resort.
• To lay a foundation for future economic expansion.
• To minimize environmental impacts through comprehensive site development guidelines.
Cumulative impacts
• Loss of prime agricultural land
• Land use incompatibilities inherent in the comparison of commercial and residential uses.
• Cumulative air quality impacts related to emissions of ROG, NOx, CO and PM1O which will exceed SCAQMD significance thresholds, significant cumulative Sox emissions may also occur but are required to be offset.
• Construction impacts such as transportation disruption, air emissions, and visual disruptions.
• Solid waste impacts due to limited landfill capacity
• Potential impacts related to cumulative consumption of electricity and natural gas. Table 2.1 From the chart above you can see how theme parks play an important role in generating revenue
and tourism demand. They are one of the leading reasons people vacation to many destinations. The
theme park market is very competitive and constantly growing. Walt Disney, creator of Disneyland and
Disney World, knew he needed to create a “sustainable tourism” plan, while also promoting
environmental awareness. Disney avoided destruction to nature and its inhabitants, economy, and
cultures of the areas where he developed his theme parks. Walt used natural resources long before it
became popular to do so, and would like to see this tradition roll over to New Orleans.
Theme Park Models Past and Future
In 1955 Disneyland Park in Anaheim, California had only one theme park (“Magic Kingdom”).
The park has since expanded into two parks, three hotels and much more, all without disturbing the local
wildlife and the economy.
New Orleans did have several theme parks here in New Orleans, however they
did not survive. One amusement park that was built in 1928, Ponchatrain Beach, had a good run and
lasted for 55 years. However, new technologies arose and the park could not compete with the changing
of times. Another theme park that was built in 2000, Jazzland, had little success due to location and lack
of support from locals that couldn’t afford the season passes. Instead of closing the park they sold it to Six
Flags in 2003. Six Flags tried to revive it by putting money into advertisement and bringing a mascot.
However, their attempt failed and Katrina was the nail in the failed theme parks coffin. The city of New
Orleans forced Six Flags to keep their 75 year lease and since then the property just sits there.
The big allure to our city has been our tasty food, culture and Mardi Gras. Unfortunately, New
Orleans loses money every year due to guests taking their families to other states that have more family oriented attractions. Unlike cities like Orlando and Lakeland California, New Orleans has a lot to offer the adults and now we would be able to offer the same level of fun to their kids as well. The start of
the venture would be finding a suitable location that can support all of the rides and hotels that would be built in that area. The main thing Walt Disney parks are known for is their eco-friendly practices. When planning the development of the Disney theme park we will first need to combine the elements of the park, with all the elements that define the environment of the theme park. Disney would bring the green movement to our city and invest money into local businesses. For Disney to come in and start with one theme park and two hotels to our area, it would cost about 1.5 billion dollars. However, the return value would be doubled since New Orleans is a port of call for cruise ships. Imagine coming to our city to go on a cruise and seeing Mickey Mouse or Donald Duck; the children would want their parents to stay in our city just a little bit longer. Disney Cruise Lines are also another possibility for expanding our city, but this will come in stages once Disney breaks ground in New Orleans. Once the revenue for New Orleans increases, it could drastically affect our local communities by fixing our streets and clearing up the blight in our city. Walt Disney saw the potential in a city that was swamp and wet lands and made a state of the art facility that anyone any age can enjoy. We can see it with the unique attractions the parks have shown to the world. The city can have that same experience without being reminded of the loss and devastation from the hurricane that affected so many people. It would be an awesome sight to see the city highlighted by Cinderella’s castle on Main Street USA. This proposal for Disney includes locally owned businesses and working with area youth groups to offer internships and art /music programs in the park. Since the park would be open all year round, it would generate at least 600 jobs, and 1000 additional seasonal jobs.
Conclusion
In conclusion, the theme park market has grown drastically during the last few decades. The primary target market is parents and their children. Keeping that in mind, we intend to design our facilities to address this primary market, while also building a few attractions for the secondary markets (teens and young adults). I believe that our main goals to succeed include: supplying popular and various entertainment activities, I also feel that we can minimize certain risk factors by: initial capitalization of the company to sustain operations through year one, low overhead through the use of multi-skilled employees and continual training, strong customer base through aggressive marketing, strong community ties and involvement, eliminate collection costs by establishing cash/credit/debit card only facilities. In closing, mixing New Orleans culture with a little Disney “magic” is just what this city needs.