By Jason Garcia, Orlando Sentinel
May 18, 2013
Three years ago, Harry Potter loosened Mickey Mouse's grip on Orlando's theme-park market.
Now, Puck the Penguin is ready to try pulling Mickey's fingers even farther apart.
After more than a year of construction, SeaWorld Orlando this week will open Antarctica:
Empire of the Penguin, a nearly 4-acre, multiattraction "land" built to
look like the icy continent and starring an animated gentoo penguin
named Puck.
Orlando-based SeaWorld Entertainment Inc., which just completed a
$700 million public stock offering, has enormous expectations for
Antarctica, the largest expansion in SeaWorld history. Company President
and Chief Executive Officer Jim Atchison calls the project "a real game-changer for us."
But beyond simply boosting SeaWorld's fortunes, industry analysts say
Antarctica has the potential to alter the Orlando market, which
historically has been dominated by Walt Disney World.
During the past decade, Disney
World's central growth strategy has been to persuade travelers to spend
their full vacations on its property, lured by programs such as
sliding-scale ticket prices and a free airport shuttle. But that model
has been challenged recently by Universal Orlando, which has attracted
millions of new visitors to its parks on the strength of the 3-year-old
Wizarding World of Harry Potter.
With Antarctica, analysts say, SeaWorld has an opportunity to continue that shift. "Antarctica, in my mind, is a really good test of how different the
Orlando landscape has become," said Bob Boyd, a leisure analyst at
Pacific Asset Management, a California investment-management company.
Antarctica is SeaWorld's entry into a parade of lavishly designed
"lands" that U.S. theme-park owners are building across the country
after the success of Universal's Wizarding World of Harry Potter.
Universal parent Comcast Corp. is copying Wizarding World at its West Coast park and will add a second Potter land — Diagon Alley — next year in Orlando. The Walt Disney Co. last year opened Cars Land at Disneyland and the initial phases of New Fantasyland at Disney World. It has begun preliminary work on a land based on the movie "Avatar," also at Disney World and expected to open in 2017.
SeaWorld's Antarctica includes a first-of-its-kind trackless ride and
a frigid, walk-through penguin habit, along with a 325-seat restaurant
meant to resemble a multinational mess hall and a penguin-themed gift
shop peddling Puck plush toys and other souvenirs.
The company will not disclose what it spent on Antarctica, though one
analyst estimated the cost was substantially less than the $265 million
that Universal spent on Wizarding World and the estimated $425 million
that Disney is spending on New Fantasyland.
Still, Antarctica is the biggest in a collection of new rides and
other construction projects on which SeaWorld has spent $420 million
combined during the past two years. Executives say they plan to trim
their capital spending in the coming years to something closer to $150
million annually.
To maximize the investment, Antarctica will have to do more than
drive higher attendance and ticket prices. SeaWorld also needs the
project to entice guests into spending more on food and souvenirs.
SeaWorld hopes to emulate some of the success Universal has had with
"butterbeer" and other Harry Potter-themed food and merchandise in its Islands of Adventure
theme park. The drink selection in Antarctica's Expedition Cafe
restaurant will include South Pole Chill, a vanilla-flavored soda made
by SeaWorld sponsor Coca-Cola Co. exclusively for sale in the new attractions area.
SeaWorld would not discuss its projections for Antarctica. But Dennis
Speigel, president of International Theme Park Services in Cincinnati,
said expectations are high across the industry.
"I think the buzz in the industry is that this will be to SeaWorld
what Harry was to Universal and what Fantasyland was to Disney," he
said.
Antarctica could perform particularly well with those travelers
willing to venture off Disney World property — a market that has been
expanded by Wizarding World. The pull will become even stronger next
year when Universal opens its second Potter land.
"I think SeaWorld has the opportunity to grab a good number of those
people that have already left Disney property or decided beforehand not
to stay on Disney property, and show what they can do," Boyd said. "If
they knock it out of the park, I think the center of the Orlando market
continues to shift toward International Drive."
A spokesman for Disney World said all Orlando tourism operators
benefit when new attractions open and give travelers more reasons to
visit Central Florida. Still, Disney is taking more steps to insulate
itself against the competition.
The company this year will introduce the major elements of its $1
billion "MyMagic+" initiative, which aims to get travelers to lock in
their vacation plans in advance by allowing them to book times for
popular rides and shows long before they get to Orlando.
Disney executives say keeping travelers within their parks and hotels
— and thus away from Potter and Puck — is one of the driving strategies
behind MyMagic+.
"We have known for a really long time that getting our visitors to
Walt Disney World to make decisions about where they spend their time
before they leave home is a powerful driver of visits per guest," Disney
Co. Chief Financial Officer Jay Rasulo told analysts earlier this
month.
"When they get into the Orlando market and their time isn't yet
planned," he continued, "they can be subject to everything you see down
there, which is a lot of in-city marketing for all the many products
that people have put there to basically bleed off the feed that we
fundamentally motivate."
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