A Prudent Reality Check in Fantasy Land : There Can Be No Quarrel With a More Modest Disneyland Expansion in This Economy

Walt Disney Co. Chairman Michael Eisner’s recent update on the Westcot project at Disneyland was not all that might have been hoped for, but it was not all that it might have been on the negative side, either.

In announcing that the scale of the project was being reconsidered, Eisner was vague on specifics, but at least left the impression that the company was looking for an economically feasible way to do the project. For some time, it has been relegated to limbo status, leaving Anaheim and the region uncertain as to how to plan. It could have been worse; Eisner might have announced that the company was abandoning the project altogether.

The idea that there will be something rather than nothing was reinforced by the subsequent announcement that Paul Pressler, the head of the company’s Disney Stores division, had been appointed president of Disneyland. Pressler has overseen considerable growth in the stores and was described by the chairman as a “star executive” within the company.

There can be no real quarrel with a more modest plan for the expansion in view of the general economic climate. In his remarks this month, Eisner acknowledged that the company was still smarting from the more than $550 million in losses from Euro Disneyland in France. It is hard to argue with the assessment that it might be wiser to go forward in increments rather than trying to take on a colossal project.

The city of Anaheim continues to handle the frustrating uncertainty as well as can be expected. It has made its own wise decision about the need to go ahead with urban renovation in the Disneyland area as an investment in its future. The company’s outstanding demand for $800 million in financial support from the city, Orange County, and state and federal agencies still must be resolved, and the city has to mind its pocketbook.

In addition to the comments on the new project, it was heartening to hear an affirmation of the company’s commitment to the core Disneyland enterprise. Eisner said that the company was going to continue putting money in. “We’re never going to let Disneyland become an aging theme park,” he said.

While the company has spread in many directions, Disneyland remains an important part of the Orange County economy and a draw for tourism. Building on what has worked in the past makes sense in a changing environment. If it means going ahead with the new project in a less ambitious way, so be it. This is a time for realistic assessments.