By Jeroen Nijpels

Related: 10 years to Orlando or not to Orlando - is that a question? / IP & Theme Parks: here to stay? /   World first: "FoodLoop" at Europa-Park

Well, not that I can see. On average, I visit the park about twice a year, sometimes privately, sometimes to attend an event like last week, and once to organize an event there myself, like last December, when Hester Kloosterboer and I organized the first Focus on YOUNG event abroad (more of those to follow!). And each time, the team at Europa-Park manages to exceed my already high expectations.

Take last week for example. One of the very few flaws I could find in the resort over the past years was the lack of a decent wireless or high speed internet in the hotels.

Once, I heard a rumour that it was actually a policy, because the management thought that it would be better if the guests wouldn't spend all that much time in their hotel rooms, but better in the park. This is a good point in itself. Nevertheless, every time the feedback form landed in my e-mail box after another visit, I had to fill in that the resort could improve in its internet access. Apparently I was not the only one because when I checked in last week in the magnificent Colosseo Hotel and asked about the internet, I was provided with a little private WLAN router to take to my room, connected it to the internet connection in the room and was enjoying a private wireless network with the best possible connection imaginable. So not only did they listen to the guests and acted on it, but they also did it better than anybody else. And believe me, with on average 150 nights a year in hotels, I know what I am talking about. And the best part of it: it was completely free! 

Then on a less personal note, take the newest restaurant at the park as another outstanding example. The FoodLoop restaurant (see image right) has been pretty well covered in both trade and general press. How many parks can create such a buzz just for opening another restaurant in the park? And what is it all about? Just a very elaborate way to deliver food, drinks and souvenirs to the guests. But what a way…! Loops, curves, lifts, rotating platforms. Probably the only thing missing is an LSM launch for the food , but somehow I am sure that Thomas Mack has already come up with something along these lines.

During the IAAPA Spring Forum, the Mack family also showed a model of the new hotel, the fifth one on site, the New England themed Bell Rock hotel, set to open summer 2012 (see below). I can't wait to book one of the individually themed suites in the lighthouse that forms the landmark building of the hotel. I just hope that I will not have to wait until the summer of 2012 for my next visit to the park!

Now tell me, Blooloop community: what in your opinion is not right about the park, or otherwise try to answer my question at the beginning of this blog: How do they do it?

By Stefan Puttnam

Related: Are Farm Animal Attractions and Petting Zoos too dangerous for young children?(Part 1) / An update on the UK’s corporate manslaughter laws

The findings following an inquiry into the outbreak, which highlighted that E.coli was found on railings and soiled footwear as well as in the droppings of 23 out of the 28 animals in the large petting barn, have been widely reported. In brief the report has made 43 recommendations including drawing up a code of practice for Petting Farms and introducing a registration system. It did stop short of calling for a ban on the touching of animals.

But what does this mean for those that were infected?  It has been reported that a total of 93 people were infected of which 76 were under the age of 10. 17 developed serious complications and 8 needed kidney dialysis. Some have been left with permanent damage to their kidneys and may need a transplant in the future.

Following the news that the Petting Farm will not be contesting liability, one newspaper² stated that there are "27 children set to receive what may amount to millions in compensation", and another newspaper³ included a quotation from a Partner of a law firm representing 27 children and 1 adult which states "we just wanted to make sure that these families will have the financial support that will allow them to live their lives as best as they can."

How much Public Liability insurance coverage does the defendant purchase?

If we make an assumption that it is £2,000,000 and all 93 victims make successful claims, simple mathematics tells us that the average payment for each victim will be £21,500.  Not a lot for potentially a lifetime of health problems.

It has already been reported that 76 of the victims are under the age of 10 therefore it may be many years, as they develop into adults, before the full extent of any future medical problems will be known. And what about the law firms representing the victims who "just wanted to make sure that these families will have the financial support that will allow them to live their lives as best as they can"? When legal costs can account for as much as 50% of the total claim settlement, I wonder how much the law firm will contribute towards ensuring the financial security of their clients.

Liability may well have been admitted in this case but there is still a matter of ensuring that the victims are compensated adequately. We shall watch this space.

References:
¹ http://www.bbc.co.uk/news/uk-england-12160582
² http://www.thisislondon.co.uk/standard/article-23914082-ecoli-from-petting-farm-left-my-girl-like-a-bag-of-bones.do
³ http://www.telegraph.co.uk/health/healthnews/8252941/Godstone-Farm-will-not-dispute-liability-over-E-coli-outbreak.html

Related:  Thousands flock to Universal Studios for new Madagascar ride / From Downstairs Coasters to a Madagascan Crate: Super 78's Brent Young /  Madagascar: A Crate Adventure Opens at Universal Studios Singapore®

By Brent Young

I’ve been fortunate to be a part of the design team for several rides at this terrific new theme park including this ground-breaking attraction…I say ground-breaking because after all, it is the first attraction in the world to be themed around the hit DreamWorks Animation Madagascar film franchise.

The excitement here on Sentosa Island and around Universal is palpable as guests flock to see the latest addition. Thousands of visitors of all ages already have been among the first to give Madagascar a try.

It is so cool to see the thousands of visitors of all ages flowing through the ride.  This is the scene we so anxiously anticipated when we were blue-skying story ideas, ride design and effect elements years in advance. And it’s awesome to see everything come together.

As with any attraction opening there’s been a range of speculation – from great to not-so-good – as well as questions from theme park fans about the core elements of the ride and the fundamental guest experience, so I thought I’d offer a few “boots-on-the-ground” insights to address some of the posts I’ve read.

As a big theme park fan myself, I appreciate the community’s eagerness to see, experience and discuss this new ride.  Feedback is a critical element to our industry’s success and I love the fact that so many fans are so passionate about the need to continue to push the creative envelope and develop the very best possible theme park experiences.  It keeps designers like me on our toes and eager to live up to your expectations.

Many of the less-than-favorable opinions I’ve come across have been based on one rather rough video of one guest’s ride-through. 

Let me offer some insight about this new Madagascar attraction.  And while certainly I have a built-in bias based on my affiliation with this project, I can assure you I remain a hard-core theme park fan as well…and promise to offer you a fair perspective.

The whacky world of Madagascar is a family attraction that is bursting at the seams with show effects, visual effects, smell effects, water features air cannons, smoke, fire, bubbles and general mayhem.

Family focused and very kid-centric

One speculator has suggested the ride is too “tame.”  The DreamWorks Animation’s Madagascar film franchise ranks among the most popular kid-friendly animated movies of all time, so true to the film’s brand essence this ride has been designed to be heavily family focused and very kid-centric.  This focus makes added sense given that some of the original guest feedback Universal Studios Singapore received suggested there was not enough for kids to do at the park.

And I can tell you, MAD is a huge hit with the kids.  On my monorail ride to the island yesterday and it was jammed packed with groups of kids talking about Madagascar, eager to experience the ride. 

I think one of the other unfortunate challenges we face is that it will be difficult for the vast majority of theme parks fans to experience this Madagascar ride first hand given its location (although let me say that if you EVER get a chance to visit Singapore you should jump at it because it’s a fabulous destination…more on that in a future post).  My hope is that at some point in the future the attraction debuts in the U.S. so all the MAD fans can enjoy it.

That’s all for now from this side of the world.  Thanks for reading and if you get the opportunity to ride Madagascar: A Crate Adventure for yourself, drop me a line and let me know what you think!

Related: Euro Disney 2011 First Half Results: Revenues Up and Increased Capex / Walt Disney's CEO Discusses Q2 2011 Results - Earnings Call Transcript / The Walt Disney Company Reports Second Quarter Earnings / EuroDisney’s Strategy to 2030: Doubling Capacity and Eco Tourism / OLC's 2013 Strategic Plan: Bringing Happiness / Pigs in Pythons: Capex at Disney and Universal

Adversely affecting results were:

• Lower operating income at Disney Cruise Line due to increased costs associated with the launch of the new cruise ship, the Disney Dream, in January 2011 and higher fuel and other operating costs for the existing fleet, which offset higher passenger cruise days.
• The earthquake and tsunami in Japan resulted in a temporary suspension of operations at Tokyo Disney Resort and therefore a loss of royalties.   [Oriental Land Co Ltd  full year results to 31 March 2011 came in 5% lower on operating income than the February 2011 forecast and an extraordinary loss of ¥10bn was recorded.]
• The timing of the Easter holiday meant that the current quarter included one week less of the Easter break than 2010.  The effect of this was wipe out a potential 2% increase in domestic attendance figures which remained flat compared to the prior period.

On the upside, Disneyland Paris and Hong Kong Disneyland Resort reported higher attendance and hotel occupancy, and there was higher guest spending at Hong Kong Disneyland Resort.   Also domestic performance showed a 6% rise in per capita guest spending driven by higher pricing and lower discounting.

Capex was significantly up on the previous period (Six months ended 2 April 2011: $1.5bn, Six months ended 3 April2010: $0.6bn) mainly due to the final payment for the Disney Dream.  For Euro Disney there was good news: because performance objectives have been met, lenders have agreed to an increase in the capex budget. [See Euro Disney 2011 First Half Results: Revenues Up and Increased Capex]

In the May 10th Q2 earnings call Bob Iger, Disney's President and Chief Executive Officer,  said, “While the spotlights shine brightly on Shanghai this quarter, work has continued on some other important parks and resorts initiatives. Crews are putting the finishing touches on Aulani, our Resort & Spa in Hawaii, which will welcome its first guests this August. Construction also continues on the expansion of Fantasyland at Magic Kingdom in Florida, which will more than double the size of 1 of Walt Disney World's most popular lands.

And on the other side of the globe, shipbuilders in Papenburg, Germany continue to make progress on the Disney Fantasy, the sister ship to the Disney Dream, which will begin sailing in the spring of 2012. Disney Cruise Line also announced new 2012 itineraries that will enable us to bring the Disney Cruise experience to more guests and more places and demand for our cruise product remains very high.

I'm also pleased to report the Tokyo Disney Resort is now open following closure due to the March 11 earthquake and tsunami in Japan. And following its best year ever with record attendance, Hong Kong Disneyland continues to post-strong attendance numbers this year as well. The multiyear expansion effort that will add 3 new theme lands is running ahead of schedule, and we look forward to welcoming guests to the first of these Toy Story Land later this fall.”

Image: Kind courtesy Disney

Related: A look at EuroDisney's 2010 results  / EuroDisney’s Strategy to 2030: Doubling Capacity and Eco Tourism /All the Disneyland Paris magic at your fingertips on your iPhone! / OLC's 2013 Strategic Plan: Bringing Happiness

Performance highlights for the six months to 31 March 2011 include:

• resort revenues up 6% to €548m
  
• attendance up 5% to 6.9 million
• hotel occupancy rates up from 79.6% to 83.4%
• average spending per room up 6% to €201
• EBITDA up from €8m to €25m
  
• Net loss reduced by 13% to €100m
  
• Scheduled debt repayment of €46m
  
• 2011 annual investment budget increased from €37m to €81m

Theme park attendance benefited from more visitors from France and Belgium offsetting a decline in guests from the Netherlands, while average spend per guest remained stable at around €43.  Hotel revenues were up as a result of an additional 40,000 additional hotel rooms sold compared to the prior period, and in addition, there was a higher spend on food and beverage as well as increased room rates.

Other revenues, which include sponsorships, were down by 23% to €19m, although some of this decrease was due to a legal settlement gain in 2010.

Cash

Operating cashflows at first glance look poor at €6m compared to €28m, however this is because the prior period benefited from a reclassification from working capital into long term debt when €25m of royalties and management fee payments were deferred.

Loans and Capex

Euro Disney have previously stated their intention to repay 25% of the €2billion debt by 2013, of which €123m of repayments are scheduled for 2011. In the first half €46m was repaid, leaving €77m for the rest of the year.

The good news is that as a result of improved performance Euro Disney has been permitted by their lenders to increase their annual investment budget, which includes both capex and "fixed assets rehabilitations".  A 3% cap of prior fiscal year’s adjusted consolidated revenues was imposed in 2010 when Euro Disney failed to meet objectives and had to defer royalty and management fee payments.  On 31 March 2011, the lenders agreed to an increase in the 2011 investment budget from €37m to €81m, and boost the 2012 investment budget up to 5% of prior fiscal year’s adjusted consolidated revenues. 

This is certainly going to be needed in order to realise Euro Disney’s strategy to 2013, which includes doubling theme parks and hotel capacity and developing the eco tourism project , Les Villages Nature de Val d’Europe.

CEO’s comments

Commenting on the results, Philippe Gas, Chief Executive Officer of Euro Disney S.A.S, said:

“As we head into our important second semester, we are encouraged to end the first semester with our fourth consecutive quarter of growth in Resort revenues. We increased our attendance by 5% while essentially maintaining guest spending in the parks, and also improved both hotel occupancy and guest spending per room.

We are encouraging our guests to book further in advance of their vacation by providing them with early-booker discounts and they are responding favorably. This has given us greater business visibility and allows us to better manage demand.

We continue to focus on delivering a high quality, unique Disney experience for our guests. We recently launched the Disney Magical Moments Festival, our new annual celebration. I would also like to recognise our Cast Members who are dedicated to bringing the Disney magic to life for our guests.”