Tokyo Disneyland operator announces ¥330 billion/US$2B cruise venture

   December 16, 2024 ,   Cruise Industry

Oriental Land, the operator of Tokyo Disneyland and DisneySea, has announced plans to enter the cruise industry as part of a strategy to sustain medium- to long-term growth.

The move comes after decades of development in the Maihama coastal area of Urayasu (Chiba Prefecture) where the company has largely exhausted opportunities for further park expansion.

The cruise initiative is intended to diversify revenue streams, reducing Oriental Land's reliance on its Maihama-based theme parks and hotels. The company aims to cultivate a distinctly Japanese cruise culture, aligning with its reputation for immersive, family-friendly entertainment.

Oriental Land plans to invest ~¥330 billion (~US$2 billion) in the cruise business, with operations slated to begin in fiscal 2028. The planned vessel will be Japan’s largest cruise ship, weighing around 140,000 tons and accommodating about 4,000 passengers. The design will emulate an "offshore theme park," featuring a musical theater, character-driven dining experiences, bars, beauty salons, and other amenities inspired by DCL-Disney Cruise Line’s ship Disney Wish.

Cruises will range from 2 to 4 nights, with Tokyo Port as the primary departure and arrival hub.

Oriental Land's move comes amid a resurgence in global cruise tourism. According to Japan's tourism ministry, the number of global cruise passengers surpassed 30 million in 2023, exceeding pre-pandemic levels. In Japan, cruise passenger numbers surged 4.4 times from the previous year to 196,000 in 2023, with new cruise ships entering the market.

Historically, cruise demand in Japan has been driven by affluent older adults, but Oriental Land intends to broaden the appeal by targeting younger travelers and families - the core demographic of Tokyo Disney Resort.

To attract this audience, cruises will be priced between ¥100,000 (~US$650) and ¥300,000 (~US$1,953), making them more accessible than traditional cruise offerings in Japan.

The cruise ship project aligns with Oriental Land’s focus on immersive experiences, offering a seamless journey with minimal travel and waiting times. The company hopes to replicate its theme park success by using onboard entertainment as a central draw.

This initiative also addresses the company’s need for new growth avenues.

While Tokyo Disneyland and DisneySea recently expanded with the ¥320 billion (~US$2,1 billion) "Fantasy Springs" area, the parks have reached their physical limits, covering a combined 1.12 km2.

With the launch of its cruise operations, Oriental Land aims to capture a growing segment of the leisure market while introducing a new chapter in Japanese cruise tourism.