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D'hauteserre 1997 DisneylandParisGrowth
D'hauteserre 1997 DisneylandParisGrowth
3, 17–33 (1997)
ABSTRACT INTRODUCTION
T
Disneyland Paris was located in the Francilian he arrival of the Magic Kingdom in the
landscape to increase the capital accumulation Francilian1 landscape ignited a vituper-
of the Walt Disney Company. It has settled ative press campaign by French
there permanently thanks, in part, to the intellectuals who stood adamantly opposed to
convention signed by the Company with the American cultural imperialism. It is the latest
French government who needed an economic (although only) international theme park ven-
growth pole in the Eastern part of the Paris ture by the Disney Company. Why did this
Basin. Disney accepted the partnership and its highly successful company, selling an American
constraints because it had ambitious real estate specific cultural product which would not
development plans. The French government, benefit from production cost reduction decide to
with its New Town policy was the only internationalize? It certainly would not reduce
European country that could provide such a labor costs as illustrated by the migration of
large acreage which it used to lever Disney’s European car factories to the United States, while
presence. © 1997 by John Wiley & Sons, Ltd. it would require major construction costs. Was
the prospect of a widened European market by
Received 30 January 1996; Accepted 3 July 1996 the time of the opening of Disneyland Paris in
Prog. Tourism Hospitality Res. 3, 17–33 (1997)
No. of Figures: 6 No. of Tables: 0 No. of Refs: 58 April 1992 the main incentive for a foreign foray,
and why? Was it established to act as an
Keywords: capital circuits; new towns; economic growth pole, complementing the
economic growth pole; landscape formation; French state’s policy of urban development of
public/private partnership the Eastern suburbs of Paris? Large theme parks,
like mega-events, promise potential economic
development of the areas they localize in. This
new geographic landscape was produced not
just by private capital, to be dismantled at
capital’s whim (Harvey, 1989), but by the syner-
gic action of several different agents. This paper
will demonstrate how the continued economic
success of Disneyland Paris is not simply just the
result of its capacity to create profits through its
consumption in a new locale, however semi-
otically explained, and/or the result of the
judicious choice of the localization of this cul-
tural capital circuit at the apex of European
accessibility. Its success is circumscribed by and
dependent on the French government’s develop-
CCC 1077–3509/97/010017–17 $17.50 © 1997 by John Wiley & Sons, Ltd.
18 A.-M. d’Hauteserre
ment strategies and judicial structures Capital (Harvey, 1989: 336). The domestication of fantasy
has had to negotiate with government the design in visual consumption is inseparable from cen-
of its commodified landscape, the continued tralized structures of economic power.
organization of which has also been subject to Disney-land Paris is a private instrumental space
pressures by its potential consumers. The con- designed for the efficient circulation of commod-
vergence of these agents guarantees that ities, which is itself a commodity produced for
Disneyland Paris will remain embedded in profit. Cultural capital may represent an
Marne-La-Vallée in spite of all the difficulties it infinitely more expandable resource for capital
has faced until now such as a financial restruc- accumulation than traditional investment capi-
turing in March 1994. tal, both for private companies and for
The paper will first discuss how different governments. Cultural capital is considered here
approaches to economic globalization explain as a form of economic capital invested in the
the Disney Company’s move to internationalize production of culture, rather than as symbolic
and how the choice of the site was based on more capital, a person’s or group’s knowledge. These
traditionally geographic reasons such as accessi- circuits of capital are not abstract notions, they
bility and availability of land. It will then are anchored in space where they create geo-
demonstrate how the Company’s designs to graphical landscapes. The company and its
ensure continued growth in the far future could imagineers have been pushed by investors to
only be accommodated by France with its New create more and more circuits. The Bass brothers
Town development strategy. This allowed the controlled nearly 25% of equity and so named
state to impose constraints on this private ven- Michael Eisner as the new company chairman in
ture to ensure that it would remain a permanent 1984, following other hostile takeover attempts
part of the Francilian landscape whose new because the company was not exploiting its full
design the company had to negotiate. The paper potential to create more circuits of capital (Wal-
will then show how Disneyland Paris is not the lace, 1985; Taylor, 1987). The company, in 1984,
white elephant that the French government was was already a powerful brand name with annual
accused of subsidizing but will continue to act as revenues of $1B. Disney’s profits had soared to
a major economic growth pole. $783M in 1989 and its revenues had reached
$8.5B in 1991 thanks to a very successful theme
CAUSES OF DISNEY COMPANY’S MOVE TO park in Japan, through enlarging the Orlando
INTERNATIONALIZE area and through other ventures. Its new direc-
tors wanted to capture more of the surplus value
The circuits of capital approach emphasizes the the name generated by entering the real estate
totally interconnected nature of finance, produc- business. They wanted to collect more than just
tion, commodity trade and consumption. royalties, as in Japan, to control more hotel
“Capitalism is a process of reproduction of social development (they own only a small portion in
life through commodity production. The laws of Orlando), and to draw in more potential custom-
capital circulation are consistent” (Harvey, 1989: ers. “They are banking on Eurodisney as the
343). The primary requisite of a capitalist econ- principal engine of Disney’s growth in the 90’s”
omy is a continuous circulation of capital. (Business Week, 1990). Disneyland Paris was
Jean-Paul Sartre had noticed already in 1945 that considered a major investment potential by 1984
“over and above greed, a genuine economic because of the worldwide shift in capitalism
principle motivates Americans: ‘Money is sup- from an emphasis on production to consump-
posed to circulate’ (Combat)”. As capital tion. The organization of consumption has just as
circulates it is transferred from one investment to important an effect on economic and social
another. It follows only one cardinal rule: that structure as the organization of production
value be increased. Competition has become (Lash, 1993; Zukin, 1991). Shopping, consuming
increasingly global. Disney Company, like all is the most important contemporary social activ-
TNCs is essentially a capitalist enterprise driven ity in North America (Levine, 1990; Williamson,
by profit. “The odd thing about postmodern 1986). The consumption landscape can be
cultural production is how much sheer profit viewed as a by-product of the changes in the
seeking is determinant in the first instance” distribution of income in the constant struggle of
Disneyland Paris 19
labor and capital over economic surplus. Con- use of these advantages, and location specific
sumption is also emphasized inside the parks. factors, all of which characterize the Disney
The Magic Kingdoms represent a fantasy land- Company if not always in the traditional man-
scape constructed around an entirely fictive ner. Disney’s ownership specific advantages
nexus based on a highly selective memory and reside in intangible assets,3 its perfected know-
mediated by mass consumption. In the United ledge in resort development, its ability to create
States “ . . . the Disney landscape has become a new imaginative visual consumption products,
model for establishing both the economic value its sophisticated imagineering skills, inscribed in
of cultural goods and the cultural value of its brand image. Disney’s pursuit of an inten-
consumer products” (Zukin, 1991: 231) and has tional accumulation of knowledge to respond to
legitimized investment in them. In the over- anticipated market conditions (for example, by
crowded market place (even or especially that of engineering new themes for consumption, since
theme parks - see Figure 2) imagery has become the company has vowed to forever renew its
increasingly critical as a way of attracting partic- parks, cf Flower, 1991: 186-8, 205-6, 279, 285)
ular publics and facilitating acts of requires an allocation of resources and invest-
consumption. ment of the same magnitude as for creating new
The decision to internationalize is a major technology. “Internalization of this knowledge
strategic decision. Disney was looking for econo- will require [Disney] to operate a network of
mies of scope and coordination (Dicken, 1992: [parks] on a world-wide basis” (Grossman &
143). Although the process of knowledge accu- Helpman, 1991: 82). The application of these
mulation obtained from locating in new markets skills is limited to theme park creation although
generates endogenously productivity gains that the idea has been replicated in other arenas of
can sustain long run growth, the company had to consumption: mega-malls, for example, seek to
“compare anticipated streams of monopoly attract and retain customers for the longest time
profits with expected costs of product reloca- by presenting Disney-like attractions. Steve
tion” (Grossman and Helpman, 1992: 335). The Wynn salutes Disney’s imagineering with his
innovative phase of its entertainment product pirate shows performed against the back drop of
(”Magic Kingdom”) required its location in a “Treasure Island” sidewalk decor in Las Vegas.
California, close to the movie and television Copy-cat theme parks have burgeoned too, like
studios its inception and survival depended on Busch Gardens.
(W. Disney in Schikel, 1968). As the product This socio-spatial complex of production can-
matured, the company reacted to the actions of not be geographically separated from its
major competitors. To prevent further entry by consumers. It has needed to locate (ie to move
competitors it developed the resort in Florida outside of the US to where the consumers are)
and licensed the “Magic Kingdom” to a Japanese this new form of consumption as well as to
company (Lanquar, 1992). The dynamic nature of localize its specific features (creating its own
economic and social processes finally led to the landscape within another cultural landscape,
direct penetration of foreign markets, penetra- both at a geographic site and in the business and
tion limited in Europe exclusively for the next consumption world). The very localized con-
ten years to its French site (Convention, 1987). sumption space offered by its theme parks
Disney Company developed a globally inte- limited its possibility for expansion. Disney
grated competitive strategy to focus on its needed to serve new markets in different loca-
knowhow in resort development which had tions directly even though the product is
taken it thirty years to develop and refine and virtually identical. Marginal increases in num-
which would differentiate it from its com- bers of visitors would have been minimal even if
petitors. In North America, Disneyworld had the parks in the United States were enlarged (this
remained the most frequented tourist site, as of was one of the main reasons for Disney’s original
1995. Las Vegas is disputing this ranking today.2 move to Florida). The potential number of
Dunning (1980, 1991) indicates that, at the tourists from Europe would not increase either
micro (firm specific) level, to internationalize, much above the 2 million now visiting the theme
companies need to fulfill three conditions: own- parks in the United States, considering the slow
ership specific advantages, internalization of the growth of European population and of its
20 A.-M. d’Hauteserre
wealth. Time and cost space convergence have tion. Four groups of tourists have been identified
not been significant enough at the international in Europe: 52% still travel to attractive coastlines
level for pleasure travelling and it has not in warmer climes, 13% buy tourist packages, 25%
dissolved the psychic distance (language barrier prefer rural tourism and the rest practice urban
for travelling to the United States, if not inside tourism (Shaw & Williams, 1990: 241). It founded
the Disney theme parks). its strategy on the notion that new consumption
practices can take place anywhere and are
eminently transportable. The company wanted
GEOGRAPHIC REASONS FOR CHOOSING A to insure that it would remain the industry
LOCATION IN EUROPE AND A FRANCILIAN leader while it captured more of the world’s
SITE market share and augmented the size of the firm
(Grover, 1991). Their target, for some sectors, is
The Disney Company has mentioned two major up to a 20% yearly increase (Lanquar, 1992: 73).
reasons, or more traditional location specific Long holidays occur over the summer months
factors (Euro Disney SCA, 1992). It can draw on whereas shorter trips (their targeted travel niche)
350 million customers (almost one and a half are taken year round. In 1985, more than 19%
times the size of the population of the United had taken a second holiday in the European
States) over an area half its size (Figure 1). Such community, 27% in France. Unfortunately, that
a geographic move was to enable it to take kind of travelling could not maintain its early
advantage of the growth of short break holidays fast growth: it had increased 10% yearly in Great
in Europe, together with the growth in numbers Britain between 1976 and 1985. France was also
and sophistication of tourists while finding its then the European leader in international confer-
niche in the increasing tourist market segmenta- ences (Shaw & Williams, 1990: 242). The
Figure 4. Master plan for Eurodisney Resort. Source: EPAMarne, Projet d’Interet
General 16 Mars 1987
Disneyland Paris 25
Figure 5. The general urban plan of the Seine Valley. Source: G. I. E. Villes
Nouvelles, Twenty Five Years of French New Towns
as revealed by its name “Val d’Europe”. This tions to occupy another 200,000m2.
objective was based on improvements in trans- (EPAMarne/EPAFrance, 1994; Boyer, 1994)
port systems that would restore freedom of By attracting large numbers of tourists, Dis-
choice to town dwellers, provide access to the neyland Paris will act as an investment magnet
labour force and offer distribution networks for on other circuits of capital, based on the provi-
businesses. Transportation has been a key to new sion of hotels, tourist and leisure facilities, and
town development from its inception. The exist- office buildings, that the French government will
ing transport network is capable of draining channel precisely through its new town of Marne
towards Disneyland Paris all those millions of La Vallée and as per the 173 page accord signed
anticipated visitors (Figure 3). All main commu- by the two on March 24 1987 after 27 months of
nication routes in Europe or within France arduous negotiations The complete document
converge towards this area. Even if the Magic with its appendices totals more than 400 pages
Kingdom were to fail (close its doors), these (Convention, 1987). Results in real estate values
transport improvements would remain as the remain way below predictions because Europe
basis for attracting other private investors to an has been mired in an economic recession since
area that has always been designated for urban the opening of the park. Although the French
growth. Continuous urbanization from the other government seems to have given in to Disney
three sectors had been planned for this area, for Company’s demands (Grover, 1991), for example
some indefinite time in the future. The park only by agreeing to an international rather than a
accelerated the process. There are two main French court to settle disagreements, the detailed
themes to the development of Marne-La-Vallée contract attributes obligations to both sides. The
as a new town. One is an office complex ten French government spent 2.7 billion FF to pro-
kilometers from Paris, with direct links to the vide first rate transportation links, but it has
capital. The other is the complex of Val d’Europe meant added jobs for the area (4500 for the rail
centered around Disneyland, one of its featured line, 1300 for the RER). Disney Company must,
attractions, with a large number of offices serv- in turn, guarantee a minimum number of rides
ing as headquarters for Disney in Europe for the Régie Autonome des Transports Parisiens
(100,000m2) that should attract other office func- (RATP) on the extended regional metro (RER) A
26 A.-M. d’Hauteserre
line, or pay for the difference (Convention 1987, both commercial and financial functions. It is
Article 11). A detailed program of development established by government decree and has pow-
of the land offered to Disney schedules each step. ers of pre-emptive and compulsory purchase, as
It was not given all 1945 hectares to speculate well as legal and financial autonomy. It can thus
with at will, contrary to some press accounts function as developer in the new town, while it
(Business Week, 1990; Smadja, 1988). Disney also represents the government. Communication
Company spent only 500MFF to acquire the land remains remarkably static free between this
necessary for its first theme park (covering the private company and French authorities, thanks
costs of the infrastructure provided with the to the single government voice and thanks to the
land) but it led to private investments of 10BFF detailed blueprint that indicates who does what,
(Lanquar, 1992: 109). Other major projects, such when, and how (Convention, 1987). The com-
as an international soccer stadium and centres of pany also underlines the importance of
higher learning, are being erected in the area, continuity on the French side, adhered to
encouraged in part by the presence of Disney- through the years, since the first negotiations in
land in Paris (Boyer, 1994). 1985, by the French government in spite of
Disney Company also appreciated dealing political changes at the helm (Rencontres, 1992:
with one main negotiating team, the EPA (Eta- 100).
blissement Public d’Aménagement), whose The French state did require that this develop-
existence was permitted by the new town judi- ment occur within guidelines set up in a “Projet
cial structure (Rencontres, 1992: 99–122). This is a d’lnteret General” (EPAMarne, 1987, Limery,
public development corporation which fulfills 1996) that seeks to insure a coherent approach